OVERVIEW

The year 1990-1991 witnessed ' a wide range of ASEAN activities undertaken not only to consolidate the success of the Third Meeting of the ASEAN Heads of Government in Manila in December 1987 but also to explore new ways and means to strengthen intra-ASEAN cooperation as well as ASEAN relations with third countries and international/regional organizations. These activities reflected the readiness of ASEAN to take appropriate measures to cope with the fast changing political and economic environment within and outside the region.

2 On the overall ASEAN economic cooperation, the ASEAN Committees concerned have been active in studying possible new- measures to strengthen intra-ASEAN economic, cooperation. Efforts have been spent on promoting greater flow of trade and investment among member countries by giving greater incentives and reducing present barriers. The Twenty-Second Meeting of the ASEAN Economic Ministers (AEM) in Bali on 29-30 October 1990 reviewed the current economic cooperation and set out the tasks to be performed by the authorities concerned. These tasks were designed to strengthen the existing schemes and arrangements as well as prepare ASEAN for the 1990's and beyond.

3 The member countries have sanctioned various studies with the view to obtaining alternative inputs to those of the ASEAN bodies in charting the future course of ASEAN. Notable among the studies are the UNDP-Assisted Study on ASEAN Economic Cooperation for the 1990s and the work of the Panel of the Five Eminent Persons.

4 The strengthening of the ASEAN Secretariat has been a major focus for considerable time, as the member countries perceived that the effectiveness and efficiency of ASEAN itself could be enhanced by the realistic improvement to the resources and the organizational structure of its central administrative organ, namely, the ASEAN Secretariat. Possible recommendations, when finalized, are expected to be submitted to the Fourth Meeting of ASEAN Heads of Government scheduled for- early 1992 in Singapore.

5 In the Dialogue relations, the participation of the private sector in the Dialogue process has become a well-established hallmark. ASEAN has also looked into possibility of having relations with China, the Soviet Union, and India in response to their approaches for the establishment of relations with ASEAN as a whole. The ASEAN Standing Committee also sought to further strengthen the Dialogue process by proposing arrangements which would render the Post Ministerial Conferences (PMC) more dynamic and fruitful. On the relations with other groupings in the Pacific region, the Secretary- General of the ASEAN Secretariat visited the Forum Secretariat in November 1990 to strengthen the relations at the secretariat level. Moreover, ASEAN has been giving a serious thought to both the form and substance of all the Dialogue relations so as to make them relevant to not only ASEAN's needs but also its perceived role within and outside the region.

6 ASEAN member countries have been participating in the Asia-Pacific Economic Cooperation (APEC) process which culminated in the APEC Ministerial Meeting in Singapore on 29-31 July 1990. All the participants affirmed their commitment to work for the early success of the Uruguay Round of Multilateral Trade Negotiations.

7 As far as political cooperation is concerned, ASEAN's search for a comprehensive political settlement to the Cambodia problem showed a remarkable progress during the past year. Indonesia as the co-chairman of the Paris Conference took an active role in organizing meetings between the four Cambodian factions in Jakarta. The Jakarta Informal Meeting on 10 September 1990 was an important landmark since the Cambodian parties agreed to the New York Framework in its entirely as the basis for settling the Cambodian conflict and to the establishment of the Supreme National Council (SNC). Although the Cambodian parties did agree on the core elements of a negotiated settlement, several necessary elements remained contentious issues, thus delaying the functioning of the SNC. The difficulty seemed to partly abated with the recent meeting of the four Cambodian factions in Pattaya, Thailand on 24-26 June 1991, as they could agree on some key elements paving the way for the effective functioning of the SNC and the implementation of the New York Framework itself.

8 The problem of lndochinese asylum- seekers still remains a matter of deep concern, as efforts to implement the comprehensive plan of action (CPA) at the UN International Conference on lndochinese refugees in Geneva in June 1989 have yet to yield any durable solution. More will have to be done to achieve the balanced and coordinated implementation of the CPA.

9 In short, the year 1990-1991 is eventful as evident from the works of the various ASEAN bodies and the wide-ranging topics considered by the 24th ASEAN Standing Committee. These are highlighted as follows :-


Cooperation in Finance and Banking

10 In the fields of finance and banking, member countries which have foreign exchange controls continued their efforts to further liberalize their respective controls. The use of ASEAN currencies as settlement currencies is also on the increase. As far as the ASEAN-Japan Development Fund (AJDF) is concerned, loans were made to Indonesia and Malaysia for the country projects, but no loan has been made yet for ASEAN regional projects. Since the AJDF would expire in 1991, the 22nd AEM agreed that it should be extended for another 3 years.

11 The ASEAN Customs authorities have focused their attention on simplifying and harmonizing the Customs Nomenclature, documents and procedures. They would also review the ASEAN Customs Code of Conduct of 1983 in line with the changing circumstances and closely consult on their role in facilitating the implementation of the ASEAN PTA.

12 Close consultations have been undertaken by the authorities concerned on problems and measures in collecting taxes from foreign contracts. There is also an ongoing exchange of views amongst ASEAN Tax Authorities on the Value Added Tax (VAT) System.

13 Exchange of information on insurance statistics has grown from strength to strength. The ASEAN Reinsurance Corporation continued to progress in its activities. Member countries have also exchanged information and experiences on ASEAN insurance laws. The 22nd AEM further boosted ASEAN Collaboration in insurance by agreeing on priority areas for future cooperation.


Cooperation in Food, Agriculture and Forestry

14 COFAF and its subsidiary bodies have made further progress in promoting the development of food, agriculture and forestry sectors in the ASEAN region. In livestock development, ASEAN has successfully eradicated foot and mouth disease (FMD) in many parts of the region and these areas have been declared FMD free. Such achievement has contributed significantly to greater market access of ASEAN's animal products. Considerable efforts have also been directed to the development of ASEAN Standard of Vaccine. To counter the Anti-Tropical Timber Campaign, ASEAN has effectively dispatched a Ministerial Mission to Europe to convince the EC of ASEAN's concern on the environment, its contribution to global efforts to protect resources and the environment, and its commitments to forest management for sustainable development. In this regard, a joint communiqu� between ASEAN and EC was signed in which the EC had agreed to provide financial and technical assistance to ASEAN in the area of tropical forest. Recognizing the need to develop a stronger and more efficient food security system in the entire ASEAN region, COFAF has agreed to commission a study to be undertaken on ASEAN Food Security Reserve.


Cooperation in Industry, Minerals and Energy

15 Stressing the need for ASEAN Industrial cooperation to yield more concrete results in terms of increasing intra-ASEAN investments, the ASEAN Economic Ministers have agreed on several measures that are aimed at further strengthening existing ASEAN economic co- operation. The Economic Ministers have, for example, agreed to make the AIJV scheme more attractive to investors by relaxing the required ASEAN equity, providing greater accessibility for the production of AIJVs by investors and by extending more attractive tariff preferences on AIJV products. The Economic Ministers have also adopted the concept of a common effective preferential tariff on selected industrial products as a new scheme to facilitate the free flow of goods within ASEAN and thereby further increase intra-ASEAN trade and investments.

16 In the field of energy, the ASEAN Economic Ministers on Energy Cooperation have approved a Programme of Action for the Enhancement of ASEAN Cooperation in Energy (PAECE). The Programme of Action seeks to enhance co- operation in the field of energy including energy planning, exchange of information, transfer of technology, research and development, man- power training, conservation and efficiency and the exploration, production and supply of energy resources. The Programme of Action should serve as the basis for formulating energy projects for ASEAN cooperation. Cooperation in Transportation and Communication

17 In general, cooperation in transportation and communications have been going on smoothly, although there is general concern over the unsatisfactory progress in the implementation of some projects and activities.

18 In the areas of shipping, several problems were encountered. The Brokers Telegraph System (BTS) has not been established because of poor response from both shippers and ship- owners. The Inter-ASEAN Bulk Pool System is not feasible without government incentives. The establishment of Freight Booking and Cargo Consolidation Centres is also not implemented.

19 Promising progress was made in the area of telecommunications, especially on the implementation of the projects on Radio Paging Services in ASEAN Countries and Regional C7 Signaling Plan without external assistance. The ASEAN Optical Fibre Submarine Cable Network is expected to be completed on schedule. Several other efforts are also planned to modernize telecommunications services in ASEAN.

20 In the area of civil aviation, the Centres of Excellence have been progressing well, although some form of coordination is required to provide the focus of training and to ensure the complementarity of objectives among these institutions.

21 In response to the call for bold and innovative approaches and the need to seek fresh mandate from the coming Fourth Summit, the Committee on Transportation and Communications (COTAC) has established a Review Committee to review the projects and activities under its purview, reconcretize its programme and activities, and formulate a visible programme and action for more substantive and meaningful cooperation for the 1990s and beyond. Existing Agreements in the area of transportation will also be examined and evaluated with a view to bringing them abreast with latest developments.


Cooperation in Trade and Tourism

22 The pace of implementation of the PTA has been substantially improved. The 1990 Programmes have been implemented by all member countries. As a result, the total number of PTA items rose to 15,295. Some have already implemented the 1991 Programmes. Concurrently, member countries are phasing in those items which were left unclassified in either the PTA or the Exclusion Lists into the PTA.

23 Measures to improve intra-ASEAN trade have been or are being implemented such as the endorsement of the 22nd AEM on the list of chemical products eligible for a reduction of ASEAN content requirement, the publication of the Exclusion Lists, and the updating of PTA statistics. Progress has also been made by individual member countries to further liberalize their trade regimes. A number of Non-Tariff Barriers (NTBS) have continuously been removed unilaterally.

24 On intra-ASEAN cooperation in commodities, ASEAN has focused its efforts to implement the 8 points initiative adopted by the Third ASEAN Summit, particularly on the development of resource based industries and joint marketing efforts.

25 In the area of international commodity issues, ASEAN has intensified cooperation efforts to resolve global economic issues affecting trade in commodities, particularly, the growing protectionism, unfair trade practices, campaign against tropical timber and vegetable oil, farm subsidies, and better market access for processed products.

26 ASEAN has also been actively pursuing joint efforts in various for including the Uruguay Round of Multilateral Trade Negotiations (URMTNs). ASEAN has been working for an early and successful conclusion of the Uruguay Round.

27 In the area of bilateral trade relations with its major trading partners, ASEAN has submitted several memoranda on trade and commercial cooperation and on commodities at the Dialogue Meetings. These memoranda point out the impediments to the expansion of two-way trade, GSP, NTBs and other specific barriers faced by ASEAN exporters in these markets. A varying degree of success has been achieved. In this process, the private sector participation in ASEAN Meetings has proved to be increasingly useful.

28 ASEAN has been particularly successful in its tourism cooperation as seen from the outcome of the ASEAN Tourism Forum (ATF'91) held in Bandung, Indonesia in January 1991. At that event, the Visit ASEAN Year 1992 (VAY '92) campaign was officially launched by the ASEAN Heads of National Tourism Organizations (NTOS) who also convened their 9th Meeting to discuss future directions of ASEAN tourism.

29 The year 1992 promised to be an exciting year for ASEAN tourism. The campaign to promote VAY '92 is on course as scheduled. It has received excellent support from ASEANTA, ASEAN National Carriers as well as the various entities of the private sectors. The ASEAN Tourism Information Centre (ATIC) in Kuala Lumpur has played an instrumental role in implementing the campaign activities as well as other tourism projects.


Cooperation in Science and Technology

30 ASEAN has benefited by the various achievements of the Committee on Science and Technology (COST). Guided by the Plan of Action and the role of the ASEAN Science Fund, COST focuses its development programmes and research efforts on greater private sector participation, high technology development and commercialization of products and processes. The Third ASEAN Science and Technology Week will also highlight the commercial potential of ASEAN's products and technology and the business opportunities' in ASEAN through Conferences and Exhibition planned for the week. This change in policy marks the transition in development objectives from human resource development, expert assistance and equipment acquisition, to an early phase of improved management of science and technology cooperation, technology transfer, commercialization of R & D results and the development of intellectual property rights.

31 In meteorology and geophysics, an approach to develop the present weather prediction capability is being undertaken. In microelectronics, design capabilities were improved upon and the network among de- signers in ASEAN will provide opportunities in securing a significant share in world electronic market. Key R&D activities undertaken in the fields of biotechnology, non-conventional energy, food science and technology, marine sciences, materials science and technology, and microelectronics currently being pursued with intensity and dedication will contribute significantly to the enhancement of ASEAN's capability in S&T.


Cooperation in Culture and Information

32 For the promotion of regional cooperation in the fields of culture and information, the ASEAN-COCI oversaw the implementation of the 1990-1991 programme budgeted at US$2.3 million and earmarked some US$2.1 million for the 1991-1992 programme. These programmes consist of projects generated by 4 Working Groups in the areas of (1) Literary and ASEAN Studies, (2) Visual and Performing Arts, (3) Radio/Television and Films/Video and (4) Print and Interpersonal Media.


Cooperation in Social Development

33 The ASEAN Committee on Social Development (COSD) continued to monitor the various activities under its purview i.e. on matters related to youth, health and nutrition, woman, population, labour, education and natural disaster, while the subcommittees in these sector met to develop new activities and projects.

34 The Chairmanship of the COSD rotated to Singapore in January 1991 after having been with the Philippines from 1988-1990. On 1 January 1991, the ASEAN Secretariat assumed the function of the COSD - ITS as decided by the ASEAN Standing Committee.

35 On the establishment of the ASEAN Social Development Fund (ASDF), there was no positive response from Japan to utilize part of the ASEAN Cultural Fund (ACF) as "seed money" for the ASDF.

36 The 16th Meeting of the COSD is scheduled to be in September 1991 in Singapore.


Cooperation in Drugs and Narcotics Control

37 The 13th Meeting of ASEAN Senior Officials on Drug Matters (ASOD) was held in Bandar Seri Begawan in September 1990. The Meeting expressed concern on drug prevention and control projects which were approved by ASOD and endorsed by the ASEAN Standing, Committee but were not yet implemented. Considering the negative effects this situation may have particularly on the drug prevention efforts in the region, the Meeting agreed that all the preventive education projects be in- corporated into an ASEAN 3-Year Plan of Action on Drug Prevention Education. The Philippines was assigned with this responsibility.

38 The ASOD also continued to monitor the implementation of the UNDP-funded ASEAN Narcotics Law Enforcement Workshop and Training Courses in Bangkok and the EC-funded ASEAN Research and Training Centre for the Detection of Drugs in Body Fluids in Singapore.


Cooperation in Environment

39 The Declaration of the "Kuala Lumpur Accord on Environment and Development" by ASEAN Ministers on the Environment at the 4th Meeting on the Environment on 19th June 1990 reiterated ASEAN's determination to pursue the goal of sustainable development. The ASEAN Senior Officials on the Environment (ASOEN) was launched at the Meeting. Assigned the challenging task of implementing the provisions of the Accord, ASOEN established six working groups on Nature Conservation, ASEAN Seas and Marine Environment, Transboundary Pollution, Environmental Management, Environmental Information, Public Awareness and Education to undertake research programmes in their respective fields of activities on Environment and Development.

40 The immediate and urgent task facing ASOEN is in dealing with international environmental concerns and ensuring that international agreements and decisions to resolve the many environmental problems do not impede development efforts or place undue obligations on ASEAN countries. Efforts are now directed towards the strengthening of ASEAN cooperation on environment and formulating of joint ASEAN stand on global environmental issues.


ASEAN Cooperation in Civil Service Matters

41 The ASEAN Conference on Civil Service Matters (ACCSM) have been active in formulating projects to further promote its area of ASEAN Cooperation. Its next meeting will be In Brunei Darussalam in September 1991 with the emphasis on the course of actions for the year 2000 and beyond.


ASEAN - Australia

42 The 14th ASEAN-Australia Forum, Canberra, 22-23 April 1991 highlighted the co-operative efforts of both sides in developing regional projects and activities in new areas of cooperation on environment, telecommunications, education and training. Several projects in those fields were thoroughly explored.

43 The hallmark of the ASEAN-Australia Dialogue is the active participation of the private sectors of both sides at the 14th ASEAN-Australia Forum, contributing inputs for the promotion of trade and investment. And in tune with the concept of sustainable development, there was a strong movement to encourage the ASEAN-Australia Business Council to play a role in finding solution to environmental problems.


ASEAN - Canada

44. There were some important developments in the ASEAN-Canada Dialogue relationship. In October 1990, a Special ASEAN-Canada Ministerial Meeting was held in Jasper, Canada. The Meeting was also attended by senior officials and the members of the private sectors of both sides.

45 The establishment of the Canada-ASEAN Centre in Singapore and the appointment of a full-time Executive Director of the Centre in mid- 1990 fostered cooperation between the private sectors of both sides.

46 The period under study also saw the continued implementation of the various activities under the short-term component of the Regional Training Programme (RTP) as well as other projects under the ASEAN-Canada Development Cooperation Programme.


ASEAN - EC

47 During the period under review, the relations between ASEAN and the EC have registered continuous progress in the areas of commercial, economic and development cooperation. The Ninth Meeting of ASEAN-EC JCC held on 20-22 February 1991 in Kuala Lumpur, Malaysia, recognized that more would need to be done to further promote the dynamic relationship which has seen much improvement in terms of trade. The recommendations of the JCC were endorsed by the 9th ASEAN-EC Ministerial Meeting, Luxembourg, 30-31 May 1991 which issued the Joint Declaration stating the common positions on both sides on a broad range of international political and economic issues as well as the bilateral issues. To cope with the changing priorities and circumstances, the AEMM agreed to review the ASEAN-EC Co- operation Agreement. The ASEAN-EC Ministers on economic matters also met for the 2nd time on 1 June 1991 and reaffirmed the commitment to work for an early and successful conclusion to the Uruguay Round.


ASEAN-Japan

48 The ASEAN-Japan Forum saw the participation of the private sectors of ASEAN and Japan for the first time in the dialogue process. The private sectors submitted a set of recommendations on many important concerns affecting trade and investment between ASEAN and Japan for both sides to address.

49 On development cooperation, ASEAN and Japan agreed on the need to adopt a hew approach in the consideration of projects in this field to enhance cooperative efforts in the implementation of such projects.

50 Brunei Darussalam had also acceded to the Agreement Establishing the ASEAN Promotion Centre and Trade, Investment and Tourism (APC). The APC serves as an important mechanism in promoting ASEAN-Japan cooperation in trade, investment and tourism.


ASEAN-New Zealand

51 New Zealand is the first dialogue partner to respond positively to ASEAN's request for contribution to the ASEAN Science Fund. ASEAN also invited New Zealand to participate in the Third ASEAN Science and Technology Week, Singapore 1992 and the Fourth ASIAN Food Conference, Jakarta 1992.

52 The Inter-institutional Linkages Programme (IILP) and the Trade and Investment Promotion Programme (TIPP), have received active support from New Zealand with the view to accelerating the early implementation of the agreed projects. The IILP would facilitate the transfer of skills and technology. The TIPP designed to promote trade and investment, has incorporated a novel feature namely, the inclusion of project proposals from the ASEAN-New Zealand Business Council


ASEAN- US

53 Improvements were made to the structure and substance of the ASEAN-US Dialogue relations. The Dialogue meetings have been enabled to effectively discuss broad issues on policy level. Subsequently, specific economic and technical details of the economic discussions will be handled by the Economic Coordinating Committee in Washington. The private sector was also given ample opportunity to air their views on bilateral economic relations in an open and frank environment constraints during dialogue meetings.

UNDP

54 The period under review was the beginning of the final phase of the ASEAN - UNDP 4th Inter- Country Programme (ICP 1987-1991). The same period was also characterized by intensified efforts in the preparations for the ASEAN-UNDP 5th Inter-Country Programme (1992-1997). Marking this transition period was a study conducted by the Virata-Naya team which provided a comprehensive review of the current ASEAN-UNDP technical cooperation and offered recommendations which became the basis of the programming exercise for the 5th cycle.

ASEAN - ROK

55 Substantial progress has been registered in the relations between ASEAN and Republic of Korea (ROK) since the establishment of the ASEAN-ROK Sectoral Dialogue Relations in November 1989. The cooperation projects which were agreed at the First Meeting of the ASEAN- ROK JSCC in August 1990 including ASEAN Week in Seoul were successfully completed. The Second Meeting of the ASEAN-ROK JSCC held in June 1991 agreed for the expansion of the ASEAN-ROK Cooperation to include development cooperation, transfer of technology and Human Resources Development (HRD) in addition to trade, investment and tourism.