ASEAN-US
The 12th ASEAN-US Dialogue was held in
Washington D.C. in May 1994. At this Meeting
both sides emphasized the importance of the Dialogue
process as a key element in ASEAN-US
relations, recognizing the breadth of their links and
the areas where they can work in partnership. The
important role of the Dialogue in discussing
economic and political issues of common interest
was also underlined.
At the Dialogue Meeting, the US reiterated that
the primary vehicles for development cooperation
would be the Private Investment and Trade
Opportunities (PITO) Project and the Environment
Improvement Project (EIP), which began in 1989
and 1991, respectively. The US indicated that
environmental issues offered some of the best
opportunities for cooperation between ASEAN and
the US. The EIP was designed to respond to the
growing concern in ASEAN Member Countries
that without proper environmental management,
economic development would not progress. The
objective of the EIP is to create a decision-
making environment in which business will take
the necessary steps on its own initiative to prevent
or reduce pollution through adoption of cleaner
production technology and procedures. The EIP
seeks to achieve this objective through actions in
three areas: policy and institutional development,
technology transfer and training, and technology
communications and investment promotion. Some
activities in these areas have already commenced
under the work plan. By way of expanding
cooperation in technology exchange, energy
training and management, and harmonization of
environmental standards, the US indicated at the
12th Dialogue Meeting that the EIP would eventually
be incorporated into the US-Asia Environmental
Partnership (AEP).
Significant progress has been achieved through
the successful implementation of the PITO Project.
It has provided benefits to ASEAN and US firms
through increased trade and more investment
activities in the region. As the funding for the PITO
Project is due to end in June 1995, the project will
continue on a self-sustaining basis. While
agreeing to a joint evaluation of PITO activities
with ASEAN, the US has indicated that the infra-
structure already set up for the PITO Project could
be used for the proposed Alliance for Mutual
Growth (AMG).
The Alliance for Mutual Growth is an initiative
of the US designed to harness human, financial,
government and private sector resources to
create business opportunities between the two regions
and to create the foundation for long-term
expansion of trade and commercial ties. The six
areas under the AMG that have been agreed upon
are human resources, infrastructure, small and
medium enterprises, standards, technology and
trade promotion. ASEAN and the US are now
finalizing a mutual understanding on the form and
modalities of the AMG.
The issue of promoting people to people
contacts under the development cooperation
programme was raised again as ASEAN believes
that increased contacts between the peoples of
ASEAN and the US will promote better understanding
of each other's sensitivities and deep-seated
values. The US has suggested that ASEAN work
with the United States Information Agency (USIA)
to develop programmes in this area.
The private sector has continued to play an
important role in ASEAN-US relations and participated
actively in the economic discussion at
the 12th ASEAN-US Dialogue Meeting. During
this meeting the ASEAN private sector voiced its
concern over the decline of US investments in
ASEAN and urged the US government to tae effective
steps to continue to remove trade barriers.
On the other hand, the US private sector stressed
the importance of the Uruguay Round, the need to
get more US firms interested in ASEAN, and the
need for ASEAN governments to continue to lower
tariffs and non-tariff barriers. Both the ASEAN
and US private sectors supported the renewal of
non-conditional GSP on a longer-lasting basis and
called on the US Government not to link trade
issues to social issues.
ASEAN also continues to be concerned over
US policies on anti-dumping and countervailing
policies, anti-circumvention practices, and Super
and Special 301. ASEAN has sought US
cooperation in extending the GSP, and requested
that the US should not allow issues relating to
workers rights, intellectual property rights (IPR)
and other conditions to obstruct the extension. The
US has stated that although the US Congress wants
IPR and workers rights provisions in the GSP
legislation, the US was committed to working with
GSP beneficiaries to resolve the problems.
US investments in the ASEAN region have
been increasing, but at lower rates over the last
several years. At the 12th Dialogue Meeting,
ASEAN took the opportunity to point out the
greater opportunities for investment in ASEAN
arising from the liberalization of investment policies,
implementation of AFTA, and development
of sub-regional growth areas. The US has stated
that it regarded foreign direct investment as an
important form of cooperation with ASEAN and
that the US would actively be involved in promoting
an environment of stability and more liberal
rules to increase the US investments in ASEAN.