Executive Summary

The year 1994 was a period of consolidation for ASEAN. Two years after the Summit in 1992, Member Countries have begun to transform specific cooperation initiatives into concrete plans of action in various fields. Regional political and security cooperation has been enhanced at the intra-ASEAN and Asia-,Pacific levels. Consistent with the Summit directives, external relations have been expanded to other Asian countries and regional organizations. Meanwhile existing relations with Dialogue Partners have begun to acquire new dimensions as a result of the growing interdependence of the world economy. Economic cooperation has been intensified to take advantage of the opportunities generated by the closer integration of the ASEAN economies.

Political and Security Cooperation

Bilateral and multilateral undertakings to enhance political and regional security continued to contribute to a stable political climate in Southeast Asia. Within this context, efforts are also being made to consolidate the friendly ties between ASEAN and other countries in the region, and in particular, to enable Laos and Vietnam, which have now Observer Status, to become members of ASEAN as soon as possible.

Following the Fourth Summit directives to intensify ASEAN's external dialogues in political and security matters, ASEAN established the ASEAN Regional Forum (ARF) to serve as a vehicle for promoting political and security cooperation in the Asia-Pacific region. The ARF, which will be composed of the six ASEAN Member Countries, its seven Dialogue Partners, namely Australia, Canada, the European Union, Japan, New Zealand, South Korea, and the United States, as well as China, Laos, Papua New Guinea, the Russian Federation, and Vietnam, will meet for the first time in July 1994 to discuss the situation in the Asia-Pacific.

At the intra-regional level, ASEAN continued to convene the Special Meeting of the ASEAN Senior Officials (ASEAN-SOM) as the vehicle for bringing together foreign ministry and de- fense officials to discuss security cooperation in the region. This effort was supplemented by the initiative of ASEAN Member Governments to link with non-governmental institutions, such as the ASEAN Institutes of Strategic and International Studies to discuss current regional is- sues.

Economic Cooperation

Economic cooperation during the year focused on the implementation and the rapid actualiza- tion of the ASEAN Free Trade Area (AFTA). The final coverage of the products and their tariff reduction schedules under the Common Effective Preferential Tariff Scheme (CEPT) were endorsed by the 25th ASEAN Economic Ministers Meeting and were subsequently published by the ASEAN Secretariat in November 1993. To ensure the successful implementation of the CEPT Scheme, the Senior Economic Officials began the tasks of harmonizing tariff nomenclature, preparing the concessions exchange manuals, monitoring the trade value implied by the CEPT products, and monitoring the elimination of the quantitative restrictions and non-tariff barriers on products that have begun to enjoy CEPT concessions. Steps have been taken to consider the possibility of expanding the coverage o the CEPT to include agriculture and services as a means of consolidating the potential gains in these sectors resulting from the conclusion of the Uruguay Round.

ASEAN industrial cooperation through the ASEAN Industrial Joint Venture (AIJV) Scheme went through important improvements during the year to make them more compatible with the CEPT Scheme. New activities in the field of intellectual property rights were initiated with the assistance of the World Intellectual Property Organization. The ASEAN Consultative Committee on Standards and Quality (ACCSQ) intensified its work program in support of the requirements of AFTA. The Secretary General of ASEAN has made a formal notification to formalize the relationship between the ACCSQ and the International Standards Office in Geneva to enable the ISO to attend the regular meetings of the ACCSQ.

Meanwhile, cooperation in other economic areas went through a process of adjustment with the dissolution of the economic committees and their subsidiary bodies becoming effective on 1 January 1994. Priorities in the food and agriculture sector, as well as in the energy and minerals sector were reviewed and realigned by separate Ministerial meetings. Cooperation in transportation, communication and tourism, which came under the supervision of the ASEAN Secretariat, was carried out mainly through on-going projects and intergovernmental agency collaboration.

Functional Cooperation

Cooperation in the functional areas accomplished several milestones during the year Three important framework documents were approved at the Ministerial level, namely: the Plan of Action on the Environment, the Plan of Action on Science and Technology, and the Plan of Action on Children. Plans of action on Social Development, on Culture and Information, and on Drugs are now in the final stages of formulation. The five Ministerial Meetings held during the year attested to increased cooperation activities in social development, labor, environment, science and technology, and culture and information.

While affirming its commitment to the improvement of the economic and social well-being of workers, ASEAN spoke with one voice in expressing grave concern over the introduction of social clauses in international trade agreements as a condition for market access to developed countries. In the field of environment, cooperation activities were intensified through the adoption of harmonized environmental quality standards and the introduction of policy measures that encourage the integration of environmental factors in both national and regional developmental processes. 1995 was declared as the ASEAN Environment Year as a means to promote awareness of environmental issues and to develop programmes that address these issues.

ASEAN cooperation in science and technology moved apace to develop key strategies to assist the region in coping with the challenges of global competition. Key areas and strategies have been laid out in the Plan of action. As regards culture and information, ASEAN adopted global priorities and thrusts to serve as the basis for developing and expanding programmes and projects for future cooperation.

External Relations

The content and complexion of ASEAN's external relations continued to evolve. Political and regional security issues have now been included in the agenda of most Dialogues. At the same time, discussions on international economic issues and linkages have acquired new significance following the conclusion of the Uruguay Round. Through the Dialogue process, ASEAN continued to articulate its concerns on issues such as market access, the generalized system of preferences and the linking of the so-called social issues of trade.

Meanwhile, development cooperation activities have moved to more thematic programming approaches. ASEAN has become more involved in the programming and review of development cooperation projects consistent with the principles of partnership and mutuality of interest. Most programs have involved the private sector as development cooperation has become more inextricably linked with commercial and industrial cooperation.

Laos and Vietnam have begun to take part in some of the ASEAN meetings in the functional coopera- tion areas. The Senior Officials Meeting held in April 1994 agreed to accelerate the cooperation through various modalities. ASEAN continued to support Cambodia in its efforts to forge national reconciliation and political stability. As regards Myanmar, ASEAN continued to adhere to its policy of constructive engagement.

Consultative relations between ASEAN and China will be enhanced at the 27th AMM in Bangkok through the signing of the Exchange of Letters between the Secretary General of ASEAN and the Foreign Minister of the People's Republic of China. The formation of the ASEAN-India Joint Sectoral Cooperation Committee, as the intergovernmental body responsible for operationalizing ASEAN- India Sectoral relations, was formalized.

ASEAN made progress in its efforts to launch the East Asia Economic Caucus through a series of consultations with China, Japan, and Korea regarding the objectives, principles, features and mo- dalities of the EAEC. ASEAN also participated actively in the projects and activities of APEC by way of contributing towards increased cooperation on economic issues that require solutions and joint approaches at the wider regional context.