ASEAN-JAPAN

The 14th ASEAN-Japan. Forum held from 18 to 19 January 1995 in Bangkok, Thailand, marked another milestone in the progress of ASEAN-Japan relations. A wide range of issues covering international, regional as well as bilateral matters of mutual concern and interest were actively discussed at the Forum. In particuIar, economic, financial, investment, cultural and development cooperation issues dominated the agenda of the meeting. The private sector was represented at the Forum. In addition, the inclusion of political and security issues and the participation of ASEAN Senior Officials at the Forum were an indication of the increased importance being given to the ASEAN-Japan Dialogue process.

The Forum welcomed the establishment of the World Trade Organisation (WTO) on 1 January 1995, and both sides pledged to cooperate closely to ensure smooth functioning of the WTO. International trade issues such as anti- dumping and subsidies, concern over the linkage of trade to labour standards aid the use of environment 'issues as disguised trade protection measures were deliberated.

The Meeting also looked into the progress of AFTA and the measures undertaken to expedite the process. The Japanese private sector , was strongly encouraged to take full advantage of the benefits of AFTA by investing and operating in the region. Given the importance of AFTA in promoting investment, and taking into account the success of the First AFTA Seminar in Tokyo in 1993, a Second AFTA Seminar was held in Tokyo on 30 June 1995.

Japan remained as a major ASEAN trading partner and Investor . In terms of trade Japan accounted for about 20% of ASEAN's total trade in 1993. In the same year, ASEAN's share in Japan�s world trade Constituted only, about 13%. The trade deficit between ASEAN and Japan has continued to widen. Taking this into account, ASEAN has urged Japan to take appropriate measures to help alleviate the trade imbalance.

On investments, the percentage share of global Japanese foreign direct investment (FDI) flows to ASEAN has declined from 11,4% in fiscal 1992/93 to 8.5% in fiscal 1993/94. In absolute terms, foreign direct investment from Japan to ASEAN has declined markedly from US $3,867 million in fiscal year 1992/93 to US$3,042 million in fiscal year 1993/94. Given the downward trend in investment flows to the region, ASEAN has urged the Japanese government to support greater Japanese FDI to ASEAN, especially in the area of supporting industries, ASEAN growth areas and investment by SMEs.

ASEAN-Japan development and cultural cooperation have progressed very satisfactorily. Japan has continued to provide support to the development of the ASEAN region by extending the various project funding schemes. In the period under review, two projects with a combined total cost of US$158,034 have been successfully implemented under the Inter- ASEAN Technical Exchange Programme and the Japan-ASEAN Cooperation Promotion Programme (JACPP). In 1994, Japan contributed US$286,007 to the ASEAN-side of the JACPP fund.

The success of ASEAN-Japan cultural cooperation has led to an extension of the ASEAN-Japan Friendship Programme for the 21st Century by Japan for another five years from 1994-1998. The programme has. helped promote and foster friendship as well as mutual Understanding between the participants from both sides. In September 1994, Japan contributed US$536,437 as its annual contribution to the Japan-ASEAN Exchange Programme.

An important new development in ASEAN-Japan cooperation, is the initiative to jointly cooperate in assisting and supporting the rehabilitation and reconstruction of Cambodia Laos and Vietnam. A joint working group between ASEAN and Japan has been established to promote economic cooperation and development in these countries.