SECTORAL DIALOGUE RELATIONS


The ASEAN-India. Sectoral Dialogue moved into the operational phase during the latter part of 1994 with the commissioning of the ASEAN-India Expert Group on Trade and Investment Cooperation. The Expert Group (E.G.), comprising two experts each from the ASEAN and the Indian sides, began its study in mid-August 1994 with a target completion date of six months. The aim of the EG study is to identify the mechanisms, modalities and specific areas of cooperation in trade and investment between ASEAN and India for a five-year period. The study was the first activity funded out of the ASEAN-India Fund which was established in early 1994 to finance mutually agreed activities under the ASEAN-India Sectoral Dialogue. The EG submitted its report in January 1995 and made a presentation of their findings at the Second Meeting of the ASEAN-India joint Sectoral Cooperation Committee (AIJSCC) held from 13 to 17 February 1995 in New Delhi and Goa, India. The EG subsequently submitted a revised report based on the recommendations made at the AIJSCC Meeting.

The Second AIJSCC Meeting also discussed and noted several areas with regard to trade and investment cooperation between ASEAN and India which required further attention and agreed that the AIJSCC, with the involvement of the ASEAN-India Business Council (AIBC), work out the policey framework, institutional mechanisms and networking arrangements to address these issues The AIBC convened its first meeting in New Delhi on 16 February 1995 and producer a specific action plan for enhancing trade, investment, tourism and other services-related activities between the two sides. The AIBC has also endorsed the proposal made by the Secretary-General of ASEAN for convening an ASEAN-India Round Table Conference to discuss the prospects of expanding trade and investment by taking advantage of the ASEAN Free Trade Area, the implementation of economic reforms in India and the existence of sizable consumer markets on both sides. The ASEAN-CCI will be taking the lead in organising this conference in Singapore in the latter half of 1995.

In the field of tourism, the Second AIJSCC Meeting agreed in principle to the activities and projects proposed by both ASEAN and India. Cooperation in the tourism sector will be launched through a reciprocal familiarisation programme for travel agents and tour operators of the two sides. It is also encouraging to note that the ASEAN Tourism Association (ASEANTA) and the Indian tourism private sector will be jointly organising a tourism workshop in the latter part of 1995 to initiate a dialogue between tourism partners on matters pertaining to marketing, investment and human resource development.

Under science and technology, the First Meeting of the ASEAN-India joint Collaboration on Science and Technology held from 6 to 10 February 1995 in New Delhi, India, developed a plan of action for the three designated areas of cooperation, namely: advanced materials, biotechnology and information technology. The proposed activities for the first year, include return visits by Indian scientific officials to ASEAN Member Countries and workshops to identify specific topics and develop the project proposals for collaboration. These events are expected to take place around the Fourth ASEAN Science and Technology Week scheduled to be held from 28 August to 3 September 1995 in Bangkok.

In support of the various proposed activities mentioned above, the Government of India has provided an additional contribution of approximately US$ 190,000 to the ASEAN-India Fund.

ASEAN - Pakistan

Following the ASEAN Foreign Ministers' decision to accord to Pakistan sectoral dialogue status, the Foreign Minister of Pakistan invited the Secretary- General of ASEAN to visit Pakistan to exchange views o ways to develop the relationship. The Secretary-General visited Pakistan from 21 to 23 March 1995. The Pakistani leadership reiterated its earlier proposal to develop relations with ASEAN on the four following specific sectors as follows: trade, investment, industry, and environment. In Islamabad, the Secretary- General of ASEAN paid a courtesy call on H.E. Prime Minister Benazir Bhutto and H.E. Foreign Minister Sardar Aseff Ahmad Ali and met a number of senior officials; from the Ministries of Commerce, Industry, Investment, Finance, Planning and Environment and the Board of Investment.

Over the last five years, two-way trade between ASEAN and Pakistan increased by 61 percent from US$707 million in 1989 to US$1.139 billion in 1993. Pakistan's exports to ASEAN have grown 43 percent while ASEAN's exports to Pakistan have increased by 74 percent over, the same period. The two-way trade in 1993 represented less than one percent of ASEAN's global trade and about 7 percent of Pakistan�s.

As a result of the exploratory consuItations, Pakistan agreed to undertake an in-depth study on the state of relations between, ASEAN Member Countries and Pakistan, particularly on the proposed sectoral areas for cooperation. The study will make recommendations on the measures that need to be considered and undertaken to promote cooperation between the two sides. The study will also serve as a basis for formulating a programme of cooperation for the ASEAN-Pakistan sectoral dialogue relationship. Pakistan will also be carrying a survey of perceptions between businessmen of each side to promote understanding and address misconceptions that might exist. Pakistan also agreed to prepare a list of specific areas of interest on environmental protection where cooperation ith ASEAN could be developed.

To initiate contact between the private sectors of the two sides, Pakistan agreed to send a small team of two officials from its Federation of Chambers of Commerce and Industry to attend the next meeting of the ASEAN-Chamber of Commerce and Industry. Pakistan's Board of Investment will also sponsor an investment promotion seminar in September 1995 in Singapore designed for ASEAN businessmen. This would be part of the activities aimed at promoting greater awareness of the economic opportunities available in Pakistan.