Real output growth in OECD countries doubled in 1994 while the volume of world trade expanded by nearly 9 per cent. More significantly, the Uruguay Round of Multilateral Trade Negotiations was finally concluded giving a boost to regional trading arrangements such as NAFTA, APEC and AFTA.
ASEAN Member Countries continued to enjoy high rate, of economic growth during the year, enhancing economic cooperation in the region. This was clearly seen in the decision of the 26th ASEAN Economic Ministers (AEM) Meeting in September 1994 to speed up the realisation of AFTA.
During the past year ASEAN Member Countries exports to one another grew much faster than their overall exports to the rest of the world. This much faster growth of trade among Member Countries reflects their commitment to liberalise trade with each other and their prompt implementation of the CEPT Scheme.
The past year also saw significant decisions made by the AEM which will further intensify this growth in intra-regional trade. The 26th Meeting of the ASEAN Economic Ministers, held in Chiang Mai, Thailand in September 1994, agreed to accelerate the achievement of AFTA from fifteen to ten years. To this end, Member Countries would increase the coverage of the products to be liberalized under the agreement to include also the unprocessed agricultural products and, at the same time, to phase in all products from the Temporary Exclusion List into the Inclusion List of the CEPT Scheme. The AEM Retreat in Phuket from 28 to 29 April 1995 had also agreed to phase all products in the ASEAN Preferential Trading Arrangement (PTA) into the CEPT Scheme.
Important commitments ere also made in trade facilitation measures and in establishing the necessary infrastructure to ensure the smooth implementation of the CEPT Scheme. ASEAN recognised the importance of harmonisation of tariff nomenclatures, customs valuation and customs procedures among Member Countries in order to facilitate the flow of trade cross borders. Progress is also underway towards the elimination of quantitative restrictions (QRs) and non-tariff barrier, (NTB,) among Member Countries.
As Vietnam will become the seventh Member of ASEAN in July 1995, intensive preparations are being made to expedite her accession to the CEPT Agreement.
ASEAN also endeavored to establish closer linkages with other regional trade groupings. Over the past year, discussions ere held with Member Countries of the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) and important areas for cooperation have already been identified.
In response to the results of the Uruguay Round with regard to the agreement on services (General Agreement on Trade in Services-GATS), ASEAN Member Countries have also undertaken initiatives to formulate their own agreement in this area. While Member Countries have yet to finalise the details of the cooperation, they nevertheless, decided that the agreement should entail commitments beyond GATS.
At the AEM Retreat in Phuket in April 1995, the Ministers agreed to look into new activities and schemes to accelerate industrial cooperation in ASEAN in view of the increasingly competitive global economy and the rapid "industrialization process in ASEAN. In this regard, the Ministers agreed to phase out the ASEAN Industrial joint Venture (AIJV) Scheme and Brand-to-Brand Complementation. in the automotive industry and while preserving the concessions for the existing projects. At the same time, new schemes/ mechanisms would be developed to promote technology-based industries and investments in infrastructure in ASEAN.
ASEAN cooperation in intellectual property progressed well during the period under review. A draft Framework Agreement which takes into account regional and International developments including the interpretation of the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) has been formulated since January 1995. The draft Framework Agreement is expected to be ready for the consideration and adoption of the 27th AEM in September 1995. At the AEM Retreat, the Ministers agreed that ASEAN should explore the possibility of setting up an ASEAN Patent and Trademark System.
The ASEAN Consultative Committee for Standards and Quality (ACCSQ) achieved a milestone during the period under review hen it as recognised by the International Organisation for Standardisation in September 1994 as the regional standards Organisation for Southeast Asia.
The cooperation in the mineral sector was geared towards integrating the sector with other economic sectors in the content of rapid industrialization of Member Countries. Activities were focused on facilitation of investment and trade in industrial minerals as these commodities were considered essential for economic growth, particularly in meeting the demand of fast-growing mineral-based manufacturing and construction sectors.
The period under review saw the ASEAN Economic Ministers on Energy Cooperation (AEMEC) undertaking concrete measures for focussing and strengthening cooperation i energy security, conservation and the search for alternative fuels as stipulated in the 1992 Singapore Summitt Declaration. A new ASEAN Medium-Term Programme of Action on Energy Cooperation which covers the period 1995-1999, is no, being implemented to intensify ASEAN cooperation in electricity, coal, oil and gas, energy conservation, new and renewable sources of energy (NRSE), energy and the environment, and energy policy and planning. AEMEC also approved the recommendation of the Senior OfficiaIs Meeting on Energy Cooperation. (SOMEC) to enhance the realization of the ASEAN electric power grid through the establishment of an independent Forum of Heads of ASEAN Power Utilities/Authorities in January 1995. This measure would also enhance capabilities of the Member Countries in coping with increased power demand through the corporatisation/ privatisation of power utilities. New initiatives launched recently were the preparation of a master plan on natural gas development and utilisation in ASEAN, energy in buildings, and energy efficiency in ASEAN, workshops on clean coal technologies and the gas industry.
As directed by the Fourth ASEAN Summit, priority in these areas was given to trade promotion of agricultural products with greater emphasis placed on the participation of the private sector. Significant efforts were made by sectoral working groups to 'Introduce greater transparency in the sanitary and phytosanitary (SPS) measures in order to facilitate intra- ASEAN trade in agricultural products. Steps were also undertaken to further strengthen the ASEAN food security position through commodity exchange and trade. Activities of ASEAN programme of action on cooperation in food, agriculture and forestry were mainly implemented on a self-reliance basis under networking arrangements.
Member Countries continued taking common positions on international issues affecting the interest of ASEAN, particularly in opposing initiatives in timber certification. and labelling as well as import regulations; on tropical timber introduced unilaterally by developed countries, non-government organizations (NGOS) and parties with pecuniary interests.
Cooperation in Transport, Communications and Tourism
With regard to ASEAN cooperation activities in transport and communications and infrastructure development, the ASEAN Ecoomic Ministers recognized that the availability of efficient transport and communication networks and infrastructure facilities would provide effective support to the rapid business and economic development of the region. This would increase ASEAN competitiveness and attract more foreign direct investment into the region. To achieve these objectives, a Plan of Action in Transport and Communications was adopted.
In the area of tourism, the promotion of the participation of the private sector in ASEAN tourism activities was given a further boost he the ASEAN National Tourism Organizations (NTOs) agreed to look into the creation of a new organization for ASEAN tourism which would comprise both the NTOs and the ASEAN private sector organisations involved in the tourism industry. This partnership would help ensure efficient and effective utilization of the resources of both the public and the private sectors for the benefit of the industry as a whole.