ECONOMIC COOPERATION
21. ASEAN economic cooperation activities during the year were directed at accelerating and deepening the commitments under AFTA, strengthening other existing areas of cooperation, expanding ASEAN economic cooperation to new sectors, and increasing linkages with other countries and regional groups.
22. The newly established permanent ASEAN-CCI Secretariat at the ASEAN Secretariat in Jakarta is likely to be the mechanism to foster stronger links between the private sector and the ASEAN governments. The ASEAN-CCI has also participated in the Senior Economic Officials Meeting (SEOM) and the Working Group on Industrial Cooperation (WGIC).
23. The continued improvement in the global economy and the trend towards economic reforms and trade liberalization will enhance regional cooperation and so buttress ASEAN's international competitiveness. Similarly the inclusion of Vietnam as ASEAN's seventh Member Country and the likelihood of further expansion in the near future will help ASEAN become a major regional economic power.
24. There will, no doubt, be more challenges as the level of ASEAN's economic cooperation activities rises and its range widens. However, as long as the world economy continues to improve and ASEAN Member Countries remain committed to the vision of an internationally competitive region, ASEAN economic cooperation should be able to prevail and prosper in the face of future challenges. Following the Fifth ASEAN Summit, ASEAN Ministers in charge of various economic sectors, including transport and finance have planned to meet regularly to discuss and propose new cooperation activities and to examine impediments to progress.
Trade
25. The new schedule for bringing down tariffs among ASEAN countries to 0-5% by 2000 is already in place, having been effective since 1 January 1996. This new schedule shows that AFTA will be in place three years ahead of its target. Member Countries are now exploring the possibility of eliminating tariffs completely by 2003.
26. ASEAN is becoming an increasingly important market for Member Countries. In the past year, intra-ASEAN exports of CEPT products grew by 21% from US$ 49.1 billion in 1994 to US$ 59.3 billion in 1995. The ratio of intra-ASEAN exports to total exports increased to 25.4% in 1995 compared to 24.99% in 1994.
27. Unprocessed Agricultural Products will be phased into the CEPT Scheme, a comprehensive trade liberalization programme, by the year 2010. Member Countries are currently working out the modalities for this.
28. Various trade facilitation measures are currently being implemented to remove impediments to trade and investment in the region. Customs surcharges will be eliminated in 1996, while work on the elimination of Non-Tariff Barriers is well underway. Closer ties with the private sectors of ASEAN are being fostered to facilitate their participation in this process. Cooperation in customs has intensified, with the introduction of a Green Lane for CEPT products launched at the Fifth ASEAN Summit. The Lane grants quick customs clearance to CEPT Products. Member Countries are also working on the harmonization of tariff nomenclature, customs valuation and customs procedures.
Industry and Investments
29. Cooperation in industrial development entered a new era when ASEAN Leaders agreed to phase out the ASEAN Industrial Joint Venture (AIJV) and Brand-to-Brand Complementation (BBC) in favour of the new ASEAN Industrial Cooperation (AICO) scheme. The AICO scheme will promote cross-border industrial cooperation and encourage investment in technology-based industries and value-added activities. The ASEAN Economic Ministers signed the AICO Scheme at the AEM Retreat in Singapore on 27 April 1996.
30. An ASEAN Plan of Action on Cooperation and Promotion of Foreign Direct Investment and Intra-ASEAN Investment was endorsed by the Fifth ASEAN Summit. Also proposed at the Summit were plans to establish an ASEAN Investment Area to facilitate greater direct investment. The Framework Agreement on Intellectual Property Cooperation and the Framework Agreement on Services, signed by the AEM and endorsed by the ASEAN Leaders at the Fifth ASEAN Summit, will give added impetus to the promotion of foreign investment in ASEAN. The latter has resulted in a series of negotiations on selected service sectors. The Coordinating Committee on Services and the various sectoral negotiating groups have been established to implement the Agreement. A draft Work Programme for the ASEAN Consultative Committee on Standards and Quality (ACCSQ) for 1995-2003 has been formulated.
Minerals and Energy
31. ASEAN cooperation in the minerals sector focused on the promotion of trade and investment in industrial minerals as stipulated in the 1995 Bangkok Declaration. The same Declaration contained a directive to develop criteria for prioritizing ASEAN energy projects.
Food, Agriculture and Forestry
32. Cooperative endeavours in the food, agriculture and forestry sectors continued to focus on the seven priority areas identified by the Ministerial Understanding on ASEAN Cooperation in Food, Agriculture and Forestry adopted by the 15th Meeting of ASEAN Ministers for Agriculture and Forestry (AMAF) in October 1993. Vietnam has agreed to earmark 14,000 metric tons of rice for the ASEAN Emergency Rice Reserve. Other efforts include an initiative to establish ASEAN guidelines and standards for halal food and a Hazard Analysis Critical Control Point training programme for the fisheries sector. A number of cooperation programmes have been implemented in the forestry sector through the activities of on-going Dialogue Partner-funded projects such as the ASEAN Institute of Forest Management (AIFM).
Transport, Communications and Tourism
33. The first ASEAN Transport Ministers� (ATM) Meeting held in March 1996 signed a Ministerial Understanding establishing a mechanism for coordination and cooperation in the transport sector. The ASEAN Senior Transport Officials Meeting (STOM) will assist in implementing the ASEAN Plan of Action on Transport (1996-1998). The ASEAN Ministers of Tourism met informally in January 1996 to exchange views on the development of the tourism industry. With the closing down of ASEAN Tourism Information Centre (ATIC) in March 1996, cooperation in the areas of marketing, research, information dissemination and training will be handled by ASEAN Tourism Association (ASEANTA).