ASEAN-JAPAN


Japan continued to be an important Dialogue Partner of ASEAN, particularly in terms of trade and investment. Japan is ASEAN's third largest export destination after the United States and the European Union. In 1995, Japan's exports to ASEAN amounted to US$ 79.9 billion accounting for 18 per cent of Japan's total world export. During the same period, ASEAN's exports to Japan amounted to US$ 42.7 billion or 14 percent of Japan's total world imports. As in previous years, the direction of trade was heavily in favour of Japan.

At the last AMM/PMC, ASEAN and Japan exchanged views on a number of important global and regional issues such as on the Asia-Europe Meeting, the World Trade Organisation (WTO), Asia-Pacific Economic Cooperation (APEC), a review of ASEAN-Japan relations, and cooperation in the ASEAN Mekong Basin project.

The annual consultations between the ASEAN Economic Ministers and Japan's Ministry of International Trade and Investment was held in September 1996 in Jakarta. The Ministers discussed, among others, the progress of the Working Group on Economic Cooperation in Cambodia, Laos and Myanmar, ASEAN-Mekong Basin Development Cooperation and international economic developments such the progress of APEC and ASEM. The Ministers also exchanged views on the progress in the implementation of the CEPT-AFTA and the new ASEAN Industrial Cooperation scheme.

In 1996, Japan contributed about US$ 395,595 to the Japan-ASEAN Exchange Programme (JAEP) and US$ 210,896 to the Japan-ASEAN Cooperation Promotion Programme (JACPP). Five projects with a total sum of US$ 690,205 were successfully implemented under the two cooperation funds.

At the 15th Meeting of the ASEAN-Japan Forum held in Tokyo in May 1997, both sides expressed their commitment to opening a new chapter in ASEAN-Japan relations by developing initiatives along the lines proposed in Prime Minister Hashimoto's speech in order to further strengthen the partnership between ASEAN and Japan. They also agreed to strengthen the existing policy dialogue mechanism by holding the ASEAN-Japan Forum annually prior to the Post-Ministerial Conferences (PMC). The Meeting noted that there still remains the need for continuous Japanese assistance. ASEAN welcomed Japan's new assistance initiatives, particularly, the support for the involvement of the private sector in infrastructure development. Both sides also agreed to review the mechanism for development assistance funds provided by Japan, including, the ASEAN-Japan Development Fund, in order to ensure its effective utilisation. ASEAN and Japan were convinced of the need to gradually advance cooperation in global issues in a coordinated and systematic manner.