COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 03.07.1996 
COM(96) 314 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL. THE EUROPEAN PARLIAMENT 
AND THE ECONOMIC AND SOCIAL COMMITTEE 
CREATING 
A NEW DYNAMIC 
IN EU-ASEAN RELATIONS 

TABLE OF CONTENTS 
INTRODUCTION 4 
SECTION I - THE NEED FOR A NEW DYNAMIC IN EU-ASEAN RELATIONS 5 
1. THE NEW ASEAN CONTEXT 5 
1.1. A vast market for the future 5 
1.2. An effort to contribute to international structures 6 
1.3. New regional challenges 7 
2. IMPLEMENTATION OF EUROPE'S STRATEGY ON ASIA 7 
3. ADJUSTING THE FRAMEWORK OF OUR PARTNERSHIP 8 
SECTION II - THE GOALS OF A NEW EU-ASEAN DYNAMIC 10 
1. A STIMULATED POLITICAL DIALOGUE 10 
2. A STRATEGY FROM REGION TO REGION 12 
3. AN UPSURGE IN TRADE AND INVESTMENT 13 
3.1. Facilitating and Liberalising Trade 13 
3.2. Facilitating Investment 15 
4 REORIENTING CO-OPERATION 15 
4.1. Economic Co-operation 16 
4.2. Development Co-operation 18 
4.2.1. General Guidelines 18 
4.2.2. Social Development Cooperation 18 
4.3. Co-operation in other fields 19 
4.3.1. Environment 19 
4.3.2. Bringing the two societies together 20 
4.3.3. Crime Prevention 20 
4.3.4. Science and Technology 20 
SECTION III - OPERATIONAL MODALITIES 22 
SECTION IV - OPTIONS FOR LAUNCHING A NEW DYNAMIC 23 
OPTION 1. A FORMAL AGREEMENT 25 
OPTION 2. AN ACTIVE PARTNERSHIP 27 
CONCLUSIONS 29 
A 
INTRODUCTION 
The European Union is ASEAN's1 oldest dialogue partner. The special understanding 
which has been forged between our two regions is an asset in the drive to expand the 
European presence in the Asia-Pacific region. The Karlsruhe Ministerial Meeting2 called 
for a strengthening of our ties in a spirit of greater equality and partnership and a major 
debate was launched, notably among the ASEAN countries, on the "Future Direction of 
EU-ASEAN relations"3. The present communication forms part of this concerted effort 
which has also involved the informal Eminent Persons' Group4. Their report, disclosed in 
June 1996, has been considered in establishing the guidelines proposed hereafter. 
ASEAN occupies a key position at a time of transition for the Asia-Pacific region in which 
the search for a new equilibrium among the regional powers is a major factor. The 
ASEAN Regional Forum, which, apart from ASEAN, includes several other Asian 
countries5, Russia, the EU, the United States, Canada, Australia and New Zealand, has 
been assigned the major task the Association has striven to assure since its inception, 
namely, maintaining peace and stability in the region. In addition, it is contributing to ease 
China's integration into international and regional structures. 
Its economic role has also evolved and taken concrete shape with the decision in 1992 to 
create AFT A, the ASEAN Free Trade Area, which is to be completed by 2003. 
Framework agreements for the liberalisation of services and co-operation on intellectual 
property and the establishment of a free investment zone were also signed on 15 
December 1995. 
ASEAN is on the way to achieving a political and economic community adapted to the 
needs of the whole variety of its member countries while respecting the identity of each. 
The accession of Vietnam should not jeopardise this trend since the Summit of ASEAN 
Heads of State in Bangkok on 14 and 15 December 1995, which met to debate the theme 
"Towards One Southeast Asia", showed a clear will to consolidate economic links and 
pursue a political vision for the whole region. Cambodia, Laos and Myanmar could join 
ASEAN by the year 2000 (Cambodia's and Laos' applications are already being 
examined). This would make it a community of ten nations with a population of 450 
million. 
Given ASEAN's key role, the Commission feels that launching a new dynamic in our 
relations with ASEAN can make a considerable contribution to the strengthening of the 
European presence in Asia. In the current optimum context of economic growth and 
development of the region, and now that our common thinking on the subject has 
matured, we can embark on a process which matches the political, strategic, economic and 
cultural importance of our two regions. 
1 Association of South-East Asian Nations. It is composed of: Brunei, Indonesia, Malaysia, the 
Philippines, Singapore, Thailand and Vietnam. 
2 11th EU-ASEAN Ministerial Meeting held in Karlsruhe in September 1994. In it, most notably, the 
decision to create an informal Eminent Person's Group (EPG) was taken. The EPG was charged with 
developing concrete recommendations for the enhancement of EU-ASEAN relations. 
3 Text presented by ASEAN at the October 1995 Joint Cooperation Committee Meeting. 
4 See Annex 0. 
5 China, Japan, South-Korea, Laos, Cambodia, Papua New-Guinea, India, Myanmar. 
SECTION I - THE NEED FOR A NEW DYNAMIC IN EU-ASEAN RELATIONS 
ASEAN has been one of our partners for a considerable length of time and is an important 
political interlocutor. It represents a major economic challenge for Europe. Both sides 
have expressed the will at the highest level to raise the profile of our partnership and 
strengthen it. This undertaking, which has long been deferred, now appears more urgent 
than ever. 
1. THE NEW ASEAN CONTEXT 
1.1. A vast market for the future 
The remarkable economic rise of Southeast Asia looks set to continue. A 
preserved climate of security for economic operators, the ASEAN project for 
an internal liberalisation of trade, the opening of traditionally protected 
markets to international competition: all these indicators today point to an 
optimistic outlook6. This market's growth rate and potential are worth being 
highlighted once again. 
• ASEAN's capacity for the creation of wealth, both current and potential, is 
impressive. Between 1989 and 1994, average growth was 7.0% per annum, 
with some countries such as Singapore, Thailand and Malaysia achieving 
growth rates of nearly 9.0%. This growth has generally gone hand in hand 
with a high rate of savings and relatively low inflation. 
• At the same time there has been a growth in purchasing power. The 
prospects for infrastructure (transport, buildings, telecommunications, etc.) 
and services (in 1995 Thailand's imports of services increased by 40%) are 
considerable. 
. The overall volume of the ASEAN countries' trade with the outside world 
has more than tripled in the space of 10 years. After relative stagnation, 
intra-ASEAN trade took off with an increase of 40% in 1994, reaching 111 
billion US dollars or 20% of the ASEAN countries' overall external trade. In 
1995 there was a further 16% increase making intra-ASEAN trade worth 
130 billion US dollars. 
. In 1995, the Community was ASEAN's second largest export market and 
the third largest trading partner after Japan and the United States. 1995 saw 
a jump in EU exports to ASEAN (+19.6%) thus making the trade balance 
evolve from a 2.5 billion Ecu deficit in 1994 to a 0.85 billion Ecu surplus. 
This is the first time the EU registers a surplus with ASEAN since 19847. 
The EU has nonetheless lost its market share, chiefly to Japan (ASEAN's 
deficit with Japan in 1995 accounted for 23% of their bilateral trade). 
6 See Annex 1. 
7 See Annex 2. 
Access to the ASEAN countries' markets remains unequally open due to 
administrative policies or regulatory frameworks. These market-access 
obstacles should be removed through bilateral discussions or following 
actions undertaken at the multilateral level (WTO). 
. ASEAN exports today consist mainly of manufactured products (66% raw 
materials in 1975, 78% manufactured goods in 1995), with ASEAN's share 
of European imports of these products from developing countries rising 
from 9% in 1975 to 22% in 1993. Exports to the Community rose by 386% 
between 1980 and 1995. 
. ASEAN attracts investment on a huge scale8. Its current stock of foreign 
investments amounts to nearly 200 billion US dollars, three times greater 
than that of China, currently the biggest beneficiary in the developing world. 
In 1994 investment flows to ASEAN increased by 131%. Nevertheless, 
discriminatory practices and important obstacles to investment remain, 
notably concerning European investments. 
. Europe is the second largest investor in ASEAN ahead of the United States 
but behind Japan9, which considerably increased its investment over the last 
ten years. The average European investment in ASEAN between 1990 and 
1993 was 2,666 million US dollars per annum, whereas the Japanese 
average was 3,723 million US dollars10. Europe accounts for 14.1% of 
overall investment in ASEAN. However, according to the OECD, East Asia 
accounted for less than 1% of cumulative FDI from EU countries over the 
1982-1992 period. By comparison, 18% of European FDI went to the US. 
1.2. An effort to contribute to international structures 
ASEAN countries participated in the Vienna Declaration on Human Rights 
(1993), in the Cairo Conference on population and development (1994), in the 
Copenhagen Declaration on social development (1995) and in the Beijing 
Declaration on Women (1995). In addition, they are signatories to the principal 
ILO conventions. Their presence within the framework of these various bodies 
is encouraging but must still produce more effective results within their 
respective social environments. 
Concerning international trade, the ASEAN member countries have proved 
their interest in strengthening the WTO system, actively cooperating during the 
Uruguay Round and after. They recently made part of their eagerness to 
contribute to the success of the WTO Ministerial Meeting in Singapore. 
8 See Annex 3. 
9 On the basis of the average investment 1990-1993. 
10 Investment figures for five ASEAN countries. Brunei and Vietnam arc not included. For Singapore, 
data concerned investment in the manufacturing sector only. 
1.3. New regional challenges 
Southeast Asia has taken on a double challenge: the creation of a Community 
often nations including Cambodia, Laos and Myanmar, and participation in the 
grand Pacific project which is APEC. 
After a series of vain efforts to develop a system of preferential trade 
agreements in its midst, ASEAN took a decision in January 1992 to put in 
place a genuine free-trade area, AFTA. The main objective is to eliminate 
customs tariffs on all intra-ASEAN trade with the exception of a small list of 
sensitive products11 by the year 2003. A three-year transition period was set 
for Vietnam. Other liberalisation measures are planned, notably non-tariff 
measures, trade in services and investment. The establishment of an open 
market among the ASEAN countries will nevertheless require important 
efforts if national resiliences, particularly concerning the competition between 
their mutual economies, are to be overcome. 
Cambodia and Laos, from 1997, and Myanmar, by the year 2000 should join 
Vietnam as new members of ASEAN. The absorption of these fragile 
economies by the Association runs the risk of creating economic problems. It 
is clear, however, that at the political level their integration should have 
positive effects. 
The ASEAN countries12 are founder members of APEC and are participating 
actively in the drive to liberalise and facilitate trade within this framework13. 
APEC has in recent years followed a very active course based on the one hand 
on voluntary commitments to liberalise and, on the other, on intense activities 
to facilitate and co-ordinate all fields linked with economic relations. 
Objectives have been defined for total liberalisation of trade and investment14 
although a definite undertaking has not been achieved at this stage. 
IMPLEMENTATION OF EUROPE'S STRATEGY ON ASIA 
The process of strengthening links between Asia and Europe, initiated with the 
adoption of a new strategy for Asia in July 1994, was given a boost with the Asia-
Europe Meeting (ASEM) in Bangkok and the beginning of a dialogue at summit 
level between the two continents. Considerable effort has already been made over a 
two-year period: agreements were signed, or are in the process of being signed, with 
Vietnam, Bangladesh and Korea, new agreements are being prepared and an 
unprecedented effort has been launched in the field of economic co-operation. 
Bringing our ties with ASEAN up to date is the key element in this new Asia policy. 
Since the signing of the EC-ASEAN Co-operation Agreement in 198015 the 
development of our ties in the sense of a responsible and constructive partnership 
1J Notably around 20% of non-processed agricultural products. 
12 Except for Vietnam which submitted its candidacy to APEC in June 1996. 
13 See Annex 4.2. 
14 2010 for the industrialised countries and 2020 for the industrialising countries. 
15 Cooperation Agreement between the EEC and Indonesia, Malaysia, the Philippines, Singapore and 
Thailand - member countries of ASEAN - signed in Kuala Lumpur on 7 March. 1980. Council 
constitutes the best example of co-operation between two regional blocs with the 
same ideals. ASEAN launched the initiative for ASEM and the success of this 
summit illustrated the huge expectations which existed on both sides to establish 
such a link. ASEM can now provide the two partners, Europe and ASEAN, with the 
impetus to move on to a higher level. 
ASEAN represents a point of balance in the region and Europe can help strengthen it 
in this role. Moreover, as noted by the European Council at Essen, the reinforcement 
of our links at all levels with the states of the Asia-Pacific region must be able to 
count on ASEAN. When examining the possibilities of improving cooperation, it is 
essential to take into account all existing and emerging frameworks in order to avoid 
unnecessary duplication of work. Existing structures include the on-going EU-
ASEAN framework as well as ASEM and cooperation in Geneva. 
ADJUSTING THE FRAMEWORK OF OUR PARTNERSHIP 
Relations between ASEAN and the Community have changed radically since the 
signing of the 1980 Agreement16. In 1980 our relations were conducted on a donor-
recipient basis. Today we have a relationship which is characterised by balanced 
trade, the development of investment and greater economic co-operation. 
The scope and objectives of our 1980 agreement are limited. It is true that Europe 
and ASEAN have woven a web of ties over the years17, but without a vision of the 
future and a strong political impetus, we will gradually get bogged down in routine 
discussions. The absence of a common project of grandeur and a new instrument to 
promote it prevents us from giving our relations the dimension and coherence they 
need. If ASEM lays down the foundations for a modern concept of Europe-Asia 
relations, the links between Europe and ASEAN should reflect and amplify this 
insight within a specific framework. 
The model for our relations with ASEAN is minimal compared with the kind of 
agreements recently signed by the Community with a number of third countries. 
Since July 1992, a negotiating directive for a new agreement remains blocked at the 
Council because of human rights concerns related to the East Timor question. 
Moreover, with the exception of Vietnam, the 1980 Agreement is not underpinned 
by any bilateral agreement with member countries of the Association. 
Regulation 1440/80 30 May 1980. OJEC - L 144/80 10.06.80. Modified by the Council Regulation 
(EEC) N. 743/85 21 March, 1985 in order to take account of Brunei's accession to ASEAN. 
16 See Annex 5.1. 
17 Sec Annex 5.2. This point is also stressed by the Economic and Social Committee in its document 
"Relations between the European Union and ASEAN" (CES 852/95 fin) presented in January 1996. 
The purpose of this communication is to initiate discussions within the Community 
and with our ASEAN partners on a model for our future ties. These discussions can 
draw wide inspiration from the ideas developed by Eminent Persons' Group. For a 
number of issues, the action proposals presented by the Commission are in the same 
line as the general guidelines proffered by the Group rendering them operational. 
Section II deals with the objectives, section III with the structures and section IV 
proposes two options. 
10 
SECTION II - THE GOALS OF A NEW EU-ASEAN DYNAMIC 
Both partners are enthusiastic for a new partnership. For ASEAN the European market 
represents its second biggest export market; Europe offers a counterbalance to the 
presence of Japan and the United States in the area; there is a risk that Europe will lose 
out because it has strengthened its links with other regions. On the European side there is 
considerable interest in the economic potential of ASEAN; there is also a certain anxiety 
about being shut out of the region by the dynamic action of other great economic powers. 
Two main concerns should guide our future steps: 
- We have forged solid links and our co-operation has expanded in a whole variety 
of areas. However, our partnership does not give the necessary thrust to the 
development of links at all levels between our two regions. Despite many contacts 
and important programmes, we are witnessing a regrettably static application of 
our agreement. This situation is unfortunate for it may lead to our dissociation 
from the sometimes quick developments of the Asia-Pacific area; it is essential to 
give a dynamic impetus to our ties. 
- The ASEM framework offers important prospects for developing our dialogue at 
the highest level and launching large-scale projects. Our action with ASEAN, if it 
is to complement ASEM and respond to the particular expectations of our two 
regions, should set its sights on a greater degree of achievement than that shown 
until today. 
l. A STIMULATED POLITICAL DIALOGUE 
The history and geography of Southeast Asia, into which the traditional links 
between the Member States of the European Union and the present or future 
members of ASEAN are woven, make of it the cornerstone of our relations with the 
whole region. 
The two groupings have numerous characteristics in common. In fact, both are 
tending towards regional integration, both are playing an important role in the 
security and stability of their respective regions, and both have been called upon to 
accept neighbouring countries that are in a period of transition towards a market 
economy and pluralist democracy as new members. 
The two regional groups can thus compare and exchange experiences in their 
relations with their immediate neighbours. The European Community can contribute 
to ASEAN's efforts to integrate new members that are in a period of transition 
towards a market economy and pluralist democracy. 
The strategic position of the ASEAN Member States, situated between South Asia 
and East Asia and controlling the maritime routes linking the Middle East and North-
East Asia, makes Southeast Asia an obligatory point of passage in exchanges of all 
types within Asia and between Asia and Europe. 
11 
After the end of the Cold War, the Asia-Pacific region is faced, like Europe, with the 
need to formulate a new framework for the security of the region. This involves a 
difficult task since the region is going through a period of readjustment. This is 
particularly due to the economic and political emergence of China, the desire of 
Japan to take on a more important role in the security of the region, the evolution of 
defence relations between the United States and certain Asian nations, and finally, 
regional regrouping towards an ASEAN often. 
During this period of transition, ASEAN has played and will continue to play an 
important role in the security and stability of the region, while waiting for the 
emergence of a new balance among the evolving actors. 
For both historical and geographical reasons, it appears that no major regional power 
will be allowed to play a predominant role in the region. This situation highlights the 
pivotal role of ASEAN in the formulation of a framework for the security of the 
Asia-Pacific region. The fact that ASEAN was able to create the ASEAN Regional 
Forum after the regular holding of meetings with its Dialogue Partners (ASEAN-
PMC18) as a setting bringing together intra- and extra-regional powers to examine 
issues of security in the Asia-Pacific region only confirms in its entirety the central 
role which ASEAN has been called upon to play in Asia. 
Effective recognition of ASEAN's leading role should push the European Union to 
make of it a focal point of its political presence in Asia. Nevertheless, the EU should 
also continue encouraging dialogue and discussion with the other actors of this part 
of the world. 
The existing mechanism of ASEAN-EU political dialogue could still be improved. As 
much at the ministerial level as at the level of political directors, current meetings 
bring together the representatives of all the Member States of the Union and of 
ASEAN and the Commission. The high number of participants does not always 
permit an in-depth exchange of views, all the more so because these meetings deal 
with an agenda that is simultaneously political and economic. 
To strengthen and deepen the ASEAN-EU political dialogue, the Commission 
suggests adding to existing channels of communication an annual meeting of the 
geographical directors of the Commission and European Member States and of the 
ASEAN Member States in order to discuss matters of more specific relevance to 
ASEAN or common relations such as maritime security (free navigation, the fight 
against piracy, accidents on the high seas), denuclearisation in Southeast Asia 
(SEANWFZ), the fight against drugs, preventive diplomacy and conflict resolution, 
etc. 
Beyond these specific issues, the ASEAN-EU political dialogue could explore the 
scope for bringing closer together the positions of the two regions and cooperating 
on international matters of mutual interest such as the reform of the United Nations, 
disarmament and non-proliferation, peace-keeping operations, etc. 
Inscribed in the European Union Treaty, the development and consolidation of 
democracy and the respect for human rights must be important elements of the 
18 Post-Ministerial Conference. See Annex 5.2. 
12 
political dialogue between the European Union and ASEAN. They will have to be 
taken into account when proposing new initiatives for the intensification of relations 
between the two groupings. In its November 1995 Communication on human 
rights19, the Commission insists in the need of using in an optimal way the available 
instruments in order to integrate human rights in our conventional relations with third 
countries. This should permit us to "identify in common the priorities of a partnership 
programme and/or specific actions in favour of human rights and democracy". In our 
relations with these countries, the high priority the Union gives to a positive 
approach must also be stressed. In fact, as underlined in the resolution of the 
Council and of the Member States gathered for the Council of 28 November 1991 on 
human rights, democracy and development, "an open and constructive dialogue with 
governments may result in a major contribution to the promotion of human rights 
and democracy". 
The Community and its Member States should insist on programmes aimed at 
favouring and promoting respect for human rights. 
Enhanced parliamentary links would be instrumental in the establishment of co­
ordinated views concerning overall ASEAN-EU political issues. Regular meetings 
between the European Parliament's competent delegation and the ASEAN Inter-
Parliamentary Organisation (AJPO) already exist. These should be stepped up. As 
the representatives of their respective civil societies, both organisations are in a 
privileged position to develop an inter-regional political dialogue conducive to a 
substantial partnership of equals. The dynamism of the ASEAN-EU relationship is in 
need of the inter-societal exchanges and people-to-people contacts that inter­
parliamentary links can produce. 
The importance that ASEAN leaders attach to informal and personal relations at 
meetings, as the Asia-Europe Meeting showed, should also be emphasised. 
A STRATEGY FROM REGION TO REGION 
AFTA is taking shape20 with a slight delay and limited objectives compared with 
those of other new groupings such as MERCOSUR or NAFTA. However, it 
represents a potential market of 400 million consumers with an average annual 
growth rate of 7.5%21. The drive to liberalise and integrate within ASEAN embraces 
all aspects of economic activity including movement of goods and services, 
investment and intellectual property as well as programmes in industrial co­
operation, science and technology and human resources. Intra-ASEAN trade 
increased by nearly 40% in 1994 and by 16% in 1995. Although they have followed 
different paths in their approaches to integration, ASEAN and the Community can 
build a partnership of equals to promote their respective regional market and create 
links of solidarity. 
19 COM (95) 567 final: "The European Union and the external aspects of the human rights policy: from 
Rome to Maastricht and beyond". 
20 See Annex 4. 
21 1994 average presented by ASEAN at the 12th JCC Meeting, October 1995. 
13 
Recognition by the Community and ASEAN of their mutual interest in maximising 
the benefits stemming from their respective internal liberalisation could form the basis 
of an inter-regional dynamic particularly through: 
° ensuring, where similar programmes exist, better use of the economic potential of 
each area; evaluation on a reciprocal basis of participation in these programmes by 
traders from the other region (notably on industrial co-operation and scientific and 
technological co-operation) will be carried out. 
° the creation of links between respective programmes aimed at developing 
university, scientific and cultural exchanges. 
° information and openness concerning all aspects of the implementation of 
integrated policies having an impact on the activities of traders in the other region; 
a system for consultation on the mechanisms pertaining to domestic trade in the 
two groupings (transit and other aspects of the customs regime, rules of origin, 
taxation, movement of people and capital) with the aim of avoiding the creation of 
obstacles to imports; 
AN UPSURGE IN TRADE AND INVESTMENT 
Over recent years the ASEAN countries have made an unprecedented effort to 
liberalise their economies apparently leaving behind a strong tradition of 
protectionism. At the end of the Uruguay Round they made contributions in the field 
of tariffs (e.g. Indonesia raised its rate of tariff consolidation from 10% to 95%), they 
reinforced the protection of intellectual property in order to conform to the TRIPS 
Agreement (on trade-related intellectual property rights matters). They have also 
launched a certain liberalisation of services. As members of APEC, they are 
participating in a drive to liberalise and facilitate trade on a wider scale. In 1995, 
Thailand, Indonesia and the Philippines launched unilateral tariff reduction 
programmes. Finally, with the creation of AFTA, they have undertaken to establish 
an internal free trade area for industrial products and the bulk of agricultural trade by 
2003, to help abolish barriers to trade, to simplify customs procedures and to co­
operate on the liberalisation of services and investment. 
The creation of the Single Market has provided exceptional opportunities to 
exporters and investors from Asia. The Community has further reduced its market 
protection following the Uruguay Round negotiations and is continuing its efforts to 
strengthen and extend WTO disciplines. Moreover, partners such as ASEAN have 
benefited to a large extent from autonomous concessions granted under our GSP. 
Inversely, the new potential created by ASEAN is not sufficiently exploited by the 
Community. A host of reasons explains this fairly weak European performance and it 
is clear that it is up to the firms themselves to remedy this situation. But a new EU-
ASEAN dynamic could help create a stable climate conducive to the development of 
trade and the growth of investments. Action should be taken on two fronts: 
3.1. Facilitating and Liberalising Trade 
Progress towards freer trade in the two regions is the result of 
concessions obtained in the multilateral framework and of efforts 
14 
made unilaterally. Under the 1980 Agreement, ways of eliminating 
barriers to trade on a most-favoured-nation basis were to be studied, 
but no concrete dynamic has been developed in the framework of our 
relations. We should seek to develop a more positive relationship by 
ensuring that the various trade liberalising activities underway in 
ASEAN and Europe take full account of the specific interests of the 
two partners. 
3.1.1. This implies, first and foremost, a close attention to the 
implementation and effective application of Uruguay Round 
concessions. Beyond the opportunities created by this process, the 
Commission has made clear in its market access strategy the need to 
identify and progressively remove outstanding obstacles to bilateral 
trade. The Commission is still in the process of developing the 
necessary data: our own assessment of the main obstacles facing EU 
exporters to ASEAN is given in Annex 6, but the Commission hopes 
that European operators will provide comments and additions to this 
assessment. 
3.1.2. Trade facilitation would require the establishment of instruments 
supporting the reduction of obstacles: enhanced transparency, for 
example by developing the exchange of tariffary and non-tariffary 
data; simplification of administrative formalities; undertakings to 
conform to the same certifying and normalising instruments; ensuring 
the putting in practice of the rules and principles of the WTO, 
including the Government Procurement Agreement. Given the 
complexity of this task, a sectoral approach in cooperation with 
industry would be more realistic. 
3.1.3. Europe and ASEAN must also continue to cooperate very closely in 
developing a broader WTO work programme, beyond the December 
WTO Ministerial, in order to prepare the further negotiations that will 
be needed before the end of the century. 
For all these purposes ad-hoc cooperation may be needed regarding 
specific trade obstacles, whether through the ASEAN Brussels 
Committee (ABC) as at present or country by country. Cooperation 
in the current EU-ASEAN framework should be intensified, beyond 
the 18-monthly meetings of the trade sub-committee established in the 
framework of the current agreement. This work should be focused on 
the definition of priority areas for facilitating and liberalising bilateral 
trade. Full use must also be made of the framework offered by 
meetings of ASEM senior officials for trade and investment. For 
ASEAN, a broadly based dialogue of this kind would enable it to 
defend more specifically its trade interests in Europe, which are 
numerous, and enable it to discuss as an equal partner prospects for 
international trade. 
15 
3.2. Facilitating Investment 
Access to the Southeast Asian dynamic market requires large scale investment 
in the countries of the region. However, European companies are not 
contributing sufficiently to the important growth in foreign investments of the 
region. Also, the development of ASEAN companies' investment in Europe 
can offer new perspectives of growth and job creation22. Investment must 
therefore represent one of our main concerns in the proposed dynamic. 
Our objective should be to pinpoint the main difficulties in terms of 
procedures, regulations and guarantees and other types of obstacles in the 
growth of investment in both directions. This exercise, the objective of which 
is notably to negotiate the elimination of such obstacles within the framework 
of multilateral efforts, especially in the WTO context, should be based on the 
• work to be conducted by the ASEM Working Group on Investment by 
undertaking a more detailed examination of specific aspects in the EU-ASEAN 
context. 
An examination of the more general question concerning capital flows, taking 
into account the development within Southeast Asia of portfolio investment-
type movements, should be initiated. 
ASEAN firms have expressed an interest in the high level of technological 
development of European firms and their ability to transfer their research work 
and technology, notably in comparison with their Japanese competitors. 
Undoubtedly, an essential - if not sufficient - condition for favouring 
technology transfers is the adequate and effective protection of intellectual 
property23. Furthermore, in general, these private law rights belong to private 
enterprises which use them according to their autonomous decisions. Public 
organisations could encourage, through appropriate measures, technology 
transfers, without by so doing replacing the private enterprises themselves. 
Impediments can be not only regulatory and administrative but also of an 
economic and business kind, affecting in particular SMEs. Efforts will have to 
be made regarding three priority matters: 
Investment barriers 
Free and open investment should include the liberalisation of investment 
regimes, full market access, application of national treatment and the MFN 
clause for investment; 
Objectives and promotion measures 
22 See Annex 3. 
23 The effective application of the TRIPS agreement should ensure the protection of intellectual property 
which could itself promote technology transfers by companies. Cooperation with ASEAN has already 
been engaged in this respect through the technical assistance programme ECAP (EC-ASEAN Patent 
and Trademarks Programme). This cooperation will be completed by discussions within an ad-hoc 
intellectual property rights working group. 
16 
In order to take fuller account of comparative advantages of the partner 
countries, initiatives should be focused on industrial, scientific and 
technological co-operation, better use of information technology and the 
creation of awareness of the potentialities of the global information society; 
Private Sector involvement 
Business should be given the possibility of playing a leading role within the 
proposed new dynamic. This applies to the identification of opportunities and 
the strategies to exploit them, to the creation of support structures as well as 
to initiatives to facilitate the transfer of technology and know-how by holding 
Industrialists' Round Tables and other industry-led co-operation meetings. 
Privatisation and Infrastructure should be opened to a wider participation of 
European business and, in co-operation with ASEAN partners, diminishing 
risks and facilitating the financial engineering of companies by improving 
access to calls for tenders. 
4, REORIENTING CO-OPERATION24 
To take account of the extremely dynamic evolution of the ASEAN countries, our 
co-operation programmes have been geared towards an increased economic content 
and the focusing of development schemes on disadvantaged areas and populations. 
These new guidelines have already been applied systematically and have given rise to 
effective support instruments for trade such as EBICs25 or the Technology Windows, 
and for investment as the Asia Invest programme will be once it comes into being. 
Our development cooperation has also been adjusted so that it can give priority to 
the poorest countries and to schemes contributing to the improvement of the 
conditions of the most disadvantaged categories through sustainable and multiplying 
activities which take particular care of environmental and resource management 
problems. 
This new co-operation strategy can only benefit from the establishment of an overall 
framework so that the efforts and resources that the Community devotes to the 
ASEAN countries can be used in a more consistent and effective manner. 
Furthermore, given the advanced economic situation of certain ASEAN countries, it 
would be desirable if there were greater co-operation between them and the 
Community on logistic support, human resources and programme-financing. 
4.1. Economic Co-operation 
The objectives of economic co-operation in the widest sense of the term 
should match the imperatives of the partnership as spelled out in points 2 and 3 
of this section, the ultimate objective being to give economic players in the two 
regions scope for drawing maximum benefit from the realisation of the 
Economic and Monetary Union and from the ASEAN countries' integration 
process as well as from the reduction of obstacles to trade between the two 
24 Sec Annex 7. 
25 European Business Information Centres. 
17 
partners. This cooperation should count on a regular exchange of information 
on the respective integration processes, including its macroeconomic aspects. 
It should further: 
(1) stress schemes to disseminate and adopt mutual regional integration 
efforts: 
- in the customs field, actions concerning customs cooperation, the 
exchange of officials, cooperation in the field of information 
exchange in view of the simplification and harmonisation of 
customs procedures; 
- on statistics, studies and operations aimed at aligning methods and 
enabling an exchange of data on trade in goods and services and in 
any other field where this may be deemed useful; 
- on standards and other technical barriers, encouraging co­
operation between the competent bodies; 
(2) define priority fields: 
- by promoting industrial cooperation in key areas of economic 
development of the two partners: 
* industrial cooperation including information technology and 
communications, energy and transport. For all of these sectors, 
actions could be geared to enhancing business cooperation, 
investment, technology transfer and training; 
cooperation concerning the Information Society: actions 
adapted to differing levels of development within ASEAN as, 
for example, the setting-up of a dialogue on the different 
aspects of the information society, including the policy 
followed in the telecommunications sector; information 
exchanges (including a possible technical assistance to 
ASEAN) concerning regulation and normalisation, conformity 
tests and certification of information technologies and 
telecommunications, the distribution of new information and 
communication technologies including their innovative 
applications; the strengthening of the interconnection and 
interoperation of networks and services; the development of 
advanced communication networks, terrestrial as well as 
satellite; the mutual participation in projects establishing the 
Information Society according to specific modalities in the 
concerned domains; 
Since efficient transport links play a major role in the 
development of trade, special attention should be given to 
transport. Co-operation with ASEAN should be encouraged 
not only in the fields enumerated by ASEAN Transport 
Ministers at their March 1996 meeting in Bali but specifically in 
fields such as the transfer of technology to the ASEAN states 
so as to promote more energy-efficient and environmentally 
sustainable transport, multi-modalism, transport-related 
research and development, traffic management based on Global 
Navigation Satellite Systems and the improvement of transport 
links between Southeast Asia and Europe; 
- by increased support to small and medium-sized firms through 
actions geared to the setting up of joint ventures and networks, 
information and support services, assistance and guarantees on 
investment and technology transfer; the setting up, for example, of 
co-operation links between Euro-Information Bureaux and their 
equivalents in the ASEAN countries (e.g. Chambers of Commerce 
which are the only private entities organised at the ASEAN level) 
to ensure mutual dissemination of information to SMEs, will be 
favoured by the Asia-Invest program and the ties it will establish 
through the European Business Information Centres (EBlCs). The 
rapid adoption and the support of all concerned parties to this 
program will be crucial; 
- by selecting initiatives aimed at creating links between the 
Community, the Member States and ASEAN, notably in the 
promotion of contacts and exchanges between universities. 
researchers and intellectuals, in meetings aimed at developing 
mutual understanding between the two regions, in support for 
private, local or regional efforts to set up links at all levels of civil 
society. The promotion of the JEM (Junior EU-ASEAN 
Manager's) programme, assuring an exchange of young managers. 
is a step in the direction of the creation of ties between the young, 
businesses and, thus, the two regions. 
4.2. Development Co-operation 
4.2.1. General Guidelines 
Certain ASEAN countries are still at an important level of under­
development and poverty: we should continue our effort to assist 
them in improving their economic growth and the social welfare of 
their population. In addition, protection of the environment and 
conservation of natural resources are elements to be considered in 
priority. Finally, an intensifying collaboration with the most developed 
ASEAN countries should be sought for in support of actions designed 
for the development of the most disadvantaged regions. 
4.2.2. Social development cooperation 
The Community's social development assistance should focus on the 
poorest categories of the population. A notable effort should apply to 
rural development and the development of primary education. 
The improvement of the condition of women and the importance the 
woman's role should receive within society should receive special 
19 
attention, just as the strengthening of actions destined to the 
protection of children. 
Concerning fundamental social rights, and particularly child-labour, 
the Community may provide the necessary assistance to support the 
efforts to be developed by Southeast Asian countries in this respect. 
Finally, health issues can be the object of special attention and 
constitute a priority in the establishment of cooperation with ASEAN 
countries26. It should specifically acknowledge the rise of AIDS 
contamination cases in the region. 
4.3. Co-operation in other fields 
4.3.1 Environment 
The new EU-ASEAN dynamic will acknowledge protection of the 
environment as a key concern. The ASEAN countries are well aware 
of the risks posed to their natural heritage by rapid economic growth 
which fails to take protection of the environment into account. Co­
operation on environment has been of limited effectiveness in thé past 
because of a lack of information enabling proper priority to be 
attached to the various environmental questions. While these priorities 
are becoming clearer, co-operation needs to be developed to establish 
a systematic method of updating information and agreeing on 
priorities. Specifically, there should be co-operation on: 
- enhancing ASEAN states' capacity to develop effective 
environmental legislation and their capacity to implement it; 
- encouraging actors in government, industry, interest groups and 
other areas (e.g. the military) to share responsibility for the future 
environment of the ASEAN region; 
- encouraging ASEAN participation in the pursuit of both regional 
and global environmental objectives; 
- the installation of appropriate technology necessary for mitigating 
pollution, especially from new industries, vehicles and from energy 
production; the local development of appropriate technological 
solutions to local pollution problems. 
26 A malaria-fighting program worth 29 million Ecus and covering Vietnam, Cambodia and Laos was 
launched by the Commission in 1995. It constituted a first example of cooperation with ASEAN as it 
is managed in coordination with the WHO regional office in Manila and could benefit from the 
technical assistance of a regional applied research body (SEMAO-TROP-MED) in which ASEAN 
participates. 
20 
4.3.2 Bringing the two societies together 
The development of closer links between Europe and Asia, notably in 
the field of culture, should continue to be the object of particular 
attention in drawing up our co-operation policy. The importance of 
creating links between our universities and also between other sectors 
of civil society was spelled out clearly at the Bangkok Summit in the 
context of which a number of proposals were tabled. In their bilateral 
relations, ASEAN and Europe should" extend efforts already 
embarked on in the ASEM context. 
ASEAN and the Community could develop cooperation in education 
and training which, respecting the principle of subsidiarity, 
complements bilateral activities in the field. Building on the 
Community's experience with education and training-networking 
between actors in the Member States, they could facilitate 
partnerships between institutions and practitioners and could further 
promote student centred cooperative activities and the exchange of 
expertise in fields like curriculum development, academic recognition, 
university/enterprise cooperation and the use of new educational 
technologies. 
Action to be taken in the wake of the Europe-Asia Cultural Forum 
held in Venice last January, should also be studied. A particular effort 
should be made in the field of information between the two regions in 
order to reflect their respective initiatives to promote their regional 
identities and cultures. With this in mind, co-operation with the 
ASEAN Committee on Culture and Information could be developed. 
4.3.3 Crime pre vent ion 
The fight against organised crime, under its various forms, including 
the related laundering activities, must be tackled jointly. This effort 
should be carried out within the existing bilateral cooperation 
framework, which should be better coordinated, and within the 
appropriate multilateral bodies. Further, specific collaboration 
methods should be developed within the partnership each time it may 
be required. 
Drug-trafficking is undoubtedly a privileged target for our 
cooperation, particularly through the development of strengthened 
relations between customs administrations, specifically concerning 
drug-precursors. Special attention will also have to be given to the 
prevention of illegal immigration, notably the trade of human beings, 
and to the networks that organise it. 
4.3.4 Science and Technology 
Cooperation in science and technology is an important tool in the 
promotion of an environment favourable to cooperation in general. It 
enables Europe and third countries to be jointly associated with the 
generation of knowledge and of innovative and appropriate 
21 
technologies needed to solve regional and global problems so as to 
achieve sustainable development. 
Science and technology cooperation between Europe and the ASEAN 
countries is already actively encouraged under the 4th Framework 
Programme for RTD, particularly in the fields of natural resources, 
agriculture, health and information and communication technologies. 
Discussion is underway within the Commission on ways in which 
S&T cooperation with the ASEAN countries, might be further 
enhanced. Building on the current official EC-ASEAN dialogue on 
S&T, possibilities now exist to expand that dialogue. 
?? 
SECTION III - OPERATIONAL STRUCTURES 
Implementation of the objectives set out in Section II would entail minimum adjustments 
to the EU-ASEAN institutional framework27. We already have a substantial number of 
bilateral bodies authorised to adopt guidelines, to decide common action between the two 
regions and to monitor implementation. Moreover, more general issues can be discussed 
in enlarged forums such as the Post-Ministerial Conference, the ASEAN Regional Forum 
and, more recently, the Asia-Europe Meeting (ASEM). 
However, the current system lacks a practical framework to discuss concrete topics, 
notably in the field of economic relations. Involvement of the private sector is also 
inadequate. 
Intensification of contacts and involvement of business would imply the following 
structures: 
• A Dialogue on investment and Trade Policy within the framework of the 
structures envisaged by the 1980 Agreement to discuss multilateral and bilateral 
trade policy issues and charged with drawing up guidelines for specific action in 
the trade area; 
• A forum for dialogue in the private sector (Business Dialogue): the Dialogue 
should be made instrumental for the gradual setting up of an EC promotion 
strategy for ASEAN. It should concentrate on the interests of the effective players 
and the establishment of an attractive action plan on business promotion. Joint EC-
ASEAN ad-hoc groups could be established to focus on subjects of mutual 
interest; a special group could deal with small and medium enterprises; a system 
connecting the Business Dialogue to the Working Groups should assure the taking 
into account of the private sector's interests. 
• Joint ad-hoc discussion forums involving personalities, researchers and 
academics on major social issues such as culture, values, protection of the rights 
of the individual (human rights, workers' rights, the family, women, children) 
aimed at promoting better mutual understanding and identifying joint proposals to 
be submitted to the common decision bodies. 
Adjustment of the tasks of the Joint Cooperation Committee and the strengthening of the 
role of the group of Senior Officials would be necessary. 
-7 Sec Annex 8. 
SECTION IV - OPTIONS FOR LAUNCHING A NEW DYNAMIC 
Over recent years, Europe has reviewed its external policy with a large number of 
partners. In each case it has striven to choose a model corresponding to the specific 
situation of the country or countries concerned. Redefining our relations with ASEAN 
should not be an exception to this rule. A number of factors should be taken into account: 
- the process of ASEAN's economic integration is slow and could remain so for a 
variety of reasons: numerous problems remain as regards the liberalisation of 
sensitive products such as basic farm products; non-tariff barriers, the elimination 
of which is planned although with no fixed calendar, are very numerous; 
harmonisation of customs procedures is still in its infancy; decisions on the 
liberalisation of services and investment have only just started; 
- ASEAN, after having received Vietnam into the fold, is opening up to Cambodia, 
Laos and, without doubt, Myanmar in the longer term; Jiese countries are at a 
stage of development well below that of the majority of current members, which 
will mean a more complex approach to take account of an accentuation of 
disparities; 
- the ASEAN countries, barring Vietnam28, are members of APEC, which is to 
establish free trade by the year 2010 for industrialised member economies and by 
2020 for less advanced ones; the Asian Economic Ministers of ASEM stated in 
their preparatory works to ASEM that the liberalisation efforts they are required 
to cany out on an erga onmes basis in APEC should be matched by the 
Europeans; 
- commercial and industrial policies are not concerted and each ASEAN country has 
its own interests: steps should therefore be taken, where appropriate, to achieve a 
variable or specific approach; 
- sensitive political issues such as human right issues, and specifically East Timor, 
lurk beneath the surface, even if the Bangkok Summit brought interesting 
initiatives. 
The present situation has three levels: 
- a Cooperation Agreement between the Community and the ASEAN Member 
countries; 
- a bilateral agreement with one of the ASEAN countries, Vietnam, and agreements 
in preparation with future members, Cambodia and Laos; 
- a ministerial meeting fronting, independently of the Agreement, the whole of the 
relations between Europe and ASEAN; 
28 Vietnam submitted ils candidacy for APEC in June 1996. 
24 
Two options are proposed to mark the transition to a new era in our relations and to 
embark together on a new dynamic entailing concrete action: 
25 
OPTION 1. 
A FORMAL AGREEMENT 
The 1980 Agreement affords a certain leeway. It could nevertheless be completed by 
taking into account certain objectives defined in Section II. 
An agreement completing the 1980 Agreement would mark the original character of our 
relationship. The timing would be most convenient since ASEAN is right in the middle of 
its integration process. This formula would be based on a decision by the ASEAN 
countries as a whole to co-operate with the Community. 
ASEAN is currently examining all its possible ties with other regional zones. It has 
notably established contacts with NAFTA. Europe, by offering in this way a reinforced 
partnership, would manifestly prove its interest for the evolution of the region. 
The procedure would have a formal character (protocol to the 1980 Agreement) and 
would aim to complete our ties in all those aspects for which the present agreement does 
not provide the necessary framework. Specific actions for a reinforced liberalisation and 
cooperation could be identified in common. 
The limits to this option are ascribable to the uncertain and imperfect character of the 
ASEAN integration. Despite the good-will declarations and the narrowing of ties (e.g. the 
decision to have annual informal Summits), ASEAN is still far from talking with a single 
voice and acting as a single bloc. 
26 
Type of act A protocol to the 1980 Agreement 
Substance basis: recognition of the two regions' desire to co-operate to 
promote democracy, prosperity and links between their 
peoples 
formulation of inter-regional objectives and particularly: 
co-operation on regional integration 
facilitation of flows between the two regions 
creation of an inter-regional consultation mechanism to 
develop these objectives 
definition of strengthened economic co-operation 
redefinition of development co-operation 
Machinery A negotiating directive proposal would be presented concerning the 
Protocol. Working Groups and consultation bodies within the 
framework of the existing structures will endeavour to realise the 
defined objectives. 
The development of a political inter-regions dialogue could be integrated within a specific 
agreement between the Community and its Member States and the ASEAN countries. 
27 
OPTION 2. 
AN ACTIVE PARTNERSHIP 
The realisation of new objectives for the deepening of our partnership with ASEAN may 
be based on the expression of a collective will to reinforce cooperation activities within 
the framework of the Agreement and to launch new actions following identified priorities. 
The approach would thus be the adoption of a common declaration of Ministers, or even 
Heads of State, defining the general objectives for which they charge a group of high-level 
experts to produce a draft programme of concrete actions. 
This formula has the advantage of affording greater flexibility to the ASEAN countries 
since the undertakings agreed on within it would be accepted on an individual basis. It 
would also allow the precise focusing on the domains and sectors for which urgent action 
is required. Further, for such issues as the political dialogue, fundamental rights and 
society questions, precise undertakings could be made on an equal basis. 
The realisation of the action plan based on voluntary and individual undertakings would 
involve inter-regional mechanisms without, however, excluding bilateral dialogues. 
Within this option, the private sector should be closely associated: two formulae should be 
considered: 
1. isolated work by the business sector subsequently reporting to the bodies of the 
Agreement; 
2. direct participation of the private sector within the different committees. 
Both solutions have certain advantages and could be used specifically according to 
circumstances: 
- concerning the analysis of specific sectors of activity (transport, telecommunications, 
energy etc.), the first solution would be adopted, thus permitting the identification of 
problems specific to the sector and at the same time establishing links between the 
sectoral businesses. 
- regarding horizontal matters (e.g. intellectual property, standards, investments etc.), the 
private sector could be associated to the work of the Senior Officials and let its 
particular concerns be known as well as make use of its expertise. 
The success of such a partnership will obviously depend on the keenness of both partners 
to advance but also on their readiness to contribute the necessary human resources to 
organise the consultations and the expected negotiations. Furthermore, if efficiency is to 
be respected, clear objectives, especially dates, should be specified. 
28 
Type of act Declaration and Action Plan signed by the Community and its 
Member States and the ASEAN Member States 
Substance - priority definition and reinforcement of action within the 
domains of cooperation identified in the Agreement; 
- development of new actions within the domains other than those 
identified by the Agreement taking into account the political, 
economic and other objectives identified at the ministerial level. 
Machinery Drawing-up of an action plan proposal and of a project of 
declaration by the Commission in view of their formal presentation 
to the Council. Once these texts adopted by the Community 
institutions and the ASEAN partners, discussions and negotiations 
will take place within the Agreement bodies and within ad-hoc 
working groups for the other domains and report to the Senior 
Official's Meeting. 
Other options which could have been considered deviate from the determined objective, 
namely the launching of a concrete dynamic: 
- a new third-generation agreement replacing the 1980 Agreement would face the 
political obstacles already encountered29; 
- agreements with individual ASEAN countries could represent an alternative option if 
ASEAN fails to progress at the same pace; but, given the proposed objectives it is 
necessary to address the whole of the region while at the same time keeping the 
necessary flexibility to establish individual engagements. 
29 Sec Annex 5.1. 
29 
CONCLUSIONS 
The main objectives are unequivocal: to give a specific content to our Dialogue, to 
encourage the ties between our two processes of regional integration and to actively 
stimulate trade and investment. If it is true that we can obtain these results through 
different ways, the history of our relations with ASEAN and the specific context of the 
region should incite us to choose an original and pragmatic formula. This formula would 
make the best use of the present institutions and would offer opportunities at all levels for 
an active reinforcement of our relations. 
Consequently the Commission proposes the launching of a "New Dynamic" modelled on 
the second option of Section IV. The first stage could be the adoption of a common 
Declaration at the next ASEAN-EU Ministerial Meeting, planned for February 1997. This 
declaration should contain all the elements of a core of initiatives to be developed within 
an Action Plan which will itself be drawn up by high-level experts from both parties. The 
regional objectives should be integrated, Europe thus asserting its confidence in the on­
going process within ASEAN as regards its reinforcement as much as its enlargement. 
It is* vital that we rapidly progress towards the establishment of our privileged relationship 
with ASEAN within the framework of ASEM and make sure that it contributes to the 
latter's defined purposes. The EU-ASEAN axis can be a motor of the new Europe-Asia 
dialogue. The disclosure of the Eminent Person's Group report will permit us to rapidly 
enter consultations with our ASEAN partners. 
LIST OF ANNEXES 
Annex 1 ASEAN Indicators 
General Statistical Indicators for ASEAN 
Intra-ASEAN Exports 
Intra-ASEAN Exports (CEPT Products) 
Growth in Intra-ASEAN Exports 1994-95 
Growth in Intra-ASEAN CEPT Exports 1994-95 
Intra-Regional Exports of CEPT Products 
Intra-Regional Imports of CEPT Products 
Annex 2 EC-ASEAN Trade Figures 
EU trade with ASEAN 
Imports to ASEAN by Major Sector 
Exports from ASEAN by Major Sector 
Trade Balance with ASEAN by Major Sector 
EU 12 Imports from the ASEAN countries 
EU12 Exports to the ASEAN countries 
EU12 Trade Balance with the ASEAN countries 
EU Imports from ASEAN countries 1995 
EU Exports to the ASEAN countries 1995 
EU Trade Balance with the ASEAN countries 1995 
EU Imports from ASEAN countries by Member States 
EU Exports to the ASEAN countries by Member States 
EU Trade Balance with ASEAN countries Member States 
Annex 3 EU-ASEAN Foreign Direct Investment Flows 
European Foreign Direct Investment in ASEAN ($m) 
Foreign Direct Investment Flows originating from ASEAN 
to the EU 
Annex 4 The AFTA and APEC context 
Launching the AFTA process 
The APEC context 
Annex 5 EU-ASEAN Relations 
An Historical Overview 
Outline of EU-ASEAN ties 
Annex 6 Trade Policy Review Profiles 
Indonesia 
Malaysia 
Philippines 
Singapore 
Thailand 
Annex 7 Breakdown of EC Financial Assistance in ASEAN 1976-1995 
Annex 8 The Institutional Structure of EU-ASEAN Relations 
to 
Annex 1 - ASEAN Indicators: 
1.1. General Statistical Indicators for ASEAN 
1.2. Intra-ASEAN Exports 
1.3. Intra-ASEAN Exports (CEPT Products) 
1.4. Growth in Intra-ASEAN Exports 1994-95 
1.5. Growth in Intra-ASEAN CEPT Exports 1994-95 
1.6. Intra-Regional Exports of CEPT Products 
1.7. Intra-Regional Imports of CEPT Products 
3 
1.1. GENERAL STATISTICAL INDICATORS FOR ASEAN 
Indicators 
Basic (1995) 
Population 
(millions) 
Area 
(1.000km2) 
Economic 
(1994) 
Gross 
Domestic 
Product 
(billion US$) 
GDP per 
capita (US$) 
GDP annual 
growth in % 
(1995) 
Total 
Merchandise 
Exports 
(million US$) 
Total 
Merchandise 
Imports 
(million US$) 
Total 
External 
Debt (billion 
US$) 
Foreign 
Direct 
Investment 
(US$ million -
1993) 
Population 
Growth rate 
(annual ave­
rage 1990-95) 
Labour force 
(% of total) Brunei 
0.3 
6 
4 
13,822 
2.0 
2.682 
1,208 
0.15 
-
2.1 
-Indonesia 
194 
1,905 
143 
763 
7.2 
40,053 
31,983 
90.5 
2,004 
1.6 
43 Malaysia 
20 
330 
64 
3,386 
8.5 
58,754 
59,594 
25 
4.351 
2.4 
38 Phillipines 
69 
300 
54 
817 
5.2 
13,483 
22,738 
36.5 
763 
2.1 
56 Singapore 
1 
55 
19,213 
8.9 
96,749 
102,590 
16.5 
6,829 
1.0 
65 Thailand 
60 
513 
124 
2,103 
8.6 
45,167 
54,340 
55 
1.621 
1.1 
56 Vietnam 
74 
332 
13 
170 
8 
3,400 
4,000 
25 
300 
2.2 
49 
Sources: CHELEM, La Découverte: L'Etat du Monde 1996: ASEAN Secretariat 
'^ 
1.2. INTRA-ASEAN EXPORTS (ALL PRODUCTS) (USS MILLIONS) 
Country 
Brunei 
Indonesia 
Malaysia* 
Philippines 
Singapore 
Thailand** 
Vietnam*** 
TOTAL 1994 
467.52 
5,787.97 
15,002.15 
1,425.12 
28,806.68 
7,991.37 
794.70 
60,275.52 1995 
233.41 
6,334.00 
18,429.01 
2,361.32 
33,095.20 
8,894.08 
685.93 
70,032.94 Growth 
-50.08% 
9.43% 
22.84% 
65.69% 
14.89% 
11.30% 
16.19% 
1.3. INTRA-ASEAN EXPORTS (CEPT PRODUCTS) (USS MILLIONS) 
Country 
Brunei 
Indonesia 
Malaysia* 
Philippines 
Singapore 
Thailand** 
Vietnam*** 
TOTAL 1994 
467.70 
5,157.25 
13,036.18 
1,184.87 
25,467.56 
3,743.58 
n.a. 
49,054.14 1995 
230.29 
5,600.86 
16,000.08 
2,091.47 
29,495.46 
5,905.98 
n.a. 
59,324.14 Growth 
-50.44% 
8.60% 
22.74% 
76.51% 
15.82% 
57.76% 
20.94% 
Legend: 
* Malaysia is missing 4th quarter exports to Thailand and Vietnam. 
** Thailand is missing 1995 exports to Vietnam and 4th quarter exports to Malaysia. 
*** Vietnam is missing 1995 exports to Thailand and 4th quarter exports to Malaysia. 
Source: The ASEAN Secretariat 
1.4. GROWTH IN INTRA-ASEAN EXPORTS, 1994-95 (USS MILLIONS) 
Country' 
Brunei 
Indonesia 
Malaysia* 
Philippines 
Singapore 
Thailand** 
Vietnam*** 
TOTAL 1994 
467.52 
5,787.97 
15,002.15 
1,425.12 
28,806.68 
7,991.37 
794.70 
60,275.52 1995 
233.41 
6,334.00 
18,429.01 
2,361.32 
33,095.20 
8.894.08 
685.93 
70,032.94 Increase 
(234.11) 
546.03 
3,426.87 
936.19 
4.288.51 
902.70 
(108.77) 
9,757,42 
1.5. GROWTH IN INTRA-ASEAN CEPT EXPORTS, 1994-95 (USS MILLIONS) 
Country 
Brunei 
Indonesia 
Malaysia* 
Philippines 
Singapore 
Thailand** 
Vietnam*** 
TOTAL 1994 
467.70 
5,157.25 
13,036.18 
1,184.87 
25,467.56 
3,743.58 
n.a. 
49,054.14 1995 
230.29 
5,600.86 
16,000.08 
2,091.47 
29,495.46 
5,905.98 
n.a. 
59,324.14 Growth 
(234.41) 
443.62 
2,963.90 
906.60 
4,027.90 
2,162.40 
10,270.00 
Legend: 
* Malaysia is missing 4th quarter exports to Thailand and Vietnam. 
** Thailand is missing 1995 exports to Vietnam and 4th quarter exports to Malaysia. 
*** Vietnam is missing 1995 exports to Thailand and 4th quarter exports to Malaysia. 
Source: The ASEAN Secretariat 
1.6. INTRA-REGIONAL EXPORTS OF CEPT PRODUCTS, 1993-94 (USS MILLIONS) 
EXPORTS 
FROM 
Brunei 
Indonesia 
Malaysia 
Philippines 
Singapore 
Thailand 
TOTAL YEAR 
1993 
1994 
94/93% 
1993 
1994 
94/93% 
1993 
1994 
94/93% 
1993 
1994 
94/93% 
1993 
1994 
94/93% 
1993 
1994 
94/93% 
1993 
1994 
94/93% Brunei 
22.5 
39.4 
75,6 
142.6 
185.7 
30,2 
1.2 
2.2 
83,3 
548.4 
842.7 
44,1 
15.3 
18.1 
18,4 Indonesia 
n.a. 
0.44 
n.a. 
478.9 
604.6 
26,2 
28.7 
43.6 
52,2 
n.a. 
n.a. 
n.a. 
83.7 
135.0 
61.4 EXPO 
Malaysia 
n.a. 
37.0 
n.a. 
459.9 
599.6 
20,9 
124.6 
166.3 
33,5 
9,186.9 
19,484.1 
112,1 
277.9 
316.0 
13,7 RTSTO 
Philippines 
n.a. 
28.3 
n.a. 
260.1 
319.3 
22,8 
429.4 
535.5 
24,7 
1,121.4 
1,425.3 
27,1 
62.5 
74.8 
19.7 Singapore 
n.a. 
197.9 
n.a. 
3,046.2 
3,722.0 
22,2 
8,448.4 
9,581.7 
13,4 
302.2 
618.7 
104.7 
2,359.4 
2,740.8 
16,2 Thailand 
n.a. 
200.7 
n.a. 
430.5 
333.0 
(22,7) 
1,632.1 
2,014.5 
23,4 
129.2 
296.4 
129,4 
3,168.8 
5,249.4 
65,7 
32,833.0 
49,813.0 
51.7 
CEPT exports accounted for 81,4% of total intra-ASEAN exports in 1994 and 84,7% in 1995. 
Source: The ASEAN Secretariat 
1.7. INTRA-REGIONAL IMPORTS OF CEPT PRODUCTS, 1993-94 (USS MILLIONS) 
IMPORTS 
TO 
Brunei 
Indonesia 
Malaysia 
Philippines 
Singapore 
Thailand 
TOTAL YEAR 
1993 
1994 
94/93% 
1993 
1994 
94/93% 
1993 
1994 
94/93% 
1993 -
1994 
94/93% 
1993 
1994 
94/93% 
1993 
1994 
94/93% 
1993 
1994 
94/93% Brunei 
0.6 
0.2 
(67,13) 
1.7 
28.2 
1,559.3 
0.1 
0.5 
352.5 
215.8 
250.5 
16,1 
216.6 
149.7 
(30,9) Indonesia 
n.a. 
53.7 
n.a. 
441.3 
627.5 
42,2 
211.9 
245.6 
15,9 
n.a. 
n.a. 
n.a. 
269.2 
231.8 
(13,9) IMPOR 
Malaysia 
n.a. 
224.7 
n.a. 
411.3 
489.1 
18,9 
167.0 
237.6 
42,3 
13,629.1 
19,106.2 
40,2 
891.2 
1,499.8 
68,3 TS FROM 
Philippines 
n.a. 
2.4 
n.a. 
41.7 
54.7 
30,9 
200.3 
303.4 
51,5 
493.0 
882.8 
79,1 
94.9 
186.1 
96,0 Singapore 
n.a. 
575.2 
n.a. 
1,543.3 
1,630.9 
5,7 
5,469.3 
6,799.0 
24.3 
634.7 
794.7 
25.2 
935.8 
1,212.9 
29,6 Thailand 
n.a. 
60.3 
n.a. 
148.8 
231.5 
55.6 
789.0 
1,131.4 
43.4 
86.9 
129.6 
49.2 
3.448.2 
5,629.4 
63.3 
30,341.9 
42,769.2 
41.0 
Source: The ASEAN Secretariat 
Annex 2 - EC-ASEAN Trade Figures: 
2.1. EU trade with ASEAN 
2.2. Imports to ASEAN by Major Sector 
2.3. Exports from ASEAN by Major Sector 
2.4. Trade Balance with ASEAN by Major Sector 
2.5. EU12 Imports from the ASEAN countries 
2.6. EU12 Exports to the ASEAN countries 
2.7. EU12 Trade Balance with the ASEAN countries 
2.8. EU Imports from ASEAN countries 1995 
2.9. EU Exports to the ASEAN countries 1995 
2.10. EU Trade Balance with the ASEAN countries 1995 
2.11. EU Imports from ASEAN countries by Member States 
2.12. EU Exports to the ASEAN countries by Member States 
2.13. EU Trade Balance with the ASEAN countries by Member States 
2.1. EU TRADE WITH ASEAN 
Figures in MECU 
EC 
Imports 
EC 
Exports 
Trade 
Balance 1980 
6,857 
5,369 
-1,488 1983 
7.917 
9,269 
1,350 1985 
9,972 
9,810 
-162 1987 
10,037 
8,906 
-1,131 1988 
12,203 
10,689 
-1,514 1989 
15,173 
14,110 
-1,063 1990 
16,748 
16,083 
-665 1991 
19,947 
17,282 
-2,665 1992 
22,403 
19,278 
-3,125 1993 
25,667 
22,920 
-2,747 1994 
29,940 
27,759 
-2,181 1995 
:o,:>55 
33,991 
636 
35000 
30000 
25000 
20000 
ft 15000 
10000 • EC Imports 
DEC Exports 
• Trade Balance 
5000 1 I I I 
m 11 I 
il 'I I I I I Willi I I I I I I Il I j ! I !||( S S S S 
111 il [J I Urn Urn )Am urn \lm \\m -im Urn 19dDJ 1983 1985 1987-P 19asJ 19»* 199TT 19911 19921 19931 1994H 1995 
-5000 
YEARS 
Source: EUROSTA T 
2.2. Imports from ASEAN by Major Sector 
Breakdown by Sector 
Food and live animals 
Beverages and tobacco 
Crude materials 
Oils, fats and waxes 
Primary goods 
Fuel products 
Chemicals 
Classified by material 
Machinery and transport 
Miscellaneous 
Manufactured goods 
Other goods 
Total 
1995 Totals 1980 
EU 
1,296.05 
106.34 
1,555.57 
447.26 
3,405.22 
220.15 
35.15 
951.28 
770.00 
690.76 
2,447.19 
784.70 
6,857i2 US 
724.54 
18.72 
755.83 
278.61 
1,777.70 
4107.80 
28.10 
754.82 
2,045.39 
651.67 
3,479.98 
148.49 
9,514.0 Japan 
907.85 
13.01 
3,684.46 
93.68 
4,699.00 
11,814.8 
131.53 
566.39 
157.79 
105.58 
961.29 
93.21 
17,568.3 1988 
EU 
2,254.95 
99.61 
1,629.45 
625.96 
4,609.97 
38.76 
135.50 
1,492.41 
3,195.84 
2,513.46 
7,337.21 
216.79 
12,202.7 US 
1,093.89 
19.85 
821.21 
302.08 
2,237.03 
1,203.71 
195.29 
1,171.65 
7,513.11 
3,151.96 
12,032.0 
279.62 
15,752.4 Japan 
1,942.28 
30.27 
3,402.21 
129.96 
5,504.72 
7,423.67 
315.36 
1,500.46 
599.20 
432.23 
2,847.25 
354.48 
16,130.1 1994 
EU 
2,539.56 
106.92 
1,614.16 
1,090.02 
5,350.66 
243.65 
511.73 
3,070.43 
13,171.3 
6,986.12 
24,345.8 
606.24 
29,940.2 
33,354.3 US 
2,523.09 
58.87 
1,101.03 
363.06 
4,046.05 
961.01 
777.14 
2,198.89 
26,754.2 
9,913.70 
40,361.4 
717.41 
45,368.4 
49,105.1 Japan 
4,561.66 
38.37 
3,714.42 
256.86 
8,571.31 
9,034.83 
729.82 
3,247.01 
6560.49 
2,973.00 
14,210.1 
699.75 
31,816.2 
36,903.3 
Figures in MECU (Source : Eurostat/Comlrade) 
2.3. Exports to ASEAN by Major Sector 
Breakdown by Sector 
Food and live animals 
Beverages and tobacco 
Crude materials 
Oils, fats and waxes 
Primary goods 
Fuel products 
Chemicals 
Classified by material 
Machinery and transport 
Miscellaneous 
Manufactured goods 
Other goods 
Total 
1995 Totals 1980 
EU 
180.61 
106.29 
25.57 
9.72 
322.19 
48.90 
680.58 
677.67 
2,851.31 
325.27 
4,534.83 
463.56 
5,369.37 US 
465.46 
118.13 
348.56 
7.46 
939.61 
128.13 
745.72 
373.14 
3,826.02 
264.75 
5,209.63 
45.72 
6,323.09 Japan 
140.15 
1.57 
120.55 
14.57 
276.84 
39.60 
812.35 
2,733.38 
5,034.11 
425.02 
9,004.86 
100.11 
9,421.41 1988 
EU 
389.94 
233.12 
137.86 
37.99 
798.91 
47.60 
1,533.98 
1,516.85 
4,769.13 
1,010.68 
8,830.64 
1,011.15 
10,688.3 US 
431.64 
144.89 
407.30 
9.84 
993.67 
95.81 
920.46 
519.93 
5,520.55 
663.00 
7,623.94 
255.16 
8,968.58 Japan 
156.10 
5.34 
141.50 
11.16 
314.10 
75.92 
1,227.27 
3,022.14 
9,591.23 
806.41 
14,647.1 
328.23 
15,365.3 1994 
EU 
721.60 
409.23 
348.64 
31.38 
1,510.85 
365.54 
3,177.12 
3,706.17 
15,288.5 
2,629.71 
24,801.5 
1081.26 
27,759.1 
33,988.7 US 
937.25 
302.80 
1,037.68 
20.84 
2,334.57 
508.90 
2,204.00 
1,408.73 
17,243.5 
2,315.12 
22,991.3 
821.69 
26,863.5 
29,893.5 Japan 
236.43 
28.11 
348.53 
7.08 
620.15 
327.97 
3,391.42 
7,017.01 
35,505.9 
2,842.50 
48,756.8 
978.95 
50,683.9 
59,363.6 
Figures in MECU (Source : Eurostat/Comtrade) 
2.4. Trade Balance with ASEAN by Major Sector 
Breakdown by Sector 
Food and live animals 
Beverages and tobacco 
Crude materials 
Oils, fats and waxes 
Primary goods 
Fuel products 
Chemicals 
Classified by material 
Machinery and transport 
Miscellaneous 
Manufactured goods 
Other goods 
Total 
1995 Totals 1980 
EU 
-1,115.44 
-05 
-1,530.00 
-437.54 
-3,083.03 
-171.25 
645.43 
-273.61 
2,081.31 
-365.49 
2,087.64 
-321.14 
-1,487.84 US 
-259.08 
99.41 
-407.27 
-271.15 
-838.09 
-3,979.67 
717.62 
-381.68 
1,780.63 
-386.92 
1,729.65 
-102.77 
-3,190.88 Japan 
-767.70 
-11.44 
-3,563.91 
-79.11 
-4,422.16 
-11,775.2 
680.82 
2,166.99 
4,876.32 
319.44 
8,043.57 
6.90 
-8,146.87 1988 
EU 
-1,865.01 
133.51 
-1,491.59 
-587.97 
-3,811.06 
8.84 
1,398.48 
24.44 
1,573.29 
-1,502.78 
1,493.43 
794.36 
-1,514.43 US 
-662.25 
125.04 
-413.91 
-292.24 
-1,243.36 
-1,107.90 
725.17 
-651.72 
-1,992.56 
-2,488.96 
-4,408.07 
-24.46 
-6,783.79 Japan 
-1,786.18 
-24.93 
-3,260.71 
-118.80 
-5,190.62 
-7,347.75 
911.91 
1,521.68 
8,992.03 
374.18 
11,799.80 
-26.25 
-764.82 1994 
EU 
-1,817.96 
302.31 
-1,265.52 
-1,058.64 
-3,839.81 
121.89 
2,665.39 
635.74 
2,117.19 
-4,356.41 
1,061.91 
475.02 
-2,180.99 
845.9 US 
-1,549.85 
243.93 
-63.35 
-342.22 
-1,711.49 
-452.11 
1,426.85 
-790.16 
-9,510.78 
-7,598.58 
-16,472.7 
104.28 
-18,532.0 
-19,211.8 Japan 
-4,325.25 
-10.26 
-3,365.89 
-249.79 
-7,951.17 
-8,706.85 
2,661.61 
3,769.99 
28,945.36 
-130.49 
35,246.47 
279.20 
18,867.65 
22,460.3 
Figures in MECU (Source : Eurostat/Comtrade) 
2.5. EU12 IMPORTS FROM THE ASEAN COUNTRIES (THOUSANDS ECU) 
THAILAND 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 3.914.208 
1.370.048 
1.198.077 
30.436 
140.047 
3 
1.485 
2.514.866 
15.359 
637.709 
537.041 
1.324.757 
29.294 5.103.681 
1.694.921 
1.484.292 
40.154 
170.191 
0 
284 
3.310.200 
22.733 
689.487 
797.716 
1.800.264 
98.560 5.148.022 
1.552.286 
1.353.975 
43.022 
154.437 
661 
191 
3.533.004 
28.605 
678.432 
959.422 
1.866.546 
62.732 5.531.003 
1.471.692 
1.272.009 
37.323 
162.063 
5 
292 
3.976.139 
32.385 
719.795 
1.297.937 
1.926.022 
83.171 6.263.562 
1.601.099 
1.328.621 
36.310 
235.724 
5 
439 
4.535.717 
45.067 
885.874 
1.592.237 
2.012.539 
126.745 6.377.369 
1.400.236 
1.031.961 
26.962 
339.977 
67 
1.268 
4.793.677 
53.308 
951.934 
2.007.936 
1.780.499 
183.456 
VIETNAM 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 1990 
82.993 
47.598 
37.875 
0 
6.728 
2.977 
19 
35.195 
1.424 
7.093 
535 
26.143 
200 1991 
172.178 
73.612 
48.379 
19 
5.332 
19.868 
14 
98.112 
902 
15.843 
1.304 
80.063 
454 1992 
319.505 
86.454 
48.463 
27 
7.332 
30.458 
173 
231.781 
2.183 
23.883 
7.285 
198.431 
1.270 1993 
544.143 
87.868 
59.936 
32 
5.834 
22.063 
4 
455.648 
2.472 
39.378 
25.828 
387.970 
626 1994 
857.909 
195.294 
155.604 
218 
10.151 
29.283 
38 
660.555 
4.820 
58.519 
14.717 
582.499 
2.060 1995 
1.112.895 
283.242 
244.249 
96 
21.395 
17.428 
75 
826.624 
6.616 
63.969 
7.317 
748.722 
3.028 
INDONESIA 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 2.864.616 
1.254.355 
517.383 
66.842 
340.257 
95.810 
234.062 
1.599 271 
35.659 
729.740 
73.362 
760.510 
10.991 3.579.828 
1.211.921 
539.642 
78.683 
298.583 
35.433 
259 580 
2.349.447 
49.337 
899.363 
89.537 
1.311.209 
18.460 4.343.078 
1.351.163 
487.855 
76.581 
296.045 
141.121 
349.560 
2.973.313 
68.143 
1.072.590 
221.764 
1.610.815 
18602 5.032.085 
1.546.580 
540.395 
56.097 
378.622 
183.408 
388.057 
3.438.047 
65.688 
1.147.041 
363.102 
1.862.216 
47.458 5.857.146 
1.985.065 
608.947 
52.392 
520.570 
242.614 
560.542 
3.860.014 
91.920 
1.262.749 
409.853 
2.095491 
12.067 5.946.805 
1.940.335 
505.450 
57.010 
585.152 
187.472 
605.250 
3.978.418 
110.123 
1.316.777 
416.831 
2.134.687 
28.053 
hi 
MALAYSIA 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 3.607.554 
1.354.506 
266.156 
441 
630.558 
18.892 
238.459 
2.202.571 
37.255 
350.934 
1.160.243 
654.139 
50.477 4.383.214 
1.241.417 
260.461 
749 
707.100 
0 
273.106 
3.085.541 
59.045 
404.411 
1.718.061 
904.026 
56.256 4.939.649 
1.270.674 
265.102 
557 
696.383 
15 
308.617 
3.573.264 
64.604 
449.018 
2.034.408 
1.025.234 
95.711 6.227.465 
1.291.408 
258.323 
1.707 
725.305 
2.523 
303.550 
4.849.056 
76.752 
471.657 
3.188.728 
1.111.919 
87.002 7.488.496 
1.371.637 
288.201 
802 
692.202 
6.030 
384.402 
6.055.158 
128.201 
563.596 
4.210.574 
1.152.788 
61.701 8.871.560 
1.393.086 
276.341 
1.820 
715.543 
11.320 
388.062 
7.308.193 
187.458 
585.382 
5.398.532 
1.136.821 
170.282 
BRUNEI 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 222.837 
314 
80 
35 
199 
0 
0 
221.813 
71 
4.095 
7.834 
209.813 
710 281.595 
405 
136 
24 
155 
0 
90 
277.182 
63 
201 
73.643 
203.275 
4.008 221.592 
789 
284 
6 
494 
0 
4 
204.870 
61 
555 
49.556 
154.699 
15.933 397.240 
244 
116 
40 
87 
0 
0 
378.357 
121 
386 
8.909 
368.941 
18.640 313.918 
138 
88 
3 
38 
0 
10 
308.771 
1 
436 
30.793 
277.541 
5.008 262.748 
41 
35 
5 
0 
0 
2 
257.690 
46 
189 
117.413 
140.043 
5.017 
SINGAPORE 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 1990 
4.685.499 
179.117 
65.558 
2.677 
108.330 
166 
2.386 
4.438.554 
137.465 
184.798 
3.481.135 
635.156 
67.828 1991 
5.220.210 
175.896 
75.650 
2.156 
77.486 
17.556 
3.048 
4.982.731 
190.921 
196.362 
3.871.480 
723.968 
61.583 1992 
5.651.191 
168.784 
84.212 
2.491 
68.808 
5.318 
7.955 
5.401.368 
192.141 
204.690 
4.209.403 
795.135 
81.039 1993 
6.439.967 
171.302 
90.636 
3.168 
69.916 
2.115 
5.467 
6.162.745 
173.428 
200.571 
5.138.428 
650.318 
105.921 1994 
7.752.602 
193.293 
97.423 
3.112 
83.047 
4.892 
~ 4.819 
7.368.227 
184.294 
203.965 
6.221.875 
758.092 
191.082 1995 
8.440.792 
214.508 
91.343 
6.199 
111.392 
888 
4.686 
7.889.124 
298.400 
230.059 
6.546.434 
814.231 
337.160 
PHILIPPINES 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 1.257.650 
397.963 
158.251 
15.913 
83.989 
0 
139.810 
820.005 
15.817 
123.354 
210.125 
470.709 
39.682 1.472.714 
384.771 
179.446 
17.505 
62.162 
2 
125.656 
1.045.346 
12.783 
153.365 
274.940 
604.259 
42.597 1.607.892 
383.293 
182.973 
17.419 
65.695 
223 
116.983 
1.146.137 
10.116 
145.038 
405.249 
585.734 
78.462 1.909.893 
397.848 
159.480 
18.730 
72.432 
463 
146.743 
1.370.199 
10.554 
143.878 
572.497 
643.269 
141.846 2.101.598 
426.336 
152.272 
14.352 
85.324 
2.405 
171.984 
1.464.773 
16.753 
130.078 
662.448 
655.494 
210.489 2.342.110 
506.731 
142.045 
12.830 
99.360 
161 
252.335 
1.615.784 
20.794 
122.421 
855.286 
617.284 
219.595 
Source : Eurostat 
u 
2.6. EU12 EXPORTS TO THE ASEAN COUNTRIES (THOUSANDS ECU) 
THAILAND 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 1990 
3.409.261 
282.469 
113.715 
122.418 
30.621 
9.465 
6.249 
2.916.610 
446.832 
630.981 
1.693.044 
145.752 
210.182 1991 
3.816.594 
302.035 
135.454 
110.935 
45.455 
5.784 
4.407 
3.226.613 
452.109 
742.686 
1.879.612 
152.207 
287.946 1992 
3.913.451 
332.060 
164.037 
107.606 
47.549 
8.918 
3.950 
3.382.756 
535.604 
678.988 
1.945.080 
223.085 
198.635 1993 
5.042.718 
421.512 
186.543 
132.698 
60.754 
36.072 
5.445 
4.383.777 
624.142 
925.498 
2.600.740 
233.397 
237.428 1994 
6.103.940 
452.197 
221.835 
117.182 
92.785 
13.882 
6.513 
* 5.414.893 
718.594 
1.052.491 
3.248.210 
395.598 
236.850 1995 
7.736.802 
479.041 
243.839 
125.404 
88.074 
13.809 
7.915 
6.944.571 
785.814 
1.178.262 
4.593.456 
387.039 
313.190 
VIETNAM 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 127.713 
31.173 
21.133 
4.393 
142 
5.400 
106 
94.143 
35.611 
5.575 
45.682 
7.275 
2.397 184.994 
22.268 
19.811 
1.420 
705 
218 
114 
160.117 
44.124 
19.897 
87.160 
8.936 
2.609 300.993 
37.229 
32.512 
2.108 
2.072 
273 
263 
259.447 
53.270 
31.106 
162.878 
12.193 
4.316 487.322 
39.655 
33.050 
2.941 
2.613 
732 
319 
441.671 
79.438 
55.009 
283.084 
24.140 
5.996 616.018 
56.034 
45.437 
3.903 
5.716 
874 
105 
547.977 
117.509 
79.079 
323.140 
28.248 
12.007 710.723 
74.952 
60.518 
4.373 
6.925 
2.706 
430 
614.976 
147.229 
98.624 
326.707 
42.417 
20.795 
INDONESIA 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 1990 
2.837.070 
111.074 
42.512 
7.573 
42.264 
15.683 
3.021 
2.571.421 
426.194 
331.833 
1.703.232 
110.162 
154.575 1991 
3.201.876 
144.319 
63.610 
7.251 
63.608 
7.253 
2.596 
2.923.622 
406.484 
370.349 
2.020.562 
126.226 
133.936 1992 
4.053.728 
195.269 
87.096 
9.911 
54.828 
40.853 
2.581 
3.602.306 
479.032 
463.778 
2.501.425 
158.071 
256.153 1993 
4.144.538 
422.070 
92.315 
9.601 
162.901 
153.810 
3.444 
3.585.701 
586.220 
448.031 
2.394.770 
156.680 
136.767 1994 
4.314.431 
360.449 
77.751 
12.143 
142.016 
T23.269 
5.270 
3.750.937 
697.476 
458.129 
2.447.308 
148.024 
203.045 1995 
5.316.493 
431.326 
149.136 
11.124 
219.874 
45.495 
5.696 
4.579.865 
756.347 
516.624 
3.122.155 
184.738 
305.303 
MALAYSIA 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 2.495.577 
179.188 
74.135 
53.666 
42.993 
7.097 
1.297 
2.087.912 
262.661 
358.322 
1.330.041 
136.888 
228.478 2.940.505 
231.971 
90.012 
66.922 
62.865 
6.531 
5.642 
2.601.878 
283.895 
431.476 
1.724.860 
161.647 
106.656 3.103.616 
224.653 
95.574 
56.200 
62.595 
8.765 
1.519 
2.766.601 
335.526 
396.921 
1.809.763 
224.392 
112.362 3.985.301 
311.276 
118.675 
62.052 
116.382 
10.691 
3.476 
3.536.634 
351.135 
517.816 
2.448.717 
218.965 
137.391 5.772.374 
273.299 
120.519 
63.270 
68.152 
13.357 
8.001 
5.182.020 
438.326 
657.979 
3.762.152 
323.564 
317.055 7.361.700 
340.810 
163.919 
72.337 
89.745 
10.040 
4.769 
6.692.941 
431.046 
760.031 
5.180.407 
321.457 
327.950 
BRUNEI 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 380.074 
5.093 
2.992 
1.516 
555 
10 
20 
356.681 
3.740 
18.991 
55.177 
278.771 
18.301 519.443 
4.180 
2.796 
410 
920 
55 
0 
498.465 
3.554 
25.253 
199.789 
269.868 
16.798 418.575 
5.079 
3.801 
843 
432 
3 
0 
392.249 
4.817 
33.269 
115.347 
238.816 
21.247 589.294 
4.932 
3.434 
532 
948 
14 
4 
566.776 
3.932 
31.408 
131.461 
399.976 
17.586 785.797 
6.391 
4.800 
966 
597 
19 
8 
761.263 
5.316 
34.280 
262.021 
459.647 
18.143 614.586 
10.223 
8.399 
1.187 
557 
72 
8 
590.557 
4.715 
29.370 
230.039 
326.433 
13.805 
SINGAPORE 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 5.682.464 
415.805 
101.768 
199.635 
26.295 
85.412 
2.694 
4.910.400 
642.356 
803.896 
2.814.865 
649.282 
356.260 5.684.599 
408.981 
111.527 
205.909 
34.587 
53.606 
3.352 
5.057.436 
663.616 
847.735 
2.956.965 
589.119 
218.182 6.348.902 
451.335 
127.467 
227.647 
27.152 
65.240 
3.830 
5.493.302 
715.157 
981.021 
3.050.505 
746.618 
404.265 7.682.448 
690.468 
146.063 
223.468 
33.717 
284.372 
2.849 
6.702.453 
848.605 
1.193358 
3.787.044 
873.447 
289.527 8.871.220 
608.937 
169.652 
167.963 
28.944 
231.139 
~11.239 
8.021.213 
1.033.925 
1.322.544 
4.481.072 
1.183.672 
241.070 10.129.896 
637.292 
192.076 
215.286 
28.655 
197.513 
3.761 
9.054.909 
1.103.082 
1.395.217 
5.229.346 
1.327.264 
437.695 
PHILIPPINES 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 1.246.230 
141.185 
102.266 
20.189 
12.064 
3.293 
3.373 
1.034.487 
184.834 
117.824 
642.789 
89.040 
70.558 1.119.798 
136.512 
93.617 
25.301 
13.837 
1.843 
1.913 
930.500 
177.955 
122.408 
547.322 
82.815 
52.787 1.443.141 
178.555 
130.053 
33.835 
10.625 
2.192 
1.850 
1.202.791 
213.871 
141.963 
743.926 
103.031 
61.796 1.732.465 
148.170 
94.040 
30.987 
18.493 
3.518 
1.133 
1.528.349 
241.507 
158.484 
1.011.740 
116.618 
55.945 1.957.521 
201.874 
127.982 
47.442 
17.824 
7.012 
1.613 
1.684.264 
286.670 
174.773 
1.103.266 
119.556 
71.383 2.118.475 
226.454 
145.991 
54.613 
14.716 
9.366 
1.767 
1.788.440 
303.744 
229.839 
1.121.266 
133.590 
103.581 
Source : Eurostat 
2.7. EU12 TRADE BALANCE WITH THE ASEAN COUNTRIES (THOUSANDS ECU) 
THAILAND 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) -504.947 
-1.087.578 
-1.084.362 
91.983 
-109.426 
9.462 
4.765 
401.744 
431.473 
-6.728 
1.156.003 
-1.179.004 
180.888 -1.287.086 
-1.392.885 
-1.348.838 
70.780 
-124.735 
5.784 
4.123 
-83.586 
429.376 
53.199 
1.081.896 
-1.648.058 
189.386 -1.234.571 
-1.220.226 
-1.189.938 
64.584 
-106.888 
8.257 
3.759 
-150.248 
506.999 
556 
985.658 
-1.643.461 
135.903 -488.285 
-1.050.180 
-1.085.466 
95.375 
-101.309 
36.067 
5.154 
407.638 
591.757 
205.703 
1.302.803 
-1.692.625 
154.257 -159.622 
-1.148.902 
-1.106.786 
80.872 
-142.939 
13.877 
6.074 
879.176 
673.527 
166.617 
1.655.973 
-1.616.941 
110.105 1.359.432 
-921.195 
-788.123 
98.441 
-251.903 
13.742 
6.647 
2.150.895 
732.506 
226.323 
2.585.520 
-1.393.460 
129.733 
VIETNAM 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 44.720 
-16.424 
-16.742 
4.393 
-6.585 
2.423 
87 
58.948 
34.187 
-1.518 
45.147 
-18.868 
2.197 12.817 
-51.344 
-28.568 
1.400 
-4.627 
-19.650 
100 
62.005 
43.221 
4.054 
85.857 
-71.127 
2.156 -18.512 
-49.225 
-15.951 
2.081 
-5.260 
-30.185 
90 
27.666 
51.088 
7.223 
155.594 
-186.238 
3.047 -56.821 
-48.213 
-26.885 
2.910 
-3.221 
-21.331 
315 
-13.977 
76.965 
15.631 
257.256 
-363.830 
5.370 -241.891 
-139.260 
-110.167 
3.685 
-4.436 
-28.409 
67 
-112.578 
112.689 
20.560 
308.423 
-554.250 
9.947 -402.171 
-208.290 
-183.730 
4.277 
-14.470 
-14.722 
356 
-211.648 
140.613 
34.654 
319.389 
-706.305 
17.767 
INDONESIA 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) -27.546 
-1.143.280 
-474.871 
-59.269 
-297.973 
-80.127 
-231.041 
972.150 
390.535 
-397.906 
1.629.870 
-650.348 
143.584 -377.952 
-1.067.602 
-476.032 
-71.432 
-234.975 
-28.179 
-256.984 
574.175 
357.148 
-529.015 
1.931.025 
-1.184.983 
115.475 -289.349 
-1.155.893 
-400.758 
-66.671 
-241.217 
-100.269 
-346.979 
628.993 
410.889 
-608.812 
2.279.661 
-1.452.744 
237.551 -887.547 
-1.124.509 
-448.080 
-46.496 
-215.721 
-29.599 
-384.613 
147.653 
520.532 
-699.010 
2.031.668 
-1.705.536 
89.309 -1.542.714 
-1.624.616 
-531.195 
-40.249 
-378.555 
-TÏ 9.345 
-555.272 
-109.076 
605.556 
-804.621 
2.037.456 
-1.947.468 
190.978 -630.313 
-1.509.009 
-356.315 
-45.885 
-365.278 
-141.978 
-599.554 
601.447 
646.223 
-800.153 
2.705.325 
-1.949.948 
277.250 
L, Y 
MALAYSIA 1990 1991 1992 1993 1994 1995 
-1.509.860 
-1.052.275 
-112.422 
70.517 
-625.798 
-1.279 
-383.292 
-615.252 
243.588 
174.648 
-218.125 
-815.364 
157.668 TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) -1.111.977 
-1.175.318 
-192.021 
53.224 
-787.564 
-11.795 
-237.162 
-114.659 
225.406 
7.388 
169.798 
-517.251 
1'78.001 -1.442.709 
-1.009.446 
-170.449 
66.173 
-644.236 
6.530 
-267.464 
-483.663 
224.850 
27.065 
6.799 
-742.378 
50.400 -1.836.034 
-1.046.021 
-169.528 
55.643 
-633.788 
8.750 
-307.098 
-806.663 
270.921 
-52.097 
-224.645 
-800.842 
16.650 -2.242.164 
-980.132 
-139.648 
60.346 
-608.923 
8.168 
-300.074 
-1.312.422 
274.383 
46.159 
-740.011 
-892.953 
50.389 -1.716.122 
-1.098.337 
-167.682 
62.468 
-624.050 
7.328 
-376.402 
-873.138 
310.126 
94.383 
-448.423 
-829.224 
255.353 
BRUNEI 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 1990 
157.237 
4.779 
2.912 
1.481 
356 
10 
20 
134.868 
3.669 
14.897 
47.343 
68.959 
17.591 1991 
237.848 
3.775 
2.659 
386 
765 
55 
-90 
221.283 
3.492 
25.051 
126.146 
66.593 
12.790 1992 
196.982 
4.291 
3.517 
837 
-62 
3 
-4 
187.378 
4.756 
32.714 
65.791 
84.117 
5.314 1993 
192.054 
4.689 
3.317 
493 
861 
14 
4 
188.420 
3.811 
31.022 
122.552 
31.035 
-1.054 1994 
471.879 
6.252 
4.712 
963 
559 
19 
-2 
452.492 
5.314 
33.844 
231.228 
182.106 
13.135 1995 
351 837 
10.182 
8.364 
1.181 
557 
72 
7 
332.867 
4.670 
29.181 
112.627 
186.390 
8.788 
SINGAPORE 1990 1991 1992 1993 1994 1995 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 996.965 
236.688 
36.210 
196.958 
-82.035 
85.246 
308 
471.846 
504.891 
619.098 
-666.269 
14.126 
288.432 464.389 
233.086 
35.877 
203.753 
-42.899 
36.050 
305 
74.704 
472.695 
651.373 
-914.515 
-134.849 
156.599 697.711 
282.552 
43.255 
225.155 
-41.656 
59.922 
-4.125 
91.933 
523.017 
776.331 
-1.158.897 
-48.517 
323.226 1.242.481 
519.167 
55.426 
220.300 
-36.199 
282.257 
-2.618 
539.708 
675.176 
992.786 
-1.351.384 
223.129 
183.606 1.118.618 
415.644 
72.229 
164.851 
-54.103 
226.247 
~ 6.419 
652.986 
849.630 
1.118.579 
-1.740.804 
425.580 
49.988 1.689.104 
422.784 
100.733 
209.088 
-82.737 
196.625 
-925 
1.165.785 
804.681 
1.165.159 
-1.317.088 
513.033 
100.535 
PHILIPPINES 
TOTAL 
Raw Materials (0-4) 
Food & live animals ( 0 ) 
Beverages and tobacco (1) 
Crude materials, except fuels(2) 
Mineral fuels(3) 
Animal & veg oils, fats & waxes(4) 
Manuf. products (5-8) 
Chemicals (5) 
Manuf. goods(6) 
Machinery & transport equip.(7) 
Misce. manuf. goods(8) 
Other not classified goods (9) 1990 
-11.420 
-256.778 
-55.985 
4.276 
-71.925 
3.293 
-136.438 
214.482 
169.017 
-5.529 
432.663 
-381.669 
30.876 1991 
-352.916 
-248.259 
-85.829 
7.797 
-48.325 
1.841 
-123.743 
-114.847 
165.173 
-30.957 
272.382 
-521.444 
10.189 1992 
-164.751 
-204.738 
-52.920 
16.416 
-55.069 
1.968 
-115.133 
56.653 
203.755 
-3.075 
338.677 
-482.703 
-16.666 1993 
-177.428 
-249.678 
-65.440 
12.257 
-53.939 
3.054 
-145.611 
158.151 
230.953 
14.606 
439.243 
-526.651 
-85.901 1994 
-144.077 
-224.463 
-24.289 
33.090 
-67.500 
4.607 
-170.371 
219.492 
269.917 
44.695 
440.818 
-535.938 
-139.106 1995 
-223.635 
-280.278 
3.946 
41.783 
-84.644 
9.205 
-250.568 
172.656 
282.951 
107.418 
265.981 
-483.693 
-116.013 
Source : Eurostat 
2.8. EU IMPORTS FROM ASEAN COUNTRIES 1995 
(thousands ecu) 
Thailand Vietnam Indonesia Malaysia Brunei Singapore Philipines ASEAN 
BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlan 
Portugal 
Spain 
United Ki 604.770 
136.455 
837.979 
1.471.917 
50.018 
70.196 
516.221 
928.505 
87.832 
352.860 
1.320.615 74.871 
15.236 
216.263 
422.524 
3.737 
3.099 
84.248 
91.220 
6.361 
55.449 
139.888 434.282 
138.939 
578.238 
1.414.353 
63.705 
33.709 
748.602 
873.532 
41.969 
467.761 
1.151.715 531.938 
113.457 
918.199 
2.204.796 
45.559 
363.076 
530.063 
1.014.789 
70.907 
322.761 
2.756.015 421 
42 
108.169 
938 
45 
34 
1.469 
3.842 
69 
10 
147.709 225.499 
45.002 
1.291.415 
1.839.984 
49.463 
759.293 
468.364 
1.380.111 
36.232 
165.526 
2.179.903 112.462 
27.153 
216.842 
760.722 
8.974 
31.364 
162.819 
357.621 
7.675 
64.543 
591.935 1.984.244 
476.284 
4.167.105 
8.115.234 
221.502 
1.260.770 
2.511.785 
4.649.620 
251.045 
1.428.911 
8.287.781 
EU12 6.377.369 1.112.895 5.946.805 8.871.560 262.748 8.440.792 2.342.110 33.354.280 
Source : Eurostat 
2.9. EU EXPORTS TO THE ASEAN COUNTRIES 1995 
(thousands ecu) 
Thailand Vietnam Indonesia Malaysia Brunei Singapore Philipines ASEAN 
BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlan 
Portugal 
Spain 
United Ki 700.147 
178.222 
1.333.883 
2.871.300 
14.164 
50.980 
891.570 
477.494 
27.638 
188.481 
1.002.922 44.275 
25.807 
259.461 
181.396 
1.029 
5.480 
79.680 
35.224 
625 
7.794 
69.953 320.452 
80.017 
799.268 
2.097.411 
41.508 
15.891 
573.574 
612.897 
462 
150.726 
624.285 271.474 
83.001 
1.825.414 
2.185.923 
3.083 
266.295 
700.594 
314.305 
26.139 
140.922 
1.544.551 3.669 
4.902 
155.928 
94.074 
14 
1.125 
40.852 
8.119 
0 
786 
305.118 483.994 
160.039 
1.435.330 
2.801.496 
23.041 
199.731 
1.335.675 
850.957 
61.335 
357.252 
2.421.046 113.969 
44.894 
290.479 
744.360 
10.249 
61.689 
215.698 
185.117 
5.079 
52.538 
394.403 1.937.980 
576.882 
6.099.763 
10.975.960 
93.088 
601.192 
3.837.644 
2.484.113 
121.277 
898.499 
6.362.278 
EU12 7.736.802 710.723 5.316.493 7.361.700 614.586 10.129.896 2.118.475 33.988.675 
Source : Eurostat 
2.10. EU TRADE BALANCE WITH THE ASEAN COUNTRIES 1995 
(thousands ecu) 
Thailand Vietnam Indonesia Malaysia Brunei Singapore Philipines ASEAN 
BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlan 
Portugal 
Spain 
United Ki 95.377 
41.767 
495.904 
1.399.383 
-35.854 
-19.216 
375.349 
-451.011 
-60.194 
-164.380 
-317.693 -30.596 
10.571 
43.198 
-241.127 
-2.708 
2.381 
-4.568 
-55.996 
-5.736 
-47.655 
-69.935 -113.830 
-58.922 
221.031 
683.058 
-22.197 
-17.818 
-175.028 
-260.636 
-41.506 
-317.035 
-527.430 -260.465 
-30.456 
907.215 
-18.873 
-42.477 
-96.781 
170.531 
-700.484 
-44.768 
-181.838 
•1.211.464 3.248 
4.860 
47.759 
93.136 
-32 
1.091 
39.383 
4.278 
-69 
775 
157.409 258.495 
115.036 
143.915 
961.512 
-26.422 
-559.561 
867.312 
-529.154 
25.102 
191.726 
241.143 1.507 
17.741 
73.637 
-16.362 
1.274 
30.326 
52.880 
-172.504 
-2.596 
-12.005 
-197.533 -46.264 
100.598 
1.932.658 
2.860.727 
-128.414 
-659.579 
1.325.859 
-2.165.507 
-129.768 
-530.412 
-1.925.503 
EU12 1.359.432 -402.171 -630.313 -1.509.860 351.837 1.689.104 -223.635 634.395 
Source : Eurostat 
2.11. EU IMPORTS FROM ASEAN COUNTRIES BY MEMBER STATES 
1990 1991 1992 1993 1994 1995 
BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlands 
Portugal 
Spain 
United Kingdom 974.838 
374.031 
2.122.600 
4.605.199 
90.490 
113.805 
1.519.200 
2.090.121 
177.824 
731.601 
3.835.648 1.133.678 
374.516 
2.507.781 
5.853.035 
160.850 
149.583 
1.729.537 
2.597.999 
185.631 
1.015.671 
4.505.140 1.179.818 
397.798 
2.805.368 
6.460.487 
172.948 
185.023 
1.989.706 
2.872.727 
197.626 
1.152.718 
4.816.711 1.512.302 
470.510 
3.227.577 
7.310.859 
191.907 
492.806 
2.103.205 
3.033.757 
218.944 
979.922 
6.540.006 1.842.443 
528.764 
3.622.733 
8.264.450 
210.687 
738.452 
2.227.992 
3.994.629 
232.881 
1.272.461 
7.699.739 1.984.244 
476.284 
4.167.105 
8.115.234 
221.502 
1.260.770 
2.511.785 
4.649.620 
251.045 
1.428.911 
8.287.781 
EU12 16.635.357 20.213.420 22.230.928 26.081.796 30.635.230 33.354.280 
Source : Eurostat 
2.12. EU EXPORTS TO THE ASEAN COUNTRIES BY MEMBER STATES 
1990 1991 1992 1993 1994 1995 
BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlands 
Portugal 
Spain 
United Kingdom 967.065 
347.722 
2.502.867 
5.204.690 
29.252 
141.037 
1.652.012 
1.149.641 
36.804 
335.932 
3.811.368 1.026.091 
329.753 
2.804.137 
6.052.952 
36.362 
148.491 
1.768.369 
1.171.472 
44.579 
344.027 
3.741.576 1.022.112 
454.171 
3.531.229 
6.117.621 
29.336 
177.957 
2.155.698 
1.327.916 
47.297 
472.502 
4.246.566 1.454.274 
464.318 
3.789.197 
7.233.290 
48.436 
220.669 
2.668.781 
1.877.806 
57.738 
638.844 
5.210.733 1.683.648 
515.395 
4.242.117 
9.197.800 
67.298 
397.004 
3.129.124 
1.992.982 
76.027 
689.541 
6.430.366 1.937.980 
576.882 
6.099.763 
10.975.960 
93.088. 
601.192 
3.837.644 
2.484.113 
121.277 
898.499 
6.362.278 
EU12 16.178.390 17.467.810 19.582.406 23.664.086 28.421.301 33.988.675 
Source : Eurostat 
2.13. EU TRADE BALANCE WITH THE ASEAN COUNTRIES BY MEMBER STATES 
EU12 
Source : Eurostat 1990 1991 1992 1993 1994 
-456.967 -2.745.610 -2.648.522 -2.417.710 -2.213.930 1995 
BLEU -7.773 -107.587 -157.706 -58.028 -158.795 -46.264 
Denmark -26.309 -44.763 56.373 -6.192 -13.369 100.598 
France 380.267 296.356 725.861 561.619 619.384 1.932.659 
Germany 599.492 199.917 -342.866 -77.570 933.349 2.860.729 
Greece -61.238 -124.488 -143.612 -143.470 -143.389 -128.414 
Ireland 27.232 -1.091 -7.066 -272.137 -341.449 -659.578 
Italy 132.812 38.832 165.992 565.576 901.132 1.325.859 
Netherlands -940.480 -1.426.526 -1.544.811 -1.155.952 -2.001.646 -2.165.507 
Portugal -141.020 -141.052 -150.329 -161.205 -156.854 -129.769 
Spain -395.670 -671.644 -680.216 -341.079 -582.919 -530.412 
United Kingdom -24.280 -763.563 -570.144 -1.329.273 -1.269.374 -1.714.040 
634.395 
Annex 3 - EU-ASEAN Foreign Direct Investment Flows 
3.1. European Foreign Direct Investment in ASEAN 
3.2. Foreign Direct Investment Flows originating from ASEAN 
to the EU 
3.1. EUROPEAN FOREIGN DIRECT INVESTMENT IN ASEAN ($M) 
1988 1989 1990 1991 1992 1993 
Indonesia 576 682 1,093 1,482 1,777 2,004 
Malaysia 719 1,668 2,332 3,998 4,469 4,351 
Philippines 936 563 530 544 228 763 
Singapore 3,655 2,887 5,575 4,888 6,730 6,829 
Thailand 1,105 1,775 2,444 2,014 2,116 1,621 
Source: Asian Development Outlook 1995-96 
fil 
$m 
35000 
30000 
25000 
20000 
15000 
10000 
5000 
Indonesia Malaysia Philippines Singapore Thailand £11993 
• 1992 
D1991 
• 1990 
E11989 
• 1988 
$m 
16000 
14000 
• Thailand 
D Singapore 
• Philippines 
FJ Malaysia 
• Indonesia 
1988 1989 1990 1991 1992 1993 
3.2. FOREIGN DIRECT INVESTMENT FLOWS ORIGINATING FROM ASEAN TO THE EU 
Net Direct Equity Investment Outflows by main ASEAN Investors, 1994 
(millions of US dollars) 
Singapore* 
Malaysia EU 
965 
168,5 World 
13,226 
1907,2 EU share (%) 
7,3 
8,8 
^Figures are for 1993 
Malaysia's Foreign Direct Investment Flows, 1994 
(millions of US dollars) 
Countries 
World 1907,2 
EU 168,5 
United Kingdom 124,4 
Germany 23,8 
Ireland 9,4 
Italy 2,8 
Sweden 0,6 
Belgium 0,1 
Netherlands 2,1 
France 4 
Denmark 0,1 
Greece 
Portugal 
Austria 
Luxembourg 0,1 
Spain 
Finland 1 
Others 1739,1 
Singapore's Direct Equity Investment Abroad by Country, 1993 
(millions of US dollars) 
Countries 
World 13,226 
EU 965 
Netherlands 291 
UK 225 
Others 450 
United States 1,093 
Asia 7,149 
Hong Kong 2,507 
Japan 68 
Asean 3,695 
Brunei 57 
Indonesia 322 
Malaysia 2,900 
Philippines 144 
Thailand 273 
Net Singaporean Direct Equity Investment to Triad Countries (EU, Japan and 
USA), 1993 
(millions of US dollars) 
52% (1,093) 3% (68) 
45% (965! 
Foreign Direct Investment Flows from the EU to ASEAN* 
(millions of US dollars) 
Average FDI Flows 1990-93 
OTHERS 
110,499) 
55% (2,666) 
14% 
(3,723) 
20% 
(2,096) 
11% 
source: UNCTAD, Division on Transnational Corporations and Investment, FDI database. 
* Brunei Darussalam and Vietnam are excluded 
Annex 4 - The AFTA and APEC context: 
4.1. Launching the AFTA process 
4.2. The APEC context 
4.1. LAUNCHING THE AFTA PROCESS 
ASEAN Free Trade Area (AFTA) 
The AFTA was formally charted following the Framework Agreement on Enhancing 
ASEAN Economic Cooperation signed in Singapore on 28 January 1992. AFTA 
emerged from the belief that preferential trading arrangements among ASEAN 
Member States would act as a stimulus to the strengthening of national and ASEAN 
economic resilience and to the development of the national economies of Member 
States by expanding investment and production opportunities as well as trade and 
foreign exchange earnings. 
The ASEAN Economic Ministers' (AEM) body has established a ministerial-level 
AFTA Council comprising one nominee from each Member State and the Secretary-
General of the ASEAN Secretariat. The central mechanism to implement the AFTA 
process is the Common Effective Preferential Tariff (CEPT). This scheme requires 
ASEAN members to reduce import tariffs within specific time limits for goods 
flowing across borders in ASEAN. 
The CEPT is structured around four lists and two dates. The Inclusion List is the list 
supplied by each member state of goods which will follow the tariff reduction 
process. The starting point is that all manufactured products, including processed 
agricultural products, are included. In the 1992 agreement, unprocessed agricultural 
products were excluded from the CEPT scheme. However, the Chiang Mai meeting 
of ASEAN Economic Ministers (September 1994) decided to progressively include 
these unprocessed agricultural products in the CEPT, while allowing specific 
products to be included in a new Sensitive List, for which "special arrangements" 
would be created. 
A General Exception List states the products which a country may exclude for 
reasons of national security, public morals, animal or plant life protection, and artistic 
or archaeological preservation. A Temporary Exclusion List includes the goods 
which member states consider too sensitive for immediate inclusion in the CEPT 
scheme. Products in the exclusion list cannot enjoy CEPT tariffs in the other ASEAN 
countries. The Chiang Mai meeting agreed to gradually transfer all products in the 
exclusion list to the inclusion list within five years. This decision was endorsed with 
a first transfer of 682 tariff lines from the exclusion list to the inclusion list-at the 7th 
AFTA Council held in Brunei Darussalam in September 1995. interestingly enough, 
this first transfer included mostly chemical products (organic, inorganic, plastics). 
The implementation calendar for CEPT defines a Normal Track Programme and a 
Fast Track Programme. Deadlines are defined for each programme and Vietnam 
benefits from a three-year differential as compared with other ASEAN members. 
Normal Track Programme: Products with tariffs above 20% will have their rates 
reduced to 20% by 1 January 1998 (2001 for Vietnam) and to a 0-5% range by 1 
January 2003 (2006 for Vietnam). Products with tariff rates at or below 20% will 
have their rates reduced to a 0-5% range by 1 January 2000 (2003 for Vietnam). 
Fast Track Programme: Products with tariffs above 20% will have their rates 
reduced to a 0-5% range by 1 January 2000 (2003 for Vietnam). Products with tariff 
rates at or below 20% will have their rates reduced to a 0-5% range by 1 January 
1998 (2001 for Vietnam). The programme covers fifteen groups of products 
identified for accelerated tariff reduction: 
Vegetable Oils (HS 15) Cement (HS 25) 
Chemicals (HS 28, 29, 38) Fertilisers (HS 31) 
Pharmaceuticals (HS 30) Plastics (HS 39) 
Rubber Products (HS 40) Pulp (HS 47) 
Leather Products (HS 41, 42) Textiles (HS 50, 63) 
Ceramic and Glass (HS 69, 70) Copper Cathodes (HS 74) 
Gems and Jewellery (HS 71) Electronics (HS 84, 85) 
Wooden and Rattan Furniture (HS 95) 
The other areas covered by the CEPT scheme include: 
- A 40%) ASEAN content in value to enable the product to be eligible for the tariff 
concessions under the CEPT 
- Gradual elimination of non-tariff barriers to trade and foreign investment, still at a 
very early stage of identification and policy formulation 
- Harmonisation of standards, and reciprocal recognition of tests and certification of 
products 
- Harmonisation of customs valuation systems (with a move to GATT Transaction 
Values by 2000) and customs procedures 
- Formulation of common and simplified procedures which will emphasise, among 
others, the following: 
a) Formalities prior to lodgement of goods declaration at the time of export; 
b) Formalities prior to lodgement of goods declaration at the time of import; 
c) Examination of goods; 
d) Consignment where the certificate of origins are issued retroactively; 
e) Refunds etc. 
Further measures on border and non-border areas of cooperation may include, among 
others: macroeconomic consultations, rules for fair competition and promotion of 
venture capital. 
Analysis of AFTA 
AFTA will not be a customs union, let alone a common market. Strong diverging 
national interests prevent the implementation of a compromise tariff ranging between 
low tariff rates (Singapore) and high tariff rates (Indonesia and others)* . Further, the 
CEPT scheme contains "implants" of national safeguards and is ultimately a free 
trade programme with in-built national veto power. Thus, it must be concluded that, 
as of now, there is no irreversible commitment to a common ASEAN economic 
future. 
The four large ASEAN countries all export similar key items, which means that there 
will be serious repercussions if the CEPT scheme becomes truly effective and parts of 
these industries in one or several countries may have to be sacrificed. 
The expected effects of the free trade system on ASEAN trading patterns are by 
nature long-term and it will be some time before the practical relevance of AFTA to 
the economic development of the ASEAN countries can be assessed. In any event, 
the forces of free trade within ASEAN will have to fight a long uphill struggle against 
national resistance to basic structural adjustments, which will be even more difficult 
if, as envisaged, new members such as Myanmar and others are admitted. 
See Annex 6. 
4.2. THE APEC CONTEXT 
The Asia-Pacific Economic Cooperation (APEC) was formed in 1989 in response to 
growing interdependence among Asia-Pacific economies. As such, it's main goal is to 
enhance the growth and development of the Asia-Pacific region by facilitating trade 
in goods, services, capitals and technology and by encouraging an "open regional co­
operation" among its members. It is today composed of 18 member economies1 
which together account for 56% of the world's annual output and 46% of the global 
merchandise trade. 
Ministerial Meetings are held annually since 1989. In addition, the United States 
launched, under its Chairmanship of APEC in 1993, the idea of holding Informal 
Economic Leaders' Meetings. Three have been held since: in Blake Island, Seattle 
(1993), in Bogor, Indonesia (1994) and in Osaka, Japan (1995). As proof of the 
importance of ASEAN within the APEC process, it should be noted that, although 
APEC is composed of 18 members, each of the 6 ASEAN member countries is 
entitled to chair APEC every alternate year (1992, 1994, 1996 etc.). 
Institutionally, the Senior Official Meetings (SOM) lie at the heart of APEC. They 
supervise the three Committees (Budget & Administration, Economic and Trade & 
Investment) and the 10 Working Groups. Business representatives participate, 
together with economy officials, in the activities of these Working Groups which are 
specialised by sector (e.g. Trade promotion, telecommunications, fisheries, tourism, 
etc.). An APEC Secretariat was set up in Singapore in 1992. 
The Declaration of Common Resolve agreed on in Bogor in 1994 asserted open trade 
as the foundation of economic growth. As such, leaders agreed to eliminate 
impediments to economic cooperation and integration: industrialised economies are 
to achieve the goal of free and open trade and investment by 2010, developing 
economies by 2020. 
The Osaka Summit sought to give the concrete means of achieving this goal through 
a 25-year plan named the "Action Agenda" in which the comprehensiveness of the 
liberalisation process was emphasised. A deadline was set for the preparation of 
concrete and substantive Action Plans which are to be submitted by each APEC 
member at the next Summit in Subie Bay, the Philippines in November This year. 
Thus, each APEC member is delivered the responsibility of drawing up its own 
Action Plan for liberalisation, keeping the 2010/2020 dates as general objectives. 
Overall implementation of the Action Plans will begin in January 1997 and will be 
reviewed annually. 
The character of this trade liberalisation nevertheless conserved a certain ambiguity at 
the outcome of the Osaka Summit. To the U.S. inclination for an Article XXIV 
approach, advocating a WTO-consistent Free Trade Area, the Asian members 
1 Australia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, Indonesia, 
Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Republic of the 
Philippines, Singapore, Chinese Taipei, Thailand, United States. Vietnam is the only ASEAN member 
not to be an APEC member. 
opposed a Most Favoured Nation implementation or "Open Regionalism" view. The 
APEC Eminent Person's Group in its second report2 published in 1994, defined this 
concept, which it fervently supported, as "... a process of regional co-operation whose 
outcome is not only the actual reduction of internal (intra-regional) barriers to 
economic interaction but also the actual reduction of external barriers to economies 
not part of the regional enterprise.." and "will, by definition, be a building block for 
and contribute to a freer global economy...". 
2"Achieving the APEC Vision: Free and Open Trade in the Asia Pacific", Second Report of the Eminent 
Persons Group, August 1994. 
CL, 
Annex 5 - EU-ASEAN Relations: 
5.1. An Historical Overview 
5.2. Outline of EU-ASEAN ties 
5.1. AN HISTORICAL OVERVIEW 
European relations with ASEAN are marked by the strong co-operation links to have 
emerged since the first informal contacts were made in the early 1970's. Economic and 
political changes in both regions have called for a significant evolution of the 
substance of these co-operation activities. Adaptation of EU-ASEAN relations to 
changing circumstances has until now happened within the EC-ASEAN Cooperation 
Agreement signed in March 1980. 
The Community is ASEAN's oldest Dialogue Partner. Relations began informally in 
1972 following an ASEAN initiative mainly concerned with trade benefits. The first 
contact at a ministerial level occurred in June 1972 when a delegation led by the 
Indonesian Trade Minister was received by the Commission at a special sitting The 
idea of a Co-operation Agreement was first floated by the Commission in 1974 taking 
the 1973 accord with India as a model. ASEAN's lack of the requisite institutional 
structures prevented such an engagement. Nevertheless, at the First ASEAN Summit 
held in Bali in 1976 it was decided to take the necessary steps for the broadening of 
contacts and the institutionalisation of a dialogue with the Community 
The first EEC-ASEAN ministerial meeting was held in Brussels in November 1978. 
Never before had the Foreign Ministers of the EEC Member States met, within the 
Community framework, with their counterparts from a Developing regional grouping 
not associated with the Community. It was then decided to establish a Co-operation 
Agreement which was eventually signed by both parties in March 1980. it is within the 
legal framework provided by this agreement that EEC-ASEAN relations have been 
conducted ever since, maintaining regular Ministerial Meetings on top of the Joint 
Cooperation Committee Meetings created by the Agreement. 
Regular EC-ASEAN Meetings have been held since 1978 including 11 Ministerial 
Meetings and 12 Joint Co-operation Committee Meetings. The EC, as a Dialogue 
Partner, also participates since 1980 in the Post-Ministerial Conferences held every 
year (at the end of July) immediately after the ASEAN Ministerial Meeting. 
The end of the Cold War and the realisation of the impressive ASEAN economic 
achievements resulted in the need to review the framework of relations. Thus, at the 
9th ASEAN-EU Ministerial Meeting (AEMM) in 1991 in Luxembourg it was decided 
to upgrade the 1980 Agreement to take into account the changing needs to be 
satisfied by mutual co-operation. However, since July 1992, the Council has failed to 
authorise a Community negotiating directive for a new agreement because of concern 
over the Human Rights situation in East Timor. This has not prevented the 
reinforcement of political ties exemplified by the participation of the EU in the 
ASEAN Regional Forum (ARF) since its first meeting in July 1994 or the deepening 
of the common dialogue within the strict limits of the 1980 Agreement on the base of 
a consensus reached during the 10th AEMM held in Manila in October 1992 
The EU-ASEAN political framework has proved flexible enough to incorporate 
certain changes in co-operation prerogatives to have appeared since 1980. "Towards a 
New Asia Strategy", the Commission's Strategy Paper published in July 1994, 
indicated the changes EU-ASEAN relations faced and called for the building of a 
partnership of equals with ASEAN. The 11th AEMM in Karlsruhe in September 
1994, in welcoming the content of the Commission's Communication, expressed its 
commitment to reinvigorate and intensify the EU-ASEAN long-standing dialogue and 
r r 
cooperation. In this context, the AEMM established an Eminent Person's Group 
(EPG) charged with proposing concrete measures to enhance EU-ASEAN relations. 
The EPG's report was submitted in June 1996. 
5.2. OUTLINE OF EU-ASEAN TIES 
The EU and ASEAN are linked by a large number of official activities sustaining their 
strong partnership. These ties are assured through institutional and economic contacts 
which can be summarised into three broad categories: Institutional Dialogue; Trade 
Enhancement; Economic & Development Co-operation. 
5.2.1. Institutional Dialogue1 
The highest-level of institutional dialogue is the ASEAN-EC Ministerial 
Meeting (AEMM) attended by Foreign Ministers. The 11th AEMM was held in 
Karlsruhe, Germany, in October 1994. It is held on alternate years and focuses 
on political as well as economic & cooperation issues. 
In order to maintain the continuity of political dialogue, during those years in 
which there is no Ministerial Meeting, a Senior Official's Meeting is held. The 
last such Meeting was held in Singapore in May 1995. 
Within the framework of the Cooperation Agreement, Joint Co-operation 
Committee (JCC) Meetings are held approximately every 18 months to discuss 
on-going and future projects. The 12th JCC took place in Brussels in October 
1995. Within the JCC, four Sub-Committees have been organised: Trade, 
Economic and Industrial Co-operation, Science & Technology and Forests 
They normally meet once a year and report to the JCC. 
The EU participates in ASEAN meetings open to ASEAN Dialogue Partners. 
These are the Post-Ministerial Conference (PMC) and the ASEAN Regional 
Forum (ARF). Both are held immediately after the annual ASEAN Ministerial 
Meeting. At the first the general political and economic situation of ASEAN 
and of EU-ASEAN relations is reviewed. The second is a forum to discuss 
security issues in the ASEAN region. 
EU-ASEAN contacts are assured on a day-to-day basis through the ASEAN 
Brussels Committee (ABC). The ABC regroups all the ASEAN missions to the 
EC. Its annual chairmanship runs parallel to the chairmanship of ASEAN. In 
addition, a Country-Coordinator is designated for a period of three years 
Meetings between the Commission and the ABC are convened on an ad-hoc 
basis. 
5.2.2. Trade Enhancement 
Trade has been described as the "cornerstone of EC-ASEAN relations". 
Exchanges since the conclusion of the 1980 Co-operation Agreement have 
boosted: in the 1980-1995 period trade volume multiplied by a factor of 4.9 to 
reach 67 billion Ecu. By 1995, ASEAN's share of total EC imports had risen to 
5.8% (compared to 1.8% in 1975). ASEAN's exports to the EC have risen 
faster than to any other market since 1984. The EC today ranks third among 
lA graphical prcsenialion of the institutional structure of EU-ASEAN relations is to be found in Annex 8. 
ft 
ASEAN's trading partners in total trade and second as far as its exports are 
concerned. 
The first Generalised System of Preferences scheme was introduced by the EEC 
in 1971. ASEAN received in 1993 almost 30% of the total GSP granted by the 
EC with Indonesia, Thailand and Singapore respectively being the 3rd, 4th and 
5th recipients of GSP by value. Malaysia was 7th and the Philippines 11th. 
When considered as a region, ASEAN was the principle beneficiary of the GSP 
in 1993, just above China. A revised GSP scheme for industrial products came 
into force on 1 January 1995. The Commission organised and held information 
seminars in the capitals of the majority of ASEAN countries to inform 
appropriate government administrations as well as economic operators. 
The adoption of the Agreement on Trade-Related Aspects of Intellectual 
Property Rights (the "TRIPS" Agreement) within the framework of the 
Uruguay Round signalled the importance given by both developed and 
developing countries to an adequate protection of intellectual property rights. 
The EC has actively contributed to the development of the intellectual property 
systems of the ASEAN countries through economic cooperation and 
particularly through such programmes as the EC-ASEAN Patents and 
Trademarks Programme. In this sense, the establishment of an ASEAN 
Framework Agreement on Intellectual Property Co-operation at the 5th 
ASEAN Summit in December 1995 was seen as a welcome accomplishment. In 
order to further contacts and closer consultation in this area, the meeting of an 
ad-hoc Intellectual Property experts group was decided on at the 12th JCC in 
October 1995. It will meet by mid-1996 and submit the outcome of its 
discussions to the ASEAN Senior Economic Official's Meeting (ASEOM). 
EC-ASEAN trade relations also involve trade defence legislation. One such 
mechanism is anti-dumping legislation. The New Agreement on Implementation 
of Article VI of GATT 1994, the WTO anti-dumping agreement, considerably 
strengthened the discipline in this area compared with the 1979 anti-dumping 
code. The EC anti-dumping legislation has been revised to reflect the new rules 
applicable under Article VI of the GATT and a new regulation came into force 
in January 1995. ASEAN countries have felt targeted since 1994 by EC anti­
dumping legislation: 6 ASEAN products are currently subject to anti­
dumping/anti-subsidy measures and 18 are being investigated. However, it 
should be emphasised that anti-dumping proceedings are only opened following 
a complaint from an EC industry which provides sufficient prima facie evidence 
of dumping and injury, as required by the WTO anti-dumping code. They are 
not an act taken by the European Commission of its own initiative. In sum, the 
opening of an increased number of anti-dumping investigations of ASEAN 
products is basically illustrative of the dramatic increase in EC-ASEAN trade. 
5.2.3. Economic & Development Co-operation 
Complementing trade enhancement, economic and development co-operation 
provide the means for the expansion of general economic relations between the 
EC and ASEAN. Co-operation is also undertaken in the fields of Drugs and 
Refugees. The European Commission is currently managing 25 regional 
projects operating in ASEAN, 14 of which are joint EC-ASEAN projects. The 
total number of projects in ASEAN (regional + bilateral) since 1976 is 3262 
5.2.3.1. Economic Co-operation 
The EC's economic cooperation with ASEAN countries is based on 
four general principles: 
It counts on the mutual interest of European and Asian partners, 
both private and public. 
It is complementary, in playing the role of a catalyst, to the 
actions undertaken by EU Member States. 
It is adapted to the cultural, economic, social and political 
characteristics of each of the EU's partners in ASEAN, to their 
differences in level of development and to the degree of 
liberalisation of their economies. 
It sets up a direct dialogue with the private sector, establishing 
its needs and priorities to encourage partnership between European 
and ASEAN companies. The climate of partnership will facilitate 
European investment in ASEAN. 
Following these criteria, the development of dialogue and partnership 
between the EC and ASEAN takes place at three levels, with the aim 
of: 
Improving the economic, social and cultural general cooperation 
framework of EU-ASEAN relations by creating a climate of 
confidence within the business world; 
Encouraging and facilitating cross-investment and commercial 
contacts; 
Developing business to business cooperation. 
5.2.3.2. Development Co-operation 
In 1994 the Community and its Member States accounted for 46 % of 
global Overseas Development Aid (ODA) or 26.6 US$ billion (27.1 
US$ in 1993): its role as the largest donor world-wide and an equal 
partner with Japan in development co-operation in Asia (39% each) 
should be stressed. Inception of EC development programmes in 
Southeast Asia (-10% of total EC + Member Countries ODA) began 
in 1976 with the inscription by the European Parliament of the first aid 
allocation for Asia and Latin America in the EC budget. Aid has 
focused in the following sectors: Integrated Rural Development, Rural 
Production & Services and Social Development, Environment. Recent 
2 Detailed .figures of the sums allocated to each type of co-operation activity are presented in Annex 7. 
~^o 
emphases have included: in Indonesia, a focus on forest protection and 
sustainable forest management; in the Philippines, a focus on 
participatory development in the poorest rural areas, including 
integrated development, agrarian reform and maternal health; in 
Vietnam, a focus on assisting in the reintegration of returnees and the 
establishment of the market economy, coupled with support for NGO's. 
5.2.3.3. Other Types of Co-operation 
Other areas of Co-operation include assistance to Refugees and Drugs. 
The EC has shown its concern for the Care & Maintenance, Education, 
Health and Repatriation & Reintegration of refugees in Thailand, 
Vietnam, the Philippines and Malaysia, allocating the sum of almost 
100 MECU ro such activities. 
Regarding drugs, co-operation projects have focused on prevention 
and rehabilitation, little progress having been made to date on 
agreements on the control of precursor chemicals. 
Annex 6 - Trade Policy Review Profiles* : 
6.1. Indonesia 
6.2. Malaysia 
6.3. Philippines 
6.4. Singapore 
6.5. Thailand 
The information provided is based on the GATT/WTO Trade Policy Review Mechanisms and on 
information gathered by EC delegations and Member State's Trade Councils in certain of the countries 
considered. 
6.1. INDONESIA 
I. TARIFF 
In May 1995 the government lowered tariffs on 6,030 items, or 64% of the 9,398 
items on the government's tariff list. The government also established a timetable 
for further reductions up to 2003. Key tariffs reduced include those on components 
used in locally assembled sedans (down to 125% from 175% and set to be reduced 
to 40% by 2003); cars (75% from 100% and to fall to 50% by 2003); commercial 
vehicles (30% from 40% and to fall to 20% by 2003); newsprint (5% from 20%; 
printing paper, zero from 20%). The government says that by 2003 tariffs on 
manufactured goods other than cars and alcoholic beverages will not exceed 10%. 
Some non-tariff barriers were also removed in the May 1995 package. Several 
sectors previously tightly restricted have been opened to new investors. In January 
1996, a further tariff reduction plan was approved and the overal tariff structure of 
Indonesia after the plan is shown below: 
Deregulation Package January 1996 
Tariff Rates Before Package o/ /o After Package /o 
0% 
5% 
10% 
15% 
20% 
25% 
30% 
35% 
40% 
40% + 
Total 1,053 
2,247 
541 
847 
281 
1,409 
809 
2 
14 
81 
7,284 14.5% 
30.8% 
7.4% 
11.6% 
3.9% 
19.3% 
11.1% 
0.03% 
0.2% 
1.1% 
100% 1,149 
2,235 
636 
742 
284 
1,347 
794 
81 
7,284 15.8% 
30.7% 
8.7% 
10.2% 
3.9% 
18.5% 
10.9% 
0.1% 
0.1% 
1.1% 
100% 
Source: Indonesia Ministry of Finance 
Indonesia also has committed itself to dropping most import surcharges over the 
next ten years. 
The value-added tax on imports currently ranges from zero to 10%, and the luxury 
tax is as high as 35% for certain products. 
II. NON-TARIFF BARRIERS 
11.1. Registration, documentation and customs procedures 
Import Clearance Procedure 
According to the standing regulations, all goods coming into Indonesia must 
be cleared through Customs and are subject to customs duty unless 
specifically exempted from duty by law. 
11.2. Valuation 
The value concept for the purposes of assessment of duty comprises the 
following methods: 
Goods which have the value of USS 5,000 (FOB) or more: 
- Détermination of the value for duty is based on the prevailing export 
market price in the country of supply as assessed by the Government 
appointed surveyor. 
Goods which have the value of less than USS 5,000: 
- Determination of the value for duty is based on the invoice price. 
IÏ.3. User Fees 
In order to provide better services and to expedite the flow of goods and 
documents, the Indonesian Customs has implemented a system called 
"Customs Fast Release System" (CFRS) throughout Indonesia since 1 
December 1990. This system covers the processing of import declarations, 
inspection, and release of goods which have the value of less than US$ 5,000 
and is meant to provide importers with a more efficient Customs system. No 
charge is imposed to access to the system. 
11.4. Import Prohibitions 
Certain goods are prohibited to be imported or exported, e.g.: — 
- hazardous articles and substances such as narcotics and dangerous drugs, 
flammables, poisons, oxidators, radio-actives, etc.: 
- explosive goods/materials; 
- lire-arms and ammunition; 
- books, magazines, leaflets, brochures, newspapers written in Chinese 
letters/characters and in the Chinese language: 
- gramophone-records, cassettes, video cassettes and films; 
?<> 
- transceiver equipment, cordless telephone or telecommunications 
equipment; 
- colour photo-copy machine and parts thereof; 
- certain plant species such as quinine, orchids, agave, etc.; 
- endangered species or their by-products; 
- ready-made medicines produced abroad, including Chinese traditional 
medicines; 
- unregistered food and beverages; 
- solar eclipse glasses; 
- pesticides; 
- products of certain goods such as rubber lumps, unprocessed hides and raw-
skin of cow, rattan, etc.; 
- waste, steel, copper and brass scraps; 
- goods of cultural value. 
However, those goods can be imported or exported if certain requirements 
from particular government agencies are obtained. 
II.5. Import Licensing 
The licensing system classifies restricted goods into three main categories, 
according to the type of importer1. These categories are producer-importer 
(IP), agent or sole trader (AT), and registered importer (IT). In addition, a 
number of products may only be imported by a designated State-owned entity, 
such as BULOG. All other goods are unrestricted and classified in the general 
importer (IU) category. The number of tariff lines subject to restrictive import 
licences has progressively fallen from 1,122 in 1990 to 470 in June 1993 to 
318 in October 1993 and to 261 in June 1994, representing under 3%-of tariff 
lines, following the June 1994 package2. 
Despite the reduced incidence and import coverage of import licences, with 
the share of licensed imports falling from over 40% in 1985 to well under 
A fourth category importer producer (PI), was terminated in the June 1993 package when the last PI 
licence, covering "other nitrates", was withdrawn. Prior to their widespread removal in June 1991. PI 
licences had enabled domestic producers to import inputs not available locally, such as. completely-
knocked-down (ckd) motor vehicle kits. 
These include IT/AT import licences on imported motor vehicles not assembled in Indoesia, 
introduced on 46 tariff lines in June 1993. The June 1994 package converted IP or AT import licences 
on 27 tariff items to IU status. These included 2 BULOG-agriculture items (loactose) and 25 
industrial items, covering Venetian aluminium blinds and certain piston engines or parts thereof. The 
package also shifted fresh and fried garlic from IT status to BULOG controlled licences. 
7 
10% at present, it has been estimated by the World Bank that some 30 and 
35%, respectively, of manufacturing and agricultural production are still 
covered by import licences. 
Production coverage of restrictive import licensing 
(Per cent of 1987 production) 
Description3 1989 1990 1991 1992 199? 1994c 
Agriculture 44.7 44.7 35.5 35.5 35.5 35.5 
Food crops 64.7 64.6 55.7 55.7 55.7 55.7 
Estate and other crops 25.7 25.7 14.5 14.5 14.5 14.5 
Livestock 7.3 7.3 0.1 0.1 0.1 0.1 
Forestry and fishing 12.5 6.3 0.0 0.0 0.0 0.0 
Mining and quarrying (including oil and 0.2 0.2 0.2 0.2 0.2 0.2 
gas) 
Manufacturing (excluding oil and gas) 38.1 32.8 31.6 31.1 31.2 30.6 
Food, beverages and tobacco 62.9 61.3 59.8 58.7 60.7 58.8 
Textiles, clothing and footwear 8.0 6.5 6.5 5.4 5.2 5.2 
Wood products 0.0 0.0 0.0 0.0 0.0 0.0 
Paper products 37.6 37.6 37.6 34.6 34.6 34.6 
Chemicals 5.5 2.6 2.6 2.6 0.2 0.2 
Oil and gas 0.5 0.5 0.5 0.5 0.5 0.5 
Non-metallic products 19.5 1.0 0.0 0.0 0.0 0.0 
Basic metals 17.2 5.0 5.0 4.6 4.6 4.6 
Engineering 49.2 36.3 33.9 33.9 31.6 31.6 
Other manufacturing 3.0 3.0 3.0 • 3.0 3.0 3.0 
Total 27.9 25.4 22.3 22.1 22.1 21.9 
a Based on Indonesian input-output classification for 1985. 
b After the October 1993 changes. The figures include the IT/AT licences 
introduced on motor vehicles to replace the import bans in June 1993. 
c After the June 1994 package. 
Source: World Bank 
The main items affected by licensing are agricultural commodities, processed 
food and beverages, paper products (mainly due to the import bans on foreign 
printed material), engineering products (mainly reflecting the licences on 
imports of cars unassembled in Indonesia and some machinery), basic metals 
(especially iron and steel) and chemicals (mainly explosives). 
Restrictive import licences, especially the more prevalent IP category, control 
the degree to which domestic producers of many goods are exposed to import 
competition, such as those granted on steel products, including tubes and 
•*£' 
pipes. Specific licences designating State monopolies as sole importers 
mainly cover the importation by BULOG of major food products, namely, 
rice, wheat and wheat flour, sugar, soybeans, gummy bags and, from June 
1994, garlic3. 
IT licences restrict to six State-trading firms imports of a wide range of 
products across all sectors. 
IT import licences are combined with sole agent (AT) licences to create an 
import monopoly over designated brand names of final products4. Currently, 
IT/AT licences cover only imports of cars not assembled in Indonesia5. Every 
type and brand of (cbu) car to be imported must be registered in advance with 
the Ministry of Industry. The Ministry of Trade determines whether the type 
of car being imported is assembled domestically, and, hence, decides whether 
it must be imported under a restrictive IT/AT licence. 
II.6. State Trading Enterprises 
Pursuant to GATT Article XVII. Indonesia has notified BULOG as a State-
trading entity which, as part of its statutory responsibilities for implementing 
the Government's food policy (through controlling production, distribution 
and marketing of major agricultural commodities), is the sole legal importer 
(and exporter) of several commodities. The main products covered by 
BLILOG"s activities are rice, sugar, wheat and wheat flour, soybeans, gummy-
bags and, since June 1994, garlic. The level of imports is set annually to fill 
the shortfall between domestic production and consumption. 
Indonesia also relies substantially on the activities of other State-trading 
agencies to meet its development targets for certain industries. Sole 
importation rights, covering mainly processed foods and beverages, are 
provided to six State-owned entities under the import licensing system 
(registered importer (IT) licences) to enable the Government to control 
imports. 
As mentioned earlier, a number of State-owned enterprises have also been 
granted import monopolies over goods which they themselves produce. 
Imports of petroleum and gas products, are licensed exclusively to Pêrtamina, 
while imports of explosives are restricted under license to the State-trading 
entity. PT Perum Dahana. Sole importing rights over steel products by PT 
Krakatau Steel were terminated in July 1992. 
Imports of garlic were shifted from an IT licence to a BULOG licence in June 1994. 
Foreign suppliers granted AT status are encouraged to make, in return for exclusive import licences, a 
long-term commitment to the Indonesian market through providing back-up repair and spare parts 
services, as well as gradually establishing local assembly or spare parts production. 
IT/AT import licences on cars no assembled in Indonesia were introduced in June 1993. The June 
1994 package removed the IP and AT licences on reciprocating piston engines used in motor vehicles. 
11.7. Government Procurement 
Indonesia has no central government purchasing agency. All government 
bodies and State-owned enterprises are responsible for their own procurement 
on contracts of up to Rp 3 billion. All contracts above Rp 3 billion, including 
those of State-owned enterprises, must first be approved by the Co-ordinating 
Ministry of Trade and Industry. Procurement must be at a favourable price 
that can be justified, meet stipulated technical requirements and utilize, where 
possible, domestically-produced inputs6. 
Formal bidding procedures, either public or limited, must be followed on 
procurement contracts above Rp 20 million7. Limited tenderers are invited to 
apply for the contract from the List of Capable Suppliers. However, since 
public tenders are only necessary on contracts above Rp 500 million, most 
contracts below Rp 500 million are let by limited tender. Only foreign 
suppliers prepared to meet Indonesia's countertrade arrangements will be 
considered at public tender. 
11.8. Local Content Schemes 
Indonesia operates a number of local content plans designed to assist domestic 
production of components. The local content plans operate by means of 
''deletion lists"', constructed by the Ministry of Industry for each assembler 
and reviewed bi-annually, and which specify those components which can be 
imported8. Goods not on a Master List must be sourced locally. Localization 
plans, specifying the components to be sourced locally, the prescribed level of 
local content and, in most cases, the time period allowed for meeting the 
targeted level, are generally stipulated in decrees issued by the Minister of 
Industry. Increased local content is generally introduced over time through 
deletion lists requiring increasing levels of local content. 
III. INVESTMENT RELATED MEASURES 
III. 1. Direct Foreign Investment Limitations 
The May package also altered the negative investment list. Ten sectors were 
dropped from the list and five were added. Thus, a total of 34 sectors remain on the 
negative investment list. The main changes included the addition of a new category. 
"Sectors closed to 100% foreign ownership." Eight sectors are included in this 
category: operation of ports; production, transmission and distribution of electricity 
to the public; provision of public telecommunication services; shipping; provision of 
drinking water; public railways; nuclear power; and advertising. 
6 All procurement contracts are, in principle, subject to a post-audit by the Finance and Development 
Supervisory Agency (BPKP) to assess, among other things, the appropriateness of the price. 
7 Small contracts below Rp 20 million are let through direct designation or direct procurement an are reserved 
for suppliers from economically-weak sectors. 
x Locally-made components included in the master list, if imported, are dutiable at tariff rates specified in the 
customs schedule. 
The Negative Investment List 
Category7 Number of Sectors 
I. Sectors closed unless certain requirements are met 9 
II. Sectors closed to foreign investment 6 
III. Sectors closed to 100% foreign investment 8 
IV. Sectors absolutely closed 11 
Total 34 
The May 1994 investment deregulation opened the first seven of these. 
Ten sectors were dropped from the negative foreign investment list for the 
stated purposes of increasing business opportunities, domestic supplies of the 
affected products, value added and technology transfer. 
? 
6.2. MALAYSIA 
I. TARIFFS 
Goods imported are classified under the Harmonised Coding System (HS) and 
import duties range from nil to 200%, with average tariffs within the 15% to 25% 
range. Both imports and exports must be declared to customs on prescribed forms. 
Sales tax at 5%, 10% or 15% is levied on certain imported and locally manufactured 
goods at the time of importation or when disposed of by the manufacturer. Most 
customs duties are imposed on the value of the goods. 
As part of fiscal measures for 1996, there was reduction/abolition of import duties 
on more than 2,600 items, including textile products and raw materials and 
components. 
The rates for import, export, and excise duties vary depending on the nature of the 
items. Partial or full exemption from import duty and surtax may be granted on 
application depending on whether finished products are sold locally or are exported. 
There are also provisions for exemption from customs duty on imported machinery 
and equipment and for goods for export. Packaging materials are generally not 
eligible for drawback on duty paid on import. Protective tariffs and other assistance 
are also available to deserving industries to encourage industrialisation in Malaysia. 
Level of Bindings 
65% of tariff lines (agricultural and industrial) 
79% of imports (agricultural and industrial) 
1.1. Industry 
Average Applied Tariff Rate 
The post-Uruguay Round trade weighted tariff stands at 8.9%. 
Tariff Rates Structure9 
15% (average) Semi-processed and processed item 
5% (average) Primary products 
9 P.-Pre-Uruguay Round information. 
10 
1.2. Agriculture 
Tariff Rates Structure1 
• Raw materials: 16% 
• Semi-processed: 25% 
• Fully processed: 5% 
Current Rates Range1 
0 t=> 50%: Raw materials 
0 ^> 25%: Semi-processed 
0 ^> 5%: Fully processed 
II. EXAMPLES OF NON-TARIFF MEASURES 
11.1. Licensing Requirements1 
Licensing continues to apply to a number of imports, including poultry, meat, 
eggs, rice and paddy, sugar, clinkers, acetyl bromide, acetic anhydride 
chloride, fireworks, magnetic tapes for video and sound recording, explosives, 
wood, safety helmets, diamonds, rice milling machinery, automatic cassette or 
cartridge loaders, colour copying machines, some telecommunication 
equipment, motor vehicles, arms and ammunition, coin or disc operated 
amusement machines, saccharin ancL its salts, milk, cabbage, coffee, cereal 
Hours, some iron and steel products, and certain wires and cables. 
11.2. Conditional Import Prohibitions1 
Animals, animal products, plants, plant products, cigarettes, soils, fertilisers of 
animal origin, bullet-proof vests, electrical apparatus, safety belts and 
imitation weapons. 
11.3. Transparency 
The last published tariff schedule dates back to 1988. Malaysia's system of 
licensing and import prohibitions is used in a number of cases to ensure 
adherence to sanitary, phytosanitary. safety, environment protection and 
copyright requirements. However, in many instances, it is used to provide 
protection to domestic producers against imports. The system is not fully 
transparent in that regulations do not clearly distinguish between these two 
cases. 
11.4. Government Procurement 
Countertrade: Malaysia does not have mandatory counterpurchase 
requirements in government procurement. However, countertrade proposals 
by suppliers are given consideration in identifying a preferred tenderer when 
price and other factors are evaluated. 
Public Tenders: The Contract and Supply Management Division of the 
Ministry of Finance is the central procurement agency for the Federation. The 
Minister of Finance has delegated some powers to the Tender Board, allowing 
it to approve tenders for works (including construction) up to RM 10 million 
and for supplies (of goods) and services up to RM 5 million. Local 
governments have separate procurement agencies. 
Foreign suppliers qualify for bidding on public contracts if they are registered 
with the Ministry of Finance and their equity in the company or joint venture 
does not exceed 30%. No margin of preference is given to domestic 
companies over foreign bidders. 
11.5. Investment 
Foreign investment in the manufacturing sector has been greatly encouraged 
by Malaysia's liberal policy on equity participation which allows up to 100% 
foreign ownership in projects which export 80% or more of their production. 
For projects which export less, the level of foreign equity participation 
allowed will vary according to the percentage of production exported. 
According to the authorities. Malaysia has no local content laws or regulations 
applying to domestic production. However, the Government encourages the 
use of local materials in domestic production and the use of local content is 
taken into account in the granting of investment incentives. There is also a 
local content programme for motor vehicles. 
III. SERVICES 
Under the General Agreement on Trade in Services (GATS), Malaysia is committed 
to opening up a total of 64 sectors and subsectors to foreign participation and has 
offered substantial liberalisation, MFN and national treatment in several service 
sectors such as professional services, computer services, audiovisual services, 
maritime and aviation transportation services, consultancy, and a wide range of 
business services. It has also made substantial offers in the finance sector by-
binding nearly al' financial services activités. 
Further liberalisation of the services sector will be undertaken in a progressive 
manner, commensurate with the level of the country's economic development and 
the development of the domestic services sector. 
<M 
12 
6.3. PHILIPPINES 
I. TARIFF PROTECTION 
II. Tariff levels and Uruguay Round Commitments 
A major tariff reform programme introduced in August 1991 by Executive 
Order (E.O.) 470 established a new simplified four-tier rate structure: (i) 3%> 
for basic raw materials previously exempt from tariffs and those subject to a 
5%; (ii) 10%) for raw materials, capital equipment for which no locally 
produced substitutes are available and spare parts; (iii) 20% for intermediate 
and semi-processed goods and capital equipment for which there are locally 
produced substitutes and (iv) 30% for finished goods. 
An ambitious step in tariff liberalisation was taken by President Ramos 
through E.O. 264 last July 1995. It sets out a two-tiered tariff structure of 3% 
and 10%) for raw materials and finished products to be fully implemented by 
2003. It is also targets at a uniform 5%> on manufactured products by 2004. 
1.2. Tariff bindings 
The Philippines offered to bind 37% of tariffs in the Uruguay Round 
negotiations. 
1.3. Effective rate of protection 
The only agricultural commodity under import protection is rice. 
On non-agricultural products, there remain some restrictions on used motor 
vehicles (see further point on local content schemes) Imports of Coal and 
refined petroleum products are expected to be fully liberalised in 1997. 
1.4. Tariff Quotas 
Other than tariff quotas resulting form the Uruguay Round Agreement, the 
Philippines does not use tariff quotas according to the Philippine authorities. 
IL NON TARIFF BARRIERS 
III. Other levies and charges 
Specific Duties 
Specific duties are levied only on two product groups: 
a) Cinematographic films, exposed and developed, whether incorporating or 
not sound track or consisting only of sound track: 
(i)newsreels. travelogues, technical and scientific films - P0.30 pet-
metre under HS Nos. 3706.10 and 3706.90 
(ii)other - P2.00 per metre falling under HS Nos. 3706.10 and 
3706.90 
b) Imported crude oil falling under HS heading No. 2709 - P0.95 per litre or 
PI 51.05 per barrel 
Imported oil products falling under HS heading Nos. 27.10 and 27.11 -
P1.00 per litre. 
Seasonal tariffs 
While there are no mixed or alternate tariffs, a seasonal tariff is imposed on 
fish products under HS headings 03.02 and 03.03 
11.2. Minimum import prices 
They were discontinued in 1992 
11.3. Import Prohibitions 
Imports are now classified according to the degree of restriction involved. 
Freely Importable: They are neither regulated nor prohibited, and do not 
require the prior approval of, or clearance from, any Government agency. 
Regulated: They require clearance or permits from appropriate Government 
agencies. 
Prohibited: They are not ordinarily allowed under existing laws 
11.4. Import licensing 
Imports into the Philippines are free unless otherwise subject to the 
requirements of prior approval by appropriate Government agencies. 
11.5. Import Quotas 
Explicit quotas operate only on two products: feeder cattle (4800 heads/mo) 
and horses (150 heads/year). 
11.6. Import Surveillance (preshipment inspection) 
To address the problem of misdeclaration and smuggling, the Government of 
the Philippines, introduced the Comprehensive Import Surveillance Scheme 
(CISS), with the Société General de Surveillance (SGS) as the designated 
inspector in 1987. 
The aims of the CISS are to: 
a) verify that the quantity is in accordance with contract specifications; 
-,•/ 
14 
b) assess and report the dutiable value, the prevailing export market price, 
freight, and dutiable charges; 
c) issue, if warranted, a Clean Report of Findings (CRF). This document is 
necessary for customs clearance and to support negotiation of payment. 
11.7. State Trading Enterprises 
The Philippine International Trading Corporation (PITC), a Government 
Corporation founded in 1973, is the sole state trading enterprise. Initially it 
was concerned mainly with trade involving centrally planned economies. In 
1981, however, its mandate was extended to a global marketing function. The 
Corporation does not have exclusive trading rights for any commodity and 
usually operates on behalf of Philippine firms10. There are plans for its 
privatisation. 
11.8. Import cartels 
Not applicable 
11.9. Standard and other technical requirements 
The Philippines has been a signatory to the Agreement on Technical Barriers 
to Trade since its accession to GATT in January 1980. 
Of the 1.462 standards that have been developed or formulated, at present 304 
(or 21%) are either identical or equivalent to international standards. The rest 
are related to standards in specific foreign countries. 
The Philippines has recognised some inspection bodies to conduct tests in 
other countries on a number of products according to Philippine national 
standards procedures. 
Imports office, the only commodity over which the Government has exclusive rights, are managed by 
the National Food Agencv. 
I. Electrical products 
1. Ballast for fluorescent lamps 
2. Circuit breakers 
3. Edison-screw lampholders 
4. Fluorescent lamps 
5. Fluorescent lamp luminaries/fixtures 
6. Electrical cartridge fuse 
7. Glow starter for fluorescent lamps 
8. Incandescent lamps 
9. Insulating tapes 
10. Lampholders and starterholders for 
fluorescent lamps 
11. Plugs and receptacles 
12. Switches 
a) knife 
b) snap/tumbler 
13. Thermoplastic insulated wires 
14. Electrical conduit, PVC 
II. Fire fighting equipment/extinguishing 
agents 
1. Fire extinguisher 
2. Fire hose (presently not being 
implemented) III. Construction material 
1. G.I. pipes (welded) 
2. G.I. sheets 
3. Portland cement 
4. Pozzolan cement 
5. Reinforced steel bars 
6. HD-PE pipes (for potable water supply) 
7. Steel wire nails 
IV. Other products 
1. Automatic lead-acid storage battery 
2. LPG cylinders for household use 
3. LPG cylinders for automotive use 
4. Medical oxygen 
5. Pneumatic tyres 
6. Rubber inner tubes 
7. Safety matches 
8. Lighters 
9. Copper redraw rod for electrical 
purposes 
10. EC aluminium redraw rod for electrical 
purposed 
11. Flexible cords 
Local importers and distributors of medical equipment are required to obtain a 
license to operate from the BFD. All food and food products intended for 
import or export must also be registered with the BFD. 
The Philippines imposes phytosanitary regulations on the imports of certain 
fruits and vegetables to protect the domestic industry from destructive pests. 
specifically several species of fruit flies existing in certain countries. 
11.10. Government Procurement 
The Philippine Government is a large direct importer, usually through 
competitive bidding, of many essential products. These include rice, road 
building and maintenance equipment, cement, machinery and equipment for 
the various Government projects, and also military and defence equipment. 
Rice is the only product for which the Government is the sole importer. Rice 
imports are made by the National Food Authority which is concerned with 
stabilising prices. 
16 
Philippine Government procurement practices generally do not discriminate 
against foreign goods and services. However, there are several sectors in 
which the Government is stated to favour Philippine firms for Government 
contracts. These include rice, medicines, and infrastructure projects. 
Philippine Government procurement regulations permit a foreign company to 
bid on Government procurement only if it maintains a registered branch office 
or a registered resident agent in the Philippines. 
II. 11. Local content schemes 
The Philippines does not have any local content requirements, according to 
the Philippine authorities. However, participants in the Government's Car 
Development Program (CDP) have to comply with local content 
requirements, as we'l as obtain a minimum percentage of their foreign 
exchange through exports. All this is scheduled to be phased out by the end 
of year 2000. 
11.12. Subsidies and export support measures 
Importation of machinery and equipment and accompanying spare parts which 
are used in the manufacture of exported products at zero percent (0%) duty for 
a period of three (3) years. 
Tax credit for imported inputs and raw materials primarily used for the 
production and packaging of export goods, which are not readily available 
locally, shall be valid for five (5) years provided that the tax credit shall be 
issued within thirty (30) days from exportations. 
Tax credit for increase in current year export revenue computed as follows: 
- The first 5% increase would be increase in annual export revenue over the 
previous year would mean a credit 2.5% to be applied on the incremental 
export revenue converted to pesos at the current rate; 
- The next 5% increase would be entitled to a credit of 5.0%o 
- The next 5% increase would be entitled to a credit of 1.5% 
- In excess of 15% would be entitled to a credit of 10%> 
Such tax credit is only granted for the year when the performance is achieved. 
For exporters of non-traditional products who use or substitute locally 
produced raw material, capital equipment and/or spare parts, tax credits 
equivalent to 25%o of the duties that would have been paid had these inputs 
been imported. 
17 
III. INVESTMENT RELATED MEASURES 
III. 1. Direct foreign investment limitation 
Foreign Investment is regulated by the Foreign Investment ACT (FIA) of 
1991, which authorises 100% foreign ownership in practically all areas except 
those prohibited by the Constitution or Special Laws. (See table below). 
Foreign Investments Negative List 
List A - Limited by Constitution or Special Laws 
No Foreign Equity 
• Mass media 
• Licensed professions 
- Lawyers 
- Accountants 
- Engineers, etc... 
Retail trade 
Cooperative 
Private security agencies 
Small-scale mining 
Fisheries 
Rice and corn farming 
5% Foreign Equity 
Recruitment agencies 
Locally funded public works projects 
30% Foreign Equity 
Advertising 
40% Foreign Equity 
Natural resources development and utilisation 
Land ownership 
Public utilities 
Educational institutions 
Financing companies 
Construction List B - Limited for Reasons of Security, 
Defence, Health, Morals and Protection of 
Small and Medium-Scale Enterprises 
40% Equity 
Explosives 
Munitions 
Armaments 
Dangerous drugs 
Massage clinics 
Gambling 
Domestic market enterprises with 
capital less than 200,000 USD 
Small-scale export enterprises 
depleting natural resources 
•n 
111.2. Profit repatriation limits 
No limits 
111.3. Foreign Exchange Measures 
Foreign exchange regulations were liberalised in December 1993 and include 
full deregulation of current account transactions, access of exporters and 
importers to foreign currency loans and full and immediate repatriation of 
foreign investment including profit remittances. 
6.4. SINGAPORE 
I. TARIFF 
Tariff rates structure 
98.6% are duty free 
The average collected rate (customs and excise duty revenue/import value ratios) is 
1.1% 
Level of bindings 
69.3% (from 0.5% in 1992) 
The simple average of bound rates across all sectors is 7.4% 
Special tariffs 
Ad valorem tariffs 
12% motorcycles 
41% motor vehicles 
Collected tariff rates (customs and excise duties/import values) 
22.1% petroleum 
28% motor vehicles 
29.8% tobacco 
41.3% liquor 
Export duties 
Singapore does not impose any duties on exports. Export control measures are 
mainly enforced for public health, security and environmental considerations or to 
fulfil international commitments. Singapore also currently maintains four bilateral 
export restraints covering textiles and clothings. 
II. EXAMPLES OF NON TARIFF MEASURES 
II.1. Licensing requirements 
Import licensing and control provisions are maintained mainly to discharge 
Singapore's obligations under international commitments or for public health, 
environmental and security considerations. For example, for national security 
reasons, under the Telecommunication (Dealers) Regulations 1994, an 
importer of telecommunication equipment must seek the prior approval of the 
o?V 
20 
Telecommunications Authority of Singapore. Foreign shareholding in 
Singapore Telecommunications is limited to 40%o. 
Imports of products subject to import licensing in 1994 amounted to 6%o of the 
total. 
II.2. Sanitary Regulations 
With the enforcement of the Control of Plants (Imports of Fresh Fruit and 
Vegetables) Rules 1994, all importers of fresh fruit and vegetables for local 
sale or supply must apply for an import licence which is renewable every 
year. 
H.3. Government Procurement 
Singapore is currently negotiating accession to the 1994 Agreement on 
Government Procurement. It remains a member of the 1979 Agreement on 
Government Procurement. Foreign firms wishing to act as supplier to the 
Singapore Government must have a registered office in Singapore or must 
appoint a local agent. 
III. SERVICES 
Singapore has nine measures listed as GATS Article II Exemptions. Included are 
Investment Guarantee Agreements, Legal services, Broadcasting, Computer 
reservation systems and Maritime Transport services affecting all countries. 
IV. INVESTMENTS 
Singapore generally makes no distinction between domestic investment and foreign 
investment; however; limitations on foreign ownership exist in telecommunications, 
financial services and the national airline. 
21 
6.5. THAILAND 
I. TARIFF 
1.1. Industry 
Average applied tariff rate 
17% by 199711 (down from 30% in December 1994). 
Tariff rates structure 
as from 1997: 
0% tariff-exempt products such as medical equipment and fertiliser; 
1% raw materials, electronic components & international transportation vehicles; 
5% primary products and capital goods; 
10% intermediate products; 
20% final products; and 
30% products requiring "special protection"12. 
Level of bindings 
68% 
1.2. Agriculture 
Current average applied tariffs 
- agricultural raw materials and livestock: 38% (28% in 2004 under VR commitments) 
- fisheries: 55% 
- forestry products: 15% 
These new rates and structures result from the tariff reform announced in December 1994. Certain 
textiles and garments, shoes, processed food products are most affected with deep cuts. Motor 
vehicles, where 1995 tariff average about 38% with a peak of 80% are notably excluded from the tariff 
liberalisation. 
This category applies to locally produced import-competing products which are regarded as requiring 
continued protection, including fabrics, carpets, clothes, blankets, handbags, shoes, headgear, wigs, 
television sets, refrigerators and air conditioners. 
:V ) 
~>0 
Current rates range 
0 O 65%: agricultural raw materials and livestock 
0 O 60%: fisheries and forestry 
Level of bindings 
Nearly all tariffs. 
II. EXAMPLES OF NON-TARIFF MEASURES 
ILL Licensing requirements 
Non-automatic licensing continues to apply to a number of imports, including 
fish meal, coffee beans, sugar and other minor agricultural raw products. 
11.2. Conditional import prohibitions 
Gas, kerosene, motorcycles and certain buses. 
11.3. Transparency 
Last published tariff schedule dates back 1992. 
11.4. Government Procurement (GP) 
Countertrade: any imported procurement valued above Bath 500 million by-
State Enterprise must apply countertrade measures. 
Public tenders: no centralised purchasing agency and no information. Thai 
products receive 10% price preference. 
IÏ.5. Investment (I) 
Motor vehicles: exemption from taxes granted to passenger cars and certain 
trucks provided their manufacturer satisfies local - content provisions. 
Dairy products: local - content requirements on investment. 
III. SERVICES 
Thailand's schedule of commitments under the GATS covers 95 service activities 
and 10 major sectors. 
M.f.n. exemptions apply to business, transport, banking and other services. 
In the financial sector Thailand is looking for assistance from advanced APEC 
countries in expanding its services exports. 
2J> 
Foreign equity participation in service establishments in Thailand must not exceed 
49%o of registered capital. 
As a general rule, Thailand has bound neither its limitations on market access nor its 
limitations on national treatment in regard to the cross-border supply of services. 
The following sectors or sub-sectors were not included in Thailand's GATS 
Schedule: research & development and real estate services under the Business 
category; postal and courier services under the Communications category; 
completion and finishing services under the Distribution category; tourist guide 
services under the Tourism and Travel category; entertainment, news agencies and 
libraries under the Recreational category; and internal waterways, pipelines and 
space services under the Transport category. 
Annex 7 - Breakdown of EC financial assistance in ASEAN 
1976 -1995 
The following information must be borne in mind when reading the tables presented 
hereafter: 
Included are grant commitments for all actions approved by the EC in the ASEAN 
region, excluding actions cancelled or suspended, from 1976 to 1995. The 
commitments for all terminated actions are included. The tables do not relate to 
exclusively on-going projects. 
The "EC funding" columns represent commitments as of 31.12.95. 
The "% of Total" column relates to the Total EC Funding in the region. 
52,57%o of the Total EC Funding has been disbursed. 
- The first table under the "ASEAN" heading is concerned with regional actions 
covering all ASEAN countries. All other tables deal with bilateral actions (direct with 
an ASEAN country). 
TOTALS: N° of Actions 373 
EC Funding (MECU) 1,007.336 
ASEAN 
Co-operation type 
Economic co-operation 
Improvement of General 
Cooperation Framework 
Trade & Investment 
Facilitation 
Business-to-Business Coop 
Other actions 
Unclassified 
Development co-operation 
Environment 
Rural Production 
Rural Services 
Other 
Drugs 
Refugees 
TOTAL N°. of Actions 
54 
18 
9 
24 
1 
2 
5 
1 
2 
2 
// 
10 
1 
70 EC Funding 
(MECU) 
85.425 
26.815 
20.309 
37.534 
0.580 
0.187 
12.227 
0.600 
7.027 
4.600 
4.413 
2.776 
1.637 
102.065 % of Total 
8.48% 
2.67% 
2.02% 
3.73% 
0.06% 
0.02% 
1.23% 
0.06% 
0.71% 
0.46% 
0.44% 
0.28% 
0.16% 
10.13% 
at 
BRUNEI 
Co-operation type 
Economic co-operation 
Improvement of General 
Cooperation Framework 
TOTAL N°. of Actions 
/ 
1 
1 EC Funding 
(MECU) 
0.119 
0.119 
0.119 % of Total 
0.01% 
0.01%o 
0.01% 
INDONESIA 
Co-operation type 
Economic co-operation 
Improvement of General 
Cooperation Framework 
Business-to-Business Coop 
Development co-operation 
Forests 
Irrigation & Rural 
Infrastructure 
Integrated Rural Develop. 
Rural Production 
Rural Services 
Other 
Refugees 
Disaster Response 
TOTAL N°. of Actions 
10 
1 
9 
28 
5 
11 
^> 
6 
4 
4 
42 EC Funding 
(MECU) 
7.935 
0.197 
7.737 
256.081 
72.446 
112.435 
37.500 
13.350 
20.350 
1.900 
1.900 
265.916 % of Total 
0.80% 
0.02% 
0.78% 
25.79%, 
7.30% 
11.33% 
3.78% 
1.34% 
2.05% 
0.19% 
0.19% 
26.41% 
MALAYSIA 
Co-operation type 
Economie co-operation 
Business-to-Business Coop 
Unclassified 
Development co-operation 
Forests 
Other 
Drugs 
Refugees 
TOTAL N°. of Actions 
7 
6 
1 
2 
2 
9 
2 
1 
18 EC Funding 
(MECU) 
1.587 
1.565 
0.022 
0.811 
0.811 
5.110 
0.290 
4.820 
7.509 % of Total 
0.18% 
0.16% 
0.02% 
0.08% 
0.08%) 
0.51% 
0.03% 
0.49% 
0.76% 
PHILIPPINES 
Co-operation type 
Economie co-operation 
Improvement of General 
Cooperation Framework 
Business-to-Business Coop 
Development co-operation 
Forests 
Irrigation 
Integrated Rural Developm 
Rural Production 
Rural Services 
Social Development 
Other 
Drugs 
Human Rights 
Refugees 
TOTAL N°. of Actions 
21 
1 
20 
19 
2 
1 
12 
1 
1 
2 
24 
10 
9 
5 
64 EC Funding 
(MECU) 
20.475 
0.990 
19.485 
243.611 
28.000 
4 500 
179.900 
3.246 
0.565 
27.400 
5.463 
2.520 
0.523 
2.420 
269.549 % of Total 
2.06% 
0.10% 
1.96%) 
24.54% 
2.82% 
0.45% 
18.12% 
0.33% 
0.06% 
2.76%o 
0.55% 
0.25% 
0.05%o 
0.24% 
27.15% 
SINGAPORE 
Co-operation type 
Economic co-operation 
Business-to-Business Coop 
TOTAL N°. of Actions 
2 
2 
2 EC Funding 
(MECU) 
2.770 
2.770 
2.770 % of Total 
0.28% 
0.28% 
0.28% 
THAILAND 
Co-operation type N°. of Actions EC Funding 
(MECU) % of Total 
Economic co-operation 
Improvement of General 
Cooperation Framework 
Trade & Investment 
Facilitation 
Business-to-Business Coop 
Other actions ?.? 
12 23.060 
3.939 
5.391 
8.931 
4.800 2.32% 
0.40% 
0.54% 
0.90% 
0.48% 
Development co-operation 
Forests 
Irrigation & Rural 
Infrastructure 
Rural Production 
Rural Services 
Social Development 30 
15 
5 181.866 
0.902 
67.650 
48.154 
65.036 
0.121 18.32% 
0.09% 
6.81% 
4.85% 
6.55%) 
0.01% 
Other 
Drugs 
Refugees 
TOTAL 24 
10 
14 
76 19.014 
15.682 
223.940 1.92% 
0.34% 
1.58% 
22.56% 
VIETNAM 
Co-operation type 
Economie co-operation 
Trade & Investment 
Facilitation 
Business-to-Business Coop 
Development co-operation 
Disaster Response 
Forests 
Irrigation & Rural 
Infrastructure 
Integrated Rural Developm 
Rural Production 
Rural Services 
Social Development 
Other 
Drugs 
Refugees 
TOTAL N°. of Actions 
11 
8 
35 
1 
2 
4 
4 
4 
17 
7 
1 
6 
53 EC Funding 
(MECU) 
21.764 
21.314 
0.450 
JO. 079 
0.388 
18.960 
0.379 
0.921 
2.917 
1.239 
5.275 
69.084 
0.222 
68.862 
120.926 % of Total 
2.19% 
2.15% 
0.05%o 
3.03% 
0.04% 
1.91% 
0.04%) 
0.09% 
0.29% 
0.12% 
0.53%) 
6.96% 
0.02%. 
6.94% 
12.18% 
.s?. 
Breakdown of EU financial assistance in ASEAN 
Vietnam 
12,18% 
Thailand 
22,56% 
Singapore 
0,28% 
Philippines 
27,15% ASEAN 
10,28% 
Brunei 
0,01% 
Indonesia 
26,78% 
Malaysia 
0,76% 
Breakdown by Sector 
Development 
Co-operation 
72,99% Other 
10,57% 
Economic 
Co-operation 
16,43% 
FINANCIAL ASSISTANCE EVOLUTION (MECU) 
1976-1979 
1980-1983 
1984-1987 
1988- 1991 
1992-1995 Economic 
Co-operation 
9.94 
6.59% 
33.79 
14.99% 
112.96 
24.51% Development 
Co-operation 
32.24 
100% 
135.61 
100% 
139.90 
92.75% 
161.54 
71.66% 
330.28 
71.66% Other 
1.00 
0.66% 
30.08 
13.36% 
17.67 
3.83% Total 
32.24 
100% 
135.61 
100% 
150.83 
100% 
225.41 
100% 
460.91 
100% 
Source: European Commission 
yf 
Annex 8 - The Institutional Structure of EU-ASEAN Relations 
>tf 
THE INSTITUTIONAL STRUCTURE OF EU-ASEAN RELATIONS 
JCC 
ASEAN-EU Joint Co-operation Committee 
Held every 18 months 
Next meeting : Mid 1997 
Informal Working Groups 
- IPR (Intellectual Property Rights) 
- Environment SUB-COMMITTEES (once a year) 
Trade 
Economic & Industrial Co-operation 
Science & Technology 
Forests 
EC-ABC 
Ad hoc meetings between 
the ASEAN Brussels Committee 
and the European Commission AEMM 
ASEAN-EU Ministerial Meeting 
Held at alternate years 
Next meeting : February 1997 
SOM 
ASEAN-EU Senior Officials Meeting 
Meld on years alternate to AEMM EPG 
Eminent Persons Group 
Report presented in June 1996 
PMC ARF 
Post Ministerial Conference ASEAN Regional Forum 
Held once a year 
Next meeting : July 996 

ISSN 0254-1475 
COM(96) 314 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-96-331-EN-C 
ISBN 92-78-06018-6 
Office for Official Publications of the European Communities 
L-2985 Luxembourg