COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT AND THE ECONOMIC ANC SOCIAL COMMITTEE CREATING A NEW DYNAMIC IN EU-ASEAN RELATIONS
Date: 1996-07-03
Institutions: European Commission
Subjects: ASEAN, EU relations, cooperation policy, economic relations, trade relations

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 

1.1.  A vast market for the future 

1.2.  An effort  to contribute to international  structures 

1.3.  New regional challenges 

2. 

IMPLEMENTATION  OF EUROPE'S  STRATEGY  ON ASIA 

3.  ADJUSTING THE FRAMEWORK  OF OUR PARTNERSHIP 

SECTION II - THE  GOALS OF A NEW EU-ASEAN DYNAMIC 

1.  A STIMULATED POLITICAL DIALOGUE 

2. 

3. 

A STRATEGY FROM REGION TO REGION 

AN UPSURGE IN TRADE AND INVESTMENT 

3.1.  Facilitating  and Liberalising Trade 

3.2.  Facilitating Investment 

4 

REORIENTING  CO-OPERATION 

4.1.  Economic Co-operation 

4.2.  Development  Co-operation 

4.2.1.  General Guidelines 

4.2.2.  Social Development  Cooperation 

5 

5 

6 

7 

7 

8 

10 

10 

12 

13 

13 

15 

15 

16 

18 

18 

18 

4.3.  Co-operation  in other fields 

4.3.1.  Environment 

4.3.2.  Bringing the two  societies together 

4.3.3.  Crime Prevention 

4.3.4.  Science and Technology 

SECTION III - OPERATIONAL MODALITIES 

SECTION IV - OPTIONS FOR LAUNCHING A NEW DYNAMIC 

OPTION  1. A FORMAL  AGREEMENT 

OPTION 2. AN ACTIVE PARTNERSHIP 

CONCLUSIONS 

19 

19 

20 

20 

20 

22 

23 

25 

27 

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 

2 

Philippines,  Singapore, Thailand  and  Vietnam. 
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. 
Text presented  by ASEAN  at the October  1995 Joint  Cooperation  Committee Meeting. 
See Annex 0. 

3 
4 
5  China, Japan,  South-Korea,  Laos, Cambodia, Papua  New-Guinea, India,  Myanmar. 

S E C T I ON 

I  -  THE  NEED  FOR  A  NEW  DYNAMIC  IN  E U - A S E AN  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 
7 

See Annex  1. 
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. 

See Annex 3. 

8 
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. 

trade 
After  a  series  of  vain  efforts  to  develop  a  system  of  preferential 
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 -  T HE  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 
in  Southeast  Asia 
against  piracy,  accidents  on  the  high  seas),  denuclearisation 
(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  U P S U R GE  IN  T R A DE  AND  I N V E S T M E NT 

leaving  behind  a  strong 

their  economies  apparently 

to 
Over  recent  years  the  ASEAN  countries  have  made  an  unprecedented  effort 
liberalise 
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 
they  are 
launched  a  certain 
participating  in  a  drive  to  liberalise  and  facilitate  trade  on  a  wider  scale.  In  1995, 
Thailand, 
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. 

liberalisation  of  services.  As  members  of  APEC, 

launched  unilateral 

the  Philippines 

Indonesia  and 

tariff 

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. 

to 

effective 

a  close 

attention 

foremost, 

first  and 
and 

the 
This 
implies, 
application  of  Uruguay  Round 
implementation 
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 
the 
trade.  The  Commission  is  still  in  the  process  of  developing 
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. 

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 
complexity  of  this  task,  a  sectoral  approach 
in  cooperation  with 
industry  would  be  more  realistic. 

the  Government  Procurement  Agreement.  Given 

3.1.1. 

3.1.2. 

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. 

through 

trade  obstacles,  whether 

For  all  these  purposes  ad-hoc  cooperation  may  be  needed  regarding 
the  ASEAN  Brussels 
specific 
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. 

3.2.  Facilitating  Investment 

15 

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, 
industrial,  scientific  and 
technological  co-operation,  better  use  of  information  technology  and  the 
creation of awareness of the potentialities of the global information  society; 

initiatives  should  be  focused  on 

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 
information 
in  view  of  the  simplification  and  harmonisation  of 

exchange  of  officials,  cooperation 
exchange 
customs  procedures; 

in  the  field  of 

-  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; 

in 

the 

the 

the 

society, 

technical 

information 

telecommunications 

including 
sector; 

Information  Society: 

(including  a  possible 

cooperation  concerning 
actions 
adapted  to  differing  levels  of  development  within  ASEAN  as, 
for  example,  the  setting-up  of  a  dialogue  on  the  different 
the  policy 
aspects  of 
information 
followed 
exchanges 
to 
ASEAN)  concerning  regulation  and  normalisation,  conformity 
tests  and 
and 
telecommunications,  the  distribution  of  new  information  and 
communication 
innovative 
interconnection  and 
applications;  the  strengthening  of  the 
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; 

certification  of 

technologies 

technologies 

information 

assistance 

including 

their 

transport 

links  play  a  major 

the 
Since  efficient 
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 

role 

in 

transport,  multi-modalism, 

so  as  to  promote  more  energy-efficient  and  environmentally 
sustainable 
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; 

links  between 

-  by  selecting  initiatives  aimed  at  creating 

the 
Community,  the  Member  States  and  ASEAN,  notably  in  the 
promotion  of  contacts  and  exchanges  between  universities. 
in  meetings  aimed  at  developing 
researchers  and  intellectuals, 
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 
(Junior  EU-ASEAN 
the 
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. 

JEM 

4.2.  Development  Co-operation 

4.2.1.  General  Guidelines 

Certain  ASEAN  countries  are  still  at  an  important  level  of  under 
to  assist 
development  and  poverty:  we  should  continue  our  effort 
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 
protection  of children. 

to 

the 

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 
develop 
states' 
environmental  legislation  and their capacity to implement  it; 

capacity 

to 

effective 

-  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; 
technological 
solutions to local pollution problems. 

local  development  of  appropriate 

the 

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. 

in 

training  which, 

the  field.  Building  on 

ASEAN  and  the  Community  could  develop  cooperation  in  education 
the  principle  of  subsidiarity, 
and 
respecting 
the 
complements  bilateral  activities 
training-networking 
Community's  experience  with  education  and 
between  actors 
facilitate 
the  Member  States, 
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. 

they  could 

in 

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 
specific  collaboration 
appropriate  multilateral  bodies.  Further, 
methods  should  be developed  within  the  partnership  each  time  it  may 
be  required. 

for  our 
is  undoubtedly  a  privileged 
Drug-trafficking 
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. 

target 

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 
innovative  and  appropriate 
generation  of  knowledge  and  of 

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 
structures: 

involvement  of  business  would 

imply  the 

following 

•  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, 
interesting 

lurk  beneath  the  surface,  even  if  the  Bangkok  Summit  brought 
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. 

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: 

24 

25 

O P T I ON  1. 

A  F O R M AL  A G R E E M E NT 

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 
their 
peoples 

links  between 

formulation  of inter-regional  objectives  and  particularly: 

co-operation  on  regional  integration 

facilitation  of flows  between  the  two  regions 

creation  of  an 
develop  these  objectives 

inter-regional  consultation  mechanism 

to 

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; 

Machinery 

-  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. 

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 

Annex  8 

Breakdown  of EC Financial  Assistance in ASEAN  1976-1995 

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 

Brunei 

Indonesia 

Malaysia 

Phillipines 

Singapore 

Thailand 

Vietnam 

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) 

0.3 

194 

20 

69 

60 

74 

6 

1,905 

330 

300 

1 

513 

332 

4 

143 

64 

54 

55 

124 

13 

13,822 

763 

3,386 

817 

19,213 

2,103 

170 

2.0 

7.2 

8.5 

5.2 

8.9 

8.6 

8 

2.682 

40,053 

58,754 

13,483 

96,749 

45,167 

3,400 

1,208 

31,983 

59,594 

22,738 

102,590 

54,340 

4,000 

0.15 

90.5 

25 

36.5 

16.5 

55 

25 

-

2,004 

4.351 

763 

6,829 

1.621 

300 

2.1 

1.6 

2.4 

2.1 

1.0 

1.1 

2.2 

-

43 

38 

56 

65 

56 

49 

Sources:  CHELEM,  La Découverte:  L'Etat  du Monde  1996:  ASEAN  Secretariat 

'^ 

1.2. 

I N T R A - A S E AN  E X P O R TS  ( A LL  P R O D U C T S)  (USS  M I L L I O N S) 

Country 

1994 

1995 

Growth 

Brunei 

Indonesia 

Malaysia* 

Philippines 

Singapore 

Thailand** 

467.52 

233.41 

-50.08% 

5,787.97 

6,334.00 

15,002.15 

18,429.01 

1,425.12 

2,361.32 

28,806.68 

33,095.20 

7,991.37 

8,894.08 

9.43% 

22.84% 

65.69% 

14.89% 

11.30% 

Vietnam*** 

794.70 

685.93 

TOTAL 

60,275.52 

70,032.94 

16.19% 

1.3.  I N T R A - A S E AN  E X P O R TS  ( C E PT  P R O D U C T S)  (USS  M I L L I O N S) 

Country 

1994 

1995 

Growth 

Brunei 

Indonesia 

Malaysia* 

Philippines 

Singapore 

Thailand** 

Vietnam*** 

TOTAL 

467.70 

230.29 

-50.44% 

5,157.25 

5,600.86 

13,036.18 

16,000.08 

1,184.87 

2,091.47 

25,467.56 

29,495.46 

3,743.58 

5,905.98 

n.a. 

n.a. 

8.60% 

22.74% 

76.51% 

15.82% 

57.76% 

49,054.14 

59,324.14 

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 I N T R A - A S E AN  EXPORTS, 1994-95 (USS MILLIONS) 

Country' 

1994 

1995 

Increase 

Brunei 

Indonesia 

Malaysia* 

Philippines 

Singapore 

Thailand** 

467.52 

233.41 

(234.11) 

5,787.97 

6,334.00 

546.03 

15,002.15 

18,429.01 

3,426.87 

1,425.12 

2,361.32 

936.19 

28,806.68 

33,095.20 

4.288.51 

7,991.37 

8.894.08 

902.70 

Vietnam*** 

794.70 

685.93 

T O T AL 

60,275.52 

70,032.94 

(108.77) 

9,757,42 

1.5.  GROWTH IN I N T R A - A S E AN  CEPT  EXPORTS, 1994-95 (USS MILLIONS) 

Country 

1994 

1995 

Growth 

Brunei 

Indonesia 

Malaysia* 

Philippines 

Singapore 

Thailand** 

Vietnam*** 

T O T AL 

467.70 

230.29 

(234.41) 

5,157.25 

5,600.86 

443.62 

13,036.18 

16,000.08 

2,963.90 

1,184.87 

2,091.47 

906.60 

25,467.56 

29,495.46 

3,743.58 

5,905.98 

4,027.90 

2,162.40 

n.a. 

n.a. 

49,054.14 

59,324.14 

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 

EXPO 

RTSTO 

FROM 

YEAR 

Brunei 

Indonesia 

Malaysia 

Philippines 

Singapore 

Thailand 

Brunei 

1993 

1994 

94/93% 

Indonesia 

1993 

1994 

94/93% 

n.a. 

0.44 

n.a. 

n.a. 

37.0 

n.a. 

n.a. 

n.a. 

n.a. 

28.3 

197.9 

200.7 

n.a. 

n.a. 

n.a. 

22.5 

39.4 

75,6 

459.9 

260.1 

3,046.2 

430.5 

599.6 

319.3 

3,722.0 

333.0 

20,9 

22,8 

22,2 

(22,7) 

Malaysia 

1993 

142.6 

478.9 

429.4 

8,448.4 

1,632.1 

1994 

185.7 

604.6 

535.5 

9,581.7 

2,014.5 

94/93% 

30,2 

26,2 

24,7 

13,4 

23,4 

Philippines 

1993 

1994 

1.2 

2.2 

28.7 

124.6 

302.2 

129.2 

43.6 

166.3 

618.7 

296.4 

94/93% 

83,3 

52,2 

33,5 

104.7 

129,4 

Singapore 

1993 

548.4 

n.a. 

9,186.9 

1,121.4 

1994 

842.7 

n.a. 

19,484.1 

1,425.3 

94/93% 

44,1 

n.a. 

112,1 

27,1 

3,168.8 

5,249.4 

65,7 

Thailand 

1993 

1994 

94/93% 

TOTAL 

1993 

1994 

94/93% 

15.3 

18.1 

18,4 

83.7 

277.9 

62.5 

2,359.4 

135.0 

316.0 

74.8 

2,740.8 

61.4 

13,7 

19.7 

16,2 

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 

IMPOR 

TS FROM 

TO 

YEAR 

Brunei 

Indonesia 

Malaysia 

Philippines 

Singapore 

Thailand 

Brunei 

1993 

1994 

94/93% 

n.a. 

n.a. 

53.7 

224.7 

n.a. 

n.a. 

n.a. 

2.4 

n.a. 

n.a. 

575.2 

n.a. 

n.a. 

60.3 

n.a. 

Indonesia 

1993 

1994 

0.6 

0.2 

411.3 

489.1 

41.7 

1,543.3 

148.8 

54.7 

1,630.9 

231.5 

94/93% 

(67,13) 

18,9 

30,9 

5,7 

55.6 

Malaysia 

1993 

1.7 

441.3 

200.3 

5,469.3 

789.0 

1994 

28.2 

627.5 

303.4 

6,799.0 

1,131.4 

94/93% 

1,559.3 

42,2 

51,5 

24.3 

Philippines 

1993 

-

1994 

0.1 

0.5 

211.9 

167.0 

634.7 

245.6 

237.6 

794.7 

129.6 

94/93% 

352.5 

15,9 

42,3 

25.2 

49.2 

Singapore 

1993 

215.8 

n.a. 

13,629.1 

493.0 

1994 

250.5 

n.a. 

19,106.2 

882.8 

94/93% 

16,1 

n.a. 

40,2 

79,1 

3.448.2 

5,629.4 

63.3 

Thailand 

1993 

216.6 

269.2 

891.2 

94.9 

935.8 

1994 

149.7 

231.8 

1,499.8 

186.1 

1,212.9 

94/93% 

(30,9) 

(13,9) 

68,3 

96,0 

29,6 

TOTAL 

1993 

1994 

94/93% 

Source:  The ASEAN Secretariat 

30,341.9 

42,769.2 

41.0 

43.4 

86.9 

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 

1980 

1983 

1985 

1987 

1988 

1989 

1990 

1991 

1992 

1993 

1994 

1995 

EC 
Imports 

EC 
Exports 

Trade 
Balance 

ft 

6,857 

7.917 

9,972 

10,037 

12,203 

15,173 

16,748 

19,947 

22,403 

25,667 

29,940 

:o,:>55 

5,369 

9,269 

9,810 

8,906 

10,689 

14,110 

16,083 

17,282 

19,278 

22,920 

27,759 

33,991 

-1,488 

1,350 

-162 

-1,131 

-1,514 

-1,063 

-665 

-2,665 

-3,125 

-2,747 

-2,181 

636 

35000 

30000 

25000 

•  EC  Imports 

DEC  Exports 

•  Trade  Balance 

20000 

15000 

10000 

5000 

1  I I  I 
m  11  I 
il 'I  I  I  I  I 
W i l li  I I I I I I 
Il  I j  !  I !||(  S S S  S 

19dDJ  1983  1985  1987-P  19asJ  19»*  199TT  19911  19921  19931  1994H  1995 
1 11 
il  [J I  Urn Urn )Am urn  \lm  \\m  -im  Urn 

-5000 

Source:  EUROSTA T 

YEARS 

2.2. 

Imports  from  ASEAN  by Major  Sector 

1980 

1988 

1994 

Breakdown  by  Sector 

EU 

US 

Japan 

EU 

US 

Japan 

EU 

US 

Japan 

Food and live animals 

1,296.05 

724.54 

907.85 

2,254.95 

1,093.89 

1,942.28 

2,539.56 

2,523.09 

4,561.66 

Beverages and tobacco 

106.34 

18.72 

13.01 

99.61 

19.85 

30.27 

106.92 

58.87 

38.37 

Crude materials 

1,555.57 

755.83 

3,684.46 

1,629.45 

821.21 

3,402.21 

1,614.16 

1,101.03 

3,714.42 

Oils, fats and waxes 

447.26 

278.61 

93.68 

625.96 

302.08 

129.96 

1,090.02 

363.06 

256.86 

Primary  goods 

3,405.22 

1,777.70 

4,699.00 

4,609.97 

2,237.03 

5,504.72 

5,350.66 

4,046.05 

8,571.31 

Fuel  products 

220.15 

4107.80 

11,814.8 

38.76 

1,203.71 

7,423.67 

243.65 

961.01 

9,034.83 

Chemicals 

35.15 

28.10 

131.53 

135.50 

195.29 

315.36 

511.73 

777.14 

729.82 

Classified  by material 

951.28 

754.82 

566.39 

1,492.41 

1,171.65 

1,500.46 

3,070.43 

2,198.89 

3,247.01 

Machinery  and transport 

770.00 

2,045.39 

157.79 

3,195.84 

7,513.11 

599.20 

13,171.3 

26,754.2 

6560.49 

Miscellaneous 

690.76 

651.67 

105.58 

2,513.46 

3,151.96 

432.23 

6,986.12 

9,913.70 

2,973.00 

Manufactured  goods 

2,447.19 

3,479.98 

961.29 

7,337.21 

12,032.0 

2,847.25 

24,345.8 

40,361.4 

14,210.1 

Other  goods 

784.70 

148.49 

93.21 

216.79 

279.62 

354.48 

606.24 

717.41 

699.75 

Total 

1995 Totals 

6,857i2 

9,514.0 

17,568.3 

12,202.7 

15,752.4 

16,130.1 

29,940.2 

45,368.4 

31,816.2 

33,354.3 

49,105.1 

36,903.3 

Figures in MECU (Source :  Eurostat/Comlrade) 

2.3.  Exports  to ASEAN  by Major  Sector 

1980 

1988 

1994 

Breakdown  by  Sector 

EU 

US 

Japan 

EU 

US 

Japan 

EU 

US 

Japan 

Food and live animals 

180.61 

465.46 

140.15 

389.94 

431.64 

156.10 

721.60 

937.25 

236.43 

Beverages and tobacco 

106.29 

118.13 

1.57 

233.12 

144.89 

5.34 

409.23 

302.80 

28.11 

Crude materials 

25.57 

348.56 

120.55 

137.86 

407.30 

141.50 

348.64 

1,037.68 

348.53 

Oils, fats and waxes 

9.72 

7.46 

14.57 

37.99 

9.84 

11.16 

31.38 

20.84 

7.08 

Primary  goods 

Fuel  products 

Chemicals 

322.19 

939.61 

276.84 

798.91 

993.67 

314.10 

1,510.85 

2,334.57 

620.15 

48.90 

128.13 

39.60 

47.60 

95.81 

75.92 

365.54 

508.90 

327.97 

680.58 

745.72 

812.35 

1,533.98 

920.46 

1,227.27 

3,177.12 

2,204.00 

3,391.42 

Classified  by material 

677.67 

373.14 

2,733.38 

1,516.85 

519.93 

3,022.14 

3,706.17 

1,408.73 

7,017.01 

Machinery  and transport 

2,851.31 

3,826.02 

5,034.11 

4,769.13 

5,520.55 

9,591.23 

15,288.5 

17,243.5 

35,505.9 

Miscellaneous 

325.27 

264.75 

425.02 

1,010.68 

663.00 

806.41 

2,629.71 

2,315.12 

2,842.50 

Manufactured  goods 

4,534.83 

5,209.63 

9,004.86 

8,830.64 

7,623.94 

14,647.1 

24,801.5 

22,991.3 

48,756.8 

Other  goods 

Total 

1995 Totals 

463.56 

45.72 

100.11 

1,011.15 

255.16 

328.23 

1081.26 

821.69 

978.95 

5,369.37 

6,323.09 

9,421.41 

10,688.3 

8,968.58 

15,365.3 

27,759.1 

26,863.5 

50,683.9 

33,988.7 

29,893.5 

59,363.6 

Figures in MECU (Source : Eurostat/Comtrade) 

2.4.  Trade  Balance with  ASEAN  by Major  Sector 

1980 

1988 

1994 

Breakdown  by  Sector 

EU 

US 

Japan 

EU 

US 

J a p an 

EU 

US 

Japan 

Food  and  live animals 

-1,115.44 

-259.08 

-767.70 

-1,865.01 

-662.25 

-1,786.18 

-1,817.96 

-1,549.85 

-4,325.25 

Beverages  and  tobacco 

-05 

99.41 

-11.44 

133.51 

125.04 

-24.93 

302.31 

243.93 

-10.26 

Crude  materials 

-1,530.00 

-407.27 

-3,563.91 

-1,491.59 

-413.91 

-3,260.71 

-1,265.52 

-63.35 

-3,365.89 

Oils,  fats  and  waxes 

-437.54 

-271.15 

-79.11 

-587.97 

-292.24 

-118.80 

-1,058.64 

-342.22 

-249.79 

Primary  goods 

Fuel  products 

Chemicals 

-3,083.03 

-838.09 

-4,422.16 

-3,811.06 

-1,243.36 

-5,190.62 

-3,839.81 

-1,711.49 

-7,951.17 

-171.25 

-3,979.67 

-11,775.2 

8.84 

-1,107.90 

-7,347.75 

121.89 

-452.11 

-8,706.85 

645.43 

717.62 

680.82 

1,398.48 

725.17 

911.91 

2,665.39 

1,426.85 

2,661.61 

Classified  by  material 

-273.61 

-381.68 

2,166.99 

24.44 

-651.72 

1,521.68 

635.74 

-790.16 

3,769.99 

Machinery  and  transport 

2,081.31 

1,780.63 

4,876.32 

1,573.29 

-1,992.56 

8,992.03 

2,117.19 

-9,510.78 

28,945.36 

Miscellaneous 

-365.49 

-386.92 

319.44 

-1,502.78 

-2,488.96 

374.18 

-4,356.41 

-7,598.58 

-130.49 

Manufactured  goods 

2,087.64 

1,729.65 

8,043.57 

1,493.43 

-4,408.07 

11,799.80 

1,061.91 

-16,472.7 

35,246.47 

Other  goods 

Total 

1995  Totals 

-321.14 

-102.77 

6.90 

794.36 

-24.46 

-26.25 

475.02 

104.28 

279.20 

-1,487.84 

-3,190.88 

-8,146.87 

-1,514.43 

-6,783.79 

-764.82 

-2,180.99 

-18,532.0 

18,867.65 

845.9 

-19,211.8 

22,460.3 

Figures in MECU (Source :  Eurostat/Comtrade) 

2.5.  EU12  IMPORTS  FROM  THE  ASEAN  COUNTRIES  (THOUSANDS  ECU) 

Misce. manuf.  goods(8) 

1.324.757 

1.800.264 

1.866.546 

1.926.022 

Other  not classified goods  (9) 

29.294 

98.560 

62.732 

83.171 

126.745 

183.456 

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) 

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) 

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) 

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 

1995 

1.112.895 

283.242 

244.249 

96 

21.395 

17.428 

75 

1990 

1991 

1992 

3.914.208 

5.103.681 

5.148.022 

1993 
5.531.003 

1994 

1995 

6.263.562 

1.370.048 

1.198.077 

30.436 

140.047 

3 

1.485 

1.694.921 

1.484.292 

40.154 

170.191 

0 

284 

1.552.286 

1.353.975 

43.022 

154.437 

661 

191 

1.471.692 

1.601.099 

1.272.009 

1.328.621 

37.323 

162.063 

5 

292 

36.310 

235.724 

5 

439 

2.514.866 

3.310.200 

3.533.004 

3.976.139 

4.535.717 

15.359 

637.709 

537.041 

22.733 

689.487 

797.716 

28.605 

678.432 

959.422 

32.385 

719.795 

1.297.937 

45.067 

885.874 

1.592.237 

2.012.539 

1990 

1991 

1992 

1993 

1994 

82.993 

47.598 

37.875 

0 

6.728 

2.977 

19 

35.195 

1.424 

7.093 

535 

26.143 

200 

172.178 

73.612 

48.379 

19 

5.332 

19.868 

14 

98.112 

902 

15.843 

1.304 

80.063 

454 

319.505 

544.143 

86.454 

48.463 

27 

7.332 

30.458 

173 

87.868 

59.936 

32 

5.834 

22.063 

4 

857.909 

195.294 

155.604 

218 

10.151 

29.283 

38 

231.781 

455.648 

660.555 

826.624 

2.183 

23.883 

7.285 

198.431 

1.270 

2.472 

39.378 

25.828 

387.970 

626 

4.820 

58.519 

14.717 

582.499 

2.060 

6.616 

63.969 

7.317 

748.722 

3.028 

1 9 90 

1991 

1992 

1 9 93 

1 9 94 

1 9 95 

2.864.616 

3.579.828 

4.343.078 

5.032.085 

5.857.146 

5.946.805 

1.254.355 

1.211.921 

1.351.163 

1.546.580 

1.985.065 

1.940.335 

517.383 

66.842 

340.257 

95.810 

234.062 

539.642 

78.683 

298.583 

35.433 

259 580 

487.855 

76.581 

296.045 

141.121 

349.560 

540.395 

56.097 

378.622 

183.408 

388.057 

608.947 

52.392 

520.570 

242.614 

560.542 

505.450 

57.010 

585.152 

187.472 

605.250 

1.599 271 

2.349.447 

2.973.313 

3.438.047 

3.860.014 

3.978.418 

35.659 

729.740 

73.362 

49.337 

68.143 

65.688 

91.920 

110.123 

899.363 

1.072.590 

1.147.041 

1.262.749 

1.316.777 

89.537 

221.764 

363.102 

409.853 

416.831 

760.510 

1.311.209 

1.610.815 

1.862.216 

2.095491 

2.134.687 

10.991 

18.460 

18602 

47.458 

12.067 

28.053 

hi 

MALAYSIA 
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.  p r o d u c ts  (5-8) 

Chemicals  (5) 

Manuf.  goods(6) 

1990 

1991 

1992 

1993 

3.607.554 

4 . 3 8 3 . 2 14 

4.939.649 

6 . 2 2 7 . 4 65 

1994 

1995 

7.488.496 

8.871.560 

1.354.506 

266.156 

441 

630.558 

18.892 

238.459 

1.241.417 

1.270.674 

1.291.408 

260.461 

265.102 

749 

557 

707.100 

696.383 

0 

15 

273.106 

308.617 

258.323 

1.707 

725.305 

2.523 

303.550 

1.371.637 

288.201 

802 

692.202 

6.030 

384.402 

1.393.086 

276.341 

1.820 

715.543 

11.320 

388.062 

2.202.571 

3.085.541 

3.573.264 

4.849.056 

6.055.158 

7.308.193 

37.255 

350.934 

59.045 

404.411 

64.604 

449.018 

76.752 

471.657 

128.201 

563.596 

Machinery  &  transport  equip.(7) 

1.160.243 

1.718.061 

2.034.408 

3.188.728 

4.210.574 

Misce.  manuf.  goods(8) 

Other  n ot  classified  g o o ds  (9) 

654.139 

50.477 

904.026 

56.256 

1.025.234 

1.111.919 

1.152.788 

95.711 

87.002 

61.701 

187.458 

585.382 

5.398.532 

1.136.821 

170.282 

BRUNEI 
T O T AL 

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.  p r o d u c ts  (5-8) 

Chemicals  (5) 

Manuf.  goods(6) 

Machinery  & transport  equip.(7) 

Misce.  manuf.  goods(8) 

Other  n ot  c l a s s i f i ed  g o o ds  (9) 

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.  p r o d u c ts  (5-8) 

Chemicals  (5) 

Manuf.  goods(6) 

1990 

1991 

1992 

1993 

1994 

1995 

222.837 

281.595 

221.592 

397.240 

313.918 

262.748 

314 

80 

35 

199 

0 

0 

405 

136 

24 

155 

0 

90 

789 

284 

6 

494 

0 

4 

244 

116 

40 

87 

0 

0 

138 

88 

3 

38 

0 

10 

41 

35 

5 

0 

0 

2 

221.813 

277.182 

204.870 

378.357 

308.771 

257.690 

71 

4.095 

7.834 

209.813 

710 

63 

201 

73.643 

203.275 

4.008 

61 

555 

49.556 

154.699 

15.933 

121 

386 

8.909 

368.941 

18.640 

1 

436 

30.793 

277.541 

5.008 

46 

189 

117.413 

140.043 

5.017 

1990 

1991 

1992 

1993 

1994 

1995 

4.685.499 

5.220.210 

5.651.191 

6.439.967 

7.752.602 

8.440.792 

179.117 

65.558 

2.677 

108.330 

166 

2.386 

175.896 

168.784 

171.302 

193.293 

75.650 

2.156 

77.486 

17.556 

3.048 

84.212 

2.491 

68.808 

5.318 

7.955 

90.636 

3.168 

69.916 

2.115 

5.467 

97.423 

3.112 

83.047 

4.892 

~  4.819 

214.508 

91.343 

6.199 

111.392 

888 

4.686 

4.438.554 

4.982.731 

5.401.368 

6.162.745 

7.368.227 

7.889.124 

137.465 

184.798 

190.921 

196.362 

192.141 

204.690 

173.428 

200.571 

184.294 

203.965 

298.400 

230.059 

Machinery  & transport  equip.(7) 

3.481.135 

3.871.480 

4.209.403 

5.138.428 

6.221.875 

6.546.434 

Misce.  manuf.  goods(8) 

Other  n ot  c l a s s i f i ed  g o o ds  (9) 

635.156 

67.828 

723.968 

61.583 

795.135 

81.039 

650.318 

105.921 

758.092 

191.082 

814.231 

337.160 

1 9 90 

1991 

1992 

1993 

1994 

1.257.650 

1.472.714 

1.607.892 

1.909.893 

2.101.598 

384.771 

179.446 

17.505 

62.162 

2 

383.293 

182.973 

17.419 

65.695 

223 

397.848 

159.480 

18.730 

72.432 

463 

426.336 

152.272 

14.352 

85.324 

2.405 

1995 

2.342.110 

506.731 

142.045 

12.830 

99.360 

161 

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) 

Source  :  Eurostat 

397.963 

158.251 

15.913 

83.989 

0 

139.810 

820.005 

15.817 

123.354 

210.125 

470.709 

39.682 

125.656 

116.983 

146.743 

171.984 

252.335 

1.045.346 

1.146.137 

1.370.199 

1.464.773 

1.615.784 

12.783 

153.365 

274.940 

604.259 

42.597 

10.116 

145.038 

405.249 

585.734 

78.462 

10.554 

143.878 

572.497 

643.269 

141.846 

16.753 

130.078 

662.448 

655.494 

210.489 

20.794 

122.421 

855.286 

617.284 

219.595 

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.  p r o d u c ts (5-8) 

Chemicals  (5) 

Manuf.  goods(6) 

1990 

1991 

1992 

1993 

1994 

1995 

3.409.261 

3.816.594 

3.913.451 

5.042.718 

6.103.940 

7.736.802 

282.469 

113.715 

122.418 

30.621 

9.465 

6.249 

302.035 

135.454 

110.935 

45.455 

5.784 

4.407 

332.060 

164.037 

107.606 

47.549 

8.918 

3.950 

421.512 

186.543 

132.698 

60.754 

36.072 

5.445 

452.197 

221.835 

117.182 

92.785 

13.882 

6.513 

479.041 

243.839 

125.404 

88.074 

13.809 

7.915 

2.916.610 

3.226.613 

3.382.756 

4.383.777 

*  5.414.893 

6.944.571 

446.832 

630.981 

452.109 

742.686 

535.604 

678.988 

624.142 

925.498 

718.594 

785.814 

1.052.491 

1.178.262 

Machinery  & transport  equip.(7) 

1.693.044 

1.879.612 

1.945.080 

2.600.740 

3.248.210 

4.593.456 

Misce.  manuf.  goods(8) 

Other  n ot c l a s s i f i ed  g o o ds  (9) 

145.752 

210.182 

152.207 

287.946 

223.085 

198.635 

233.397 

237.428 

395.598 

236.850 

387.039 

313.190 

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) 

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.  p r o d u c ts (5-8) 

Chemicals  (5) 

Manuf.  goods(6) 

1990 

1991 

1992 

1993 

1994 

1995 

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 

300.993 

487.322 

616.018 

710.723 

22.268 

19.811 

1.420 

705 

218 

114 

37.229 

32.512 

2.108 

2.072 

273 

263 

39.655 

33.050 

2.941 

2.613 

732 

319 

160.117 

259.447 

441.671 

44.124 

19.897 

87.160 

8.936 

2.609 

53.270 

31.106 

79.438 

55.009 

162.878 

283.084 

12.193 

4.316 

24.140 

5.996 

56.034 

45.437 

3.903 

5.716 

874 

105 

547.977 

117.509 

79.079 

323.140 

28.248 

12.007 

74.952 

60.518 

4.373 

6.925 

2.706 

430 

614.976 

147.229 

98.624 

326.707 

42.417 

20.795 

1990 

1991 

1992 

1993 

1994 

1995 

2.837.070 

3.201.876 

4.053.728 

4.144.538 

4.314.431 

5.316.493 

111.074 

144.319 

195.269 

422.070 

360.449 

42.512 

7.573 

42.264 

15.683 

3.021 

63.610 

7.251 

63.608 

7.253 

2.596 

87.096 

9.911 

54.828 

40.853 

2.581 

92.315 

9.601 

162.901 

153.810 

3.444 

77.751 

12.143 

142.016 

T23.269 

5.270 

431.326 

149.136 

11.124 

219.874 

45.495 

5.696 

2.571.421 

2.923.622 

3.602.306 

3.585.701 

3.750.937 

4.579.865 

426.194 

331.833 

406.484 

370.349 

479.032 

463.778 

586.220 

448.031 

697.476 

458.129 

756.347 

516.624 

Machinery  & transport  equip.(7) 

1.703.232 

2.020.562 

2.501.425 

2.394.770 

2.447.308 

3.122.155 

Misce.  manuf.  goods(8) 

Other  n ot c l a s s i f i ed  g o o ds  (9) 

110.162 

154.575 

126.226 

133.936 

158.071 

256.153 

156.680 

136.767 

148.024 

203.045 

184.738 

305.303 

MALAYSIA 

TOTAL 

1990 

1991 

1 9 92 

1993 

1994 

1995 

2.495.577 

2.940.505 

3.103.616 

3 . 9 8 5 . 3 01 

5 . 7 7 2 . 3 74 

7 . 3 6 1 . 7 00 

Raw  Materials  (0-4) 

179.188 

231.971 

224.653 

Food  &  live  animals  ( 0 ) 

Beverages  and  tobacco  (1) 

Crude  materials,  except  fuels(2) 

Mineral  fuels(3) 

Animal  &  veg  oils, fats  &  waxes(4) 

74.135 

53.666 

42.993 

7.097 

1.297 

90.012 

66.922 

62.865 

6.531 

5.642 

95.574 

56.200 

62.595 

8.765 

1.519 

311.276 

118.675 

62.052 

116.382 

10.691 

3.476 

273.299 

120.519 

63.270 

68.152 

13.357 

8.001 

340.810 

163.919 

72.337 

89.745 

10.040 

4.769 

Manuf.  products  (5-8) 

Chemicals  (5) 

Manuf.  goods(6) 

2.087.912 

2.601.878 

2.766.601 

3.536.634 

5.182.020 

6.692.941 

262.661 

358.322 

283.895 

431.476 

335.526 

396.921 

351.135 

517.816 

438.326 

657.979 

431.046 

760.031 

Machinery  &  transport  equip.(7) 

1.330.041 

1.724.860 

1.809.763 

2.448.717 

3.762.152 

5.180.407 

Misce.  manuf.  goods(8) 

Other  not  classified  goods  (9) 

136.888 

228.478 

161.647 

106.656 

224.392 

112.362 

218.965 

137.391 

323.564 

317.055 

321.457 

327.950 

Manuf.  products  (5-8) 

356.681 

498.465 

392.249 

566.776 

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) 

Chemicals  (5) 

Manuf.  goods(6) 

Machinery  &  transport  equip.(7) 

Misce.  manuf.  goods(8) 

Other  not  classified  goods  (9) 

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) 

1 9 90 

1991 

1992 

1993 

1994 

1995 

380.074 

519.443 

418.575 

589.294 

785.797 

5.093 

2.992 

1.516 

555 

10 

20 

4.180 

2.796 

410 

920 

55 

0 

5.079 

3.801 

843 

432 

3 

0 

4.932 

3.434 

532 

948 

14 

4 

3.740 

18.991 

55.177 

278.771 

18.301 

3.554 

25.253 

199.789 

269.868 

16.798 

4.817 

33.269 

115.347 

238.816 

21.247 

3.932 

31.408 

131.461 

399.976 

17.586 

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 

1990 

1991 

1992 

1 9 93 

1 9 94 

1995 

5.682.464 

5.684.599 

6.348.902 

7.682.448 

8.871.220 

10.129.896 

415.805 

101.768 

199.635 

26.295 

85.412 

2.694 

408.981 

111.527 

205.909 

34.587 

53.606 

3.352 

451.335 

127.467 

227.647 

27.152 

65.240 

3.830 

690.468 

146.063 

223.468 

33.717 

284.372 

2.849 

608.937 

169.652 

167.963 

28.944 

231.139 

~11.239 

637.292 

192.076 

215.286 

28.655 

197.513 

3.761 

4.910.400 

5.057.436 

5.493.302 

6.702.453 

8.021.213 

9.054.909 

642.356 

803.896 

663.616 

847.735 

715.157 

981.021 

848.605 

1.033.925 

1.103.082 

1.193358 

1.322.544 

1.395.217 

2.814.865 

2.956.965 

3.050.505 

3.787.044 

4.481.072 

5.229.346 

649.282 

356.260 

589.119 

218.182 

746.618 

404.265 

873.447 

1.183.672 

1.327.264 

289.527 

241.070 

437.695 

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) 

Source :  Eurostat 

1990 
1.246.230 

141.185 

102.266 

20.189 

12.064 

3.293 

3.373 

1991 
1.119.798 

136.512 

93.617 

25.301 

13.837 

1.843 

1.913 

1992 

1993 

1.443.141 

1.732.465 

178.555 

130.053 

33.835 

10.625 

2.192 

1.850 

148.170 

94.040 

30.987 

18.493 

3.518 

1.133 

1994 
1.957.521 

201.874 

127.982 

47.442 

17.824 

7.012 

1.613 

1995 

2.118.475 

226.454 

145.991 

54.613 

14.716 

9.366 

1.767 

1.034.487 

930.500 

1.202.791 

1.528.349 

1.684.264 

1.788.440 

184.834 

117.824 

642.789 

89.040 

70.558 

177.955 

122.408 

547.322 

82.815 

52.787 

213.871 

141.963 

743.926 

103.031 

61.796 

241.507 

158.484 

286.670 

174.773 

303.744 

229.839 

1.011.740 

1.103.266 

1.121.266 

116.618 

55.945 

119.556 

71.383 

133.590 

103.581 

2.7. EU12 TRADE BALANCE WITH 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) 

1 9 90 

1991 

1 9 92 

1 9 93 

1 9 94 

1995 

-504.947 

-1.287.086 

-1.234.571 

-488.285 

-159.622 

1.359.432 

-1.087.578 

-1.392.885 

-1.220.226 

-1.084.362 

-1.348.838 

-1.189.938 

-1.050.180 

-1.148.902 

-1.085.466 

-1.106.786 

91.983 

-109.426 

9.462 

4.765 

401.744 

431.473 

-6.728 

70.780 

64.584 

-124.735 

-106.888 

5.784 

4.123 

-83.586 

429.376 

53.199 

8.257 

3.759 

-150.248 

506.999 

556 

985.658 

95.375 

-101.309 

36.067 

5.154 

407.638 

591.757 

205.703 

80.872 

-142.939 

13.877 

6.074 

879.176 

673.527 

166.617 

1.302.803 

1.655.973 

-1.692.625 

-1.616.941 

154.257 

110.105 

-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 

Machinery & transport  equip.(7) 

1.156.003 

1.081.896 

Misce. manuf.  goods(8) 

Other not classified goods (9) 

-1.179.004 

-1.648.058 

-1.643.461 

180.888 

189.386 

135.903 

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) 

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) 

1990 

1991 

1 9 92 

1 9 93 

1 9 94 

1995 

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 

-402.171 

-208.290 

-183.730 

4.277 

-14.470 

-14.722 

356 

-112.578 

-211.648 

112.689 

20.560 

308.423 

-554.250 

9.947 

140.613 

34.654 

319.389 

-706.305 

17.767 

1 9 90 

1991 

1 9 92 

1993 

1 9 94 

1995 

-27.546 

-377.952 

-289.349 

-887.547 

-1.542.714 

-1.143.280 

-1.067.602 

-1.155.893 

-1.124.509 

-1.624.616 

-474.871 

-59.269 

-297.973 

-80.127 

-231.041 

972.150 

390.535 

-476.032 

-71.432 

-234.975 

-28.179 

-256.984 

574.175 

357.148 

-397.906 

-529.015 

-400.758 

-66.671 

-241.217 

-100.269 

-346.979 

628.993 

410.889 

-608.812 

-448.080 

-46.496 

-215.721 

-29.599 

-384.613 

147.653 

520.532 

-699.010 

-531.195 

-40.249 

-378.555 

-TÏ 9.345 

-555.272 

-109.076 

605.556 

-804.621 

-630.313 

-1.509.009 

-356.315 

-45.885 

-365.278 

-141.978 

-599.554 

601.447 

646.223 

-800.153 

Machinery  & transport  equip.(7) 

Misce. manuf.  goods(8) 

Other not classified goods  (9) 

1.629.870 

-650.348 

143.584 

1.931.025 

2.279.661 

2.031.668 

2.037.456 

2.705.325 

-1.184.983 

-1.452.744 

-1.705.536 

-1.947.468 

-1.949.948 

115.475 

237.551 

89.309 

190.978 

277.250 

L,  Y 

MALAYSIA 

TOTAL 

1990 

1991 

1 9 92 

1993 

1994 

1995 

-1.111.977 

-1.442.709 

-1.836.034 

-2.242.164 

-1.716.122 

-1.509.860 

Raw  Materials  (0-4) 

-1.175.318 

-1.009.446 

-1.046.021 

-1.098.337 

-1.052.275 

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) 

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) 

Chemicals  (5) 

Manuf.  goods(6) 

Machinery  & transport  equip.(7) 

Misce.  manuf.  goods(8) 

Other  n ot  c l a s s i f i ed  g o o ds  (9) 

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) 

-112.422 

70.517 

-625.798 

-1.279 

-383.292 

-615.252 

243.588 

174.648 

-218.125 

-815.364 

157.668 

351 837 

10.182 

8.364 

1.181 

557 

72 

7 

332.867 

4.670 

29.181 

112.627 

186.390 

8.788 

-192.021 

53.224 

-787.564 

-11.795 

-237.162 

-114.659 

225.406 

7.388 

169.798 

-517.251 
1'78.001 

-170.449 

-169.528 

66.173 

-644.236 

6.530 

-267.464 

-483.663 

224.850 

27.065 

6.799 

-742.378 

50.400 

55.643 

-633.788 

8.750 

-307.098 

-806.663 

270.921 

-52.097 

-224.645 

-800.842 

16.650 

-980.132 

-139.648 

60.346 

-167.682 

62.468 

-608.923 

-624.050 

8.168 

-300.074 

-1.312.422 

274.383 

46.159 

-740.011 

-892.953 

50.389 

7.328 

-376.402 

-873.138 

310.126 

94.383 

-448.423 

-829.224 

255.353 

1990 

1991 

1992 

1993 

1994 

1995 

157.237 

237.848 

196.982 

192.054 

471.879 

4.779 

2.912 

1.481 

356 

10 

20 

3.775 

2.659 

386 

765 

55 

-90 

4.291 

3.517 

837 

-62 

3 

-4 

3.669 

14.897 

47.343 

68.959 

17.591 

3.492 

25.051 

126.146 

66.593 

12.790 

4.756 

32.714 

65.791 

84.117 

5.314 

4.689 

3.317 

493 

861 

14 

4 

188.420 

3.811 

31.022 

122.552 

31.035 

-1.054 

6.252 

4.712 

963 

559 

19 

-2 

452.492 

5.314 

33.844 

231.228 

182.106 

13.135 

1990 

1991 

1 9 92 

1993 

1994 

1995 

996.965 

236.688 

36.210 

196.958 

-82.035 

85.246 

308 

471.846 

504.891 

619.098 

464.389 

233.086 

35.877 

203.753 

-42.899 

36.050 

305 

74.704 

472.695 

651.373 

697.711 

1.242.481 

1.118.618 

1.689.104 

282.552 

43.255 

225.155 

-41.656 

59.922 

-4.125 

91.933 

523.017 

776.331 

519.167 

55.426 

220.300 

-36.199 

282.257 

-2.618 

539.708 

675.176 

992.786 

415.644 

72.229 

164.851 

-54.103 

226.247 

~ 6.419 

422.784 

100.733 

209.088 

-82.737 

196.625 

-925 

652.986 

1.165.785 

849.630 

804.681 

1.118.579 

1.165.159 

Manuf.  p r o d u c ts  (5-8) 

134.868 

221.283 

187.378 

Machinery  &  transport  equip.(7) 

Misce.  manuf.  goods(8) 

Other  not  classified  goods  (9) 

-666.269 

-914.515 

-1.158.897 

-1.351.384 

-1.740.804 

-1.317.088 

14.126 

288.432 

-134.849 

156.599 

-48.517 

323.226 

223.129 

183.606 

425.580 

49.988 

513.033 

100.535 

PHILIPPINES 
T O T AL 

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.  p r o d u c ts  (5-8) 

Chemicals  (5) 

Manuf.  goods(6) 

Machinery  &  transport  equip.(7) 

Misce.  manuf.  goods(8) 

Other  n ot  c l a s s i f i ed  g o o ds  (9) 

Source : Eurostat 

1990 

1991 

1992 

1993 

1994 

1995 

-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 

-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 

-164.751 

-204.738 

-52.920 

16.416 

-55.069 

1.968 

-177.428 

-249.678 

-65.440 

12.257 

-53.939 

3.054 

-144.077 

-224.463 

-24.289 

33.090 

-67.500 

4.607 

-115.133 

-145.611 

-170.371 

56.653 

203.755 

-3.075 

338.677 

-482.703 

-16.666 

158.151 

230.953 

14.606 

439.243 

-526.651 

-85.901 

219.492 

269.917 

44.695 

440.818 

-535.938 

-139.106 

-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 

2.8.  EU  IMPORTS  FROM  ASEAN  COUNTRIES  1995 

Thailand  Vietnam 

Indonesia  Malaysia 

Brunei 

Singapore  Philipines 

(thousands ecu) 

ASEAN 

BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlan 
Portugal 
Spain 
United  Ki 

EU12 

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 

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 

Thailand  Vietnam 

Indonesia  Malaysia 

Brunei 

Singapore  Philipines 

BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlan 
Portugal 
Spain 
United  Ki 

EU12 

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 

7.736.802 

710.723 

5.316.493  7.361.700 

614.586 

10.129.896 

2.118.475 

Source  :  Eurostat 

2.10.  EU  TRADE  BALANCE  WITH  THE  ASEAN  COUNTRIES  1995 

Thailand  Vietnam 

Indonesia  Malaysia 

Brunei 

Singapore  Philipines 

(thousands ecu) 

ASEAN 

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 

33.988.675 

(thousands ecu) 
ASEAN 

BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlan 
Portugal 
Spain 
United  Ki 

EU12 

95.377 
41.767 
495.904 
1.399.383 
-35.854 
-19.216 
375.349 
-451.011 
-60.194 
-164.380 
-317.693 
1.359.432 

Source  :  Eurostat 

-30.596 
10.571 
43.198 
-241.127 
-2.708 
2.381 
-4.568 

-55.996 
-5.736 

-47.655 
-69.935 
-402.171 

-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 

-630.313  -1.509.860 

351.837 

1.689.104 

-223.635 

634.395 

2.11.  EU IMPORTS  FROM ASEAN COUNTRIES  BY MEMBER  STATES 

1990 

1991 

1992 

1993 

1994 

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 

1995 

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 

16.635.357 

20.213.420 

22.230.928 

26.081.796  30.635.230 

33.354.280 

2.12.  EU EXPORTS TO THE  ASEAN COUNTRIES  BY MEMBER  STATES 

1990 

1991 

1992 

1993 

1994 

1995 

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 

BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlands 
Portugal 
Spain 
United Kingdom 

EU12 

Source : Eurostat 

BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlands 
Portugal 
Spain 
United Kingdom 

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 

BLEU 
Denmark 
France 
Germany 
Greece 
Ireland 
Italy 
Netherlands 
Portugal 
Spain 
United  Kingdom 

EU12 

Source : Eurostat 

1990 

1991 

1992 

1993 

1994 

1995 

-7.773 
-26.309 
380.267 
599.492 
-61.238 
27.232 
132.812 
-940.480 
-141.020 
-395.670 
-24.280 

-107.587 
-44.763 
296.356 
199.917 
-124.488 
-1.091 
38.832 
-1.426.526 
-141.052 
-671.644 
-763.563 

-157.706 
56.373 
725.861 
-342.866 
-143.612 
-7.066 
165.992 
-1.544.811 
-150.329 
-680.216 
-570.144 

-58.028 
-6.192 
561.619 
-77.570 
-143.470 
-272.137 
565.576 
-1.155.952 
-161.205 
-341.079 
-1.329.273 

-158.795 
-13.369 
619.384 
933.349 
-143.389 
-341.449 
901.132 
-2.001.646 
-156.854 
-582.919 
-1.269.374 

-46.264 
100.598 
1.932.659 
2.860.729 
-128.414 
-659.578 
1.325.859 
-2.165.507 
-129.769 
-530.412 
-1.714.040 

-456.967 

-2.745.610 

-2.648.522 

-2.417.710 

-2.213.930 

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 

16000 

14000 

Indonesia 

Malaysia 

Philippines 

Singapore 

Thailand 

$m 

1988 

1989 

1990 

1991 

1992 

1993 

£11993 

•  1992 

D1991 

•  1990 

E11989 

•  1988 

•  Thailand 

D  Singapore 

•  Philippines 

FJ Malaysia 

•  Indonesia 

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) 

EU 

965 

168,5 

World 

EU share  (%) 

13,226 

1907,2 

7,3 

8,8 

Singapore* 

Malaysia 

^Figures are for  1993 

Malaysia's  Foreign Direct Investment Flows, 1994 
(millions  of US dollars) 

1907,2 

168,5 

124,4 

23,8 

9,4 

2,8 

0,6 

0,1 

2,1 

4 

0,1 

Countries 

World 

EU 

United Kingdom 

Germany 

Ireland 

Italy 

Sweden 

Belgium 

Netherlands 

France 

Denmark 

Greece 

Portugal 

Austria 

Luxembourg 

0,1 

Spain 

Finland 

Others 

1 

1739,1 

Singapore's  Direct Equity Investment Abroad by Country,  1993 
(millions of US dollars) 

Countries 

World 

EU 

Netherlands 

UK 

Others 

United  States 

Asia 

Hong Kong 

Japan 

Asean 

Brunei 

Indonesia 

Malaysia 

Philippines 

Thailand 

13,226 

965 

291 

225 

450 

1,093 

7,149 

2,507 

68 

3,695 

57 

322 

2,900 

144 

273 

Net Singaporean  Direct Equity  Investment  to Triad  Countries  (EU, Japan  and 
USA), 1993 
(millions of US dollars) 

3%  (68) 

5 2%  (1,093) 

4 5%  (965! 

Foreign Direct Investment Flows from the EU to ASEAN* 
(millions of US dollars) 

Average FDI Flows  1990-93 

(2,666) 
14% 

OTHERS 

(3,723) 
20% 

110,499) 
55% 

(2,096) 
1 1% 

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) 
Chemicals (HS 28, 29, 38) 
Pharmaceuticals  (HS 30) 
Rubber Products (HS 40) 
Leather Products (HS 41, 42) 
Ceramic and Glass (HS 69, 70) 
Gems and Jewellery (HS 71) 
Wooden and Rattan Furniture (HS 95) 

Cement (HS 25) 
Fertilisers (HS 31) 
Plastics (HS 39) 
Pulp (HS 47) 
Textiles (HS 50, 63) 
Copper Cathodes (HS 74) 
Electronics (HS 84, 85) 

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 H I S T O R I C AL  O V E R V I EW 

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 
the 
over 
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 

in  East  Timor.  This  has  not  prevented 

the  Human  Rights  situation 

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", 
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 

the  Commission's  Strategy  Paper  published 

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 
the  ASEAN  countries 
systems  of 
through  economic  cooperation  and 
through  such  programmes  as  the  EC-ASEAN  Patents  and 
particularly 
In  this  sense,  the  establishment  of  an  ASEAN 
Trademarks  Programme. 
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 
to  anti 
legislation:  6  ASEAN  products  are  currently  subject 
dumping 
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 
the  degree  of 
liberalisation of their economies. 

level  of  development  and 

to 

in 

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 
the  Philippines,  a  focus  on 
sustainable  forest  management; 
in 
including 
participatory  development 
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. 

in  the  poorest  rural  areas, 

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 

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 

Source:  Indonesia Ministry of Finance 

o/ /o 

14.5% 
30.8% 
7.4% 
11.6% 
3.9% 
19.3% 
11.1% 
0.03% 

0.2% 
1.1% 

100% 

After  Package 

/o 

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% 

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 
to  customs  duty  unless 
be  cleared 
specifically  exempted  from  duty  by  law. 

through  Customs  and  are  subject 

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 
implemented  a  system  called 
documents, 
the  Indonesian  Customs  has 
Indonesia  since  1 
throughout 
"Customs  Fast  Release  System"  (CFRS) 
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; 

equipment, 

cordless 

telephone  or 

telecommunications 

-  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 

1 9 9? 

1994c 

Agriculture 

Food crops 

Estate and other crops 

Livestock 

Forestry and fishing 

Mining  and  quarrying  (including  oil  and 

gas) 

Manufacturing  (excluding oil and gas) 

Food, beverages and tobacco 

Textiles, clothing and footwear 

Wood products 

Paper products 

Chemicals 

Oil and gas 

Non-metallic  products 

Basic metals 

Engineering 

Other manufacturing 

44.7 

64.7 

25.7 

7.3 

12.5 

0.2 

38.1 

62.9 

8.0 

0.0 

44.7 

64.6 

25.7 

7.3 

6.3 

0.2 

32.8 

61.3 

6.5 

0.0 

35.5 

55.7 

14.5 

0.1 

0.0 

0.2 

31.6 

59.8 

6.5 

0.0 

35.5 

55.7 

14.5 

0.1 

0.0 

0.2 

31.1 

58.7 

5.4 

0.0 

35.5 

55.7 

14.5 

0.1 

0.0 

0.2 

31.2 

60.7 

5.2 

0.0 

35.5 

55.7 

14.5 

0.1 

0.0 

0.2 

30.6 

58.8 

5.2 

0.0 

37.6 

37.6 

37.6 

34.6 

34.6 

34.6 

5.5 

0.5 

19.5 

17.2 

49.2 

3.0 

2.6 

0.5 

1.0 

5.0 

36.3 

3.0 

2.6 

0.5 

0.0 

5.0 

2.6 

0.5 

0.0 

4.6 

33.9 

33.9 

3.0 

• 

3.0 

0.2 

0.5 

0.0 

4.6 

31.6 

3.0 

Total 

22.3 
a  Based on Indonesian  input-output classification  for  1985. 
b  After  the  October  1993  changes.  The  figures  include  the  IT/AT  licences 

25.4 

27.9 

22.1 

22.1 

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 

0.2 

0.5 

0.0 

4.6 

31.6 

3.0 

21.9 

• * £' 

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 
Sole 
agencies  to  meet  its  development  targets  for  certain  industries. 
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 

7 

x 

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. 
Small  contracts  below  Rp  20  million  are  let through  direct  designation  or direct  procurement  an  are  reserved 
for  suppliers  from  economically-weak  sectors. 
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 

I. 

II. 

III. 

IV. 

Sectors closed unless certain requirements are met 

Sectors closed to foreign  investment 

Sectors closed to  100% foreign  investment 

Sectors absolutely  closed 

Total 

Number of Sectors 

9 

6 

8 

11 

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: 

2 5% 

•  Fully  processed: 

5% 

Current  Rates  Range1 

0  t=> 5 0 %: 

Raw  materials 

0  ^> 2 5 %: 

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 
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. 

loaders,  colour  copying  machines, 

some 

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 

I I.  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 
locally 
5%;  (ii)  10%)  for  raw  materials,  capital  equipment  for  which  no 
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 
negotiations. 

to  bind  37%  of  tariffs 

in  the  Uruguay  Round 

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 

I I I.  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 
requirements  of prior approval by appropriate  Government  agencies. 

into  the  Philippines  are  free  unless  otherwise  subject 

to  the 

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 

III.  Construction  material 

1.  Ballast for  fluorescent  lamps 

1.  G.I. pipes (welded) 

2.  Circuit  breakers 

2.  G.I.  sheets 

3.  Edison-screw  lampholders 

3.  Portland  cement 

4.  Fluorescent  lamps 

4.  Pozzolan  cement 

5.  Fluorescent  lamp  luminaries/fixtures 

5.  Reinforced  steel bars 

6.  Electrical  cartridge  fuse 

6.  HD-PE pipes (for  potable water  supply) 

7.  Glow  starter  for  fluorescent  lamps 

7.  Steel wire  nails 

8. 

Incandescent  lamps 

9. 

Insulating  tapes 

IV.  Other  products 

1.  Automatic  lead-acid  storage  battery 

10.  Lampholders 

and 

starterholders 

for 

2.  LPG cylinders  for  household  use 

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 

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 

1.  Fire extinguisher 

purposed 

2.  Fire hose (presently  not being 

11.  Flexible cords 

implemented) 

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 

importer,  usually 

is  a  large  direct 

The  Philippine  Government 
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 
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. 

to  comply  with 

(CDP)  have 

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  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 
depleting natural  resources 

export 

enterprises 

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 

•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 

4 1%  motor  vehicles 

Collected  tariff  rates  (customs  and  excise  duties/import  values) 

22.1%  petroleum 

2 8%  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. 

E X A M P L ES  OF  N ON  T A R I FF  M E A S U R ES 

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 
(Dealers)  Regulations  1994,  an 
importer  of  telecommunication  equipment  must  seek  the  prior  approval  of  the 

the  Telecommunication 

o?V 

20 

Telecommunications  Authority  of  Singapore.  Foreign  shareholding 
Singapore Telecommunications  is limited to 40%o. 

in 

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 

1 7%  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% 
2 0%  final  products;  and 
3 0%  products  requiring  "special  protection"12. 

intermediate  products; 

Level  of  bindings 

68% 

1.2.  Agriculture 

Current  average  applied  tariffs 

-  agricultural  raw  materials  and  livestock:  3 8%  (28% in 2004 under VR commitments) 
- 
-  forestry  products: 

5 5% 
1 5% 

fisheries: 

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%: 
0 O  60%: 

agricultural  raw materials and  livestock 
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 

N°. of  Actions 

EC Funding 
(MECU) 

%  of Total 

Economic  co-operation 

Improvement  of  General 
Cooperation  Framework 

Trade 
& 
Facilitation 

Investment 

Business-to-Business  Coop 

Other  actions 

Unclassified 

Development  co-operation 

Environment 

Rural  Production 

Rural  Services 

Other 

Drugs 

Refugees 

TOTAL 

54 

18 

9 

24 

1 

2 

5 

1 

2 

2 

// 

10 

1 

70 

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 

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% 

102.065 

10.13% 

at 

BRUNEI 

Co-operation  type 

N°.  of Actions 

EC Funding 
(MECU) 

% of Total 

Economic  co-operation 

Improvement  of  General 
Cooperation  Framework 

TOTAL 

INDONESIA 

Co-operation  type 

N°. of Actions 

Economic  co-operation 

Improvement  of  General 
Cooperation  Framework 

Business-to-Business  Coop 

Development  co-operation 

Forests 

Irrigation 
Infrastructure 

& 

Rural 

Integrated  Rural  Develop. 

Rural  Production 

Rural  Services 

Other 

Refugees 

Disaster  Response 

TOTAL 

/ 

1 

1 

10 

1 

9 

28 

5 

11 

^> 

6 

4 

4 

42 

0.119 

0.119 

0.119 

0.01% 

0.01%o 

0.01% 

EC Funding 
(MECU) 

% of Total 

7.935 

0.197 

7.737 

256.081 

72.446 

0.80% 

0.02% 

0.78% 

25.79%, 

7.30% 

112.435 

11.33% 

37.500 

13.350 

20.350 

1.900 

1.900 

3.78% 

1.34% 

2.05% 

0.19% 

0.19% 

265.916 

26.41% 

MALAYSIA 

Co-operation  type 

N°. of Actions 

EC Funding 
(MECU) 

% of Total 

Economie  co-operation 

Business-to-Business  Coop 

Unclassified 

Development  co-operation 

Forests 

Other 

Drugs 

Refugees 

TOTAL 

7 

6 

1 

2 

2 

9 

2 

1 

18 

1.587 

1.565 

0.022 

0.811 

0.811 

5.110 

0.290 

4.820 

7.509 

0.18% 

0.16% 

0.02% 

0.08% 

0.08%) 

0.51% 

0.03% 

0.49% 

0.76% 

PHILIPPINES 

Co-operation  type 

N°. of  Actions 

EC  Funding 
(MECU) 

%  of  Total 

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 

21 

1 

20 

19 

2 

1 

12 

1 

1 

2 

24 

10 

9 

5 

64 

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 

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% 

269.549 

27.15% 

SINGAPORE 

Co-operation  type 

N°. of Actions 

EC Funding 
(MECU) 

%  of Total 

Economic  co-operation 

Business-to-Business  Coop 

TOTAL 

THAILAND 

2 

2 

2 

2.770 

2.770 

2.770 

0.28% 

0.28% 

0.28% 

Co-operation  type 

N°. of Actions 

EC Funding 
(MECU) 

% of Total 

Economic  co-operation 

?.? 

23.060 

Improvement  of  General 
Cooperation  Framework 

Trade 
& 
Facilitation 

Investment 

Business-to-Business  Coop 

Other  actions 

Development  co-operation 

Forests 

Irrigation 

& 

Rural 

Infrastructure 

Rural  Production 

Rural  Services 

Social  Development 

Other 

Drugs 

Refugees 

TOTAL 

3.939 

5.391 

8.931 

4.800 

181.866 

0.902 

67.650 

48.154 

65.036 

0.121 

19.014 

15.682 

223.940 

12 

30 

15 

5 

24 

10 

14 

76 

2.32% 

0.40% 

0.54% 

0.90% 

0.48% 

18.32% 

0.09% 

6.81% 

4.85% 

6.55%) 

0.01% 

1.92% 

0.34% 

1.58% 

22.56% 

VIETNAM 

Co-operation  type 

N°. of Actions 

EC Funding 
(MECU) 

%  of Total 

Economie  co-operation 

Trade  & 
Facilitation 

Investment 

Business-to-Business  Coop 

Development  co-operation 

Disaster  Response 

Forests 

Irrigation 
Infrastructure 

& 

Rural 

Integrated  Rural  Developm 

Rural  Production 

Rural  Services 

Social  Development 

Other 

Drugs 

Refugees 

TOTAL 

11 

8 

35 

1 

2 

4 

4 

4 

17 

7 

1 

6 

53 

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 

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% 

120.926 

12.18% 

.s?. 

Breakdown of EU financial assistance in ASEAN 

Vietnam 
12,18% 

ASEAN 
10,28% 

Brunei 
0,01% 

Indonesia 
26,78% 

Malaysia 
0,76% 

Philippines 
27,15% 

Breakdown by Sector 

Other 
10,57% 

Economic 
Co-operation 
16,43% 

Thailand 
22,56% 

Singapore 
0,28% 

Development 
Co-operation 
72,99% 

FINANCIAL ASSISTANCE  EVOLUTION  (MECU) 

Economic 
Co-operation 

Development 
Co-operation 

Other 

1976-1979 

1980-1983 

1984-1987 

1988-  1991 

1992-1995 

32.24 

100% 

135.61 

100% 

139.90 

92.75% 

161.54 

71.66% 

330.28 

71.66% 

9.94 

6.59% 

33.79 

14.99% 

112.96 

24.51% 

Source:  European Commission 

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% 

yf 

Annex 8 - The Institutional Structure of EU-ASEAN Relations 

>tf 

THE  INSTITUTIONAL STRUCTURE  OF EU-ASEAN  RELATIONS 

ASEAN-EU Joint Co-operation  Committee 

JCC 

Held every  18 months 
Next meeting  : Mid  1997 

Informal  Working  Groups 

SUB-COMMITTEES  (once  a year) 

- IPR (Intellectual  Property  Rights) 

Trade 

-  Environment 

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 

EPG 

Eminent  Persons  Group 

Meld on years alternate to AEMM 

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