Source: EURLEX
Language: en
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COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 03.07.1996
COM(96) 314 final

COMMUNICATION FROM THE COMMISSION

TO THE COUNCIL. THE EUROPEAN PARLIAMENT

AND THE ECONOMIC AND SOCIAL COMMITTEE

##### CREATING A NEW DYNAMIC IN EU-ASEAN RELATIONS

TABLE OF CONTENTS

INTRODUCTION 4

SECTION I - THE NEED FOR A NEW DYNAMIC IN EU-ASEAN RELATIONS 5

1. THE NEW ASEAN CONTEXT 5

1.1. A vast market for the future 5

1.2. An effort to contribute to international structures 6

1.3. New regional challenges 7

2. IMPLEMENTATION OF EUROPE'S STRATEGY ON ASIA 7

3. ADJUSTING THE FRAMEWORK OF OUR PARTNERSHIP 8

SECTION II - THE GOALS OF A NEW EU-ASEAN DYNAMIC 10

1. A STIMULATED POLITICAL DIALOGUE 10

2. A STRATEGY FROM REGION TO REGION 12

3. AN UPSURGE IN TRADE AND INVESTMENT 13

3.1. Facilitating and Liberalising Trade 13

3.2. Facilitating Investment 15

4 REORIENTING CO-OPERATION 15

4.1. Economic Co-operation 16

4.2. Development Co-operation 18

4.2.1. General Guidelines 18

4.2.2. Social Development Cooperation 18

4.3. Co-operation in other fields 19

4.3.1. Environment 19

4.3.2. Bringing the two societies together 20

4.3.3. Crime Prevention 20

4.3.4. Science and Technology 20

SECTION III - OPERATIONAL MODALITIES 22

SECTION IV - OPTIONS FOR LAUNCHING A NEW DYNAMIC 23

OPTION 1. A FORMAL AGREEMENT 25

OPTION 2. AN ACTIVE PARTNERSHIP 27

CONCLUSIONS 29

_**A**_

**INTRODUCTION**

The European Union is ASEAN's [1] 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 Meeting [2] 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' Group [4] . 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
countries [5], Russia, the EU, the United States, Canada, Australia and New Zealand, has
been assigned the major task the Association has striven to assure since its inception,
namely, maintaining peace and stability in the region. In addition, it is contributing to ease
China's integration into international and regional structures.

Its economic role has also evolved and taken concrete shape with the decision in 1992 to
create AFT A, the ASEAN Free Trade Area, which is to be completed by 2003.
Framework agreements for the liberalisation of services and co-operation on intellectual
property and the establishment of a free investment zone were also signed on 15
December 1995.

ASEAN is on the way to achieving a political and economic community adapted to the
needs of the whole variety of its member countries while respecting the identity of each.
The accession of Vietnam should not jeopardise this trend since the Summit of ASEAN
Heads of State in Bangkok on 14 and 15 December 1995, which met to debate the theme
"Towards One Southeast Asia", showed a clear will to consolidate economic links and
pursue a political vision for the whole region. Cambodia, Laos and Myanmar could join
ASEAN by the year 2000 (Cambodia's and Laos' applications are already being
examined). This would make it a community of ten nations with a population of 450
million.

Given ASEAN's key role, the Commission feels that launching a new dynamic in our
relations with ASEAN can make a considerable contribution to the strengthening of the
European presence in Asia. In the current optimum context of economic growth and
development of the region, and now that our common thinking on the subject has
matured, we can embark on a process which matches the political, strategic, economic and
cultural importance of our two regions.

1 Association of South-East Asian Nations. It is composed of: Brunei, Indonesia, Malaysia, the
Philippines, Singapore, Thailand and Vietnam.
2 11th EU-ASEAN Ministerial Meeting held in Karlsruhe in September 1994. In it, most notably, the
decision to create an informal Eminent Person's Group (EPG) was taken. The EPG was charged with
developing concrete recommendations for the enhancement of EU-ASEAN relations.
3 Text presented by ASEAN at the October 1995 Joint Cooperation Committee Meeting.
4 See Annex 0.
5 China, Japan, South-Korea, Laos, Cambodia, Papua New-Guinea, India, Myanmar.

S E C T I O N I - THE NEED FOR A NEW DYNAMIC IN EU-ASEAN RELATIONS

ASEAN has been one of our partners for a considerable length of time and is an important
political interlocutor. It represents a major economic challenge for Europe. Both sides
have expressed the will at the highest level to raise the profile of our partnership and
strengthen it. This undertaking, which has long been deferred, now appears more urgent
than ever.

1. THE NEW ASEAN CONTEXT

1.1. A vast market for the future

The remarkable economic rise of Southeast Asia looks set to continue. A

preserved climate of security for economic operators, the ASEAN project for
an internal liberalisation of trade, the opening of traditionally protected
markets to international competition: all these indicators today point to an
optimistic outlook [6] . 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 1984 [7] .
The EU has nonetheless lost its market share, chiefly to Japan (ASEAN's
deficit with Japan in 1995 accounted for 23% of their bilateral trade).

6 See Annex 1.
7 See Annex 2.

Access to the ASEAN countries' markets remains unequally open due to
administrative policies or regulatory frameworks. These market-access
obstacles should be removed through bilateral discussions or following
actions undertaken at the multilateral level (WTO).

. ASEAN exports today consist mainly of manufactured products (66% raw
materials in 1975, 78% manufactured goods in 1995), with ASEAN's share
of European imports of these products from developing countries rising
from 9% in 1975 to 22% in 1993. Exports to the Community rose by 386%
between 1980 and 1995.

. ASEAN attracts investment on a huge scale [8] . 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 Japan [9], 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 dollars [10] . Europe accounts for 14.1% of
overall investment in ASEAN. However, according to the OECD, East Asia
accounted for less than 1% of cumulative FDI from EU countries over the

1982-1992 period. By comparison, 18% of European FDI went to the US.

1.2. An effort to contribute to international structures

ASEAN countries participated in the Vienna Declaration on Human Rights
(1993), in the Cairo Conference on population and development (1994), in the
Copenhagen Declaration on social development (1995) and in the Beijing
Declaration on Women (1995). In addition, they are signatories to the principal
ILO conventions. Their presence within the framework of these various bodies
is encouraging but must still produce more effective results within their
respective social environments.

Concerning international trade, the ASEAN member countries have proved
their interest in strengthening the WTO system, actively cooperating during the
Uruguay Round and after. They recently made part of their eagerness to
contribute to the success of the WTO Ministerial Meeting in Singapore.

8 See Annex 3.
9 On the basis of the average investment 1990-1993.
10 Investment figures for five ASEAN countries. Brunei and Vietnam arc not included. For Singapore,
data concerned investment in the manufacturing sector only.

**1.3. New regional challenges**

Southeast Asia has taken on a double challenge: the creation of a Community
often nations including Cambodia, Laos and Myanmar, and participation in the
grand Pacific project which is APEC.

After a series of vain efforts to develop a system of preferential trade
agreements in its midst, ASEAN took a decision in January 1992 to put in
place **a genuine** free-trade area, AFTA. The main objective is to eliminate
customs tariffs on all intra-ASEAN trade with the exception of a small list of
sensitive products [11] 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 countries [12] are founder members of APEC and are participating
actively in the drive to liberalise and facilitate trade within this framework [13] .
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 investment [14 ]

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 AsiaEurope 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 1980 [15] 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 EUASEAN 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 Agreement [16] . In 1980 our relations were conducted on a donorrecipient 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 years [17], but without a vision of the
future and a strong political impetus, we will gradually get bogged down in routine
discussions. The absence of a common project of grandeur and a new instrument to
promote it prevents us from giving our relations the dimension and coherence they
need. If ASEM lays down the foundations for a modern concept of Europe-Asia
relations, the links between Europe and ASEAN should reflect and amplify this
insight within a specific framework.

The model for our relations with ASEAN is minimal compared with the kind of
agreements recently signed by the Community with a number of third countries.
Since July 1992, a negotiating directive for a new agreement remains blocked at the
Council because of human rights concerns related to the East Timor question.
Moreover, with the exception of Vietnam, the 1980 Agreement is not underpinned
by any bilateral agreement with member countries of the Association.

Regulation 1440/80 30 May 1980. OJEC - L 144/80 10.06.80. Modified by the Council Regulation
(EEC) N. 743/85 21 March, 1985 in order to take account of Brunei's accession to ASEAN.
16 See Annex 5.1.
17 Sec Annex 5.2. This point is also stressed by the Economic and Social Committee in its document
"Relations between the European Union and ASEAN" (CES 852/95 fin) presented in January 1996.

The purpose of this communication is to initiate discussions within the Community
and with our ASEAN partners on a model for our future ties. These discussions can
draw wide inspiration from the ideas developed by Eminent Persons' Group. For a
number of issues, the action proposals presented by the Commission are in the same
line as the general guidelines proffered by the Group rendering them operational.

Section II deals with the objectives, section III with the structures and section IV
proposes two options.

10

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

Both partners are enthusiastic for a new partnership. For ASEAN the European market
represents its second biggest export market; Europe offers a counterbalance to the
presence of Japan and the United States in the area; there is a risk that Europe will lose
out because it has strengthened its links with other regions. On the European side there is
considerable interest in the economic potential of ASEAN; there is also a certain anxiety
about being shut out of the region by the dynamic action of other great economic powers.

Two main concerns should guide our future steps:

   - We have forged solid links and our co-operation has expanded in a whole variety
of areas. However, our partnership does not give the necessary thrust to the
development of links at all levels between our two regions. Despite many contacts
and important programmes, we are witnessing a regrettably static application of
our agreement. This situation is unfortunate for it may lead to our dissociation
from the sometimes quick developments of the Asia-Pacific area; it is essential to
give a dynamic impetus to our ties.

   - The ASEM framework offers important prospects for developing our dialogue at
the highest level and launching large-scale projects. Our action with ASEAN, if it
is to complement ASEM and respond to the particular expectations of our two
regions, should set its sights on a greater degree of achievement than that shown
until today.

l. A STIMULATED POLITICAL DIALOGUE

The history and geography of Southeast Asia, into which the traditional links
between the Member States of the European Union and the present or future
members of ASEAN are woven, make of it the cornerstone of our relations with the
whole region.

The two groupings have numerous characteristics in common. In fact, both are
tending towards regional integration, both are playing an important role in the
security and stability of their respective regions, and both have been called upon to
accept neighbouring countries that are in a period of transition towards a market
economy and pluralist democracy as new members.

The two regional groups can thus compare and exchange experiences in their
relations with their immediate neighbours. The European Community can contribute
to ASEAN's efforts to integrate new members that are in a period of transition
towards a market economy and pluralist democracy.

The strategic position of the ASEAN Member States, situated between South Asia
and East Asia and controlling the maritime routes linking the Middle East and NorthEast 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 (ASEANPMC [18] ) as a setting bringing together intra- and extra-regional powers to examine
issues of security in the Asia-Pacific region only confirms in its entirety the central
role which ASEAN has been called upon to play in Asia.

Effective recognition of ASEAN's leading role should push the European Union to
make of it a focal point of its political presence in Asia. Nevertheless, the EU should
also continue encouraging dialogue and discussion with the other actors of this part

of the world.

The existing mechanism of ASEAN-EU political dialogue could still be improved. As
much at the ministerial level as at the level of political directors, current meetings
bring together the representatives of all the Member States of the Union and of
ASEAN and the Commission. The high number of participants does not always
permit an in-depth exchange of views, all the more so because these meetings deal
with an agenda that is simultaneously political and economic.

To strengthen and deepen the ASEAN-EU political dialogue, the Commission
suggests adding to existing channels of communication an annual meeting of the
geographical directors of the Commission and European Member States and of the
ASEAN Member States in order to discuss matters of more specific relevance to
ASEAN or common relations such as maritime security (free navigation, the fight
against piracy, accidents on the high seas), denuclearisation in Southeast Asia
(SEANWFZ), the fight against drugs, preventive diplomacy and conflict resolution,

etc.

Beyond these specific issues, the ASEAN-EU political dialogue could explore the
scope for bringing closer together the positions of the two regions and cooperating
on international matters of mutual interest such as the reform of the United Nations,

disarmament and non-proliferation, peace-keeping operations, etc.

Inscribed in the European Union Treaty, the development and consolidation of
democracy and the respect for human rights must be important elements of the

18 Post-Ministerial Conference. See Annex 5.2.

**12**

political dialogue between the European Union and ASEAN. They will have to be
taken into account when proposing new initiatives for the intensification of relations
between the two groupings. In its November 1995 Communication on human
rights [19], 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 coordinated views concerning overall ASEAN-EU political issues. Regular meetings
between the European Parliament's competent delegation and the ASEAN InterParliamentary 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 interparliamentary 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 shape [20] 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 cooperation, 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;

A N UPSURGE IN TRADE AND INVESTMENT

Over recent years the ASEAN countries have made an unprecedented effort to
liberalise their economies apparently leaving behind a strong tradition of
protectionism. At the end of the Uruguay Round they made contributions in the field
of tariffs (e.g. Indonesia raised its rate of tariff consolidation from 10% to 95%), they
reinforced the protection of intellectual property in order to conform to the TRIPS
Agreement (on trade-related intellectual property rights matters). They have also
launched a certain liberalisation of services. As members of APEC, they are
participating in a drive to liberalise and facilitate trade on a wider scale. In 1995,
Thailand, Indonesia and the Philippines launched unilateral tariff reduction
programmes. Finally, with the creation of AFTA, they have undertaken to establish
an internal free trade area for industrial products and the bulk of agricultural trade by
2003, to help abolish barriers to trade, to simplify customs procedures and to cooperate on the liberalisation of services and investment.

The creation of the Single Market has provided exceptional opportunities to
exporters and investors from Asia. The Community has further reduced its market
protection following the Uruguay Round negotiations and is continuing its efforts to
strengthen and extend WTO disciplines. Moreover, partners such as ASEAN have
benefited to a large extent from autonomous concessions granted under our GSP.

Inversely, the new potential created by ASEAN is not sufficiently exploited by the
Community. A host of reasons explains this fairly weak European performance and it
is clear that it is up to the firms themselves to remedy this situation. But a new EUASEAN dynamic could help create a stable climate conducive to the development of
trade and the growth of investments. Action should be taken on two fronts:

3.1. Facilitating and Liberalising Trade

Progress towards freer trade in the two regions is the result of

concessions obtained in the multilateral framework and of efforts

**14**

made unilaterally. Under the 1980 Agreement, ways of eliminating
barriers to trade on a most-favoured-nation basis were to be studied,

but no concrete dynamic has been developed in the framework of our
relations. We should seek to develop a more positive relationship by
ensuring that the various trade liberalising activities underway in
ASEAN and Europe take full account of the specific interests of the

two partners.

_3.1.1._ This implies, first and foremost, a close attention to the
implementation and effective application of Uruguay Round
concessions. Beyond the opportunities created by this process, the
Commission has made clear in its market access strategy the need to
identify and progressively remove outstanding obstacles to bilateral
trade. The Commission is still in the process of developing the
necessary data: our own assessment of the main obstacles facing EU
exporters to ASEAN is given in Annex 6, but the Commission hopes
that European operators will provide comments and additions to this

assessment.

_3.1.2._ Trade facilitation would require the establishment of instruments
supporting the reduction of obstacles: enhanced transparency, for
example by developing the exchange of tariffary and non-tariffary
data; simplification of administrative formalities; undertakings to
conform to the same certifying and normalising instruments; ensuring
the putting in practice of the rules and principles of the WTO,
including the Government Procurement Agreement. Given the
complexity of this task, a sectoral approach in cooperation with
industry would be more realistic.

_3.1.3._ Europe and ASEAN must also continue to cooperate very closely in
developing a broader WTO work programme, beyond the December
WTO Ministerial, in order to prepare the further negotiations that will
be needed before the end of the century.

For all these purposes ad-hoc cooperation may be needed regarding
specific trade obstacles, whether through the ASEAN Brussels
Committee (ABC) as at present or country by country. Cooperation
in the current EU-ASEAN framework should be intensified, beyond
the 18-monthly meetings of the trade sub-committee established in the
framework of the current agreement. This work should be focused on
the definition of priority areas for facilitating and liberalising bilateral
trade. Full use must also be made of the framework offered by
meetings of ASEM senior officials for trade and investment. For
ASEAN, a broadly based dialogue of this kind would enable it to
defend more specifically its trade interests in Europe, which are
numerous, and enable it to discuss as an equal partner prospects for

international trade.

**15**

**3.2.** **Facilitating Investment**

Access to the Southeast Asian dynamic market requires large scale investment
in the countries of the region. However, European companies are not
contributing sufficiently to the important growth in foreign investments of the
region. Also, the development of ASEAN companies' investment in Europe
can offer new perspectives of growth and job creation [22] . 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 investmenttype 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
property [23] . Furthermore, in general, these private law rights belong to private
enterprises which use them according to their autonomous decisions. Public
organisations could encourage, through appropriate measures, technology
transfers, without by so doing replacing the private enterprises themselves.

Impediments can be not only regulatory and administrative but also of an
economic and business kind, affecting in particular SMEs. Efforts will have to
be made regarding three priority matters:

Investment barriers

Free and open investment should include the liberalisation of investment
regimes, full market access, application of national treatment and the MFN
clause for investment;

Objectives and promotion measures

22 See Annex 3.
23 The effective application of the TRIPS agreement should ensure the protection of intellectual property
which could itself promote technology transfers by companies. Cooperation with ASEAN has already
been engaged in this respect through the technical assistance programme ECAP (EC-ASEAN Patent
and Trademarks Programme). This cooperation will be completed by discussions within an ad-hoc
intellectual property rights working group.

16

In order to take fuller account of comparative advantages of the partner
countries, initiatives should be focused on industrial, scientific and
technological co-operation, better use of information technology and the
creation of awareness of the potentialities of the global information society;

Private Sector involvement

Business should be given the possibility of playing a leading role within the
proposed new dynamic. This applies to the identification of opportunities and
the strategies to exploit them, to the creation of support structures as well as
to initiatives to facilitate the transfer of technology and know-how by holding
Industrialists' Round Tables and other industry-led co-operation meetings.

Privatisation and Infrastructure should be opened to a wider participation of
European business and, in co-operation with ASEAN partners, diminishing
risks and facilitating the financial engineering of companies by improving
access to calls for tenders.

4, REORIENTING CO-OPERATION [24 ]

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 EBICs [25] or the Technology Windows,
and for investment as the Asia Invest programme will be once it comes into being.
Our development cooperation has also been adjusted so that it can give priority to
the poorest countries and to schemes contributing to the improvement of the
conditions of the most disadvantaged categories through sustainable and multiplying
activities which take particular care of environmental and resource management
problems.

This new co-operation strategy can only benefit from the establishment of an overall
framework so that the efforts and resources that the Community devotes to the
ASEAN countries can be used in a more consistent and effective manner.

Furthermore, given the advanced economic situation of certain ASEAN countries, it
would be desirable if there were greater co-operation between them and the
Community on logistic support, human resources and programme-financing.

4.1. Economic Co-operation

The objectives of economic co-operation in the widest sense of the term
should match the imperatives of the partnership as spelled out in points 2 and 3
of this section, the ultimate objective being to give economic players in the two
regions scope for drawing maximum benefit from the realisation of the
Economic and Monetary Union and from the ASEAN countries' integration
process as well as from the reduction of obstacles to trade between the two

24 Sec Annex 7.
25 European Business Information Centres.

17

partners. This cooperation should count on a regular exchange of information
on the respective integration processes, including its macroeconomic aspects.

It should further:

**(1) stress schemes to disseminate and adopt mutual regional integration**

**efforts:**

**- in the customs field,** actions concerning customs cooperation, the
exchange _of_ officials, cooperation in the field of information
exchange in view of the simplification and harmonisation of
customs procedures;

      **on statistics,** studies and operations aimed at aligning methods and

enabling an exchange of data on trade in goods and services and in
any other field where this may be deemed useful;

      - **on standards and other technical barriers,** encouraging co

operation between the competent bodies;

**(2) define priority fields:**

**- by promoting industrial cooperation in key areas** of economic

development of the two partners:

***** industrial cooperation including information technology and
communications, energy and transport. For all of these sectors,
actions could be geared to enhancing business cooperation,
investment, technology transfer and training;

cooperation concerning the Information Society: actions
adapted to differing levels of development within ASEAN as,
for example, the setting-up of a dialogue on the different
aspects of the information society, including the policy
followed in the telecommunications sector; information

exchanges (including a possible technical assistance to
ASEAN) concerning regulation and normalisation, conformity
tests and certification of information technologies and
telecommunications, the distribution of new information and

communication technologies including their innovative
applications; the strengthening of the interconnection and
interoperation of networks and services; the development of
advanced communication networks, terrestrial as well as

satellite; the mutual participation in projects establishing the
Information Society according to specific modalities in the
concerned domains;

Since efficient transport links play a major role in the
development of trade, special attention should be given to
transport. Co-operation with ASEAN should be encouraged
not only in the fields enumerated by ASEAN Transport
Ministers at their March 1996 meeting in Bali but specifically in
fields such as the transfer of technology to the ASEAN states

so as to promote more energy-efficient and environmentally
sustainable transport, multi-modalism, transport-related
research and development, traffic management based on Global
Navigation Satellite Systems and the improvement of transport
links between Southeast Asia and Europe;

        - by increased **support to small and medium-sized firms** through

actions geared to the setting up of joint ventures and networks,
information and support services, assistance and guarantees on
investment and technology transfer; the setting up, for example, _of_
co-operation links between Euro-Information Bureaux and their
equivalents in the ASEAN countries (e.g. Chambers _of_ Commerce
which are the only private entities organised at the ASEAN level)
to ensure mutual dissemination of information to SMEs, will be

favoured by the Asia-Invest program and the ties it will establish
through the European Business Information Centres (EBlCs). The
rapid adoption and the support of all concerned parties to this
program will be crucial;

       - by selecting initiatives aimed at creating links between the

Community, the Member States and ASEAN, notably in the
promotion of contacts and exchanges between universities.
researchers and intellectuals, in meetings aimed at developing
mutual understanding between the two regions, in support for
private, local or regional efforts to set up links at all levels _of_ civil
society. The promotion of the JEM (Junior EU-ASEAN
Manager's) programme, assuring an exchange of young managers.
is a step in the direction of the creation of ties between the young,
businesses and, thus, the two regions.

4.2. **Development** Co-operation

_4.2.1._ _General_ _Guidelines_

Certain ASEAN countries are still at an important level of underdevelopment and poverty: we should continue our effort to assist
them in improving their economic growth and the social welfare _of_
their population. In addition, protection of the environment and

conservation of natural resources are elements to be considered in

priority. Finally, an intensifying collaboration with the most developed
ASEAN countries should be sought for in support of actions designed
for the development of the most disadvantaged regions.

_4.2.2. Social development_ _cooperation_

The Community's social development assistance should focus on the
poorest categories of the population. A notable effort should apply to
rural development and the development of primary education.

The improvement of the condition of women and the importance the
woman's role should receive within society should receive special

19

attention, just as the strengthening of actions destined to the
protection of children.

Concerning fundamental social rights, and particularly child-labour,
the Community may provide the necessary assistance to support the
efforts to be developed by Southeast Asian countries in this respect.

Finally, health issues can be the object of special attention and
constitute a priority in the establishment of cooperation with ASEAN
countries [26] . 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. Cooperation on environment has been of limited effectiveness in thé past
because of a lack of information enabling proper priority to be
attached to the various environmental questions. While these priorities
are becoming clearer, co-operation needs to be developed to establish
a systematic method of updating information and agreeing on
priorities. Specifically, there should be co-operation on:

          - enhancing ASEAN states' capacity to develop effective
environmental legislation and their capacity to implement it;

          - encouraging actors in government, industry, interest groups and
other areas (e.g. the military) to share responsibility for the future
environment of the ASEAN region;

          - encouraging ASEAN participation in the pursuit of both regional
and global environmental objectives;

          - the installation of appropriate technology necessary for mitigating
pollution, especially from new industries, vehicles and from energy
production; the local development of appropriate technological
solutions to local pollution problems.

26 A malaria-fighting program worth 29 million Ecus and covering Vietnam, Cambodia and Laos was
launched by the Commission in 1995. It constituted a first example of cooperation with ASEAN as it
is managed in coordination with the WHO regional office in Manila and could benefit from the
technical assistance of a regional applied research body (SEMAO-TROP-MED) in which ASEAN
participates.

**20**

_4.3.2_ _Bringing the two societies together_

The development of closer links between Europe and Asia, notably in
the field of culture, should continue to be the object of particular
attention in drawing up our co-operation policy. The importance of
creating links between our universities and also between other sectors
of civil society was spelled out clearly at the Bangkok Summit in the
context of which a number of proposals were tabled. In their bilateral
relations, ASEAN and Europe should" extend efforts already
embarked on in the ASEM context.

ASEAN and the Community could develop cooperation in education
and training which, respecting the principle of subsidiarity,
complements bilateral activities in the field. Building on the
Community's experience with education and training-networking
between actors in the Member States, they could facilitate
partnerships between institutions and practitioners and could further
promote student centred cooperative activities and the exchange of
expertise in fields like curriculum development, academic recognition,
university/enterprise cooperation and the use of new educational
technologies.

Action to be taken in the wake of the Europe-Asia Cultural Forum
held in Venice last January, should also be studied. A particular effort
should be made in the field of information between the two regions in
order to reflect their respective initiatives to promote their regional
identities and cultures. With this in mind, co-operation with the
ASEAN Committee on Culture and Information could be developed.

_4.3.3_ _Crime pre_ _vent_ _ion_

The fight against organised crime, under its various forms, including
the related laundering activities, must be tackled jointly. This effort
should be carried out within the existing bilateral cooperation
framework, which should be better coordinated, and within the
appropriate multilateral bodies. Further, specific collaboration
methods should be developed within the partnership each time it may
be required.

Drug-trafficking is undoubtedly a privileged target for our
cooperation, particularly through the development of strengthened
relations between customs administrations, specifically concerning
drug-precursors. Special attention will also have to be given to the
prevention of illegal immigration, notably the trade of human beings,
and to the networks that organise it.

_4.3.4 Science and Technology_

Cooperation in science and technology is an important tool in the
promotion of an environment favourable to cooperation in general. It
enables Europe and third countries to be jointly associated with the
generation of knowledge and of innovative and appropriate

**21**

technologies needed to solve regional and global problems so as to
achieve sustainable development.

Science and technology cooperation between Europe and the ASEAN
countries is already actively encouraged under the 4th Framework
Programme for RTD, particularly in the fields of natural resources,
agriculture, health and information and communication technologies.

Discussion is underway within the Commission on ways in which
S&T cooperation with the ASEAN countries, might be further
enhanced. Building on the current official EC-ASEAN dialogue on
S&T, possibilities now exist to expand that dialogue.

**??**

**SECTION III -** **OPERATIONAL STRUCTURES**

**Implementation of the objectives set out** in Section **II would entail** minimum adjustments
**to the** EU-ASEAN **institutional** framework [27] . **We** already have **a** substantial number of
bilateral bodies authorised **to** adopt guidelines, to decide common **action** between the two
regions and **to** monitor implementation. Moreover, more general issues can be discussed
in enlarged forums such as the Post-Ministerial Conference, the ASEAN Regional Forum
and, more recently, the Asia-Europe Meeting (ASEM).

However, the current system lacks a practical framework to discuss concrete topics,
notably in the field of economic relations. Involvement of the private sector is also
inadequate.

Intensification of contacts and involvement of business would imply the following

structures:

**•** A **Dialogue on investment and Trade Policy** within the framework of the
structures envisaged by the 1980 Agreement to discuss multilateral and bilateral
trade policy issues and charged with drawing up guidelines for specific action in
the trade area;

**• A forum for dialogue in the private sector (Business Dialogue):** the Dialogue
should be made instrumental for the gradual setting up of an EC promotion
strategy for ASEAN. It should concentrate on the interests of the effective players
and the establishment of an attractive action plan on business promotion. Joint ECASEAN 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 Vietnam [28], are members of APEC, which is to
establish free trade by the year 2010 for industrialised member economies and by
2020 for less advanced ones; the Asian Economic Ministers of ASEM stated in
their preparatory works to ASEM that the liberalisation efforts they are required
to cany out on an _erga onmes_ basis in APEC should be matched by the
Europeans;

   - commercial and industrial policies are not concerted and each ASEAN country has
its own interests: steps should therefore be taken, where appropriate, to achieve a
variable or specific approach;

   - sensitive political issues such as human right issues, and specifically East Timor,
lurk beneath the surface, even if the Bangkok Summit brought interesting
initiatives.

The present situation has three levels:

  - a Cooperation Agreement between the Community and the ASEAN Member
countries;

   - a bilateral agreement with one of the ASEAN countries, Vietnam, and agreements
in preparation with future members, Cambodia and Laos;

   - a ministerial meeting fronting, independently of the Agreement, the whole of the
relations between Europe and ASEAN;

28 Vietnam submitted ils candidacy for APEC in June 1996.

**24**

Two options are proposed to mark the transition to a new era in our relations and to
embark together on a new dynamic entailing concrete action:

**25**

OPTION 1.

A FORMAL AGREEMENT

The 1980 Agreement affords a certain leeway. It could nevertheless be completed by
taking into account certain objectives defined in Section II.

An agreement completing the 1980 Agreement would mark the original character of our
relationship. The timing would be most convenient since ASEAN is right in the middle of
its integration process. This formula would be based on a decision by the ASEAN
countries as a whole to co-operate with the Community.

ASEAN is currently examining all its possible ties with other regional zones. It has
notably established contacts with NAFTA. Europe, by offering in this way a reinforced
partnership, would manifestly prove its interest for the evolution of the region.

The procedure would have a formal character (protocol to the 1980 Agreement) and
would aim to complete our ties in all those aspects for which the present agreement does
not provide the necessary framework. Specific actions for a reinforced liberalisation and
cooperation could be identified in common.

The limits to this option are ascribable to the uncertain and imperfect character of the
ASEAN integration. Despite the good-will declarations and the narrowing of ties (e.g. the
decision to have annual informal Summits), ASEAN is still far from talking with a single
voice and acting as a single bloc.

**26**

**Type of act** A protocol to the 1980 Agreement

**Substance** basis: recognition of the two regions' desire to co-operate to
promote democracy, prosperity and links between their
peoples

formulation of inter-regional objectives and particularly:

co-operation on regional integration

facilitation of flows between the two regions

creation of an inter-regional consultation mechanism to
develop these objectives

definition of strengthened economic co-operation

redefinition of development co-operation

**Machinery** A negotiating directive proposal would be presented concerning the
Protocol. Working Groups and consultation bodies within the
framework of the existing structures will endeavour to realise the
defined objectives.

The development of a political inter-regions dialogue could be integrated within a specific
agreement between the Community and its Member States and the ASEAN countries.

**27**

OPTION 2.

AN ACTIVE PARTNERSHIP

The realisation of new objectives for the deepening of our partnership with ASEAN may
be based on the expression of a collective will to reinforce cooperation activities within
the framework of the Agreement and to launch new actions following identified priorities.
The approach would thus be the adoption of a common declaration of Ministers, or even
Heads of State, defining the general objectives for which they charge a group of high-level
experts to produce a draft programme of concrete actions.

This formula has the advantage of affording greater flexibility to the ASEAN countries
since the undertakings agreed on within it would be accepted on an individual basis. It
would also allow the precise focusing on the domains and sectors for which urgent action
is required. Further, for such issues as the political dialogue, fundamental rights and
society questions, precise undertakings could be made on an equal basis.

The realisation of the action plan based on voluntary and individual undertakings would
involve inter-regional mechanisms without, however, excluding bilateral dialogues.

Within this option, the private sector should be closely associated: two formulae should be
considered:

1. isolated work by the business sector subsequently reporting to the bodies of the
Agreement;

2. direct participation of the private sector within the different committees.

Both solutions have certain advantages and could be used specifically according to
circumstances:

- concerning the analysis of specific sectors of activity (transport, telecommunications,
energy etc.), the first solution would be adopted, thus permitting the identification of
problems specific to the sector and at the same time establishing links between the
sectoral businesses.

- regarding horizontal matters (e.g. intellectual property, standards, investments etc.), the
private sector could be associated to the work of the Senior Officials and let its
particular concerns be known as well as make use of its expertise.

The success of such a partnership will obviously depend on the keenness of both partners
to advance but also on their readiness to contribute the necessary human resources to
organise the consultations and the expected negotiations. Furthermore, if efficiency is to
be respected, clear objectives, especially dates, should be specified.

28

Type of act Declaration and Action Plan signed by the Community and its
Member States and the ASEAN Member States

Substance - priority definition and reinforcement of action within the

domains of cooperation identified in the Agreement;

           - development of new actions within the domains other than those
identified by the Agreement taking into account the political,
economic and other objectives identified at the ministerial level.

Machinery Drawing-up of an action plan proposal and of a project of
declaration by the Commission in view of their formal presentation
to the Council. Once these texts adopted by the Community
institutions and the ASEAN partners, discussions and negotiations
will take place within the Agreement bodies and within ad-hoc
working groups for the other domains and report to the Senior
Official's Meeting.

Other options which could have been considered deviate from the determined objective,
namely the launching of a concrete dynamic:

- a new third-generation agreement replacing the 1980 Agreement would face the
political obstacles already encountered [29] ;

- 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 ongoing process within ASEAN as regards its reinforcement as much as its enlargement.

It is* vital that we rapidly progress towards the establishment of our privileged relationship

with ASEAN within the framework of ASEM and make sure that it contributes to the

latter's defined purposes. The EU-ASEAN axis can be a motor of the new Europe-Asia
dialogue. The disclosure of the Eminent Person's Group report will permit us to rapidly
enter consultations with our ASEAN partners.

LIST OF ANNEXES

Annex 1 ASEAN Indicators

General Statistical Indicators for ASEAN

Intra-ASEAN Exports
Intra-ASEAN Exports (CEPT Products)
Growth in Intra-ASEAN Exports 1994-95
Growth in Intra-ASEAN CEPT Exports 1994-95
Intra-Regional Exports of CEPT Products
Intra-Regional Imports of CEPT Products

Annex 2 EC-ASEAN Trade Figures

EU trade with ASEAN

Imports to ASEAN by Major Sector
Exports from ASEAN by Major Sector
Trade Balance with ASEAN by Major Sector
EU 12 Imports from the ASEAN countries
EU12 Exports to the ASEAN countries
EU12 Trade Balance with the ASEAN countries

EU Imports from ASEAN countries 1995
EU Exports to the ASEAN countries 1995
EU Trade Balance with the ASEAN countries 1995

EU Imports from ASEAN countries by Member States
EU Exports to the ASEAN countries by Member States
EU Trade Balance with ASEAN countries Member States

Annex 3 EU-ASEAN Foreign Direct Investment Flows

European Foreign Direct Investment in ASEAN ($m)
Foreign Direct Investment Flows originating from ASEAN
to the EU

Annex 4 The AFTA and APEC context

Launching the AFTA process
The APEC context

Annex 5 EU-ASEAN Relations

An Historical Overview

Outline of EU-ASEAN ties

Annex 6 Trade Policy Review Profiles

Indonesia

Malaysia
Philippines
Singapore
Thailand

Annex 7 Breakdown of EC Financial Assistance in ASEAN 1976-1995

Annex 8 The Institutional Structure of EU-ASEAN Relations

_**to**_

**Annex** **1** **- ASEAN Indicators:**

**1.1. General Statistical Indicators for ASEAN**

**1.2. Intra-ASEAN Exports**

**1.3. Intra-ASEAN Exports (CEPT Products)**

**1.4. Growth in Intra-ASEAN Exports 1994-95**

**1.5. Growth in Intra-ASEAN CEPT Exports 1994-95**

**1.6. Intra-Regional Exports of CEPT Products**

**1.7. Intra-Regional Imports of CEPT Products**

**3**

**1.1.** **GENERAL** **STATISTICAL** **INDICATORS** **FOR** **ASEAN**

Indonesia

**194**

1,905

143

763

7.2

40,053

31,983

90.5

2,004

1.6

43

Malaysia

20

330

64

3,386

8.5

58,754

59,594

25

4.351

2.4

38

Phillipines

69

300

54

817

5.2

13,483

22,738

36.5

763

2.1

56

Singapore

1

55

19,213

8.9

96,749

102,590

16.5

6,829

1.0

65

Thailand

60

513

124

2,103

8.6

45,167

54,340

55

1.621

1.1

56

Indicators

Basic (1995)

Population
(millions)

Area
(1.000km [2] )

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 average 1990-95)

Labour force

(% of total)

Brunei

0.3

6

4

13,822

2.0

2.682

1,208

0.15

**-**

2.1

**-**

Vietnam

74

332

13

170

8

3,400

4,000

25

300

2.2

49

_Sources: CHELEM,_ _La_ _Découverte:_ _L'Etat_ _du_ _Monde_ _1996:_ _ASEAN_ _Secretariat_

**' ^**

**1.2.** **I N T R A - A S E A N E X P O R T S (ALL PRODUCTS) (USS** **M I L L I O N S )**

1995

233.41

6,334.00

18,429.01

2,361.32

33,095.20

8,894.08

685.93

**70,032.94**

Country

Brunei

Indonesia

Malaysia*

Philippines

Singapore

Thailand**

Vietnam***

TOTAL

1994

467.52

5,787.97

15,002.15

1,425.12

28,806.68

7,991.37

794.70

**60,275.52**

**1.3.** **I N T R A - A S E A N E X P O R T S** **(CEPT** **PRODUCTS)** **(USS** **M I L L I O N S )**

Growth

-50.08%

9.43%

22.84%

65.69%

14.89%

11.30%

**16.19%**

Growth

-50.44%

8.60%

22.74%

76.51%

15.82%

57.76%

**20.94%**

1995

230.29

5,600.86

16,000.08

2,091.47

29,495.46

5,905.98

n.a.

**59,324.14**

Country

Brunei

Indonesia

Malaysia*

Philippines

Singapore

Thailand**

Vietnam***

TOTAL

1994

467.70

5,157.25

13,036.18

1,184.87

25,467.56

3,743.58

n.a.

**49,054.14**

Legend:

- Malaysia is missing 4th quarter exports to Thailand and Vietnam.
** Thailand is missing 1995 exports to Vietnam and 4th quarter exports to Malaysia.
*** Vietnam is missing 1995 exports to Thailand and 4th quarter exports to Malaysia.

_Source:_ _The_ _ASEAN_ _Secretariat_

1.4. GROWTH IN INTRA-ASEAN EXPORTS, 1994-95 (USS MILLIONS)

1995

233.41

6,334.00

18,429.01

2,361.32

33,095.20

8.894.08

685.93

**70,032.94**

Increase

(234.11)

546.03

3,426.87

936.19

4.288.51

902.70

(108.77)

9,757,42

Country'

Brunei

Indonesia

Malaysia*

Philippines

Singapore

Thailand**

Vietnam***

TOTAL

1994

467.52

5,787.97

15,002.15

1,425.12

28,806.68

7,991.37

794.70

**60,275.52**

1.5. GROWTH IN INTRA-ASEAN CEPT EXPORTS, 1994-95 (USS MILLIONS)

Growth

(234.41)

443.62

2,963.90

906.60

4,027.90

2,162.40

**10,270.00**

Country

Brunei

Indonesia

Malaysia*

Philippines

Singapore

Thailand**

Vietnam***

TOTAL

1994

467.70

5,157.25

13,036.18

1,184.87

25,467.56

3,743.58

n.a.

**49,054.14**

1995

230.29

5,600.86

16,000.08

2,091.47

29,495.46

5,905.98

n.a.

**59,324.14**

Legend:

- Malaysia is missing 4th quarter exports to Thailand and Vietnam.
** Thailand is missing 1995 exports to Vietnam and 4th quarter exports to Malaysia.
*** Vietnam is missing 1995 exports to Thailand and 4th quarter exports to Malaysia.

_Source: The ASEAN Secretariat_

1.6. INTRA-REGIONAL EXPORTS OF CEPT PRODUCTS, 1993-94 (USS MILLIONS)

EXPORTS

FROM

Brunei

Indonesia

Malaysia

Philippines

Singapore

Thailand

TOTAL

YEAR

1993

1994

94/93%

1993

1994

94/93%

1993

1994

94/93%

1993

1994

94/93%

1993

1994

94/93%

1993

1994

94/93%

**1993**

**1994**

**94/93%**

**32,833.0**

**49,813.0**

**51.7**

EXPO RTSTO

Malaysia

n.a.

37.0

n.a.

459.9

599.6

20,9

124.6

166.3

33,5

9,186.9

19,484.1

112,1

277.9

316.0

13,7

Brunei

22.5

39.4

75,6

142.6

185.7

30,2

1.2

2.2

83,3

548.4

842.7

44,1

15.3

18.1

18,4

Indonesia

n.a.

0.44

n.a.

478.9

604.6

26,2

28.7

43.6

52,2

n.a.

n.a.

n.a.

83.7

135.0

61.4

Philippines

n.a.

28.3

n.a.

260.1

319.3

22,8

429.4

535.5

24,7

1,121.4

1,425.3

27,1

62.5

74.8

19.7

Singapore

n.a.

197.9

n.a.

3,046.2

3,722.0

22,2

8,448.4

9,581.7

13,4

302.2

618.7

104.7

2,359.4

2,740.8

16,2

Thailand

n.a.

200.7

n.a.

430.5

333.0

(22,7)

1,632.1

2,014.5

23,4

129.2

296.4

129,4

3,168.8

5,249.4

65,7

CEPT exports accounted for 81,4% of total intra-ASEAN exports in 1994 and 84,7% in 1995.

_Source:_ _The_ _ASEAN_ _Secretariat_

1.7. INTRA-REGIONAL IMPORTS OF CEPT PRODUCTS, 1993-94 (USS MILLIONS)

IMPORTS

TO

Brunei

Indonesia

Malaysia

Philippines

Singapore

Thailand

TOTAL

YEAR

1993

1994

94/93%

1993

1994

94/93%

1993

1994

94/93%

1993 

1994

94/93%

1993

1994

94/93%

1993

1994

94/93%

**1993**

**1994**

**94/93%**

IMPOR TS FROM

**30,341.9**

**42,769.2**

**41.0**

Malaysia

n.a.

224.7

n.a.

411.3

489.1

18,9

167.0

237.6

42,3

13,629.1

19,106.2

40,2

891.2

1,499.8

68,3

Brunei

0.6

0.2

(67,13)

1.7

28.2

1,559.3

0.1

0.5

352.5

215.8

250.5

16,1

216.6

149.7

(30,9)

Indonesia

**n.a.**

53.7

n.a.

441.3

627.5

42,2

211.9

245.6

15,9

n.a.

n.a.

n.a.

269.2

231.8

(13,9)

Philippines

n.a.

2.4

n.a.

41.7

54.7

30,9

200.3

303.4

51,5

493.0

882.8

79,1

94.9

186.1

96,0

Singapore

n.a.

575.2

n.a.

1,543.3

1,630.9

5,7

5,469.3

6,799.0

24.3

634.7

794.7

25.2

935.8

1,212.9

29,6

Thailand

n.a.

60.3

n.a.

148.8

231.5

55.6

789.0

1,131.4

43.4

86.9

129.6

49.2

3.448.2

5,629.4

63.3

_Source:_ _The_ _ASEAN_ _Secretariat_

Annex 2 - EC-ASEAN Trade Figures:

2.1. EU trade with ASEAN

2.2. Imports to ASEAN by Major Sector

2.3. Exports from ASEAN by Major Sector

2.4. Trade Balance with ASEAN by Major Sector

2.5. EU12 Imports from the ASEAN countries

2.6. EU12 Exports to the ASEAN countries

2.7. EU12 Trade Balance with the ASEAN countries

2.8. EU Imports from ASEAN countries 1995

2.9. EU Exports to the ASEAN countries 1995

2.10. EU Trade Balance with the ASEAN countries 1995

2.11. EU Imports from ASEAN countries by Member States

2.12. EU Exports to the ASEAN countries by Member States

2.13. EU Trade Balance with the ASEAN countries by Member States

2.1. EU TRADE WITH ASEAN

Figures in MECU

```
 1988

12,203

10,689

-1,514

```

```
 1987

10,037

8,906

-1,131

```

```
 1990

16,748

16,083

 -665

```

```
1985

9,972

9,810

-162

```

```
 1989

15,173

14,110

-1,063

```

```
1983

7.917

9,269

1,350

```

```
 1991

19,947

17,282

-2,665

```

```
 1992

22,403

19,278

-3,125

```

```
 1993

25,667

22,920

-2,747

```

```
 1995

:o,:>55

33,991

 636

```

```
 1994

29,940

27,759

-2,181

```

```
E C

Imports

EC

Exports

Trade

Balance

```

```
 1980

 6,857

 5,369

-1,488

```

35000

30000

25000

- EC Imports

DEC Exports

- Trade Balance

20000

### **1 I I I**
#### **m 1 1 I**
## **il 'I I I I I**
# **W i l l i I I I I I I** **Il**

19dDJ 1983 1985 1987-P 19asJ 19»* 199TT 19911 19921 19931 1994H 1995
# **I j ! I !||( S S S S**
**1 1 1** **i l** **[J** **I** _**Urn**_ _**Urn**_ _**)Am**_ _**urn**_ _**\lm**_ _**\\m**_ _**-im**_ _**Urn**_

ft 15000

10000

5000

-5000

_Source: EUROSTA_ _T_

YEARS

2.2. Imports from ASEAN by Major Sector

**Japan**

907.85

13.01

3,684.46

93.68

**4,699.00**

**11,814.8**

131.53

566.39

157.79

105.58

**961.29**

**93.21**

**17,568.3**

Japan

1,942.28

30.27

3,402.21

129.96

5,504.72

7,423.67

315.36

1,500.46

599.20

432.23

2,847.25

354.48

16,130.1

Japan

4,561.66

38.37

3,714.42

256.86

8,571.31

9,034.83

729.82

3,247.01

6560.49

2,973.00

14,210.1

699.75

31,816.2

36,903.3

Breakdown by Sector

Food and live animals

Beverages and tobacco

Crude materials

Oils, fats and waxes

Primary goods

Fuel products

Chemicals

Classified by material

Machinery and transport

Miscellaneous

Manufactured goods

Other goods

Total

1995 Totals

EU

1,296.05

106.34

1,555.57

447.26

**3,405.22**

**220.15**

35.15

951.28

770.00

690.76

**2,447.19**

**784.70**

**6,857i2**

1980

**US**

724.54

18.72

755.83

278.61

**1,777.70**

**4107.80**

28.10

754.82

2,045.39

651.67

**3,479.98**

**148.49**

**9,514.0**

EU

2,254.95

99.61

1,629.45

625.96

4,609.97

38.76

135.50

1,492.41

3,195.84

2,513.46

7,337.21

216.79

12,202.7

1988

US

1,093.89

19.85

821.21

302.08

2,237.03

1,203.71

195.29

1,171.65

7,513.11

3,151.96

12,032.0

279.62

15,752.4

EU

2,539.56

106.92

1,614.16

1,090.02

5,350.66

243.65

511.73

3,070.43

13,171.3

6,986.12

24,345.8

606.24

29,940.2

33,354.3

1994

US

2,523.09

58.87

1,101.03

363.06

4,046.05

961.01

777.14

2,198.89

26,754.2

9,913.70

40,361.4

717.41

45,368.4

49,105.1

_Figures in MECU (Source :_ _Eurostat/Comlrade)_

**2.3.** **Exports to ASEAN by Major Sector**

**Japan**

140.15

1.57

120.55

14.57

**276.84**

**39.60**

812.35

2,733.38

5,034.11

425.02

**9,004.86**

**100.11**

**9,421.41**

Japan

156.10

5.34

141.50

11.16

314.10

75.92

1,227.27

3,022.14

9,591.23

806.41

14,647.1

328.23

15,365.3

Japan

236.43

28.11

348.53

7.08

620.15

327.97

3,391.42

7,017.01

35,505.9

2,842.50

48,756.8

978.95

50,683.9

59,363.6

Breakdown by Sector

Food and live animals

Beverages and tobacco

Crude materials

Oils, fats and waxes

Primary goods

Fuel products

Chemicals

Classified by material

Machinery and transport

Miscellaneous

Manufactured goods

Other goods

Total

1995 Totals

EU

180.61

106.29

25.57

9.72

**322.19**

**48.90**

680.58

677.67

2,851.31

325.27

**4,534.83**

**463.56**

**5,369.37**

1980

**US**

465.46

118.13

348.56

7.46

**939.61**

**128.13**

745.72

373.14

3,826.02

264.75

**5,209.63**

**45.72**

**6,323.09**

EU

389.94

233.12

137.86

37.99

798.91

47.60

1,533.98

1,516.85

4,769.13

1,010.68

8,830.64

1,011.15

10,688.3

1988

US

431.64

144.89

407.30

9.84

993.67

95.81

920.46

519.93

5,520.55

663.00

7,623.94

255.16

8,968.58

EU

721.60

409.23

348.64

31.38

1,510.85

365.54

3,177.12

3,706.17

15,288.5

2,629.71

24,801.5

1081.26

27,759.1

33,988.7

1994

US

937.25

302.80

1,037.68

20.84

2,334.57

508.90

2,204.00

1,408.73

17,243.5

2,315.12

22,991.3

821.69

26,863.5

29,893.5

_Figures in MECU (Source : Eurostat/Comtrade)_

2.4. Trade Balance with ASEAN by Major Sector

**Japan**

-767.70

-11.44

-3,563.91

-79.11

**-4,422.16**

**-11,775.2**

680.82

2,166.99

4,876.32

319.44

**8,043.57**

**6.90**

**-8,146.87**

Japan

-4,325.25

-10.26

-3,365.89

-249.79

-7,951.17

-8,706.85

2,661.61

3,769.99

28,945.36

-130.49

35,246.47

279.20

18,867.65

22,460.3

Breakdown by Sector

Food and live animals

Beverages and tobacco

Crude materials

Oils, fats and waxes

Primary goods

Fuel products

Chemicals

Classified by material

Machinery and transport

Miscellaneous

Manufactured goods

Other goods

Total

1995 Totals

EU

-1,115.44

-05

-1,530.00

-437.54

**-3,083.03**

**-171.25**

645.43

-273.61

2,081.31

-365.49

**2,087.64**

**-321.14**

**-1,487.84**

1980

**US**

-259.08

99.41

-407.27

-271.15

**-838.09**

**-3,979.67**

717.62

-381.68

1,780.63

-386.92

**1,729.65**

**-102.77**

**-3,190.88**

EU

-1,865.01

133.51

-1,491.59

-587.97

-3,811.06

8.84

1,398.48

24.44

1,573.29

-1,502.78

1,493.43

794.36

-1,514.43

1988

US

-662.25

125.04

-413.91

-292.24

-1,243.36

-1,107.90

725.17

-651.72

-1,992.56

-2,488.96

-4,408.07

-24.46

-6,783.79

Japan

-1,786.18

-24.93

-3,260.71

-118.80

-5,190.62

-7,347.75

911.91

1,521.68

8,992.03

374.18

11,799.80

-26.25

-764.82

EU

-1,817.96

302.31

-1,265.52

-1,058.64

-3,839.81

121.89

2,665.39

635.74

2,117.19

-4,356.41

1,061.91

475.02

-2,180.99

845.9

1994

US

-1,549.85

243.93

-63.35

-342.22

-1,711.49

-452.11

1,426.85

-790.16

-9,510.78

-7,598.58

-16,472.7

104.28

-18,532.0

-19,211.8

_Figures_ _in_ _MECU (Source_ _:_ _Eurostat/Comtrade)_

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

_**THAILAND**_ **1990** **1991** **1992** **1993** **1994** **1995**

6.263.562

1.601.099

1.328.621

36.310

235.724

5

439

4.535.717

45.067

885.874

1.592.237

2.012.539

126.745

1994

857.909

195.294

155.604

218

10.151

29.283

38

660.555

4.820

58.519

14.717

582.499

2.060

6.377.369

1.400.236

1.031.961

26.962

339.977

67

1.268

4.793.677

53.308

951.934

2.007.936

1.780.499

183.456

1995

1.112.895

283.242

244.249

96

21.395

17.428

75

826.624

6.616

63.969

7.317

748.722

3.028

5.103.681

1.694.921

1.484.292

40.154

170.191

0

284

3.310.200

22.733

689.487

797.716

1.800.264

98.560

1991

172.178

73.612

48.379

19

5.332

19.868

14

98.112

902

15.843

1.304

80.063

454

5.148.022

1.552.286

1.353.975

43.022

154.437

661

191

3.533.004

28.605

678.432

959.422

1.866.546

62.732

1992

319.505

86.454

48.463

27

7.332

30.458

173

231.781

2.183

23.883

7.285

198.431

1.270

5.531.003

1.471.692

1.272.009

37.323

162.063

5

292

3.976.139

32.385

719.795

1.297.937

1.926.022

83.171

1993

544.143

87.868

59.936

32

5.834

22.063

4

455.648

2.472

39.378

25.828

387.970

626

**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)**

_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)

3.914.208

1.370.048

1.198.077

30.436

140.047

3

1.485

2.514.866

15.359

637.709

537.041

1.324.757

29.294

1990

82.993

47.598

37.875

0

6.728

2.977

19

35.195

1.424

7.093

535

26.143

200

_**INDONESIA**_ **1990** **1991** **1992** **1993** **1994** **1995**

**TOTAL**

**Raw Materials** (0-4)

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

Manuf. products (5-8)

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

Other not classified goods (9)

```
5.857.146

1.985.065

 608.947

  52.392

 520.570

 242.614

 560.542

3.860.014

  91.920

1.262.749

 409.853

2.095491

  12.067

```

```
2.864.616

1.254.355

 517.383

  66.842

 340.257

  95.810

 234.062

1.599 271

  35.659

 729.740

  73.362

 760.510

  10.991

```

```
3.579.828

1.211.921

 539.642

  78.683

 298.583

  35.433

 259 580

2.349.447

  49.337

 899.363

  89.537

1.311.209

  18.460

```

```
4.343.078

1.351.163

 487.855

  76.581

 296.045

 141.121

 349.560

2.973.313

  68.143

1.072.590

 221.764

1.610.815

  18602

```

```
5.032.085

1.546.580

 540.395

  56.097

 378.622

 183.408

 388.057

3.438.047

  65.688

1.147.041

 363.102

1.862.216

  47.458

```

```
5.946.805

1.940.335

 505.450

  57.010

 585.152

 187.472

 605.250

3.978.418

 110.123

1.316.777

 416.831

2.134.687

  28.053

```

_**hi**_

_MALAYSIA_ **1990** **1991** **1992** **1993** **1994** **1995**

TOTAL 3.607.554 **4.383.214** 4.939.649 6.227.465 7.488.496

3.607.554

**4.383.214**

6.227.465

4.939.649

7.488.496

8.871.560

1.241.417

260.461

749

707.100

0

273.106

3.085.541

59.045

404.411

1.718.061

904.026

56.256

1.270.674

265.102

557

696.383

15

308.617

3.573.264

64.604

449.018

2.034.408

1.025.234

95.711

1.291.408

258.323

1.707

725.305

2.523

303.550

4.849.056

76.752

471.657

3.188.728

1.111.919

87.002

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)

1.354.506

266.156

441

630.558

18.892

238.459

2.202.571

37.255

350.934

1.160.243

654.139

50.477

1.371.637

288.201

802

692.202

6.030

384.402

6.055.158

128.201

563.596

4.210.574

1.152.788

61.701

1.393.086

276.341

1.820

715.543

11.320

388.062

7.308.193

187.458

585.382

5.398.532

1.136.821

170.282

_BRUNEI_ 1990 1991 1992 1993 1994 1995

TOTAL

Raw Materials (0-4)

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

Manuf. products (5-8)

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

Other not classified goods (9)

_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)

221.592

789

284

6

494

0

4

204.870

61

555

49.556

154.699

15.933

1992

5.651.191

168.784

84.212

2.491

68.808

5.318

7.955

5.401.368

192.141

204.690

4.209.403

795.135

81.039

397.240

244

116

40

87

0

0

378.357

121

386

8.909

368.941

18.640

1993

6.439.967

171.302

90.636

3.168

69.916

2.115

5.467

6.162.745

173.428

200.571

5.138.428

650.318

105.921

313.918

138

88

3

38

0

10

308.771

1

436

30.793

277.541

5.008

1994

7.752.602

193.293

97.423

3.112

83.047

4.892

~ 4.819

7.368.227

184.294

203.965

6.221.875

758.092

191.082

222.837

314

80

35

199

0

0

221.813

71

4.095

7.834

209.813

710

1990

4.685.499

179.117

65.558

2.677

108.330

166

2.386

4.438.554

137.465

184.798

3.481.135

635.156

67.828

281.595

405

136

24

155

0

90

277.182

63

201

73.643

203.275

4.008

1991

5.220.210

175.896

75.650

2.156

77.486

17.556

3.048

4.982.731

190.921

196.362

3.871.480

723.968

61.583

262.748

41

35

5

0

0

2

257.690

46

189

117.413

140.043

5.017

1995

8.440.792

214.508

91.343

6.199

111.392

888

4.686

7.889.124

298.400

230.059

6.546.434

814.231

337.160

_**PHILIPPINES**_ **1990** **1991** **1992** **1993** **1994** **1995**

**1.472.714**

384.771

179.446

17.505

62.162

2

125.656

1.045.346

12.783

153.365

274.940

604.259

42.597

1.607.892

383.293

182.973

17.419

65.695

223

116.983

1.146.137

10.116

145.038

405.249

585.734

78.462

1.909.893

397.848

159.480

18.730

72.432

463

146.743

1.370.199

10.554

143.878

572.497

643.269

141.846

2.342.110

506.731

142.045

12.830

99.360

161

252.335

1.615.784

20.794

122.421

855.286

617.284

219.595

**u**

2.101.598

426.336

152.272

14.352

85.324

2.405

171.984

1.464.773

16.753

130.078

662.448

655.494

210.489

**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_

1.257.650

397.963

158.251

15.913

83.989

0

139.810

820.005

15.817

123.354

210.125

470.709

39.682

2.6. EU12 EXPORTS TO THE ASEAN COUNTRIES (THOUSANDS ECU)

1991

3.816.594

302.035

135.454

110.935

45.455

5.784

4.407

3.226.613

452.109

742.686

1.879.612

152.207

287.946

1992

3.913.451

332.060

164.037

107.606

47.549

8.918

3.950

3.382.756

535.604

678.988

1.945.080

223.085

198.635

_THAILAND_

TOTAL

Raw Materials (0-4)

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

Manuf. products (5-8)

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

Other not classified goods (9)

1990

3.409.261

282.469

113.715

122.418

30.621

9.465

6.249

2.916.610

446.832

630.981

1.693.044

145.752

210.182

1993

5.042.718

421.512

186.543

132.698

60.754

36.072

5.445

4.383.777

624.142

925.498

2.600.740

233.397

237.428

1994

6.103.940

452.197

221.835

117.182

92.785

13.882

6.513

- 5.414.893

718.594

1.052.491

3.248.210

395.598

236.850

1995

7.736.802

479.041

243.839

125.404

88.074

13.809

7.915

6.944.571

785.814

1.178.262

4.593.456

387.039

313.190

_VIETNAM_ **1990** **1991** **1992** **1993** **1994** **1995**

**TOTAL** `127.713` `184.994` `300.993` `487.322` `616.018`

```
127.713

```

```
184.994

```

```
300.993

```

```
487.322

```

```
616.018

```

```
710.723

```

**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)

```
  31.173

  21.133

  4.393

   142

  5.400

   106

  94.143

  35.611

  5.575

  45.682

  7.275

  2.397

```

1990

2.837.070

111.074

42.512

7.573

42.264

15.683

3.021

2.571.421

426.194

331.833

1.703.232

110.162

154.575

```
  22.268

  19.811

  1.420

   705

   218

   114

 160.117

  44.124

  19.897

  87.160

  8.936

  2.609

```

1991

3.201.876

144.319

63.610

7.251

63.608

7.253

2.596

2.923.622

406.484

370.349

2.020.562

126.226

133.936

```
  37.229

  32.512

  2.108

  2.072

   273

   263

 259.447

  53.270

  31.106

 162.878

  12.193

  4.316

```

1992

4.053.728

195.269

87.096

9.911

54.828

40.853

2.581

3.602.306

479.032

463.778

2.501.425

158.071

256.153

```
  39.655

  33.050

  2.941

  2.613

   732

   319

 441.671

  79.438

  55.009

 283.084

  24.140

  5.996

```

1993

4.144.538

422.070

92.315

9.601

162.901

153.810

3.444

3.585.701

586.220

448.031

2.394.770

156.680

136.767

```
  56.034

  45.437

  3.903

  5.716

   874

   105

 547.977

 117.509

  79.079

 323.140

  28.248

  12.007

```

1994

4.314.431

360.449

77.751

12.143

142.016

T23.269

5.270

3.750.937

697.476

458.129

2.447.308

148.024

203.045

```
  74.952

  60.518

  4.373

  6.925

  2.706

   430

 614.976

 147.229

  98.624

 326.707

  42.417

  20.795

```

1995

5.316.493

431.326

149.136

11.124

219.874

45.495

5.696

4.579.865

756.347

516.624

3.122.155

184.738

305.303

_**MALAYSIA**_ **1990** **1991** **1992** **1993** **1994** **1995**

**2.940.505**

231.971

90.012

66.922

62.865

6.531

5.642

2.601.878

283.895

431.476

1.724.860

161.647

106.656

3.103.616

224.653

95.574

56.200

62.595

8.765

1.519

2.766.601

335.526

396.921

1.809.763

224.392

112.362

3.985.301

311.276

118.675

62.052

116.382

10.691

3.476

3.536.634

351.135

517.816

2.448.717

218.965

137.391

**TOTAL**

**Raw Materials (0-4)**

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

**Manuf.** **products (5-8)**

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

**Other not classified goods (9)**

**2.495.577**

179.188

74.135

53.666

42.993

7.097

1.297

2.087.912

262.661

358.322

1.330.041

136.888

228.478

5.772.374

273.299

120.519

63.270

68.152

13.357

8.001

5.182.020

438.326

657.979

3.762.152

323.564

317.055

7.361.700

340.810

163.919

72.337

89.745

10.040

4.769

6.692.941

431.046

760.031

5.180.407

321.457

327.950

_**BRUNEI**_ **1990** **1991** **1992** **1993** **1994** **1995**

**TOTAL**

**Raw Materials (0-4)**

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

**Manuf.** **products (5-8)**

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

**Other not classified goods (9)**

380.074

5.093

2.992

1.516

555

10

20

356.681

3.740

18.991

55.177

278.771

18.301

519.443

4.180

2.796

410

920

55

0

498.465

3.554

25.253

199.789

269.868

16.798

785.797

6.391

4.800

966

597

19

8

761.263

5.316

34.280

262.021

459.647

18.143

614.586

10.223

8.399

1.187

557

72

8

590.557

4.715

29.370

230.039

326.433

13.805

418.575

5.079

3.801

843

432

3

0

392.249

4.817

33.269

115.347

238.816

21.247

589.294

4.932

3.434

532

948

14

4

566.776

3.932

31.408

131.461

399.976

17.586

_**SINGAPORE**_ **1990** **1991** **1992** **1993** **1994** **1995**

**TOTAL**

**Raw Materials (0-4)**

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

**Manuf.** **products (5-8)**

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

**Other not classified goods (9)**

```
7.682.448

 690.468

 146.063

 223.468

  33.717

 284.372

  2.849

6.702.453

 848.605

1.193358

3.787.044

 873.447

 289.527

```

```
8.871.220

 608.937

 169.652

 167.963

  28.944

 231.139

 ~11.239

8.021.213

1.033.925

1.322.544

4.481.072

1.183.672

 241.070

```

```
10.129.896

  637.292

  192.076

  215.286

  28.655

  197.513

   3.761

 9.054.909

 1.103.082

 1.395.217

 5.229.346

 1.327.264

  437.695

```

```
5.682.464

 415.805

 101.768

 199.635

  26.295

  85.412

  2.694

4.910.400

 642.356

 803.896

2.814.865

 649.282

 356.260

```

```
5.684.599

 408.981

 111.527

 205.909

  34.587

  53.606

  3.352

5.057.436

 663.616

 847.735

2.956.965

 589.119

 218.182

```

```
6.348.902

 451.335

 127.467

 227.647

  27.152

  65.240

  3.830

5.493.302

 715.157

 981.021

3.050.505

 746.618

 404.265

```

_**PHILIPPINES**_ **1990** **1991** **1992** **1993** **1994** **1995**

```
1.119.798

 136.512

 93.617

 25.301

 13.837

  1.843

  1.913

 930.500

 177.955

 122.408

 547.322

 82.815

```

```
1.443.141

 178.555

 130.053

 33.835

 10.625

  2.192

  1.850

1.202.791

 213.871

 141.963

 743.926

 103.031

```

```
1.732.465

 148.170

 94.040

 30.987

 18.493

  3.518

  1.133

1.528.349

 241.507

 158.484

1.011.740

 116.618

```

```
1.957.521

 201.874

 127.982

 47.442

 17.824

  7.012

  1.613

1.684.264

 286.670

 174.773

1.103.266

 119.556

```

```
2.118.475

 226.454

 145.991

 54.613

  14.716

  9.366

  1.767

1.788.440

 303.744

 229.839

1.121.266

 133.590

```

**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)

```
1.246.230

 141.185

 102.266

 20.189

 12.064

  3.293

  3.373

1.034.487

 184.834

 117.824

 642.789

 89.040

```

**Other not classified goods (9)**

```
70.558

```

```
52.787

```

```
61.796

```

```
55.945

```

```
71.383

```

```
                          70.558 52.787 61.796 55.945 71.383 103.581

```

_Source_ _:_ _Eurostat_

**2.7.** **EU12** **TRADE BALANCE WITH** **THE** **ASEAN COUNTRIES (THOUSANDS** **ECU)**

_**THAILAND**_ **1990** **1991** **1992** **1993** **1994** **1995**

-488.285

-1.050.180

-1.085.466

95.375

-101.309

36.067

5.154

407.638

591.757

205.703

1.302.803

-1.692.625

154.257

-1.287.086

-1.392.885

-1.348.838

70.780

-124.735

5.784

4.123

-83.586

429.376

53.199

1.081.896

-1.648.058

189.386

-1.234.571

-1.220.226

-1.189.938

64.584

-106.888

8.257

3.759

-150.248

506.999

556

985.658

-1.643.461

135.903

**TOTAL**

**Raw Materials (0-4)**

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

**Manuf. products (5-8)**

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

**Other not classified goods (9)**

-504.947

-1.087.578

-1.084.362

91.983

-109.426

9.462

4.765

401.744

431.473

-6.728

1.156.003

-1.179.004

180.888

-159.622

-1.148.902

-1.106.786

80.872

-142.939

13.877

6.074

879.176

673.527

166.617

1.655.973

-1.616.941

110.105

1.359.432

-921.195

-788.123

98.441

-251.903

13.742

6.647

2.150.895

732.506

226.323

2.585.520

-1.393.460

129.733

_VIETNAM_ **1990** **1991** **1992** **1993** **1994** **1995**

-56.821

-48.213

-26.885

2.910

-3.221

-21.331

315

-13.977

76.965

15.631

257.256

-363.830

5.370

-241.891

-139.260

-110.167

3.685

-4.436

-28.409

67

-112.578

112.689

20.560

308.423

-554.250

9.947

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

**TOTAL**

**Raw Materials (0-4)**

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

**Manuf. products (5-8)**

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

**Other not classified goods (9)**

44.720

-16.424

-16.742

4.393

-6.585

2.423

87

58.948

34.187

-1.518

45.147

-18.868

2.197

-402.171

-208.290

-183.730

4.277

-14.470

-14.722

356

-211.648

140.613

34.654

319.389

-706.305

17.767

-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

_INDONESIA_ **1990** **1991** **1992** **1993** **1994** **1995**

-377.952

-1.067.602

-476.032

-71.432

-234.975

-28.179

-256.984

574.175

357.148

-529.015

1.931.025

-1.184.983

115.475

-1.542.714

-1.624.616

-531.195

-40.249

-378.555

-TÏ 9.345

-555.272

-109.076

605.556

-804.621

2.037.456

-1.947.468

190.978

-630.313

-1.509.009

-356.315

-45.885

-365.278

-141.978

-599.554

601.447

646.223

-800.153

2.705.325

-1.949.948

277.250

-887.547

-1.124.509

-448.080

-46.496

-215.721

-29.599

-384.613

147.653

520.532

-699.010

2.031.668

-1.705.536

89.309

**TOTAL**

**Raw Materials (0-4)**

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

**Manuf. products (5-8)**

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

**Other not classified goods (9)**

-27.546

-1.143.280

-474.871

-59.269

-297.973

-80.127

-231.041

972.150

390.535

-397.906

1.629.870

-650.348

143.584

-289.349

-1.155.893

-400.758

-66.671

-241.217

-100.269

-346.979

628.993

410.889

-608.812

2.279.661

-1.452.744

237.551

_**L,**_ _**Y**_

_**MALAYSIA**_ **1990** **1991** **1992** **1993** **1994** **1995**

-2.242.164

-980.132

-139.648

60.346

-608.923

8.168

-300.074

-1.312.422

274.383

46.159

-740.011

-892.953

50.389

1993

192.054

4.689

3.317

493

861

14

4

188.420

3.811

31.022

122.552

31.035

-1.054

-1.716.122

-1.098.337

-167.682

62.468

-624.050

7.328

-376.402

-873.138

310.126

94.383

-448.423

-829.224

255.353

1994

471.879

6.252

4.712

963

559

19

-2

452.492

5.314

33.844

231.228

182.106

13.135

-1.836.034

-1.046.021

-169.528

55.643

-633.788

8.750

-307.098

-806.663

270.921

-52.097

-224.645

-800.842

16.650

1992

196.982

4.291

3.517

837

-62

3

-4

187.378

4.756

32.714

65.791

84.117

5.314

**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)**

_BRUNEI_

TOTAL

Raw Materials (0-4)

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

Manuf. products (5-8)

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

Other not classified goods (9)

**-1.111.977**

-1.175.318

-192.021

53.224

-787.564

-11.795

-237.162

-114.659

225.406

7.388

169.798

-517.251

1' [7] 8.001

1990

157.237

4.779

2.912

1.481

356

10

20

134.868

3.669

14.897

47.343

68.959

17.591

-1.442.709

-1.009.446

-170.449

66.173

-644.236

6.530

-267.464

-483.663

224.850

27.065

6.799

-742.378

50.400

1991

237.848

3.775

2.659

386

765

55

-90

221.283

3.492

25.051

126.146

66.593

12.790

-1.509.860

-1.052.275

-112.422

70.517

-625.798

-1.279

-383.292

-615.252

243.588

174.648

-218.125

-815.364

157.668

1995

351 837

10.182

8.364

1.181

557

72

7

332.867

4.670

29.181

112.627

186.390

8.788

_**SINGAPORE**_ **1990** **1991** **1992** **1993** **1994** **1995**

**TOTAL**

**Raw Materials (0-4)**

Food & live animals ( 0 )

Beverages and tobacco (1)

Crude materials, except fuels(2)

Mineral fuels(3)

Animal & veg oils, fats & waxes(4)

**Manuf.** **products (5-8)**

Chemicals (5)

Manuf. goods(6)

Machinery & transport equip.(7)

Misce. manuf. goods(8)

**Other not classified goods (9)**

996.965

236.688

36.210

196.958

-82.035

85.246

308

471.846

504.891

619.098

-666.269

14.126

288.432

464.389

233.086

35.877

203.753

-42.899

36.050

305

```
 74.704

472.695

651.373

-914.515

-134.849

156.599

```

```
 697.711

 282.552

  43.255

 225.155

 -41.656

  59.922

  -4.125

  91.933

 523.017

 776.331

-1.158.897

 -48.517

 323.226

```

```
1.689.104

 422.784

 100.733

 209.088

 -82.737

 196.625

   -925

1.165.785

 804.681

1.165.159

-1.317.088

 513.033

 100.535

```

```
1.242.481

 519.167

  55.426

 220.300

 -36.199

 282.257

  -2.618

 539.708

 675.176

 992.786

-1.351.384

 223.129

 183.606

```

```
1.118.618

 415.644

  72.229

 164.851

 -54.103

 226.247

 ~ 6.419

 652.986

 849.630

1.118.579

-1.740.804

 425.580

  49.988

```

_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)

1990

-11.420

-256.778

-55.985

4.276

-71.925

3.293

-136.438

214.482

169.017

-5.529

432.663

-381.669

1991

-352.916

-248.259

-85.829

7.797

-48.325

1.841

-123.743

-114.847

165.173

-30.957

272.382

-521.444

1992

-164.751

-204.738

-52.920

16.416

-55.069

1.968

-115.133

56.653

203.755

-3.075

338.677

-482.703

1993

-177.428

-249.678

-65.440

12.257

-53.939

3.054

-145.611

158.151

230.953

14.606

439.243

-526.651

1994

-144.077

-224.463

-24.289

33.090

-67.500

4.607

-170.371

219.492

269.917

44.695

440.818

-535.938

1995

-223.635

-280.278

3.946

41.783

-84.644

9.205

-250.568

172.656

282.951

107.418

265.981

-483.693

10.189

-16.666

-139.106

Other not classified goods (9)

30.876

-85.901

not classified goods (9) 30.876 10.189 -16.666 -85.901 -139.106 -116.013

_Source_ _:_ _Eurostat_

**2.8.** **EU IMPORTS FROM ASEAN COUNTRIES 1995**

(thousands ecu)
**Thailand** **Vietnam Indonesia Malaysia** **Brunei** **Singapore** **Philipines** **ASEAN**

_BLEU_ 604.770 74.871 434.282 531.938 421 225.499 112.462 1.984.244
_Denmark_ 136.455 15.236 138.939 113.457 42 45.002 27.153 476.284
_France_ 837.979 216.263 578.238 918.199 108.169 1.291.415 216.842 4.167.105
_Germany_ 1.471.917 422.524 1.414.353 2.204.796 938 1.839.984 760.722 8.115.234
_Greece_ 50.018 3.737 63.705 45.559 45 49.463 8.974 221.502
_Ireland_ 70.196 3.099 33.709 363.076 34 759.293 31.364 1.260.770

_Italy_ 516.221 84.248 748.602 530.063 1.469 468.364 162.819 2.511.785

_Netherlan_ 928.505 91.220 873.532 1.014.789 3.842 1.380.111 357.621 4.649.620

_Portugal_ 87.832 6.361 41.969 70.907 69 36.232 7.675 251.045

_Spain_ 352.860 55.449 467.761 322.761 10 165.526 64.543 1.428.911

_United Ki_ 1.320.615 139.888 1.151.715 2.756.015 2.179.903 591.935

421

604.770

74.871

434.282

10

147.709

112.462

225.499

1.984.244

476.284

4.167.105

8.115.234

938

136.455

837.979

1.471.917

15.236

216.263

422.524

138.939

578.238

1.414.353

27.153

216.842

760.722

8.974

31.364

162.819

357.621

7.675

64.543

591.935

42

108.169

50.018

70.196

516.221

928.505

3.737

3.099

84.248

91.220

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

45

34

1.469

3.842

63.705

33.709

748.602

873.532

221.502

1.260.770

2.511.785

4.649.620

41.969

467.761

1.151.715

87.832

352.860

1.320.615

6.361

55.449

139.888

69

45.002

1.291.415

1.839.984

49.463

759.293

468.364

1.380.111

36.232

165.526

2.179.903

87.832 6.361 41.969 70.907 69 36.232 7.675 251.045

_Spain_ 352.860 55.449 467.761 322.761 10 165.526 64.543 1.428.911

_United Ki_ 1.320.615 139.888 1.151.715 2.756.015 147.709 2.179.903 591.935 8.287.781

_EU12_ 6.377.369 1.112.895 5.946.805 8.871.560 262.748 8.440.792 2.342.110 33.354.280

_Source :_ _Eurostat_

**2.9.** **EU EXPORTS TO THE ASEAN COUNTRIES 1995**

(thousands ecu)
**Thailand** **Vietnam** **Indonesia Malaysia** **Brunei** **Singapore** **Philipines** **ASEAN**

_BLEU_

_Denmark_

_France_

_Germany_

_Greece_

_Ireland_

_Italy_

_Netherlan_

_Portugal_

_Spain_

_United Ki_

700.147

178.222

1.333.883

2.871.300

14.164

50.980

891.570

477.494

27.638

188.481

1.002.922

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

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

44.275

25.807

259.461

181.396

1.029

5.480

79.680

35.224

625

7.794

69.953

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

3.669

4.902

155.928

94.074

14

1.125

40.852

8.119

0

786

305.118

113.969

44.894

290.479

744.360

10.249

61.689

215.698

185.117

5.079

52.538

394.403

_EU12_ 7.736.802 710.723 5.316.493 7.361.700 614.586 10.129.896 2.118.475 33.988.675

_Source : Eurostat_

**2.10. EU TRADE BALANCE WITH THE ASEAN COUNTRIES 1995**

(thousands ecu)

**Thailand** **Vietnam** **Indonesia Malaysia** **Brunei** **Singapore** **Philipines** **ASEAN**

-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

_BLEU_

_Denmark_

_France_

_Germany_

_Greece_

_Ireland_

_Italy_

_Netherlan_

_Portugal_

_Spain_

_United Ki_

95.377

41.767

495.904

1.399.383

-35.854

-19.216

375.349

-451.011

-60.194

-164.380

-317.693

-30.596

10.571

43.198

-241.127

-2.708

2.381

-4.568

-55.996

-5.736

-47.655

-69.935

-113.830

-58.922

221.031

683.058

-22.197

-17.818

-175.028

-260.636

-41.506

-317.035

-527.430

-260.465

-30.456

907.215

-18.873

-42.477

-96.781

170.531

-700.484

-44.768

-181.838

- 1.211.464

3.248

4.860

47.759

93.136

-32

1.091

39.383

4.278

-69

775

157.409

258.495

115.036

143.915

961.512

-26.422

-559.561

867.312

-529.154

25.102

191.726

241.143

1.507

17.741

73.637

-16.362

1.274

30.326

52.880

-172.504

-2.596

-12.005

-197.533

_EU12_ 1.359.432 -402.171 -630.313 -1.509.860 351.837 1.689.104 -223.635 634.395

_Source : Eurostat_

**2.11.** **EU IMPORTS FROM ASEAN COUNTRIES BY MEMBER STATES**

**1990** **1991** **1992** **1993** **1994** **1995**

_**BLEU**_ 974.838 1.133.678 1.179.818 1.512.302 1.842.443

_**Denmark**_ 374.031 374.516 397.798 470.510 528.764

_**France**_ 2.122.600 2.507.781 2.805.368 3.227.577 3.622.733

_**Germany**_ 4.605.199 5.853.035 6.460.487 7.310.859 8.264.450

_**Greece**_ 90.490 160.850 172.948 191.907 210.687

_**Ireland**_ 113.805 149.583 185.023 492.806 738.452
_Italy_ 1.519.200 1.729.537 1.989.706 2.103.205 2.227.992

_**Netherlands**_ 2.090.121 2.597.999 2.872.727 3.033.757 3.994.629

_Portugal_ 177.824 185.631 197.626 218.944 232.881
_Spain_ 731.601 1.015.671 1.152.718 979.922 1.272.461

_**United Kingdom**_ 3.835.648 4.505.140 4.816.711 6.540.006 7.699.739

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

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

1.133.678

1.512.302

1.842.443

528.764

3.622.733

8.264.450

210.687

738.452

2.227.992

3.994.629

232.881

1.272.461

7.699.739

1.984.244

476.284

4.167.105

8.115.234

221.502

1.260.770

2.511.785

4.649.620

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

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

177.824 185.631 197.626 218.944 232.881 251.045

_Spain_ 731.601 1.015.671 1.152.718 979.922 1.272.461 1.428.911

_**United Kingdom**_ 3.835.648 4.505.140 4.816.711 6.540.006 7.699.739 8.287.781

_**EU12**_ 16.635.357 20.213.420 22.230.928 26.081.796 30.635.230 33.354.280

_Source : Eurostat_

_**BLEU**_

_**Denmark**_

_**France**_

_**Germany**_

_**Greece**_

_**Ireland**_

_**Italy**_

_**Netherlands**_

_**Portugal**_

_**Spain**_

_**United Kingdom**_

**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

_**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**

**1990** **1991** **1992** **1993** **1994**

**1995**

_**BLEU**_ -7.773 -107.587 -157.706 -58.028 -158.795 -46.264

_**Denmark**_ -26.309 -44.763 56.373 -6.192 -13.369 100.598

_**France**_ 380.267 296.356 725.861 561.619 619.384 1.932.659

_**Germany**_ 599.492 199.917 -342.866 -77.570 933.349 2.860.729

_**Greece**_ -61.238 -124.488 -143.612 -143.470 -143.389 -128.414

_**Ireland**_ 27.232 -1.091 -7.066 -272.137 -341.449 -659.578

_**Italy**_ 132.812 38.832 165.992 565.576 901.132 1.325.859

_**Netherlands**_ -940.480 -1.426.526 -1.544.811 -1.155.952 -2.001.646 -2.165.507

_**Portugal**_ -141.020 -141.052 -150.329 -161.205 -156.854 -129.769

_**Spain**_ -395.670 -671.644 -680.216 -341.079 -582.919 -530.412

_**United**_ _**Kingdom**_ -24.280 -763.563 -570.144 -1.329.273 -1.269.374 -1.714.040

634.395

_**EU12**_

_Source : Eurostat_

-456.967 -2.745.610 -2.648.522 -2.417.710 -2.213.930

**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_

35000

30000

25000

20000

**15000**

10000

5000

**16000**

**14000**

$m

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)**

World

**13,226**

**1907,2**

EU share (%)

**7,3**

**8,8**

Singapore*

Malaysia

_^Figures_ _are for_ _1993_

EU

**965**

**168,5**

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

Countries

World 1907,2

EU 168,5

United Kingdom 124,4

Germany 23,8

Ireland 9,4

Italy 2,8

Sweden 0,6

Belgium 0,1

Netherlands 2,1

France 4

Denmark 0,1

Greece

Portugal

Austria

Luxembourg 0,1

Spain

Finland 1

Others 1739,1

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

Countries

World 13,226

EU 965

Netherlands 291

UK 225

Others 450

United States 1,093

Asia 7,149

Hong Kong 2,507

Japan 68

Asean 3,695

Brunei 57

Indonesia 322

Malaysia 2,900

Philippines 144

Thailand 273

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

3% (68)

52% (1,093)

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

**Average FDI Flows 1990-93**

(2,666)
14%

**45%** **(965!**

OTHERS

(3,723)
20%

(2,096)
11%

110,499)

**55%**

_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 SecretaryGeneral of the ASEAN Secretariat. The central mechanism to implement the AFTA
process is the Common Effective Preferential Tariff (CEPT). This scheme requires
ASEAN members to reduce import tariffs within specific time limits for goods
flowing across borders in ASEAN.

The CEPT is structured around four lists and two dates. The **Inclusion List** is the list

supplied by each member state of goods which will follow the tariff reduction
process. The starting point is that all manufactured products, including processed
agricultural products, are included. In the 1992 agreement, unprocessed agricultural
products were excluded from the CEPT scheme. However, the Chiang Mai meeting
of ASEAN Economic Ministers (September 1994) decided to progressively include
these unprocessed agricultural products in the CEPT, while allowing specific
products to be included in a new **Sensitive List,** for which "special arrangements"
would be created.

A **General Exception List** states the products which a country may exclude for
reasons of national security, public morals, animal or plant life protection, and artistic
or archaeological preservation. A **Temporary Exclusion List** includes the goods
which member states consider too sensitive for immediate inclusion in the CEPT

scheme. Products in the exclusion list cannot enjoy CEPT tariffs in the other ASEAN
countries. The Chiang Mai meeting agreed to gradually transfer all products in the
exclusion list to the inclusion list within five years. This decision was endorsed with
a first transfer of 682 tariff lines from the exclusion list to the inclusion list-at the 7th

AFTA Council held in Brunei Darussalam in September 1995. interestingly enough,
this first transfer included mostly chemical products (organic, inorganic, plastics).

The implementation calendar for CEPT defines a **Normal Track Programme** and a
**Fast Track Programme.** Deadlines are defined for each programme and Vietnam
benefits from a three-year differential as compared with other ASEAN members.

**Normal Track Programme:** Products with tariffs above 20% will have their rates
reduced to 20% by 1 January 1998 (2001 for Vietnam) and to a 0-5% range by 1
January 2003 (2006 for Vietnam). Products with tariff rates at or below 20% will
have their rates reduced to a 0-5% range by 1 January 2000 (2003 for Vietnam).

**Fast Track Programme:** Products with tariffs above 20% will have their rates
reduced to a 0-5% range by 1 January 2000 (2003 for Vietnam). Products with tariff

rates at or below 20% will have their rates reduced to a 0-5% range by 1 January
1998 (2001 for Vietnam). The programme covers fifteen groups of products
identified for accelerated tariff reduction:

Vegetable Oils (HS 15) Cement (HS 25)
Chemicals (HS 28, 29, 38) Fertilisers (HS 31)
Pharmaceuticals (HS 30) Plastics (HS 39)
Rubber Products (HS 40) Pulp (HS 47)
Leather Products (HS 41, 42) Textiles (HS 50, 63)
Ceramic and Glass (HS 69, 70) Copper Cathodes (HS 74)
Gems and Jewellery (HS 71) Electronics (HS 84, 85)
Wooden and Rattan Furniture (HS 95)

The other areas covered by the CEPT scheme include:

- A 40%) ASEAN content in value to enable the product to be eligible for the tariff
concessions under the CEPT

- Gradual elimination of non-tariff barriers to trade and foreign investment, still at a
very early stage of identification and policy formulation

- Harmonisation of standards, and reciprocal recognition of tests and certification of
products

- Harmonisation of customs valuation systems (with a move to GATT Transaction
Values by 2000) and customs procedures

- Formulation of common and simplified procedures which will emphasise, among
others, the following:

a) Formalities prior to lodgement of goods declaration at the time of export;

b) Formalities prior to lodgement of goods declaration at the time of import;

c) Examination of goods;

d) Consignment where the certificate of origins are issued retroactively;

e) Refunds etc.

Further measures on border and non-border areas of cooperation may include, among
others: macroeconomic consultations, rules for fair competition and promotion of
venture capital.

**Analysis of AFTA**

AFTA will not be a customs union, let alone a common market. Strong diverging
national interests prevent the implementation of a compromise tariff ranging between
low tariff rates (Singapore) and high tariff rates (Indonesia and others)* . Further, the
CEPT scheme contains "implants" of national safeguards and is ultimately a free
trade programme with in-built national veto power. Thus, it must be concluded that,
as of now, there is no irreversible commitment to a common ASEAN economic

future.

The four large ASEAN countries all export similar key items, which means that there
will be serious repercussions if the CEPT scheme becomes truly effective and parts of
these industries in one or several countries may have to be sacrificed.

The expected effects of the free trade system on ASEAN trading patterns are by
nature long-term and it will be some time before the practical relevance of AFTA to
the economic development of the ASEAN countries can be assessed. In any event,
the forces of free trade within ASEAN will have to fight a long uphill struggle against
national resistance to basic structural adjustments, which will be even more difficult
if, as envisaged, new members such as Myanmar and others are admitted.

See Annex 6.

**4.2.** **THE** **APEC** **CONTEXT**

The Asia-Pacific Economic Cooperation (APEC) was formed in 1989 in response to
growing interdependence among Asia-Pacific economies. As such, it's main goal is to
enhance the growth and development of the Asia-Pacific region by facilitating trade
in goods, services, capitals and technology and by encouraging an "open regional cooperation" among its members. It is today composed of 18 member economies [1 ]

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 report [2] published in 1994, defined this
concept, which it fervently supported, as "... a process of regional co-operation whose
outcome is not only the actual reduction of internal (intra-regional) barriers to
economic interaction but also the actual reduction of external barriers to economies

not part of the regional enterprise.." and "will, by definition, be a building block for
and contribute to a freer global economy...".

2 "Achieving the APEC Vision: Free and Open Trade in the Asia Pacific", Second Report of the Eminent
Persons Group, August 1994.

_**CL,**_

Annex 5 - EU-ASEAN Relations:

5.1. An Historical Overview

5.2. Outline of EU-ASEAN ties

5.1. AN HISTORICAL OVERVIEW

European relations with ASEAN are marked by the strong co-operation links to have
emerged since the first informal contacts were made in the early 1970's. Economic and
political changes in both regions have called for a significant evolution of the
substance of these co-operation activities. Adaptation of EU-ASEAN relations to
changing circumstances has until now happened within the EC-ASEAN Cooperation
Agreement signed in March 1980.

The Community is ASEAN's oldest Dialogue Partner. Relations began informally in
1972 following an ASEAN initiative mainly concerned with trade benefits. The first
contact at a ministerial level occurred in June 1972 when a delegation led by the
Indonesian Trade Minister was received by the Commission at a special sitting The
idea of a Co-operation Agreement was first floated by the Commission in 1974 taking
the 1973 accord with India as a model. ASEAN's lack of the requisite institutional
structures prevented such an engagement. Nevertheless, at the First ASEAN Summit
held in Bali in 1976 it was decided to take the necessary steps for the broadening of
contacts and the institutionalisation of a dialogue with the Community

The first EEC-ASEAN ministerial meeting was held in Brussels in November 1978.
Never before had the Foreign Ministers of the EEC Member States met, within the
Community framework, with their counterparts from a Developing regional grouping
not associated with the Community. It was then decided to establish a Co-operation
Agreement which was eventually signed by both parties in March 1980. it is within the
legal framework provided by this agreement that EEC-ASEAN relations have been
conducted ever since, maintaining regular Ministerial Meetings on top of the Joint
Cooperation Committee Meetings created by the Agreement.

Regular EC-ASEAN Meetings have been held since 1978 including 11 Ministerial
Meetings and 12 Joint Co-operation Committee Meetings. The EC, as a Dialogue
Partner, also participates since 1980 in the Post-Ministerial Conferences held every
year (at the end of July) immediately after the ASEAN Ministerial Meeting.

The end of the Cold War and the realisation of the impressive ASEAN economic
achievements resulted in the need to review the framework of relations. Thus, at the

9th ASEAN-EU Ministerial Meeting (AEMM) in 1991 in Luxembourg it was decided
to upgrade the 1980 Agreement to take into account the changing needs to be
satisfied by mutual co-operation. However, since July 1992, the Council has failed to
authorise a Community negotiating directive for a new agreement because _of_ concern
over the Human Rights situation in East Timor. This has not prevented the
reinforcement of political ties exemplified by the participation of the EU in the
ASEAN Regional Forum (ARF) since its first meeting in July 1994 or the deepening
of the common dialogue within the strict limits of the 1980 Agreement on the base of
a consensus reached during the 10th AEMM held in Manila in October 1992

The EU-ASEAN political framework has proved flexible enough to incorporate
certain changes in co-operation prerogatives to have appeared since 1980. "Towards a
New Asia Strategy", the Commission's Strategy Paper published in July 1994,
indicated the changes EU-ASEAN relations faced and called for the building of a
partnership of equals with ASEAN. The 11th AEMM in Karlsruhe in September
1994, in welcoming the content of the Commission's Communication, expressed its
commitment to reinvigorate and intensify the EU-ASEAN long-standing dialogue and

_**r r**_

cooperation. In this context, the AEMM established an Eminent Person's Group
(EPG) charged with proposing concrete measures to enhance EU-ASEAN relations.
The EPG's report was submitted in June 1996.

**5.2.** **OUTLINE OF** **EU-ASEAN** **TIES**

The EU and ASEAN are linked by a large number of official activities sustaining their
strong partnership. These ties are assured through institutional and economic contacts
which can be summarised into three broad categories: Institutional Dialogue; Trade
Enhancement; Economic & Development Co-operation.

**5.2.1.** **Institutional Dialogue** **[1 ]**

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

_l_ _A_ graphical prcsenialion of the institutional structure of EU-ASEAN relations is to be found in Annex 8.

_**ft**_

ASEAN's trading partners in total trade and second as far as its exports are
concerned.

The first Generalised System of Preferences scheme was introduced by the EEC
in 1971. ASEAN received in 1993 almost 30% of the total GSP granted by the
EC with Indonesia, Thailand and Singapore respectively being the 3rd, 4th and
5th recipients of GSP by value. Malaysia was 7th and the Philippines 11th.
When considered as a region, ASEAN was the principle beneficiary of the GSP
in 1993, just above China. A revised GSP scheme for industrial products came
into force on 1 January 1995. The Commission organised and held information
seminars in the capitals of the majority of ASEAN countries to inform
appropriate government administrations as well as economic operators.

The adoption of the Agreement on Trade-Related Aspects of Intellectual
Property Rights (the "TRIPS" Agreement) within the framework of the
Uruguay Round signalled the importance given by both developed and
developing countries to an adequate protection of intellectual property rights.
The EC has actively contributed to the development of the intellectual property
systems of the ASEAN countries through economic cooperation and
particularly through such programmes as the EC-ASEAN Patents and
Trademarks Programme. In this sense, the establishment of an ASEAN
Framework Agreement on Intellectual Property Co-operation at the 5th
ASEAN Summit in December 1995 was seen as a welcome accomplishment. In
order to further contacts and closer consultation in this area, the meeting of an
ad-hoc Intellectual Property experts group was decided on at the 12th JCC in
October 1995. It will meet by mid-1996 and submit the outcome of its
discussions to the ASEAN Senior Economic Official's Meeting (ASEOM).

EC-ASEAN trade relations also involve trade defence legislation. One such
mechanism is anti-dumping legislation. The New Agreement on Implementation
of Article VI of GATT 1994, the WTO anti-dumping agreement, considerably
strengthened the discipline in this area compared with the 1979 anti-dumping
code. The EC anti-dumping legislation has been revised to reflect the new rules
applicable under Article VI of the GATT and a new regulation came into force
in January 1995. ASEAN countries have felt targeted since 1994 by EC antidumping legislation: 6 ASEAN products are currently subject to antidumping/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 326 [2 ]

5.2. _3.1._ _Economic Co-operation_

The EC's economic cooperation with ASEAN countries is based on
four general principles:

It counts on the **mutual interest** of European and Asian partners,
both private and public.

It is **complementary,** in playing the role of a catalyst, to the
actions undertaken by EU Member States.

It is **adapted** to the cultural, economic, social and political
characteristics of each of the EU's partners in ASEAN, to their
differences in level of development and to the degree of
liberalisation of their economies.

It sets up a **direct dialogue with the private sector,** establishing
its needs and priorities to encourage partnership between European
and ASEAN companies. The climate of partnership will facilitate
European investment in ASEAN.

Following these criteria, the development of dialogue and partnership
between the EC and ASEAN takes place at three levels, with the aim
of:

Improving the economic, social and cultural general cooperation
framework of EU-ASEAN relations by creating a climate of
confidence within the business world;

Encouraging and facilitating cross-investment and commercial

contacts;

Developing business to business cooperation.

_5.2.3.2. Development Co-operation_

In 1994 the Community and its Member States accounted for 46 % of
global Overseas Development Aid (ODA) or 26.6 US$ billion (27.1
US$ in 1993): its role as the largest donor world-wide and an equal
partner with Japan in development co-operation in Asia (39% each)
should be stressed. Inception of EC development programmes in
Southeast Asia (-10% of total EC + Member Countries ODA) began
in 1976 with the inscription by the European Parliament of the first aid
allocation for Asia and Latin America in the EC budget. Aid has
focused in the following sectors: Integrated Rural Development, Rural
Production & Services and Social Development, Environment. Recent

2 Detailed .figures of the sums allocated to each type of co-operation activity are presented in Annex 7.

_**~^o**_

emphases have included: in Indonesia, a focus on forest protection and
sustainable forest management; in the Philippines, a focus on
participatory development in the poorest rural areas, including
integrated development, agrarian reform and maternal health; in
Vietnam, a focus on assisting in the reintegration of returnees and the
establishment of the market economy, coupled with support for NGO's.

_5.2.3.3._ _Other Types of Co-operation_

Other areas of Co-operation include assistance to Refugees and Drugs.
The EC has shown its concern for the Care & Maintenance, Education,
Health and Repatriation & Reintegration of refugees in Thailand,
Vietnam, the Philippines and Malaysia, allocating the sum of almost
100 MECU ro such activities.

Regarding drugs, co-operation projects have focused on prevention
and rehabilitation, little progress having been made to date on
agreements on the control of precursor chemicals.

Annex 6 - Trade Policy Review Profiles* :

**6.1.** **Indonesia**

**6.2. Malaysia**

**6.3.** **Philippines**

**6.4. Singapore**

**6.5. Thailand**

The information provided is based on the GATT/WTO Trade Policy Review Mechanisms and on
information gathered by EC delegations and Member State's Trade Councils in certain of the countries
considered.

**6.1.** **INDONESIA**

**I.** **TARIFF**

In May 1995 the government lowered tariffs on 6,030 items, or 64% of the 9,398
items on the government's tariff list. The government also established a timetable
for further reductions up to 2003. Key tariffs reduced include those on components
used in locally assembled sedans (down to 125% from 175% and set to be reduced
to 40% by 2003); cars (75% from 100% and to fall to 50% by 2003); commercial
vehicles (30% from 40% and to fall to 20% by 2003); newsprint (5% from 20%;
printing paper, zero from 20%). The government says that by 2003 tariffs on
manufactured goods other than cars and alcoholic beverages will not exceed 10%.

Some non-tariff barriers were also removed in the May 1995 package. Several
sectors previously tightly restricted have been opened to new investors. In January
1996, a further tariff reduction plan was approved and the overal tariff structure of
Indonesia after the plan is shown below:

**Deregulation Package January 1996**

**Tariff Rates** **Before Package** **o/** **/o** **After Package** **/o**

1,149

2,235

636

742

284

1,347

794

81

**7,284**

0%

5%

10%

15%

20%

25%

30%

35%

40%

40% +

**Total**

1,053

2,247

541

847

281

1,409

809

2

14

81

**7,284**

14.5%

30.8%

7.4%

11.6%

3.9%

19.3%

11.1%

0.03%

0.2%

1.1%

**100%**

15.8%

30.7%

**8.7%**

10.2%

**3.9%**

18.5%

10.9%

**0.1%**

**0.1%**

**1.1%**

**100%**

_Source:_ _Indonesia Ministry_ _of Finance_

Indonesia also has committed itself to dropping most import surcharges over the

next ten years.

The value-added tax on imports currently ranges from zero to 10%, and the luxury
tax is as high as 35% for certain products.

**II.** **NON-TARIFF BARRIERS**

**11.1.** **Registration, documentation and customs procedures**

_Import_ _Clearance Procedure_

According to the standing regulations, all goods coming into Indonesia must
be cleared through Customs and are subject to customs duty unless
specifically exempted from duty by law.

**11.2.** **Valuation**

The value concept for the purposes of assessment of duty comprises the
following methods:

**Goods which have the value of USS 5,000 (FOB) or more:**

        - Détermination of the value for duty is based on the prevailing export
market price in the country of supply as assessed by the Government
appointed surveyor.

**Goods which have the value of** **less** **than USS 5,000:**

      - Determination of the value for duty is based on the invoice price.

**IÏ.3.** **User** Fees

In order to provide better services and to expedite the flow of goods and
documents, the Indonesian Customs has implemented a system called
"Customs Fast Release System" (CFRS) throughout Indonesia since 1
December 1990. This system covers the processing of import declarations,
inspection, and release of goods which have the value of less than US$ 5,000
and is meant to provide importers with a more efficient Customs system. No
charge is imposed to access to the system.

**11.4.** **Import Prohibitions**

Certain goods are prohibited to be imported or exported, e.g.: —

      - hazardous articles and substances such as narcotics and dangerous drugs,
flammables, poisons, oxidators, radio-actives, etc.:

      - explosive goods/materials;

      - lire-arms and ammunition;

     - books, magazines, leaflets, brochures, newspapers written in Chinese
letters/characters and in the Chinese language:

      - gramophone-records, cassettes, video cassettes and films;

**?<>**

    - transceiver equipment, cordless telephone or telecommunications
equipment;

    - colour photo-copy machine and parts thereof;

    - certain plant species such as quinine, orchids, agave, etc.;

    - endangered species or their by-products;

    - ready-made medicines produced abroad, including Chinese traditional
medicines;

    - unregistered food and beverages;

    - solar eclipse glasses;

    - pesticides;

    - products of certain goods such as rubber lumps, unprocessed hides and rawskin 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 importer [1] . 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 package [2] .

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. completelyknocked-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)

**Description** **[3]** **1989** **1990** **1991** **1992** **199?** **1994** **[c ]**

**Agriculture** 44.7 44.7 35.5 35.5 35.5 35.5

Food crops 64.7 64.6 55.7 55.7 55.7 55.7

Estate and other crops 25.7 25.7 14.5 14.5 14.5 14.5

Livestock 7.3 7.3 0.1 0.1 0.1 0.1

**Forestry and fishing** 12.5 6.3 **0.0** **0.0** **0.0** **0.0**

**Mining and quarrying** (including oil and 0.2 0.2 0.2 0.2 0.2 0.2

gas)

**Manufacturing** (excluding oil and gas) 38.1 32.8 31.6 31.1 31.2 30.6

Food, beverages and tobacco 62.9 61.3 59.8 58.7 60.7 58.8

Textiles, clothing and footwear 8.0 6.5 6.5 5.4 5.2 5.2

Wood products 0.0 0.0 0.0 0.0 0.0 0.0

Paper products 37.6 37.6 37.6 34.6 34.6 34.6

Chemicals 5.5 2.6 2.6 2.6 0.2 0.2

Oil and gas 0.5 0.5 0.5 0.5 0.5 0.5

Non-metallic products 19.5 1.0 0.0 0.0 0.0 0.0

Basic metals 17.2 5.0 5.0 4.6 4.6 4.6

Engineering 49.2 36.3 33.9 33.9 31.6 31.6

Other manufacturing 3.0 3.0 3.0 • 3.0 3.0 3.0

**Total** 27.9 25.4 22.3 22.1 22.1 21.9

a Based on Indonesian input-output classification for 1985.
b After the October 1993 changes. The figures include the IT/AT licences
introduced on motor vehicles to replace the import bans in June 1993.
c After the June 1994 package.
Source: World Bank

The main items affected by licensing are agricultural commodities, processed
food and beverages, paper products (mainly due to the import bans on foreign
printed material), engineering products (mainly reflecting the licences on
imports of cars unassembled in Indonesia and some machinery), basic metals
(especially iron and steel) and chemicals (mainly explosives).

Restrictive import licences, especially the more prevalent IP category, control
the degree to which domestic producers of many goods are exposed to import
competition, such as those granted on steel products, including tubes and

**•*£'**

pipes. Specific licences designating State monopolies as sole importers
mainly cover the importation by BULOG of major food products, namely,
rice, wheat and wheat flour, sugar, soybeans, gummy bags and, from June
1994, garlic [3] .

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 products [4] . Currently,
IT/AT licences cover only imports of cars not assembled in Indonesia [5] . 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, gummybags and, since June 1994, garlic. The level of imports is set annually to fill
the shortfall between domestic production and consumption.

Indonesia also relies substantially on the activities of other State-trading
agencies to meet its development targets for certain industries. Sole
importation rights, covering mainly processed foods and beverages, are
provided to six State-owned entities under the import licensing system
(registered importer (IT) licences) to enable the Government to control
imports.

As mentioned earlier, a number of State-owned enterprises have also been
granted import monopolies over goods which they themselves produce.
Imports of petroleum and gas products, are licensed exclusively to Pêrtamina,
while imports of explosives are restricted under license to the State-trading
entity. PT Perum Dahana. Sole importing rights over steel products by PT
Krakatau Steel were terminated in July 1992.

Imports of garlic were shifted from an IT licence to a BULOG licence in June 1994.
Foreign suppliers granted AT status are encouraged to make, in return for exclusive import licences, a
long-term commitment to the Indonesian market through providing back-up repair and spare parts
services, as well as gradually establishing local assembly or spare parts production.
IT/AT import licences on cars no assembled in Indonesia were introduced in June 1993. The June

1994 package removed the IP and AT licences on reciprocating piston engines used in motor vehicles.

**11.7.** **Government Procurement**

Indonesia has no central government purchasing agency. All government
bodies and State-owned enterprises are responsible for their own procurement
on contracts of up to Rp 3 billion. All contracts above Rp 3 billion, including
those of State-owned enterprises, must first be approved by the Co-ordinating
Ministry of Trade and Industry. Procurement must be at a favourable price
that can be justified, meet stipulated technical requirements and utilize, where
possible, domestically-produced inputs [6] .

Formal bidding procedures, either public or limited, must be followed on
procurement contracts above Rp 20 million [7] . 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
imported [8] . Goods not on a Master List must be sourced locally. Localization
plans, specifying the components to be sourced locally, the prescribed level of
local content and, in most cases, the time period allowed for meeting the
targeted level, are generally stipulated in decrees issued by the Minister of
Industry. Increased local content is generally introduced over time through
deletion lists requiring increasing levels of local content.

**III.** **INVESTMENT** **RELATED** **MEASURES**

**III.** **1** . **Direct Foreign Investment Limitations**

The May package also altered the negative investment list. Ten sectors were
dropped from the list and five were added. Thus, a total of 34 sectors remain on the
negative investment list. The main changes included the addition of a new category.
"Sectors closed to 100% foreign ownership." Eight sectors are included in this
category: operation of ports; production, transmission and distribution of electricity
to the public; provision of public telecommunication services; shipping; provision of
drinking water; public railways; nuclear power; and advertising.

6 All procurement contracts are, in principle, subject to a post-audit by the Finance and Development
Supervisory Agency (BPKP) to assess, among other things, the appropriateness of the price.
7 Small contracts below Rp 20 million are let through direct designation or direct procurement an are reserved
for suppliers from economically-weak sectors.
x Locally-made components included in the master list, if imported, are dutiable at tariff rates specified in the

customs schedule.

**The Negative Investment List**

**Category** **[7]** **Number of Sectors**

I. Sectors closed unless certain requirements are met 9

II. Sectors closed to foreign investment 6

III. Sectors closed to 100% foreign investment 8

IV. Sectors absolutely closed 11

**Total** 34

The May 1994 investment deregulation opened the first seven of these.

Ten sectors were dropped from the negative foreign investment list for the
stated purposes of increasing business opportunities, domestic supplies of the
affected products, value added and technology transfer.

**?**

**6.2. MALAYSIA**

**I.** **TARIFFS**

Goods imported are classified under the Harmonised Coding System (HS) and
import duties range from nil to 200%, with average tariffs within the 15% to 25%
range. Both imports and exports must be declared to customs on prescribed forms.
Sales tax at 5%, 10% or 15% is levied on certain imported and locally manufactured
goods at the time of importation or when disposed of by the manufacturer. Most
customs duties are imposed on the value of the goods.

As part of fiscal measures for 1996, there was reduction/abolition of import duties
on more than 2,600 items, including textile products and raw materials and
components.

The rates for import, export, and excise duties vary depending on the nature of the
items. Partial or full exemption from import duty and surtax may be granted on
application depending on whether finished products are sold locally or are exported.
There are also provisions for exemption from customs duty on imported machinery
and equipment and for goods for export. Packaging materials are generally not
eligible for drawback on duty paid on import. Protective tariffs and other assistance
are also available to deserving industries to encourage industrialisation in Malaysia.

Level of Bindings

65% of tariff lines (agricultural and industrial)

79% of imports (agricultural and industrial)

**1.1.** **Industry**

Average Applied Tariff Rate

The post-Uruguay Round trade weighted tariff stands at 8.9%.

Tariff Rates Structure [9 ]

15% (average) Semi-processed and processed item

5% (average) Primary products

**9** **P.-** Pre-Uruguay Round information.

**10**

**1.2.** **Agriculture**

Tariff Rates Structure [1 ]

   - Raw materials: 16%

   - Semi-processed: 25%

   - Fully processed: 5%

Current Rates Range [1 ]

0 t=> 50%: Raw materials

0 ^> 25%: Semi-processed

0 ^> 5%: Fully processed

**II.** **EXAMPLES** **OF NON-TARIFF** MEASURES

**11.1.** **Licensing Requirements** **[1 ]**

Licensing continues to apply to a number of imports, including poultry, meat,
eggs, rice and paddy, sugar, clinkers, acetyl bromide, acetic anhydride
chloride, fireworks, magnetic tapes for video and sound recording, explosives,
wood, safety helmets, diamonds, rice milling machinery, automatic cassette or
cartridge loaders, colour copying machines, some telecommunication
equipment, motor vehicles, arms and ammunition, coin or disc operated
amusement machines, saccharin ancL its salts, milk, cabbage, coffee, cereal
Hours, some iron and steel products, and certain wires and cables.

**11.2.** **Conditional Import** **Prohibitions** **[1 ]**

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 bybinding nearly al' financial services activités.

Further liberalisation of the services sector will be undertaken in a progressive
manner, commensurate with the level of the country's economic development and
the development of the domestic services sector.

_**<M**_

**12**

**6.3.** **PHILIPPINES**

**I.** **TARIFF PROTECTION**

**II.** **Tariff levels and Uruguay Round Commitments**

A major tariff reform programme introduced in August 1991 by Executive
Order (E.O.) 470 established a new simplified four-tier rate structure: (i) 3%>
for basic raw materials previously exempt from tariffs and those subject to a
5%; (ii) 10%) for raw materials, capital equipment for which no locally
produced substitutes are available and spare parts; (iii) 20% for intermediate
and semi-processed goods and capital equipment for which there are locally
produced substitutes and (iv) 30% for finished goods.

An ambitious step in tariff liberalisation was taken by President Ramos
through E.O. 264 last July 1995. It sets out a two-tiered tariff structure of 3%
and 10%) for raw materials and finished products to be fully implemented by
2003. It is also targets at a uniform 5%> on manufactured products by 2004.

1.2. **Tariff bindings**

The Philippines offered to bind 37% of tariffs in the Uruguay Round
negotiations.

1.3. **Effective rate of protection**

The only agricultural commodity under import protection is rice.

On non-agricultural products, there remain some restrictions on used motor
vehicles (see further point on local content schemes) Imports _of_ Coal and
refined petroleum products are expected to be fully liberalised in 1997.

1.4. **Tariff Quotas**

Other than tariff quotas resulting form the Uruguay Round Agreement, the
Philippines does not use tariff quotas according to the Philippine authorities.

**IL** **NON TARIFF BARRIERS**

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 into the Philippines are free unless otherwise subject to the
requirements of prior approval by appropriate Government agencies.

11.5. **Import Quotas**

Explicit quotas operate only on two products: feeder cattle (4800 heads/mo)
and horses (150 heads/year).

11.6. **Import Surveillance (preshipment inspection)**

To address the problem of misdeclaration and smuggling, the Government of
the Philippines, introduced the Comprehensive Import Surveillance Scheme
(CISS), with the Société General de Surveillance (SGS) as the designated
inspector in 1987.

The aims of the CISS are to:

a) verify that the quantity is in accordance with contract specifications;

**-,•/**

**14**

b) assess and report the dutiable value, the prevailing export market price,
freight, and dutiable charges;

c) issue, if warranted, a Clean Report of Findings (CRF). This document is
necessary for customs clearance and to support negotiation of payment.

11.7. **State Trading Enterprises**

The Philippine International Trading Corporation (PITC), a Government
Corporation founded in 1973, is the sole state trading enterprise. Initially it
was concerned mainly with trade involving centrally planned economies. In
1981, however, its mandate was extended to a global marketing function. The
Corporation does not have exclusive trading rights for any commodity and
usually operates on behalf of Philippine firms [10] . There are plans for its
privatisation.

11.8. **Import cartels**

Not applicable

11.9. **Standard and other technical requirements**

The Philippines has been a signatory to the Agreement on Technical Barriers
to Trade since its accession to GATT in January 1980.

Of the 1.462 standards that have been developed or formulated, at present 304
(or 21%) are either identical or equivalent to international standards. The rest
are related to standards in specific foreign countries.

The Philippines has recognised some inspection bodies to conduct tests in
other countries on a number of products according to Philippine national
standards procedures.

Imports office, the only commodity over which the Government has exclusive rights, are managed by
the National Food Agencv.

**I. Electrical products**

1. Ballast for fluorescent lamps

2. Circuit breakers

3. Edison-screw lampholders

4. Fluorescent lamps

5. Fluorescent lamp luminaries/fixtures

6. Electrical cartridge fuse

7. Glow starter for fluorescent lamps

8. Incandescent lamps

9. Insulating tapes

10. Lampholders and starterholders for
fluorescent lamps

11. Plugs and receptacles

12. Switches

a) knife

b) snap/tumbler

13. Thermoplastic insulated wires

14. Electrical conduit, PVC

**II.** **Fire fighting equipment/extinguishing**

agents

1. Fire extinguisher

2. Fire hose _(presently not being_
_implemented)_

**III.** **Construction material**

1. G.I. pipes (welded)

2. G.I. sheets

3. Portland cement

4. Pozzolan cement

5. Reinforced steel bars

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

7. Steel wire nails

**IV. Other products**

1. Automatic lead-acid storage battery

2. LPG cylinders for household use

3. LPG cylinders for automotive use

4. Medical oxygen

5. Pneumatic tyres

6. Rubber inner tubes

7. Safety matches

8. Lighters

9. Copper redraw rod for electrical

purposes

10. EC aluminium redraw rod for electrical

purposed

11. Flexible cords

Local importers and distributors of medical equipment are required to obtain a
license to operate from the BFD. All food and food products intended for
import or export must also be registered with the BFD.

The Philippines imposes phytosanitary regulations on the imports of certain
fruits and vegetables to protect the domestic industry from destructive pests.
specifically several species of fruit flies existing in certain countries.

**11.10.** **Government Procurement**

The Philippine Government is a large direct importer, usually through
competitive bidding, of many essential products. These include rice, road
building and maintenance equipment, cement, machinery and equipment for
the various Government projects, and also military and defence equipment.
Rice is the only product for which the Government is the sole importer. Rice
imports are made by the National Food Authority which is concerned with
stabilising prices.

16

Philippine Government procurement practices generally do not discriminate
against foreign goods and services. However, there are several sectors in
which the Government is stated to favour Philippine firms for Government
contracts. These include rice, medicines, and infrastructure projects.

Philippine Government procurement regulations permit a foreign company to
bid on Government procurement only if it maintains a registered branch office
or a registered resident agent in the Philippines.

**II.** 1 **1** . **Local content schemes**

The Philippines does not have any local content requirements, according to
the Philippine authorities. However, participants in the Government's Car
Development Program (CDP) have to comply with local content
requirements, as we'l as obtain a minimum percentage of their foreign
exchange through exports. All this is scheduled to be phased out by the end
of year 2000.

**11.12.** **Subsidies and export support measures**

Importation of machinery and equipment and accompanying spare parts which
are used in the manufacture of exported products at zero percent (0%) duty for
a period of three (3) years.

Tax credit for imported inputs and raw materials primarily used for the
production and packaging of export goods, which are not readily available
locally, shall be valid for five (5) years _provided_ that the tax credit shall be
issued within thirty (30) days from exportations.

_Tax credit for increase in_ _current_ _year_ _export_ _revenue computed as follows:_

_-_
The first 5% increase would be increase in annual export revenue over the
previous year would mean a credit 2.5% to be applied on the incremental
export revenue converted to pesos at the current rate;

    - The next 5% increase would be entitled to a credit of 5.0%o

    - The next 5% increase would be entitled to a credit of _1.5%_

   - In excess of 15% would be entitled to a credit of 10%>

Such tax credit is only granted for the year when the performance is achieved.

For exporters of non-traditional products who use or substitute locally
produced raw material, capital equipment and/or spare parts, tax credits
equivalent to 25%o of the duties that would have been paid had these inputs
been imported.

**17**

**III.** **INVESTMENT RELATED MEASURES**

**III.** **1.** **Direct foreign investment limitation**

Foreign Investment is regulated by the Foreign Investment ACT (FIA) of
1991, which authorises 100% foreign ownership in practically all areas except
those prohibited by the Constitution or Special Laws. (See table below).

**Foreign Investments Negative List**

List A - Limited by Constitution or Special Laws

**No Foreign Equity**

- Mass media

- Licensed professions

  - Lawyers

  - Accountants

  - Engineers, etc...

Retail trade

Cooperative

Private security agencies

Small-scale mining

Fisheries

Rice and corn farming

5% Foreign Equity

Recruitment agencies

Locally funded public works projects

30% Foreign **Equity**

Advertising

40% Foreign **Equity**

Natural resources development and utilisation

Land ownership

Public utilities

Educational institutions

Financing companies

Construction

List B - Limited for Reasons of Security,
Defence, Health, Morals and Protection _of_
Small and Medium-Scale Enterprises

**40%** **Equity**

Explosives

Munitions

Armaments

Dangerous drugs

Massage clinics

Gambling

Domestic market enterprises with
capital less than 200,000 USD

Small-scale export enterprises
depleting natural resources

###### **_•n_**

**111.2.** **Profit repatriation limits**

No limits

**111.** 3. **Foreign Exchange Measures**

Foreign exchange regulations were liberalised in December 1993 and include
full deregulation of current account transactions, access of exporters and
importers to foreign currency loans and full and immediate repatriation of
foreign investment including profit remittances.

**6.4.** **SINGAPORE**

**I.** **TARIFF**

Tariff rates structure

**98.6%** are duty free

The average collected rate (customs and excise duty revenue/import value ratios) is
1.1%

Level of bindings

**69.3%** (from 0.5% in 1992)

The simple average of bound rates across all sectors is 7.4%

Special tariffs

Ad valorem tariffs

**12%** motorcycles

**41%** motor vehicles

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

**22.1%** petroleum

28% motor vehicles

**29.8%** tobacco

**41.3%** liquor

Export duties

Singapore does not impose any duties on exports. Export control measures are
mainly enforced for public health, security and environmental considerations or to
fulfil international commitments. Singapore also currently maintains four bilateral
export restraints covering textiles and clothings.

II. EXAMPLES OF NON TARIFF MEASURES

**II.1.** **Licensing requirements**

Import licensing and control provisions are maintained mainly to discharge
Singapore's obligations under international commitments or for public health,
environmental and security considerations. For example, for national security
reasons, under the Telecommunication (Dealers) Regulations 1994, an
importer of telecommunication equipment must seek the prior approval of the

o?V

**20**

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

Imports of products subject to import licensing in 1994 amounted to 6%o of the
total.

**II.2.** **Sanitary Regulations**

With the enforcement of the Control of Plants (Imports of Fresh Fruit and
Vegetables) Rules 1994, all importers of fresh fruit and vegetables for local
sale or supply must apply for an import licence which is renewable every

year.

**H.3.** **Government Procurement**

Singapore is currently negotiating accession to the 1994 Agreement on
Government Procurement. It remains a member of the 1979 Agreement on
Government Procurement. Foreign firms wishing to act as supplier to the
Singapore Government must have a registered office in Singapore or must
appoint a local agent.

**III.** SERVICES

Singapore has nine measures listed as GATS Article II Exemptions. Included are
Investment Guarantee Agreements, Legal services, Broadcasting, Computer
reservation systems and Maritime Transport services affecting all countries.

IV. INVESTMENTS

Singapore generally makes no distinction between domestic investment and foreign
investment; however; limitations on foreign ownership exist in telecommunications,
financial services and the national airline.

**21**

**6.5.** **THAILAND**

**I.** **TARIFF**

**1.1.** **Industry**

Average applied tariff rate

17% by 1997 [11] (down from 30% in December 1994).

Tariff rates structure

as from 1997:

0% tariff-exempt products such as medical equipment and fertiliser;

1% raw materials, electronic components & international transportation vehicles;
5% primary products and capital goods;
10% intermediate products;
20% final products; and
30% products requiring "special protection" [12] .

Level of bindings

**68%**

**1.2.** **Agriculture**

Current average applied tariffs

   - agricultural raw materials and livestock: 38% (28% in 2004 under _VR_ commitments)

    - fisheries: 55%

   - forestry products: 15%

These new rates and structures result from the tariff reform announced in December 1994. Certain

textiles and garments, shoes, processed food products are most affected with deep cuts. Motor
vehicles, where 1995 tariff average about 38% with a peak of 80% are notably excluded from the tariff
liberalisation.

This category applies to locally produced import-competing products which are regarded as requiring
continued protection, including fabrics, carpets, clothes, blankets, handbags, shoes, headgear, wigs,
television sets, refrigerators and air conditioners.

:V )

**~>0**

Current rates range

0 _O_ 65%: agricultural raw materials and livestock
0 _O_ 60%: fisheries and forestry

Level of bindings

Nearly all tariffs.

II. EXAMPLES OF NON-TARIFF MEASURES

ILL Licensing requirements

Non-automatic licensing continues to apply to a number of imports, including
fish meal, coffee beans, sugar and other minor agricultural raw products.

11.2. Conditional import prohibitions

Gas, kerosene, motorcycles and certain buses.

11.3. Transparency

Last published tariff schedule dates back 1992.

11.4. Government Procurement (GP)

Countertrade: any imported procurement valued above Bath 500 million byState Enterprise must apply countertrade measures.

Public tenders: no centralised purchasing agency and no information. Thai
products receive 10% price preference.

IÏ.5. Investment (I)

Motor vehicles: exemption from taxes granted to passenger cars and certain
trucks provided their manufacturer satisfies local - content provisions.

Dairy products: local - content requirements on investment.

**III.** SERVICES

Thailand's schedule of commitments under the GATS covers 95 service activities

and 10 major sectors.

M.f.n. exemptions apply to business, transport, banking and other services.

In the financial sector Thailand is looking for assistance from advanced APEC
countries in expanding its services exports.

**2J>**

Foreign equity participation in service establishments in Thailand must not exceed
49%o of registered capital.

As a general rule, Thailand has bound neither its limitations on market access nor its
limitations on national treatment in regard to the cross-border supply of services.

The following sectors or sub-sectors were not included in Thailand's GATS
Schedule: research & development and real estate services under the Business
category; postal and courier services under the Communications category;
completion and finishing services under the Distribution category; tourist guide
services under the Tourism and Travel category; entertainment, news agencies and
libraries under the Recreational category; and internal waterways, pipelines and
space services under the Transport category.

**Annex 7 - Breakdown of** **EC** **financial assistance in ASEAN**

**1976** **-1995**

The following information must be borne in mind when reading the tables presented
hereafter:

Included are grant commitments for all actions approved by the EC in the ASEAN
region, excluding actions cancelled or suspended, from 1976 to 1995. The
commitments for all terminated actions are included. The tables do not relate to

exclusively on-going projects.

The "EC funding" columns represent commitments as of 31.12.95.

The "% of Total" column relates to the Total EC Funding in the region.

52,57%o of the Total EC Funding has been disbursed.

- The first table under the "ASEAN" heading is concerned with regional actions
covering all ASEAN countries. All other tables deal with bilateral actions (direct with
an ASEAN country).

**TOTALS:** **N°** **of Actions** **373**

**EC Funding (MECU)** **1,007.336**

ASEAN

Co-operation type

_Economic_ _co-operation_

Improvement of General
Cooperation Framework

Trade & Investment

Facilitation

Business-to-Business Coop

Other actions

Unclassified

_Development_ _co-operation_

Environment

Rural Production

Rural Services

_Other_

Drugs

Refugees

TOTAL

N°. of Actions

_54_

**18**

**9**

**24**

**1**

**2**

_5_

**1**

**2**

**2**

**//**

**10**

**1**

**70**

**EC Funding**
**(MECU)**

_85.425_

26.815

20.309

37.534

0.580

0.187

_12.227_

0.600

7.027

4.600

_4.413_

2.776

1.637

**102.065**

% **of Total**

_8.48%_

2.67%

2.02%

3.73%

0.06%

0.02%

_1.23%_

0.06%

0.71%

0.46%

_0.44%_

0.28%

0.16%

**10.13%**

_**at**_

BRUNEI

Co-operation type

_Economic co-operation_

Improvement of General
Cooperation Framework

TOTAL

INDONESIA

Co-operation type

_Economic co-operation_

Improvement of General
Cooperation Framework

Business-to-Business Coop

_Development co-operation_

Forests

Irrigation & Rural
Infrastructure

Integrated Rural Develop.

Rural Production

Rural Services

_Other_

Refugees

Disaster Response

TOTAL

**N°.** **of Actions**

N°. **of Actions**

**/**

**1**

**1**

_10_

1

9

_28_

_5_

11

^>

6

4

4

**42**

**EC Funding**
**(MECU)**

_0.119_

0.119

**0.119**

**EC Funding**
**(MECU)**

_7.935_

0.197

7.737

_256.081_

72.446

112.435

37.500

13.350

20.350

_1.900_

1.900

**265.916**

**%** **of** **Total**

_0.01%_

0.01%o

**0.01%**

**% of Total**

_0.80%_

0.02%

0.78%

_25.79%,_

7.30%

11.33%

3.78%

1.34%

2.05%

_0.19%_

0.19%

**26.41%**

MALAYSIA

Co-operation type

_Economie_ _co-operation_

Business-to-Business Coop

Unclassified

_Development co-operation_

Forests

_Other_

Drugs

Refugees

TOTAL

**N°.** **of Actions**

**%** **of Total**

_0.18%_

0.16%

0.02%

_0.08%_

0.08%)

_0.51%_

0.03%

0.49%

0.76%

7

6

1

_2_

_2_

_9_

_2_

_1_

**18**

**EC Funding**
**(MECU)**

_1.587_

1.565

0.022

_0.811_

0.811

_5.110_

0.290

4.820

**7.509**

PHILIPPINES

Co-operation type

_Economie_ _co-operation_

Improvement of General
Cooperation Framework

Business-to-Business Coop

_Development co-operation_

Forests

Irrigation

Integrated Rural Developm

Rural Production

Rural Services

Social Development

_Other_

Drugs

Human Rights

Refugees

TOTAL

N°. of Actions

_21_

1

20

_19_

_2_

1

12

1

1

2

_24_

10

9

5

64

EC Funding
(MECU)

_20.475_

0.990

19.485

_243.611_

28.000

4 500

179.900

3.246

0.565

27.400

_5.463_

2.520

0.523

2.420

269.549

% of Total

_2.06%_

0.10%

1.96%)

_24.54%_

2.82%

0.45%

18.12%

0.33%

0.06%

2.76%o

_0.55%_

0.25%

0.05%o

0.24%

27.15%

SINGAPORE

Co-operation type

_Economic co-operation_

Business-to-Business Coop

TOTAL

**THAILAND**

**N°.** **of Actions**

_2_

_2_

**2**

**EC Funding**
**(MECU)**

_2.770_

2.770

2.770

**Co-operation type** **N°.** **of Actions** **EC Funding**
**(MECU)**

_Economic co-operation_

Improvement of General
Cooperation Framework

Trade & Investment

Facilitation

Business-to-Business Coop

Other actions

_Development co-operation_

Forests

Irrigation & Rural

Infrastructure

Rural Production

Rural Services

Social Development

_Other_

Drugs

Refugees

**TOTAL**

**?.?**

**12**

_**30**_

15

**5**

_24_

10

14

**76**

_23.060_

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**

% **of Total**

_0.28%_

**0.28%**

**0.28%**

**%** **of Total**

_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

_Economie co-operation_

Trade & Investment

Facilitation

Business-to-Business Coop

_Development co-operation_

Disaster Response

Forests

Irrigation & Rural
Infrastructure

Integrated Rural Developm

Rural Production

Rural Services

Social Development

_Other_

Drugs

Refugees

TOTAL

**N°.** **of Actions**

_11_

**8**

_35_

**1**

**2**

**4**

**4**

**4**

**17**

**7**

**1**

**6**

**53**

**EC Funding**
**(MECU)**

_21.764_

21.314

0.450

JO. 079

0.388

18.960

0.379

0.921

2.917

1.239

5.275

_69.084_

0.222

68.862

**120.926**

% **of Total**

_2.19%_

2.15%

0.05%o

3.03%

0.04%

1.91%

0.04%)

0.09%

0.29%

0.12%

0.53%)

6.96%

0.02%.

6.94%

**12.18%**

_**.s?.**_

**Breakdown** **of EU** **financial assistance** **in** **ASEAN**

**Thailand**

**22,56%**

**Singapore**
**0,28%**

**Development**
**Co-operation**

**72,99%**

**Vietnam**

**12,18%**

**Philippines**
**27,15%**

**Breakdown** **by** **Sector**

**ASEAN**

**10,28%**

**Brunei**

**0,01%**

**Malaysia**
**0,76%**

**Indonesia**

**26,78%**

**Other**

**10,57%**

**Economic**

**Co-operation**

**16,43%**

FINANCIAL ASSISTANCE EVOLUTION (MECU)

1976-1979

1980-1983

1984-1987

1988- 1991

1992-1995

Economic

Co-operation

9.94

6.59%

33.79

14.99%

112.96

24.51%

Development
Co-operation

32.24

100%

135.61

100%

139.90

92.75%

161.54

71.66%

330.28

71.66%

Other

1.00

0.66%

30.08

13.36%

17.67

3.83%

Total

32.24

100%

135.61

100%

150.83

100%

225.41

100%

460.91

100%

_Source:_ _European_ _Commission_

_**yf**_

**Annex 8 - The Institutional Structure of EU-ASEAN Relations**

_**>tf**_

**THE** **INSTITUTIONAL STRUCTURE OF** **EU-ASEAN** **RELATIONS**

**JCC**
ASEAN-EU Joint Co-operation Committee

Held every 18 months
Next meeting : Mid 1997

**AEMM**

ASEAN-EU Ministerial Meeting

Held at alternate years
Next meeting : February 1997

**SOM**

ASEAN-EU Senior Officials Meeting

Meld on years alternate to AEMM

**PMC** **ARF**

Post Ministerial Conference ASEAN Regional Forum

Held once a year
Next meeting : July 996

**EPG**

Eminent Persons Group

Report presented in June 1996

**Informal Working Groups**

 - IPR (Intellectual Property Rights)

 - Environment

**EC-ABC**

Ad hoc meetings between
the ASEAN Brussels Committee
and the European Commission

SUB-COMMITTEES (once a year)

Trade

Economic & Industrial Co-operation

Science & Technology

Forests

**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**