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Press Statement by ASEAN's Secretar
Subject: Press Statement by ASEAN's Secretary-General.
Press Statement
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H.E. Dato' Ajit Singh, Secretary-General of ASEAN
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on the 30th ASEAN Ministerial Meeting
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Jakarta, 18 July 1997
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Overview
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1. The 30th ASEAN Ministerial Meeting and Post Ministerial
Conferences (AMM/PMC) and the 4th ASEAN Regional Forum
(ARF) will be held in Kuala Lumpur, Malaysia on 24-28 July 1997.
(Please refer to Annex for details of the programme).
2. The highlight of the event is the admission of Laos and Myanmar into
ASEAN on 23 July 1997. This development brings the vision of the
founding fathers of ASEAN to establish an Association for all
Southeast Asian countries closer to reality. Cambodia currently enjoys
an Observer status and its admission has been delayed in the light
of the
unfortunate events which occurred in early July in that country.
3. During the Admission Ceremony, Laos and Myanmar shall
individually sign a Declaration on Admission and a Protocol for the
Accession of their respective countries into 11 major ASEAN
agreements. These include, the Agreement on the Establishment of the
ASEAN Secretariat, Agreement on the Establishment of a Fund for
ASEAN, Agreement on the ASEAN Industrial Cooperation Scheme
as well as the Agreement on the CEPT for AFTA, among others.
4. The Admission Declaration will, among other things, spell out the
commitments of a new ASEAN Member to extend, on a reciprocal
basis, Most Favoured Nation, (MFN), treatment to all other ASEAN
members. The Declaration also binds a new ASEAN member to
ensure transparency in its trade regime on goods and services by
keeping all ASEAN members informed of its laws and regulations and
subsequent changes thereof.
5. The 9 Member Countries of ASEAN will have a combined
population of 481.2 million (1996), a total GDP of US $ 632.5 billion
(1996), a GDP per capita of US $ 1,314 (1996) and combined
exports of about US $ 339.2 billion (1996).
6. ASEAN is a major investor in Laos and Myanmar. As of the first
quarter of 1997, ASEAN accounted for 52% of the total foreign direct
investment in Laos. As of August 1996, ASEAN accounted for 44% of
the total foreign direct investment in Myanmar.
Political Situation
-------------------
7. Notwithstanding the situation in Cambodia, the rest of Southeast
Asia remains generally stable. ASEAN remains hopeful that Cambodia
can join ASEAN as soon as circumstances permit. The ASEAN
Foreign Ministers, at their Special Meeting held on 10 July 1997,
stated
that ASEAN Countries stand ready to contribute their efforts to the
peaceful resolution of the situation in Cambodia. They also decided to
send a delegation to seek an audience with His Majesty King Norodom
Sihanouk and also to call on the two co-Prime Ministers with a view to
contributing to the peaceful solution to the situation in Cambodia.
8. The ASEAN Regional Forum (ARF) has developed into an
important forum for multilateral political and security dialogue and
cooperation in the Asia-Pacific region. The 4th ARF is expected to
endorse the recommendations of the various activities held over the
past year, namely, Inter-sessional Support Group on
Confidence-Building (ISG-CBM), Inter-sessional Meeting on Disaster
Relief (ISM-DR), Inter-sessional Meeting on Search and Rescue
Cooperation (ISM-SAR) and the Inter-sessional Meeting on
Peacekeeping Operations (ISM-PO).
9. The Treaty on the Southeast Asia Nuclear Weapon-Free Zone,
signed by the ASEAN Heads of Government at the 5th ASEAN
Summit in December 1995, has been in force since 27 March 1997.
The ASEAN Working Group on SEANWFZ is currently holding
consultations with all five Nuclear Weapon States with a view to
getting
them to sign the Protocol of the Treaty.
Economic Cooperation
--------------------
10. The 30th AMM/PMC will be held amidst continued economic
development of the region. Over the past year, ASEAN economies
continued to demonstrate their dynamism and competitiveness.
Economic growth in ASEAN is forecast to reach between 7 to 8
percent in 1997 bolstered by investment, exports and consumer
spending. Inflation is expected to ease from 4.8% in 1996 to 4.6% this
year.
11. In 1996, intra-ASEAN trade continued to grow in spite of the
slowdown of export growth experienced by some Member Countries.
For the first three quarters of 1996, intra-ASEAN exports of all
products reached US $ 56.078 billion. This was 10.62% higher than
the US $ 50.696 billion of intra-ASEAN exports during the same
period in 1996.
12. Following the decision of the Fifth ASEAN Summit in 1995, to
establish a regional arrangement on investment, ASEAN is currently
drafting the Framework Agreement on ASEAN Investment Area
(AIA) which is expected to be ready by the 30th ASEAN Economic
Ministers Meeting in 1998. Significant progress has been achieved in
implementing the 1996-1998 Work Programme to execute the Plan of
Action on Cooperation and Promotion of Foreign Direct Investment
and Intra-ASEAN Investment. Projects under the existing Work
Programme include, among others, human resource development, a
series of joint promotion events in Asia and Europe, high-level
strategic
planning meetings, improving the 1987 ASEAN Agreement for the
Promotion and Protection of Investment and undertaking of a
comprehensive survey on the promotion of FDI into and within
ASEAN.
13. This year marks the halfway point of the implementation of the
CEPT Scheme for AFTA. As of 31 May 1997, Member Countries
have included 42,253 tariff lines into the CEPT Scheme representing
91% of all tariff lines in ASEAN. Average tariff rates for products
in the
Inclusion List have now fallen to 6.38% from 12.76% in 1993.
14. Laos and Myanmar are expected to participate in the CEPT
Scheme beginning 1 January 1998 and to complete their commitments
under the CEPT Scheme by 1 January 2008. They are required to
undertake a comprehensive programme of tariff reduction to 0-5%
within 10 years. Laos and Myanmar have submitted their respective
initial Inclusion List of products for the CEPT Scheme. The initial
package of tariff reduction for Laos accounts for about 15% of her
total tariff lines. About 45% of these tariff lines are in the
Machinery
and Electrical Appliances Sector and about 20% in the Optical,
Precision and Musical Instruments Sector. Myanmar has submitted the
full package of Inclusion List, Temporary Exclusion List, Sensitive
List
and General Exception List. The initial Inclusion List accounts for
about
43% of the total tariff lines. About 20% of these tariff lines are
the Base
Metal and Metal Articles and 14% are in the Machinery and Electrical
Appliances. Products from the Optical, Precision and Musical
Instruments Sector, the Chemical Sector and Agricultural Sector
account for about 9% each.
15. With the participation of Laos and Myanmar, the Inclusion List
under the CEPT Scheme will increase from 42, 253 tariff lines to about
45, 119 tariff lines or about 81% of the total tariff lines in
ASEAN.
16. The new ASEAN Industrial Cooperation Scheme (AICO), which
become operational in November 1996, is also aimed at attracting
capital investments through the granting of preferential tariff
rates and
other non-tariff incentives. A number of applications are being
processed at the moment. They include products in the automotive
sector, electrical appliances and food processing.
17. Cooperation in the field of finance also made notable progress with
the implementation of the Ministerial Understanding on Finance
Cooperation and the ASEAN Agreement on Customs signed early this
year. The MU provides a framework for enhancing cooperation in
banking, financial and capital market development, customs matters,
insurance matters, taxation and public finance matters, monetary policy
cooperation and human resources development in the area of finance.
The ASEAN Agreement on Customs is expected to facilitate greater
intra-regional trade and investment flow. These instruments will help
ASEAN expedite its integration process and support the early
realization of the various existing regional arrangements and schemes
such as AFTA, AIA and AICO.
Functional Cooperation
----------------------
18. Cooperation in the fields of science and technology, environment,
culture and information, social development and drugs and narcotics
control has accelerated with the adoption of the Framework for
Elevating Functional Cooperation to a Higher Plane at the 29th AMM
last year.
19. The ASEAN Foreign Ministers will launch the ASEAN Award
which is aimed at giving recognition to individuals and
organizations for
their outstanding work and contribution to the region consistent
with the
objectives of ASEAN. The details of the Award such as the recipients
and what they will receive will be agreed to by the 30th ASEAN
Ministerial Meeting.
20. The Foreign Ministers also expected to endorse the establishment
of an ASEAN Foundation. The objective of the ASEAN Foundation is
to help promote ASEAN awareness, greater interaction among the
peoples of ASEAN and wider participation in ASEAN's activities. It's
activities will be jointly undertaken by ASEAN and the private sector.
A Memorandum of Agreement on the establishment of the ASEAN
Foundation will be signed during the Commemorative Summit in Kuala
Lumpur in December this year.
Preparations for the 30th Anniversary of ASEAN
----------------------------------------------
21. The 30th AMM will be briefed on the various projects and
activities to commemorate ASEAN's 30th Anniversary. These activities
will be undertaken both at the regional and national levels. The
celebrations will be launched on 8 August 1997 at the ASEAN
Reception in Jakarta by H.E. President Soeharto. Some of the
region-wide activities include the holding of an ASEAN
Commemorative Summit in Kuala Lumpur in December 1997, the
presentation of ASEAN Citation to the founding fathers of ASEAN in
December 1997, presentation of ASEAN Awards, as well as poster,
essay and photo competitions to be organised by the ASEAN
Secretariat. A documentary video on ASEAN will also be shown on all
national televisions on 8 August 1997. Individual Member Countries
will also be undertaking activities, such as, the issuance of
commemorative stamps, trade exhibitions and ASEAN Day newspaper
supplements.
External Relations
------------------
22. ASEAN now has 11 Dialogue Partners. China, India and the
Russian Federation were the latest to become Dialogue Partners in
1996. Sectoral Dialogue relations with Pakistan have been formalised
with the exchange of letters between the Secretary-General of ASEAN
and the Minister of Foreign Affairs of Pakistan in June 1997.
23. Over the past year, contacts with other inter-governmental
organisations were further developed. These regional organisations
included the CER of Australia and New Zealand, Economic
Cooperation Organisation (ECO), the Mercusor of Latin America, the
South Asian Association for Regional Cooperation (SAARC) and the
Southern African Development Community (SADC).
24. The Secretary-General of ASEAN paid an official visit to Argentina
and Brazil in March and April 1997 to work out a proposal for linkages
between ASEAN and MERCUSOR. Informal consultations took place
between the Economic Ministers of both groupings during the WTO
Ministerial Conference in Singapore in December 1996 and another
meeting is planned in October 1997 in Kuala Lumpur during the
ASEAN Economic Ministers Meeting.
[18 July 1997, ASEAN press release]
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