f/a ar asean chapter5 - united...

Annual Report 2002-2003110

Annual Report 2002-2003 111

External

Relations

5


ASEAN sustained its intensifying cooperation

with its Northeast Asian neighbours, namely

China, Japan and the Republic of Korea,

particularly in the spheres of trade and

investment. The ASEAN+3 development

cooperation now covers agriculture,

environment, information and

communications technology, finance,

transnational crime, science and technology,

tourism, small and medium enterprises, and

industry. ASEAN continued to place

importance in its relations with all its other

Dialogue Partners, namely Australia, Canada,

India, the European Union, New Zealand, the

Russian Federation, the United States.

Contacts with other international

organizations, including the United Nations,

have been maintained.

1. COOPERATION WITHEAST ASIA (ASEAN+3)

The Sixth ASEAN+3 Summit in November

2002 received the final report and

recommendations of the East Asia Study

Group (EASG). The EASG identified several

short and long-term measures to move East

Asian cooperation forward. The leaders

expressed willingness to explore the phased

evolution of the ASEAN + 3 summit into an

East Asian summit. In addition to supporting

ASEAN initiatives, the three countries have

been helping the regional integration process

through their own efforts, notably Japan’s

Initiative for Development in East Asia (IDEA),

the East Asia Vision Group and the East Asia

Study Group initiated by the Republic of Korea

and the Framework Agreement on ASEAN-

China Economic Cooperation.

The ASEAN+3 leaders tasked the economic

ministers to study and formulate options on

the gradual formation of an East Asia Free

Trade Area. The Leaders expressed their

interest, as a long-term goal, to establish an

East Asian Summit and East Asian Free Trade

Area.

The ASEAN+3 development cooperation now

covers agriculture, environment, information

and communications technology, finance,

transnational crime, science and technology,

tourism, small and medium enterprises, and

industry.

For better coordination, the ASEAN+3

Directors-General Meeting was established in

August 2002. The Second Meeting of the

ASEAN+3 Directors-General adopted a Terms

of Reference to guide its work. The Meeting

discussed several recommendations of the

EASG in such areas as economic, health,


culture, IT and East Asian studies for possible

implementation.

The Directors-General agreed in principle to

implement project proposals from Japan on

HRD and people exchanges among researchers,

academia, business people and professionals.

The Meeting supported the convening of the

ROK-proposed East Asia Forum, to be

composed of government, business and

academia, at the end of 2003.

The ASEAN + 3 leaders agreed to enhance

cooperation, coordination and the sharing of

information in the fight against terrorism and

transnational crime. They have supported the

convening of the ASEAN+3 Ministerial

Meeting on Transnational Crime, which is

scheduled to be held in November 2003 in

Bangkok.

2. DIALOGUE RELATIONS

Australia

The A$45 million ASEAN-Australia

Development Cooperation (AADCP) saw its

first stages of implementation during the

period 2002 to 2003, although a few projects

in the fields of culture, social development and

energy are still going on under its forerunner,

the ASEAN-Australia Economic Cooperation

Programme – Phase III (AAECP), which is

nearing completion. The First Meeting of the

AADCP Joint Planning Committee (JPC), held

on 7 May 2003 in Bandar Seri Begawan,

adopted its own Terms of Reference and

endorsed the AADCP Framework Document.

Under the AADCP’s Regional Economic Policy

Support Facility, a range of priority regional

policy research activities to provide ASEAN

with high quality, high priority and timely

regional economic policy analysis have been

identified. The current research programme of

the Facility addresses substantive and strategic

policy issues ranging from developing

indicators of ASEAN integration to studying

options for managing revenue losses and other

adjustment costs of CLMV countries in their

participation in AFTA. The Facility supports

policy needs for frontier integration areas such

as liberalization and facilitation of movement

of individual service providers, as well as in

preparing for an ASEAN open sky.

The Regional Partnerships Scheme (RPS) of

the AADCP aims to support the

implementation of a range of smaller scale

regional development activities, which are to

be developed by ASEAN and Australian

entities, to be funded in rounds over a period

of five years. The first and second meetings

of the Joint Selection and Review Panel

formalized the project selection guidelines for

the RPS, which were subsequently endorsed

by ASEAN and Australia. Three project

proposals have been approved in principle for

funding, such as (a) Eco-labels and certification

in forestry; (b) Energy policy and systems

analysis; and (c) Project design support

program.


The Program Stream, which forms the largest

component of the AADCP, consists of two

subprograms, namely “Strengthening ASEAN

Economic Integration” and “Enhancing

ASEAN Competitiveness.” Each component

comprises a series of smaller joint ASEAN-

Australian activities contributing to the broader

program objectives and implemented over

periods longer than those of the other two

components. Eleven projects have been

identified for implementation under the

Program Stream.

Canada

Efforts to revitalize the dialogue between

ASEAN and Canada are continuing. As a

starting point, the Memorandum of

Understanding (MoU) of the ASEAN-Canada

Regional Training Programme (RTP) is being

revised to make it responsive to the current

situations in ASEAN and Canada. A mutually

acceptable MoU for the RTP would pave the

way for the convening of the 12th ASEAN-

Canada Joint Cooperation Committee

meeting.

China

At the Eighth ASEAN-China Summit in Phnom

Penh on 4 November, ASEAN and Chinese

leaders signed the “Framework Agreement on

Comprehensive Economic Co-Operation

between ASEAN and China” which provides

the groundwork for the eventual

establishment of an ASEAN-China Free Trade

Area (FTA) by 2010 for the older ASEAN

members and 2015 for the newer members,

namely Cambodia, Lao PDR, Myanmar and

Viet Nam. The Agreement, which will come

into force on 1 July 2003, also features special

and differential treatment and flexibility to

newer ASEAN members and a provision for

an “Early Harvest” for certain goods and

services.

An ASEAN-China Trade Negotiating

Committee (ASEAN-China TNC) was

established in May 2002 to negotiate a

comprehensive Framework Agreement on

ASEAN-China Economic Cooperation and had

met several times. Negotiations for the trade

in goods component of the ASEAN-China Free

Trade Area would be concluded by 30 June

2004 while the Rules of Origin for trade in

goods should be completed by December

2003. For services and investment,

negotiations would commence in 2003 and

would be concluded as expeditiously as

possible.


The Leaders also adopted the “Joint

Declaration of ASEAN and China on

Cooperation in the Field of Non-Traditional

Security Issues.” The priorities at the current

stage of cooperation include combating the

trafficking in illegal drugs, people-smuggling

including trafficking in women and children,

sea piracy, terrorism, arms-smuggling, money-

laundering, international economic crime and

cyber crime. The first meeting of the ASEAN

Senior Officials on Transnational Crime and

their counterpart from China is scheduled in

June 2003.

Cooperative activities between ASEAN and

China have been expanding in the five priority

areas, namely agriculture, information and

communications technology, human resource

development, two-way investment, and the

Mekong River Basin development.

China has allocated US$5 million for the

implementation of human resource

development projects. Currently, the bulk of

the HRD projects are in the science and

technology sector followed by ICT and

agriculture. HRD projects in other areas, such

as academic, transport, social development,

culture, investment, industry and tourism are

being developed.

In the area of agriculture, ASEAN and China

signed a Memorandum of Understanding

between the Ministry of Agriculture of the

People’s Republic of China and the ASEAN

Secretariat (on behalf of ASEAN Member

Countries) on Agricultural Cooperation on 2


November 2002 in Phnom Penh. The MoU is

a technical cooperation agreement to

implement training programmes for ASEAN

participants in China. The areas of cooperation

include forestry, livestock production, fisheries,

biotechnology, post-harvest technology and

the field harmonization of quarantine

measures and standard conformity of

agricultural products. Activities under the MoU

have been progressing well. ASEAN and China

have implemented nine projects successfully.

Preparations are underway for the signing of

a Memorandum of Understanding on ASEAN-

China Cooperation on Information and

Communication Technology in June 2003.

Under the MoU, both sides would be

collaborating in medium and longer term

activities in HRD, information infrastructure

development; technology development; ICT

application development; compatibility,

integrity, and security of ICT systems;

e-ASEAN projects implementation; exchange

of information; and ASEAN-China ICT

seminar.

ASEAN-China cooperation continued in the

frameworks of the Greater Mekong Sub-

Region (GMS), ASEAN Mekong Basin

Development Cooperation and the Mekong

River Commission. China has expressed

interest in sponsoring an Initiative for ASEAN

Integration (IAI) project, “Inland Waterway

Improvement Project in CLMV Countries,”

and other IAI projects utilising the ASEAN-

China Cooperation Fund.

The Terms of Reference (TOR) for ASEAN-

China Transport Cooperation was adopted

during the First ASEAN and China Transport

Ministers Meeting on 20 September 2002.

Under the TOR, the agreed areas for

cooperation include land transport

infrastructure and facilitation; facilitation of

maritime and river transport; and expansion

of air transport services.

Development cooperation between ASEAN

and China has been progressing at a

considerably fast pace especially with the

establishment of the ASEAN-China Working

Group on Development Cooperation

(ACWGDC) in May 2002. Between May 2002

and March 2003, ASEAN and China have

implemented 14 projects in the areas of

science and technology, ICT, agriculture,

transport, social development, HRD, and mass

media. Eleven more projects covering ICT,

HRD, science and technology, investment,

transport, academic exchange, SME,

environment, and cultural sectors are expected

to be implemented within 2003.


The Second Meeting of the ACWGDC, held

on 26-27 March 2003 in Beijing, discussed ten

new project proposals from China in the areas

of entrepreneurs exchange, personnel

exchange, AIDS laboratory network, law

enforcement cooperation, quality inspection

and quarantine, maritime, agriculture,

biotechnology, and pension insurance. The

Meeting also reviewed seven project proposals

from ASEAN in the fields of investment, inland

waterway improvement, botanical gardens,

empowerment of SMEs, culture, and seafarers.

The European Union

The 14th ASEAN-EU Ministerial Meeting

(AEMM) was convened on 27 and 28 January

2003 in Brussels. The event underscored the

commitment of both sides to remain engaged

in active dialogue and cooperation at the

regional level. This engagement would cover

political and security, economic and

development cooperation fields with political

cooperation being elevated to the same level

of economic cooperation between the two

entities. In addition to the issuance of the Co-

Chairs’ Statement as a reflection of the

substantive discussions between the Ministers,

an ASEAN-EU Joint Declaration on

Cooperation to Combat Terrorism was also

adopted at this meeting.

At the Third ASEAN Economic Ministers and

EU Trade Commissioner Consultations, held

on 4 April 2003 in Luang Prabang, the EU

suggested a regional framework to be called

“Trans-Regional EU-ASEAN Trade Initiative”

or TREATI, to address trade facilitation,

investment, and regulatory issues between

ASEAN and EU. The TREATI would be based

on the existing Cooperation Agreement

between the Member Countries of ASEAN and

the European Community signed in 1980 and

would be established through a joint

declaration. The EU agreed that this

framework could lead to an ASEAN-EU

preferential trading agreement in the future.

The AEMM agreed to pursue further

cooperation in the fields of energy,

environment, science and technology,

transport, good governance, HIV/AIDS, and

integration of ASEAN. The European

Commission will be sending a programming

mission to the ASEAN Secretariat to explore

cooperation in these areas.

The First Meeting of the ASEAN-EC Sub-

Committee on Narcotics was convened on 16

October 2002 in Kuala Lumpur. Both sides

agreed to cooperate in demand reduction,

treatment and rehabilitation, prevention of

money laundering and prevention of chemical

precursors diversion, including monitoring of

precursors.

Under development cooperation, there are at

present five projects worth 55.5 million Euros

in the areas of environment, energy,

intellectual property rights and education. Two

other programmes worth 13 million Euros will

be implemented in due course. They include

the European Commission-ASEAN Regional


Co-operation Programme on Standards,

Quality and Conformity Assessment and the

ASEAN-EC Project on Regional Integration

Support (APRIS). The EC is also funding the

development of a business plan for the

ASEAN-EC Management Centre in Brunei

Darussalam.

APRIS, a project worth 4.5 million Euros, is a

framework programme to assist ASEAN

Member Countries in regional integration. It

aims to draw lessons from the experience of

the EC in forging regional economic

integration, contribute to improving ASEAN

mechanisms and communications systems,

and supporting capacity-building activities for

the ASEAN Secretariat and ASEAN Member

Countries. The APRIS Financing Agreement

was signed in early 2003.

India

The First ASEAN-India Summit was held on 5

November 2002 in Phnom Penh. In order to

enhance the relationship, the Leaders agreed

to hold an ASEAN-India Summit annually.

Furthermore, the meetings of Economic

Ministers and their senior officials have been

institutionalised.

The Summit outlined several areas of

cooperation, namely trade and investment,

human resources development, science and

technology including information technology

and people-to-people interaction. The Leaders

agreed to consolidate the close economic

relations by promoting trade and investment,

facilitating market access, improving the flow

of technology and enhancing the flow of and

access to trade and investment-related

information. They agreed to work towards

AFTA-India Linkages.

The First ASEAN-India Economic Ministers’

Consultations, held in Brunei Darussalam, on

15 September 2002, adopted the ASEAN-

India Regional Trade and Investment Area as

a long-term objective. An ASEAN-India Task

Force on Economic Linkages has been set up

to prepare a draft Framework Agreement to

enhance ASEAN-India Economic Cooperation.

The Task Force has met three times, the last

being on 16-17 March 2003 in Kuala Lumpur.

The Sixth Meeting of the ASEAN-India

Working Group was held on 6-7 February

2003 in New Delhi to review the present

activities and discuss follow-up actions to carry

out the Summit decisions. The Meeting agreed

to develop an ASEAN-India Medium-term

Programme of Cooperation in ICT. The

Meeting also agreed to recommend to ASEAN

Committee on Science and Technology

(COST) to convene the ASEAN-India Working

Group on Science and Technology annually


instead of biennially. The establishment of an

ASEAN-India Working Group on Health and

Pharmaceuticals comprising representatives

from both the government and private sectors

has been proposed.

India has expressed interest in supporting the

Initiative for ASEAN Integration (IAI) by

committing to undertake four projects, namely

(a) Railway training program for CLMV

instructors; (b) English training program for

selected English teachers’ training colleges in

CLMV; (c) India-Singapore joint training

program for CLMV; and (d) High-end

computer networking courses. The ASEAN

NTOs–India Informal Consultation on

Cooperation in Tourism is being reactivated.

ASEAN and India are working through their

think tanks and research institutions to develop

an ASEAN-India Vision 2020.

The Fifth ASEAN-India JCC, held on 22-23

April 2003 in New Delhi, reviewed the

progress of existing ASEAN-India projects and

looked into new areas of cooperation. India

expressed interest to promote cooperation

with ASEAN in the areas of science and

technology, space technology, biology, and

agriculture. India has proposed the setting up

of an ASEAN-India Science and Technology

Digital Library at the ASEAN Secretariat to be

borne by the ASEAN-India Fund.

Japan

Marking the 30th year of ASEAN and Japan

relations, the year 2003 has been designated

as the ASEAN-Japan Year of Exchange.

Activities to mark the ASEAN-Japan Year of

Exchange would be pursued throughout the

year, with Japan being the key coordinator for

January and December while each ASEAN

Member Country would take turns being the

key coordinator for the remaining ten months.

The activities will include artistic performances

and exhibitions, trade and investment

missions, tourism promotion activities and will

offer opportunities for experts to assemble and

discuss the need to create a number of new

institutions in various economic, political and

social fields. The ASEAN-Japan

Commemorative Summit will be held in Tokyo

on 11-12 December 2003.


The ASEAN-Japan Summit, held in Phnom

Penh on 5 November 2002, issued a Joint

Declaration endorsing the development of a

framework for Comprehensive Economic

Partnership, including elements of a possible

FTA. (More information on this can be found

in Chapter 2 of this Annual Report).

Through its active support for a series of

workshops that eventually produced the Work

Plan for the Initiative for ASEAN Integration

(IAI), Japan has helped catalyse further

development efforts for the IAI. With the IAI

Work Plan in place, support for IAI projects

through the ASEAN-Japan Solidarity Fund,

held in trust at the ASEAN Foundation, is under

active consideration.

While the Japan’s Ministry of Foreign Affairs

remains the main channel for Japanese ODA

to ASEAN, other Japanese agencies have also

actively pursued development efforts with

ASEAN.

Republic of Korea

During the ASEAN-ROK Summit in November

2002, the ROK demonstrated its commitment

to ASEAN with a pledge of US$ 5 million that

would be earmarked for three to four projects

under the Initiative for ASEAN Integration

(IAI). A survey team from the Korea

International Cooperation Agency (KOICA)

will be sent to the ASEAN Secretariat in the

first half of 2003 to discuss and determine the

potential areas of ROK contribution.

The ASEAN-ROK Summit recognised the vast

untapped potential in economic relations

betwen ASEAN and the ROK and encouraged

further cooperation in the fields of agriculture,

trade and investment. At the Seventh Meeting

of ASEAN-ROK Dialogue, held in the

Philippines on 8-9 April 2003, the ROK

reiterated its commitment to participate in the

ASEAN Mekong Basin Development

Cooperation.

The Fifth Meeting of the Joint Planning and

Review Committee (JPRC), held in Jakarta on

18-19 February 2003, approved four projects

to be funded from the ASEAN-ROK Special

Cooperation Fund. These projects include (a)

Homecare for the older people in ASEAN; (b)

ASEAN-ROK technology network for multi-

robot cooperation system development; (c)

restoration of degraded forest ecosystem in

the Southeast Asian tropical regions; and (d)

Workshop on Korea’s development and crisis

management and its implications for ASEAN.


The ROK has been one of the staunchest

supporters of closer cooperation in East Asia.

The East Asia Vision Group and the East Asia

Study Group were both initiated by the ROK.

At the Seventh ASEAN-ROK Dialogue, both

sides expressed their commitment to

implement the short-term measures as well

as to work towards the realization of the long-

term measures recommended in the Final

Report of the EASG. In December 2003, the

ROK will host the inaugural meeting of the

East Asia Forum.

New Zealand

ASEAN-New Zealand Dialogue gained new

impetus with the adoption of cost-sharing

arrangement for funding development

cooperation projects. This arrangement was

applied in the holding of the Second Regional

Seminar for the ASEAN Project on Early

Childhood Care and Development, which was

held in Bangkok on 3-6 March 2003. The

Eighth Meeting of the ASEAN-New Zealand

Joint Management Committee (JMC), held in

Wellington on 6 May 2003, discussed ways

to improve the process, coordination,

management, and cost-sharing of

development cooperation projects.

Russian Federation

An ASEAN-Russia Working Group on Trade

and Economic Cooperation (ARWGTEC) was

convened in September 2002 in Moscow to

facilitate business contacts, information

exchange on regulations of external trade and

investment regimes, and to provide a forum

for interaction in moving forward ASEAN-

Russia partnership on trade and economic

cooperation.

The Third Meeting of the ASEAN-Russia Joint

Cooperation Committee (JCC) was held in

September 2002. Both sides agreed to inject

a new momentum into the cooperation by

looking at the possibility of signing a

cooperation agreement to ensure the

commitment of resources as well as to move

collaborations in trade and economic, science

and technology, education, transport and

combating transnational crime, in particular

terrorism. Russia agreed to support ASEAN

activities in regional integration.

ASEAN and Russia have agreed to sign the

“Joint Declaration of the Ministers of Foreign

Affairs of Russia and Member States of ASEAN

on Partnership for Peace, Stability and Security

in the Asia-Pacific Region” at the ASEAN Post-

Ministerial Conference with Russia in June

2003 in Phnom Penh. The proposed “ASEAN-

Russia Agreement on Economic Cooperation”

is under consideration.

United States

The United States announced a new initiative

called the ASEAN Cooperation Plan (ACP) on

1 August 2002 in Bandar Seri Begawan. As

envisioned, cooperation activities will be

undertaken in the following areas: information

technology, agricultural biotechnology, health,

disaster response, and training for the ASEAN


Secretariat. Details of the activities are now

being worked out.

The ASEAN Economic Ministers and US Trade

Representative met for an informal

consultation on 20 November 2002 in Manila.

The economic ministers discussed the

Enterprise for ASEAN Initiative (EAI), which

was announced by the President of the United

States during his meeting with some ASEAN

leaders attending the APEC Summit in Los

Cabos on 26 October 2002. ASEAN welcomed

the EAI and proposed the formulation of a

region-wide ASEAN-US Trade and Investment

Framework Agreement (TIFA) to be followed

by bilateral FTAs between interested ASEAN

Member Countries and the US. The US-

ASEAN Business Council is continuing its key

role in promoting US business interest in the

ASEAN region.

The ASEAN Consultative Committee on

Standards and Quality (ACCSQ) and the US

Department of Commerce Meeting on

Standards and Related Activities continue to

implement the three-year ASEAN-US Action

Plan (2001-2003) to Address Trade-Related

Standards and Conformance Issues. The Fifth

ACCSQ-Department of Commerce Meeting

was held on 6 March 2003 in Brunei

Darussalam.

The First ASEAN-US Informal Coordinating

Mechanism Meeting was held on 28 March

2003 in Vientiane. The Meeting took stock of

ASEAN-US development cooperation activities

and planned future activities based on ACP.

ASEAN and the US agreed to develop a work

plan covering economic, political and

development cooperation areas to give focus

to the cooperation and to systematically

implement the cooperation. ASEAN and the

US will further hold consultations on capacity-

building and training for the ASEAN Secretariat

and officials from the ASEAN National

Secretariats in Member Countries.

ASEAN and the US have signed a Joint

Declaration for Cooperation to Combat

International Terrorism on 1 August 2002 in

Bandar Seri Begawan.

United Nations DevelopmentProgramme

ASEAN and the UNDP launched the three-

year ASEAN-UNDP Partnership Facility

Programme with the signing of the

programme document in April 2003 by the

Secretary-General of ASEAN and the Resident

Representative of UNDP in Jakarta. The

US$1.45 million Facility Programme is aimed

at providing analytical and advisory support

services to ASEAN to address the current and

emerging issues in regional integration within

ASEAN and with other countries.

Under the Programme, the UNDP’s technical

advisory support will focus on ways to

accelerate the implementation of regional

trade and investment liberalisation and help

narrow the development gap among ASEAN

Member Countries, including addressing

emerging issues such as the link between trade


liberalization and poverty reduction, giving

special attention to Cambodia, Laos, Myanmar

and Viet Nam.

Pakistan Cooperation Fund and the

Government of the Pakistan. The Workshop

provided an opportunity for ASEAN scientists

to exchange views with Pakistani scientists on

various issues related to R&D work on

composite design and its applications in

industries as well as to provide a set of

recommendations for future cooperation

activities in this field.

4. COOPERATION WITH THEUNITED NATIONS

The Third United Nations-ASEAN Conference

on Conflict Prevention, Conflict Resolution

and Peacebuilding in Southeast Asia was held

in Singapore on 17-19 February 2003. The

conference was co-sponsored by the United

Nations Department of Political Affairs, United

Nations Development Programme, Ministry of

Foreign Affairs of Singapore, Institute of

Defense and Strategic Studies, ASEAN-

Institutes for Strategic and International

Studies, and the ASEAN Secretariat. The

conference continued to serve as a non-official

venue for exchanging views, information, and

experiences in anticipating and mediating

conflicts. Many other areas of ASEAN-UN

cooperation can be found in several

appropriate sections of this Annual Report.

3. SECTORAL DIALOGUE

Pakistan

As a follow up to the Second Meeting of the

ASEAN-Pakistan Joint Sectoral Cooperation

Committee (APJSCC) in 2001 in Islamabad, a

mission from Pakistan visited the ASEAN

Secretariat on 19-20 August 2002. During the

visit, discussions were held on possible areas

for cooperation, namely information and

communication technology, science and

technology, AFTA-Pakistan economic linkages,

civil services, people-trafficking, ASEAN

University Network, and drugs and narcotics.

Specific project proposals would be developed

in these areas.

The ASEAN-Pakistan Workshop and Industrial

Composite Design and Applications was held

in Islamabad from 29 to 31 October 2002.

The Workshop was funded by the ASEAN–

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