During the Post Ministerial Conferences in Bangkok in July 1988, the ASEAN and Australia sides signed a Memorandum of Understanding for the implementation of ASEAN - Australia Economic Cooperation Programme (AAECP) Phase II which would commence in July 1989, The goals and objectives of the AAECP Phase II as set out in the Memorandum of Understanding are to:

a) Promote intra-ASEAN regional cooperation;

b) Promote economic, scientific and technical cooperation and HRD between ASEAN and Australia through regional development projects;

c) Promote mutual understanding, mutual benefit, and effective relations between the member countries of ASEAN and Australia ; and

d) Promote the building and strengthening of institutions within ASEAN region and the respective member countries of ASEAN.

The development assistance from Australia for FY 1988/1989 had been increased from A$ 7.038 million to A$ 7.333 million due to an increase in the amount for the Coastal Living Resources Project from A$ 51 0,000 to A$ 605,000 and a provision of A$ 200,000 for administration and miscellaneous expenditure.

At the Twelfth Forum held in Perth, Western Australia on 15-16 May 1989, ASEAN and Australia discussed progress in the Uruguay Round and problems in the international commodity issues; exchanged views on the Australian initiative for a regional inter-governmental forum for economic cooperation; and reviewed bilateral trade and investment issues, economic cooperation programme, and science and technology cooperation.

On the Uruguay Round, ASEAN and Australia welcomed the successful results of the TNC held in Geneva, Switzerland in April 1989. They stressed the need for all negotiating groups to make maximum efforts in achieving further results in their negotiations. They also agreed to continue working closely together to ensure that their priority interests were reflected in the final negotiating phases.

On international commodity issues, ASEAN and Australia noting the uncertain international commodity outlook and the farm subsidy conflict, agreed to continue the efforts to eliminate the distorting policies of the major industrialised countries and to bring about more favorable conditions for commodity trade.

On the Australian proposal for an enhanced regional economic cooperation which would bring a number of countries in the Pacific Basin together for closer consultation in trade and other economic cooperation, Australia assured ASEAN that the Australian initiative would not undermine ASEAN and that ASEAN would be closely consulted in the planning and development of the Australian initiative. ASEAN responded that the proposal would be carefully considered in the ASEAN capitals.

ASEAN and Australia agreed to give serious and positive commitment to enhance ASEAN-Australia relations and promote trade and investment between them. However, trade issues such as ANZERTA, anti-dumping and textiles, clothing and footwear(TCF) would continue to be problematic as Australia failed to see the negative impacts of these arrangements on ASEAN efforts to expand its market in Australia.

ASEAN and Australia welcomed the cormpletion of the joint planning and preparation of the ASEAN - Australia Economic Cooperation Programme (AAECP) Phase II which would commence on 1 July 1989 for another five years on the completion of the current Phase I of the Programme. ASEAN expressed great appreciation to Australia for its continued funding and assistance in this development cooperation. The AAECP Phase II would focus on the areas of trade and investment promotion, science and technology, agro-based project and human resources development.

The Twelfth Forum witnessed the presence of large delegations from the ASEAN and Australian private sector numbering 16 from the ASEAN side and 11 from the Australian side. This was unprecedented in ASEAN - Australia dialogue or other ASEAN dialogue meetings. The private sector which was involved in, an exceptional number of agenda items participated actively in the discussions on trade and investment liberalisation, science and technology cooperation and improvement of telecommunication between ASEAN and Australia, and also the potential of expanding commercial relationship ASEAN and Australia.

For more information, please refer to the project details