Trade and economic issues dominated the Ninth Meeting of ASEAN - New Zealand dialogue which was held in Yogyakarta, Indonesia on 23-24 November 1988. ASEAN expressed great concern over the sharp decline in ASEAN - New Zealand trade during the period of 1980-1987. ASEAN's exports to New Zealand dropped from US$534.9 million accounting for 9.8% of New Zealand's total imports in 1980, to US$ 210.4 million or 2.9% in 1987, while New Zealand's exports to ASEAN during the same period went down from US$ 338.5 million accounting for 6.3% of New Zealand's total exports to US$ 324 million or 4.5%.

As the sharp decline in ASEAN's exports was largerly due to the reduction in New Zealand's intake of petroleum products from ASEAN arising from the increased production of oil refineries in New Zealand, New Zealand stressed the need for ASEAN to look into the non-oil sector and to take advantage of new opportunities offered arising from the New Zealand's economic restructuring including market opening, process in removing import licencing and reduction of tariffs. The newly introduced Trade and Investment Promotion Package (TIPP) which is to assist ASEAN countries in expanding and diversifying their exports to New Zealand would also encourage the growth of ASEAN exports to New Zealand.

New Zealand confirmed that by the early 1990s, all import licencing would be removed. The four-years Tariff Reduction Programme implemented since July 1988 would bring about a more uniform across-the-board tariff levels. The new revised New Zealand GSP Scheme provides a GSP rates of 80% of the normal tariff rates and as normal tariff rates are reduced under the Tariff Reduction Programme the GSP rates would also come down. On ASEAN further request for re-instatement of products, New Zealand agreed to continue considering such requests with regard to cases where no domestic manufacture for the product is involved.

On ANZCERTA, New Zealand welcome representation from ASEAN on a case-by-case basis of products that may be affected. New Zealand also maintained that the free trade arrangements with Australia was not discriminatory and that no new barriers or tariffs had been introduced against products from other countries.

With regard to other areas of cooperation, ASEAN and New Zealand agreed to explore the tourist industry which has bright prospects for future cooperation. An ASEAN proposed Study of Tourism Trade and Consumer Market in New Zealand would be looked into under the Trade and Investment Promotion Package (TIPP). Another area of cooperation would be investment. In this regard, New Zealand was briefed on the improved ASEAN Industrial Joint Venture (AIJV) Scheme as decided by the Third ASEAN Summit. New Zealand expressed its interest in the improved AIJV and would inform its private sector of the scheme and also seek a specific response from them.

On the Uruguay Round, ASEAN and New Zealand stressed the need for their continued cooperation and consultation. They were pleased with the close cooperation already achieved in the Cairns Group and reaffirmed that this collaboration should continue.

On development cooperation, ASEAN expressed satisfaction with the progress made on various cooperative projects. ASEAN was appreciative of New Zealand's assistance for ASEAN's participation in the Hospitality International Trade Fair held in Auckland in July 1988 which had help to promote ASEAN's products in the New Zealand market. ASEAN expressed its concern over the reduction in the 1988/89 allocation for the ASEAN Regional Programme from NZ$ 2.6 million to NZ$ 2.1 million which was brought about by the New Zealand's decision to reduce public expenditure including its Overseas Development Assistance (ODA). Consequent to this reduction of financial allocation to ASEAN, a number of programme activities including the Diary Technology, Training of Narcotics Dogs and End Uses of Timber which had been agreed upon, could not be implemented. ASEAN was assured, however, that this was a- short-term situation. However, the situation has improved as the New Zealand Government has decided to provide additional funds for the expenditure under the ASEAN Programme in 1988/1,989 from NZ$ 2.1 million, due to some available unexpended fund towards the end of the Financial Year.

Concerning New Zealand Overseas Students policy, ASEAN was deeply concerned with implementation of the proposed new education policy of "user pays" which would have an adverse effect on ASEAN students wishing to further their studies in New Zealand. ASEAN sought assurances from New Zealand that ASEAN students would not be adversely affected by the new policy. ASEAN also reiterated its request to New Zealand that with regard to New Zealand's development assistance to ASEAN, there should not be any form of differential treatment for ASEAN students when New Zealand accepts students from ASEAN. ASEAN further impressed upon New Zealand that any increase in fees as a result of the proposed “users pays” system should be at a reasonable rate.

On ASEAN proposal to involve the private sector in the dialogue process, New Zealand agreed the private sector should be invited to participate in the next dialogue meeting. The private sector would meet prior to the official dialogue to discuss their views and inputs on possible trade and economic issues that would be on the dialogue agenda.

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