I. Background
1. The ASEAN Plus Three cooperation began in December 1997 with the convening of an informal Summit among the Leaders of ASEAN and their counterparts from East Asia, namely China, Japan and the Republic of Korea (ROK) at the sidelines of the Second ASEAN Informal Summit in Malaysia.
2. The ASEAN Plus Three process was institutionalised in 1999 when the Leaders issued a Joint Statement on East Asia Cooperation at their 3rd ASEAN Plus Three Summit in Manila. The ASEAN Plus Three Leaders expressed greater resolve and confidence in further strengthening and deepening East Asia cooperation at various levels and in various areas, particularly in economic and social, political, and other fields.
3. Since then, a number of key documents have been adopted to set the direction for ASEAN Plus Three cooperation. These include the Report of the East Asia Vision Group (EAVG) of 2001 and the Report of the East Asia Study Group (EASG) of 2002.
II. Political and Security Cooperation
4. Political and security cooperation among the ASEAN and Plus Three countries are progressing well. ASEAN and Plus Three Countries hold regular dialogue and consultations at the summit, ministerial, senior officials and working groups/expert levels to strengthen and deepen cooperation.
5. ASEAN Plus Three countries have cooperated in addressing the threat posed by terrorism and other transnational crimes. The first ASEAN SOM Plus Three Consultation on Transnational Crime (SOMTC+3) was held in June 2003 in Ha Noi. The first ASEAN Ministerial Meeting on Transnational Crime Plus Three was held on 10 January 2004 in Bangkok, where the ministers adopted the concept plan to address transnational crimes in eight areas, namely terrorism, illicit drug trafficking, trafficking in persons, sea piracy, arms smuggling, money laundering, international economic crime, and cyber crime.
6. The SOMTC+3 held on 29 September 2004 in Bandar Seri Begawan further agreed to develop specific work programmes in the eight areas of the concept plan for joint cooperation. Each of the areas will be led by an “engine country” from ASEAN and supported by the Plus Three Countries.
III. Economic, Trade and Financial Cooperation
7. Cooperation in economic, and monetary and financial fields has made substantive progress. Over the years, total trade value between ASEAN and the Plus Three Countries reached US$ 195.6 billion in 2003 compared to US$170.8 billion in 2002, marking a growth of 14.49% in 2003.
8. Bilateral trading arrangements between ASEAN and China and ASEAN and Japan have been established and between ASEAN and the ROK are underway. These arrangements will serve as the building blocks for a possible establishment of an East Asia Free Trade Area (EAFTA) in the near future.
9. In financial cooperation, a regional financing arrangement called the “Chiang Mai Initiative (CMI)” has been put in place. The CMI consist of an expanded ASEAN Swap Arrangement (ASA) and a network of bilateral swap arrangements (BSAs) among ASEAN Member Countries, China, Japan and the ROK. The ASA is now US$1 billion in size, while 16 BSAs have been successfully concluded with a combined total size of US$36.5 billion. The ASEAN Plus Three countries are exploring ways to enhance the effectiveness of the CMI.
10. Under monetary and finance cooperation, substantive progress has been made in developing the Asian Bond Market Initiative (ABMI). ASEAN Plus Three countries are undertaking efforts to modify existing regulations to facilitate the issuance of and investment in local currency denominated bonds under the ABMI. The AsianBondsOnline Website (ABW) was launched in May 2004.
IV. Implementation of East Asia Study Group (EASG) Measures
11. The Final Report of the EASG was adopted by the ASEAN Leaders at the ASEAN Plus Summit in 2002 in Cambodia. The Report contains 17 short-term measures, and 9 medium and long-term measures.
EASG Short-term Measures
12. Since the adoption of the EASG’s Final Report in 2002, all 17 EASG short-term measures have been taken up by the ASEAN Plus Three Countries. The ASEAN Plus Three Countries have agreed to implement all the short-term measures by the 10th Anniversary of the ASEAN Plus Three cooperation in 2007.
13. Four Short-term measures have been implemented: 1) “implement a comprehensive human resources development program for East Asia” by establishing the ASEAN Plus Three Study Group on Facilitation and Promotion of Exchange of People and Human Resources Development by Japan; 2) “build a network of East Asia Think-tanks” (NEAT) by China and Thailand, 3) “establish an East Asia Forum” (EAF) by the ROK and Malaysia, and 4) “form and East Asia Business Council” (EABC) by Malaysia. Some measures have been implemented through ASEAN Plus Three sectoral cooperation such as “establish GSP status and preferential treatment for the least developed countries” and “strengthen mechanisms for cooperation on non-traditional security issues”.
EASG Medium and Long-term Measures
14. There are 9 EASG Medium and Long-term Measures. China is planning to host the high-level conference on investment and SMEs in China in the first half of 2005.
15. ASEAN Plus Three Countries continue to hold discussions on the convening of the East Asia Summit (EAS) at an appropriate time and the concept of an East Asia community. ASEAN and Japan have developed concept and issues papers on the EAS. Malaysia has offered to host the first East Asia Summit in Kuala Lumpur in 2005.
16. The ASEAN Plus Three Economic Ministers Meeting (AEM+3) held in Jakarta on 14 September 2004 have endorsed a proposal to set up an Experts Group, comprising scholars and researchers to study the feasibility of an EAFTA.
17. Other measures are being pursued through ASEAN Plus Three sectoral meetings: 1) “establish a regional financing facility” and “pursue a more closely coordinated regional exchange rate mechanism” through ASEAN+3 Finance Ministers Meeting; 2) “promote closer regional marine environmental cooperation for the entire region” through ASEAN+3 Ministers Meeting on the Environment; and 3) “build a framework for energy policies and strategies and action plans” through the ASEAN+3 Ministers Meeting on Energy.
V. Institutional Mechanisms
18. Currently, there are 48 mechanisms under the ASEAN Plus Three process, coordinating 16 areas of ASEAN Plus Three cooperation, which include economic, monetary and finance, political and security, tourism, agriculture, environment, energy, and ICT.
19. The ASEAN Plus Three Unit was established at the ASEAN Secretariat in December 2003 to assist the ASEAN Plus Three Co-chairs to coordinate and monitor ASEAN Plus Three cooperation.
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