I.          Background

1.         ASEAN and Japan first established informal relations in 1973, which were later formalised with the establishment of the ASEAN-Japan Forum in March 1977. Since then, significant progress has been made in the ASEAN-Japan relations. Cooperation has broadened and deepened, covering political and security, economic and financial, and social and cultural areas.

2.         The relations have been further enhanced and strengthened by the signing of the “Tokyo Declaration for the Dynamic and Enduring ASEAN-Japan Partnership in the New Millennium” and the adoption of the “ASEAN-Japan Plan of Action” at the ASEAN-Japan Commemorative Summit held on 11-12 December 2003 in Tokyo.  

II.         Political and Security Cooperation

3.         ASEAN and Japan have deepened and broadened their cooperation to ensure peace, stability and prosperity in the region through various established mechanisms under the ASEAN-Japan dialogue, namely Summit, ministerial meetings, senior officials meetings and meetings at the expert levels as well as through multilateral frameworks initiated by ASEAN such as ARF, PMCs+10, and ASEAN+3 process. 

4.         The Tokyo Declaration and the ASEAN-Japan Plan of Action adopted at the ASEAN-Japan Commemorative Summit have been a blueprint in moving forward ASEAN-Japan relations and providing guideline and direction for future cooperation. The documents reflect the commitment of both sides to develop an enduring and comprehensive partnership in the 21st century.

5.         As a follow-up to the outcomes of the Commemorative Summit, ASEAN and Japan have made efforts in implementing priority measures and actions under the ASEAN-Japan Plan of Action, the results of which will be reported to the ASEAN+Japan Summit on 30 November 2004. 

6.           Japan’s accession to the Treaty of Amity and Cooperation (TAC) in Southeast Asia on 2 July 2004 in Jakarta has added the importance to the TAC as a code of conduct governing relations among countries and a diplomatic instrument for the promotion of peace and stability in the region. 

7.           In view of the fast changing regional and international environment, particularly the emerging of transnational threat, ASEAN and Japan have enhanced closer cooperation in maintaining peace and stability in the region and in addressing issues on counter-terrorism, anti-piracy and combating other transnational crimes. Japan attended the First ASEAN Plus Three Ministerial Meeting on Transnational Crime held on 10 January 2004 in Bangkok, which endorsed in principle the concept plan to implement cooperation in eight areas, namely terrorism, illicit drug trafficking, trafficking in persons, sea piracy, arms smuggling, money laundering, international economic crime and cyber crime. The First annual ASEAN SOMTC+Japan Consultation on 29 September 2004 in Bandar Seri Begawan exchanged views on ways and means for ASEAN-Japan future cooperation. Japan and ASEAN are working on the draft Joint Declaration for Cooperation on the Fight Against International Terrorism to be issued at the forthcoming ASEAN-Japan Summit on 30 November 2004. 

III.          Economic Cooperation

8.         ASEAN and Japan continued to be important trading partners. The Leaders of ASEAN and Japan signed the Joint Declaration of the Leaders of ASEAN and Japan on the Comprehensive Economic Partnership (CEP) and the Framework for CEP between ASEAN and Japan on 5 November 2002 in Phnom Penh and on 8 October 2003 in Bali, respectively

9.         The implementation of the ASEAN-Japan CEP (AJCEP), including elements of a possible free trade area, will be completed before or by 2012, taking into account the economic levels and sensitive sectors in each country, including allowing additional five years for the new ASEAN Member Countries.

10.        At the Eleventh ASEAN Economic Ministers and the Minister of Economy, Trade and Industry of Japan Consultation (AEM-MEITI) held on 4 September 2004, the Ministers agreed to recommend to the Leaders at the ASEAN-Japan Summit on 30 November 2004 that ASEAN and Japan should commence the negotiations on the AJCEP Agreement in April 2005. They also committed to endeavour to conclude the negotiation within two years from that date.

11.        In terms of trade, in 2003, ASEAN exported to Japan US$50.3 billion or 11.7% of her total exports to the world and imported from Japan US $58 billion or 16% of her total imports from the world. Meanwhile, Japanese direct investments to ASEAN increased by 17% from US$1.76 billion in 2002 to US$2.06 billion in 2003. Japanese direct investment accounted for 10% of total foreign direct investments in 2003.

Development Cooperation

12.        In addition to being one of ASEAN's most important economic partners, Japan is a major contributor to development cooperation activities. Japan has provided technical assistance to ASEAN through several programmes, such as the Japan-ASEAN Exchange Programme (JAEP) and the Japan-ASEAN General Exchange Fund (JAGEF). Development cooperation covers wide-range of areas, including support for the Initiative for ASEAN Integration (IAI), HRD, ICT, youth, Mekong Basin Development and others.

13.        Japan has supported projects under the IAI Work Plan and other regional and sub-regional development areas such as the East West Corridor, Greater Mekong Sub-region, Brunei Darussalam-Indonesia-Malaysia-Philippines - East ASEAN Growth Area (BIMP-EAGA) and others to promote economic and social development of the regions.

14.        ASEAN and Japan have placed emphasis on people-to-people and cultural exchanges, particularly among the youths and intellectuals, with a view to fostering a sense of togetherness, mutual trust, respect and understanding of each other’s traditions and values. Japan provides its support to the Ship for Southeast Asian Youth Programme and the ASEAN-Japan Youth Friendship Programme. The exchange programmes also include the exchanges of academics, researchers and students.

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