105. The Fifth ASEAN Summit endorsed the Framework Agreement on Services which enhanced cooperation in the services sector and began, by January 1996, a process of preferential liberalisation of trade in services. The priority sectors are: financial services, tourism, telecommunications, air transport, maritime transport, construction services, and business services. The Summit has directed that the negotiation process for the seven sectors be completed by 31 December 1998 and that negotiations for financial services, tourism and telecommunications be concluded in 18 months, or by 30 June 1997.

106. The Coordinating Committee on Services as well as the various sectoral negotiating groups have been established to start implementing the Agreement. The Committee and the relevant sectoral negotiating groups met a number of times to discuss and initiate negotiations on the priority sectors. Member Countries have established the guidelines for the conduct of negotiations and exchanged information on the schedule of their respective commitments under GATS. The exchange of information has dealt mainly with the limitations in market access and national treatment in the four modes of supply. Member Countries have also decided on the format and schedules for future meetings and agree that initial negotiations should be conducted on a sectoral basis. This will enable sectoral experts to exchange information on policy regimes in their respective areas.