87. Efforts in the agriculture and forestry sector continued to focus on the seven priority areas. These areas were identified by the Ministerial Understanding (MU) on ASEAN Cooperation in Food, Agriculture and Forestry which was adopted by the 15th Meeting of AMAF in Bandar Seri Begawan from 28-30 October 1993. Cooperation programmes in the major sectors of crops, livestock, fisheries, forestry, training and extension, and agricultural cooperatives showed satisfactory progress. The projects and activities carried out were based on the sectoral action programmes developed for each of the seven priority areas. They encompassed policy coordination, research, technology transfer, production, marketing and investment promotion.

Food Security and Food Handling

88. ASEAN Member Countries have finalised the draft Second Protocol to Amend the Agreement on ASEAN Food Security Reserve to accommodate the accession of Brunei Darussalam and Vietnam to the Agreement. Vietnam has agreed to earmark 14,000 tonnes of rice for the ASEAN Emergency Rice Reserve. Member Countries have also agreed to develop a common method for national food audits to facilitate effective monitoring of the food situation in the country and to facilitate the sharing of information among Member Countries. A plan of action is being formulated to strengthen technical cooperation in corn and soya bean production in the region. This will meet the increasing demand from the poultry and livestock industries for both products, while reducing imports of the same.

89. Cooperation in food handling to facilitate and expand trade in unprocessed and processed agricultural products has also begun. Minimizing the use of chemicals and irradiation techniques will ensure safe and sustainable methods of production. In addition, a joint ad hoc working group comprising representatives of SOM-AMAF and the relevant Islamic religious authorities in Member Countries will establish ASEAN guidelines and standards for halal food in the effort to expand trade in agricultural products.

Crops and Training and Extension

90. In the area of crops and agricultural training and extension, efforts have been initiated to harmonise phytosanitary certification to facilitate trade of agricultural products. To minimise the use of pesticides, improve marketability of agricultural products and prevent environmental degradation Integrated pest management (IPM) practices have been promoted among vegetables and fruit growers. Plans of action and training modules have been prepared.

Livestock

91. A manual on ASEAN Standards of Good Manufacturing Practice (GMP) in the area of animal vaccines has been drafted while standards on animal vaccines have been finalised. To strengthen the animal disease control programme, a database on equine diseases, population and movements in ASEAN Member Countries has been prepared. This will be useful for ASEAN when developing further activities which would facilitate the international movement of horses on a bilateral basis. ASEAN has agreed to support the Office International des Epizootics's (OIE) plan for the control and eradication of FMD in Southeast Asia by establishing Foot and Mouth Diseases (FMD) Free Zones. The updated Protocol for Designation of FMD Free Zones in ASEAN and the criteria for FMD Free Zones in ASEAN Member Countries will be sent to the OIE for recognition. An accreditation scheme for establishments engaged in the production of livestock and livestock products as well as harmonisation of sanitary measures is being developed. A memorandum of understanding has been drafted for signing by the ASEAN Ministers on Agriculture and Forestry (AMAF).

Fisheries

92. Cooperation in the area of fisheries focused on the development and improvement of fisheries post-harvest technology and harmonisation of quality assurance of fishery products. A Hazard Analysis Critical Control Point (HACCP) training programme is being developed. ASEAN Member Countries have also established a network to support the programme for harmonisation of good shrimp management practices and exchanged data on the development of disease-free Penaeus monodon (tiger prawn) broodstock. In addition, Member Countries have agreed to identify and compile commonalities in those areas where sanitary measures are being implemented to ensure transparency while harmonising sanitary measures.

Agricultural Cooperatives

93. ASEAN Member Countries have encouraged the development of agricultural cooperatives to enhance market-oriented agricultural production. Activities in this area include exchange visits of cooperative leaders and information on Member Countries' cooperative laws and regulations. The development of training packages on cooperative entrepreneurship, networking for ASEAN cooperative financing, and strategic alliances in agricultural cooperatives in the ASEAN region, were some of the other efforts.

Forestry

94. Cooperation in forestry focused on setting up joint approaches in forest products promotion and on taking a common stand on international forestry and timber issues (e.g. eco-labelling certification, sustainability and CITES). Other areas of focus were the accelerated implementation of UNCED decisions on forestry and the attainment of the ITTO Objective Year 2000. Several cooperation programmes funded by Dialogue Partner were realised. Among these were the ASEAN Institute of Forest Management (AIFM) in Malaysia, the ASEAN Forest Tree Seed Centre (AFTSC) in Thailand and the ASEAN Timber Technology Centre (ATTC) in Malaysia. The ATTC project, which terminated in August 1994, was transferred to the host country, Malaysia, in August 1995. The other two projects will terminate in March and July 1997, respectively. Since they serve regional interests and priorities, provisions have been made to sustain their activities.

Intra-ASEAN Trade of Agricultural Products

95. A total of 1,333 tariff lines of unprocessed agricultural products have been phased into the Inclusion List of the Common Effective Preferential Tariffs (CEPT) Scheme for the ASEAN Free Trade Area (AFTA). Member Countries have also submitted their tariff reduction schedules for these products. Also finalised are their respective Temporary Exclusion List and the Sensitive List for the unprocessed agricultural products, amounting to 377 and 261 tariff lines, respectively.

Joint Approaches in Agriculture and Forest Products PromotionScheme

96. During the year under review, ASEAN Member Countries formulated integrated strategies for the promotion of the region's frozen chicken and shrimp, canned tuna and canned pineapple, tapioca, pepper, palm oil, and cocoa and cocoa products. Similar strategies will also be formulated for the other three groups of products identified under the promotion scheme. These are coconut oil, carrageenan and forest products. Member Countries have also agreed to expand the product coverage of the Promotion Scheme.

Joint Approaches to Regional and International Issues

97. ASEAN Member Countries took a joint position in expressing concern over the European Council Directive 93/43/EEC of 14 June 1993 on the Hygiene of Foodstuffs and the European Council Directive 95/2/EC on market access for Philippines Natural Grade Carrageenan (PNGC). The indent to paragraph 2, Annex IV on Transport under the said Directive requires that bulk foodstuffs in liquid, granular or powder form must be transported in receptacles and/or containers/tankers reserved for the transport of foodstuffs. This provision, which goes beyond the Uruguay Round Agreement on SPS measures, adversely affects the exports of foodstuffs, especially vegetable oils, from ASEAN Member Countries to EU. In response, the EU, in January 1996, agreed to a derogation from the requirements laid down in the said Directive for vegetable oils subject to conditions which, in essence, still require the use of dedicated vessels. With regard to PNGC, the European Parliament has voted against the European Commission's proposal to include alternatively refined carrageenan (ARC) in the list of allowed food additives in the EU. ASEAN will continue to pursue the matter with the EU until both issues are resolved.

98. A similar regional stand has also been taken on the US 's embargo on the import of shrimps caught by shrimpers or trawlers not equipped with the Turtle Excluder Device (TED). The embargo, which is inconsistent with the principles of WTO, came into effect on 1 May 1996. Scores of countries including Thailand and the Philippines have been affected. ASEAN Member Countries are of the view that the applicability of TED in ASEAN waters is questionable as the device is relatively new to the region and records show that the incidence of sea turtles caught by trawlers in this region is minimal. Furthermore, all ASEAN Member Countries already have extensive sea turtle conservation programmes in addition to laws that have been in place for some 50 years.