Trade Liberalization
COTT held two meetings during the year under review. The 25th Meeting of COTT was held in Bangkok on 5-7 October 1988 and the 26th Meeting of COTT was held in Kuala Lumpur on 13-15 March 1989. COTT continued to focus on implementing the Trade Initiatives as decided by the Third ASEAN Summit held in Manila in December 1987.
Satisfactory progress was made in the implementation of trade liberalization measures relating to the improvement of the Preferential Trading Arrangements (PTA). In 1988, a total of 1679 items was removed from the Exclusion List of the ASEAN member countries and introduced into the PTA List with a minimum Margin of Preference ( MOP) of 25%. This brought the total of PTA items to 14,462. In addition, a total of 3261 items from the existing PTA List was accorded deeper margins of preference (MOP). When the current 1989 PTA improvement programme is completed, another 335 items will be removed from the Exclusion List and brought into the PTA List and another 2848 existing PTA items will enjoy further deepening of MOP. All the member countries have also confirmed their PTA improvement programmes for 1990.
In the implementation of the Memorandum of Understanding on Standstill and Rollback of Non-Tariff Barriers (NTBs), member countries have exchanged their lists of existing NTBs in order to facilitate negotiations on the rollback. These comprehensive lists have been published for the benefit of the private sector. At the same time, the private sector may also be able to advise the respective ASEAN Governments on the additional specific NTBs that are hindering intra-ASEAN trade. At the negotiations held during the two COTT Meetings, requests for rollback of NTBs were submitted. Preliminary negotiations for some of them are already underway. It is expected. that over the next few COTT meetings, some of these NTBs would be rollback.
To strengthen intra-ASEAN Cooperation on Commodities, COTT has set up an Ad-Hoc Working Group on Commodities to consider ways and means on the implementation of the eight point initiatives decided by the Third ASEAN-Summit.
As recommended by the Group, COTT has agreed on the initial guidelines and plan of action to implement Those initiatives. The 26th COTT Meeting agreed that the establishment of ASEAN Data Bank on Commodities (ADBC) should be on a step-by-step approach on commodities of interest to ASEAN. The ADBC could either be established as an integral part of the ASEAN Secretariat or as an independent Organisation to be located in one of the ASEAN member countries. Alternatively, the ADBC could be established initially as an integral part of the ASEAN Secretariat but eventually converted into an independent organisation. The 26th COTT Meeting also agreed on the need of a management and computer experts group to examine the computer facilities and the staff requirements of the ADBC. It was further agreed that the ASEAN Secretariat look into the financial requirements and terms of reference of this experts group.
On consultation with the ASEAN - CCI to promote a greater flow on intra-ASEAN trade and also to expand ASEAN exports to thrid country, markets, COTT decided that the mechanism, scope and substance of such consultation and cooperation should be improved. In this respect, ASEI CCI's representatives should actively participate COTT meetings on agenda items of relevance to the private sector and COTT's representatives should be present in the discussions on issues relevant to COTT at ASEAN - CCI meetings. The ASEAN - CCI should establish closer rapport with their counterparts in those countries so as to assist ASEAN members governments in their efforts to counter protectionist measures.
International Trade Issues
The Twentieth Meeting of ASEAN Economic Ministers held in Pattaya, Thailand on 17-19 October 1988 endorsed COTT's recommendations on joint ASEAN approaches on international commodity issues such as the anti-tropical timber campaign mounted by the European Community countries and if necessary to counter this campaign by an ASEAN Ministerial delegation to the EC, the farm subsidies offered by the developed countries and joint action and cooperation in research to counter the anti-tropical vegetable oil campaign.
On the Uruguay Round of Multilateral Trade Negotiations, ASEAN member countries continued their close consultations after the Mid-Term Review held in Montreal, Canada in December 1988. On 27 February 1989, the member countries held an informal consultation in Bangkok with the Director-General of GATT, to exchange Views on the Uruguay Round in general and in particular on the four issues which remained unsettled at the Montreal Mid-Term Heview. I hese issues are Agriculture, Textiles and Clothing, Safeguards and Trade Related Aspects of Intellectual Property Rights (TRIPS). On 27 March 1989, the member countries held a special session in Geneva to finalize ASEAN Common position in preparation for the Trade Negotiation Committee (TNC) Meeting held also in Geneva in early April 1989 to warp up the unfinished work of the Montreal Mid- Term Review. The TNC meeting succeeded in resolving the four outstanding issues.
Pursuant to the Twentieth AEM's endorsement on the principle of having a joint ASEAN approach on trade restrictive measures affecting ASEAN exports, the 26th Meeting of COTT in Kuala Lumpur from 13-15 March 1989 has agreed on the following common approach:
a) ASEAN Governments should continue to encourage local industries/companies to fight all trade restrictive actions including countervailing duties (CDV) and anti-dumping (AD) petitions to ensure that decisions made are not arbitrary;
b) ASEAN Governments are encouraged to, exchange the necessary information on these measures including CVD and AD cases in order that updates of such actions could be raised during dialogues with trading partners as well as through appropriate ASEAN third country committees concerned if necessary;
c) ASEAN to exchange views and experiences with regard to cases faced by individual countries;
d) ASEAN exchange information as far as possible on legal firms engaged by individual member-countries to facilitate the choice of attorneys for specific future cases;
e) ASEAN to consider engaging common lobbyists to supplement lobbies currently engaged by individual ASEAN countries to forward a common front on trade restrictive measures in principal country markets. In considering this approach the Meeting noted the practical difficulties in engaging common lobbyists. The approach could be considered on a case- by-case basis. Whilst expressing its support for such lobbying efforts, the Meeting agreed that ASEAN Governments should as an alternative consider intensifying their activities in this area through Ministerial Meetings and their respective missions abroad;
f) ASEAN individual countries to forward cases to GATT panels on certain trade restrictive measures of its trading partners and there upon seek the support of other ASEAN countries in this respect; and
g) Individual ASEAN Governments are encouraged to update their own countervailing duty and anti-dumping legislation in order that CVD and AD actions could be taken against defaulting exporters to ASEAN countries involved with dumping or subsidising their exports and thus avoiding the usual resort to across the board imposition of protective tariffs, as is currently the normal practice by most ASEAN countries.
During the year under review, COTT also held an informal consultation with Canadian Senior Trade Officials led by Dr. Sylvia Ostry, Canadian Ambassador for International Trade and Associate Under-Secretary of State for External Affairs. The topic included the Uruguay Round of Multilateral Trade negotiations, ASEAN - Canada trade issue and the Canada - US Free Trade Agreement.
Tourism
The Sub-Committee on Tourism (SCOT) held two meetings during the year under review. The Twenty-Second Meeting of SCOT was held in Yogyakarta, Indonesia on 28-30 July 1988 and the Twenty-Third Meeting of SCOT was held in Singapore on 15-19 January 1989.
The major development in intra-ASEAN cooperation on tourism was the establishment of the ASEAN Tourism Information Centre (ATIC) in Kuala Lumpur on 1 January 1989. The Centre, besides serving as an information collecting and collating centre on all aspects of ASEAN tourism and the administrative arm of SCOT, will also formulate and implement tourism promotional activities in close coordination with the two Working Groups of SCOT on Marketing and on Research and Development.
Another important development was SCOT decision to work closely with the ASEAN Tourism Association (ASEANTA) in the development of inter and intra-ASEAN travel. Under this arrangement, SCOT will have a special session with ASEANTA during its future meetings. ASEANTA’s representatives will I also participate at meetings of the Working Group on Research and Development as well as the Working Group on Marketing. The national tourism organisations of ASEAN member countries will also have regular consultations with their respective private sector organisations to secure inputs and position papers.
SCOT further decided that the national tourism organisations should integrate a conservation and environmental preservation programme in overall tourism development planning through close cooperation with the relevant national authorities.
In the preparation and promotion of Visit ASEAN Year 1992 (VAY'92), the six national tourism organisations agreed to contribute a total of US$ 3 million and the additional funding requirements would be sought from ASEAN's Dialogue Partners and also private organisations in the ASEAN region. In this respect, the ASEAN Promotion Centre for Trade, Investment and Tourism in Tokyo approved an allocation of US$ 300,000 under its voluntary contribution scheme for the production of a film in 1989. Some ASEAN dialogue partners had also indicated their positive support for VAY'92.
SCOT and the ASEAN Committee on Culture and Information (COCI) had established close cooperation in the planning and implementation of VAY'92 activities related to ASEAN arts and craft; traditions, values and practices, cultural heritage; historical and archaeological landmarks, and games and sports. To publicise VAY'92, COCI would be distributing 500,000 copies of information leaflets to ASEAN airlines by the second half of 1989.
Also to promote VAY'92, SCOT and the EC Commission will launch a 3 year European Marketing Plan for 1989-91. The Plan with a budget of US$ 5.19 million will be jointly funded by the EC and SCOT with share of 52% and 48% respectively.
For more information, please refer to the project details
