At the Eighth ASEAN - US Dialogue held in Washington D.C. on 7 - 8 February 1988, ASEAN expressed its concern over the US decision to withdraw GSP benefits from Brunei Darussalam and Singapore.

Apart from the graduation issue, trade and trade - related matters dominated the Eighth Dialogue. ASEAN registered its concern over the protectionist trade bills in the US Congress. ASEAN stressed that there were a number of provisions in the trade bills which, if adopted, would adversely affect ASEAN - US trade. In this respect, ASEAN welcomed the Presidential veto of the Omnibus Trade Bill.

ASEAN emphasized the need to restore and stabilize prices of internationally traded commodities in order to increase foreign exchange earnings needed to pay for imports and ensure future supplies to consumers. Stressing the important role of major economic powers in providing global initiatives on commodities and in assisting producers, ASEAN urged the US to propose alternative measures to bring about effective, practical and favourable trade in commodities.

Regarding shipping, ASEAN reiterated its request for amendment to the 1987 US Controlled Carrier Act to relieve ASEAN national carriers from obligations under the Act including the filing of tariffs thirty days in advance, and also the 1984 US Shipping Act to enable the ASEAN Shippers Council to hold consultations with the US - based conference on its unilateral imposition of freight rate increase. The US indicated that prospects for new legislative initiatives on the two issues in the coming year were feasible given the mood in Congress.

Other trade problems raised by ASEAN included the Anti-Dumping and Countervailing Duties which had adversely affected ASEAN efforts to expand its exports into the US market and the US government procurement policy which discriminates and restricts import of high- tech products such as precision optics, machine tools and ball bearing from ASEAN.

A positive development in the ASEAN - US cooperation was the agreement to launch a Joint Study on ASEAN - US Initiative (AUI) whereby favourable trading arrangements could be provided and trade barriers between ASEAN and the US could be reduced or removed. The Institute of South East Asian Studies in Singapore and the East-West Centre in Hawaii have been assigned as the Joint Coordinators for the study.

Another positive development was the agreement to establish an Automated Data Exchange (ADE). The objective of this exchange is to develop an automated data exchange system so that it could be useful for:

a) Market access negotiations at the Uruguay Round;

b) Identifying opportunities for export expansion; and

c) Tracking the utilization of the US GSP.

ASEAN had informed the US that it would like to take advantage of the US assistance in establishing the ADE to improve the data collection system of ASEAN member countries and to complement ASEAN Secretariat's effort to increase intra-ASEAN trade data exchange; and that the data exchange with the US could be effected when a common ASEAN data base had been developed. In the meantime, exchanges could be done bilaterally on published data.

There were marked improvements in the dialogue process since the Seventh Dialogue held in Singapore in May 1986, particularly the more frequent and useful meetings in Washington of the Economic Coordinating Committee. The ASEAN Economic Ministers and the US Trade Representative also held close consultations on international, regional and bilateral economic and trade issues following the Informal Meeting of ASEAN Economic Ministers in Singapore in October 1987.

ASEAN and the US stressed their common desire to work towards a long-term economic relationship of mutual benefit. Regarding rubber, the US indicated its support for the Inter- national Natural Rubber Agreement (INRA) and would ratify INRA II. On tin, the US would remain' ready to consult with ASEAN on the disposal of GSA tin stockpiles.

With regard to tropical vegetable oils, the US would continue to. oppose labelling legislation on the ground that it discriminated coconut and palm oil produced by ASEAN against non- tropical vegetable oils produced in the US. The US would also continue to seek amendment to the 1985 Farm Security Act to make the domestic sugar programme more market oriented. ASEAN also reiterated its concerns on the implementation of the Rice Provision of the Farm Act especially on the EEP, GSM loans and TEA for rice and expressed the hope that any new Farm Act would not include subsidy programme.

On ASEAN - US Investment Cooperation, ASEAN and the US recognized that the private foreign investment had an important role to play in ASEAN's economic development. ASEAN informed the US side of the steps being taken to improve the investment climate in the region, particularly the improvements agreed to at the Third ASEAN Summit with respect to the ASEAN Industrial Joint Ventures (AIJV) Scheme. ASEAN sought assistance from the US side in identifying investment projects of interest to both ASEAN and US investors; mounting investment missions and industrial conferences to increase US business awareness of opportunities in ASEAN and organising a workshop involving US and ASEAN officials and the US private sector to increase understanding concerning business conditions and expectations in ASEAN.

At the Eighth Dialogue, the ASEAN and US delegations met with a delegation from the ASEAN - US Business Exchange. A 'Wide-ranging discussion was held on trade and economic issues of concern to the US and ASEAN private sector. The 1987 Report of the Group of 14 of the ASEAN Chamber of Commerce and Industry (ACCI) was cited as a blueprint for government business cooperation in such fields as trade liberalization, trade in commodities, transportation networks, investment and energy system. On technology exchange, the Centre would shift away technical seminars to more comprehensive activities to improve technology exchanges between ASEAN and the US.

On development cooperation, both sides agreed that the central theme of US - ASEAN development cooperation should be regional and economic growth and that new areas should be identified in the context of medium and long- term economic cooperation programme. Both sides agreed that the priority areas should be trade and investment, science and technology cooperation and human resources development.

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