Page 6 of 23 difficult for them to change the format at this point of time, SEOM’s suggestion would be
discussed at the next ASEAN-BAC meeting. 19.
The Meeting noted that the ASEAN Secretariat contributed US 40,000 towards BIS 2005 and that any refund would be remitted to the ASEAN Foundation.
4.3.1 Preparations for the SEOM – ASEAN-CCI Consultations, 26 August 2005, Bangkok, Thailand
20. The Meeting endorsed the provisional agenda for the SEOM – ASEAN-CCI
Consultations, which appears as ANNEX 10. 4.4
Dispute Settlement Mechanism
21. DSM Fund. The Meeting noted the status of the contributions to the DSM Fund,
which appear jointly as ANNEX 11. 22.
Brunei and Singapore informed the Meeting that their contributions to the DSM Fund were transferred to the specified account on 8 August 2005. Member Countries who have
not transferred their contributions to the DSM Fund were urged to do so as soon as possible. 23.
The Meeting noted that the TOR of the DSM Fund has been approved by the ASC 438 held in Vientiane, in July 2005. On the matter of funding the annual meeting of the
Appellate Body, which had been referred to the ASC, the Meeting noted that the ASC still has to revert back to the Secretariat on its position. It was also noted that should an
agreement be reached to support the annual meeting of the Appellate Body, the agreement at the ASC was for the fund to be drawn from the ASEAN Development Fund ADF. The
Meeting requested the ASEAN Secretariat to update SEOM of the developments in this issue.
24.
DSM Panellists, Appellate Body and Service Addresses. The Meeting also noted the list of DSM Panellists, nominations to the Appellate Body and updated Service Addresses,
which appear as ANNEX 12. The Meeting requested concerned Member Countries to submit as soon as possible their nominations to the DSM Panellists and Appellate Body.
25.
Brunei requested the ASEAN Secretariat to draw up the guidelines for remuneration of the Panel and Appellate Body members, which must be endorsed by AEM in accordance
with Article 17.3 of the Protocol on the Enhanced DSM, for consideration at the Preparatory SEOM for the 37
th
AEM.
4.5 Protocol Regarding the Implementation of the CEPT Scheme Temporary
Exclusion List TEL Protocol
4.5.1 Inclusion of Malaysia’s CBUs and CKDs into IL
26. The Meeting noted the status of the bilateral consultations between Malaysia and
Thailand on the issue relating to the transfer of CBUs from Malaysia’s TEL to the CEPT Inclusion List. It was further noted that while the consultations are slower than expected,
several proposals, including the possibility of AICO arrangements, are being explored by the two parties and that the matter would be highlighted to the AFTA Council, if necessary.
27.
Malaysia confirmed that an overall review of her auto policy is currently being undertaken and that while the review covers all the elements of her auto policy,
commitments made in ASEAN will not be affected.
Page 7 of 23 28.
The Meeting also noted that, because CBUs exported by Malaysia to Indonesia are not able to enjoy the prevailing CEPT concessions pending the resolution of the issue
between Thailand and Malaysia, Malaysia reserved the right to seek for refund should the resolution be in her favour. Indonesia informed the Meeting that her Trade Minister had
written to Malaysia conveying that Indonesia, as an interim measure, is prepared to extend reciprocal CEPT rate of 20 to Malaysian CBUs. However, Indonesia is not prepared to
commit to the Malaysian request for refunds.
4.5.2 Viet Nam’s Temporary Suspension of CEPT Concessions on Motorcycles and Certain Automotive Products
29. The Meeting considered the ASEAN Secretariat’s Legal Interpretation to Article 5 of
the TEL Protocol, which appears as ANNEX 13. In presenting its legal interpretation, the Secretariat highlighted that their interpretation was based on:
a the original objective and intent of the TEL Protocol;
b the decision of SEOM 331 held in Bangkok on 17-19 July 2000;
c the decision of the 14
th
AFTA Council Meeting on 4 October 2000 in Chiang Mai;
d the Interpretation and Application of Article XXVIII of the GATT 1994; and
e the precedent set by the case involving the Philippines and Singapore when
the former extended her compensatory adjustment measure to Member Countries on an MFN basis.
30. The Meeting concurred with the Secretariat’s legal interpretation. Taking into
account the views raised by some Member Countries, the Meeting agreed to come up with Interpretative Notes to the Article 5 of the TEL Protocol using as basis the agreed legal
interpretation, i.e. compensatory adjustment measures in the form of tariffs should be extended to all Member Countries on an MFN basis whereas extension of other forms of
compensation other than tariffs to other parties on an MFN basis shall only be done where applicable. The ASEAN Secretariat was requested to draft the appropriate text for the
Interpretative Notes for adoption by the AFTA Council. 31.
Viet Nam re-affirmed her position conveyed at the last SEOM that she would abide by any legal interpretation common understanding of Article 5 that will be agreed upon by
Member Countries and endorsed by the AFTA Council. AGENDA ITEM 5.
CONSIDERATION OF REPORTS OF SEOM’S COMMITTEES WORKING GROUPS
5.1 24
