Page 13 of 23 by Prime Ministers, it was agreed that this sectoral body would be operating at the Senior
Officials mode.
6.4 20
th
Meeting of the Initiatives for ASEAN Integration IAI Task Force, 23 July 2005, Vientiane, Lao PDR
72. The Meeting noted the ASEAN Secretariat paper on the highlights and the Report of
the 20
th
Meeting of the Initiative for ASEAN Integration IAI Task Force, held in Vientiane on
23 July 2005, which appears as ANNEX 29. 6.5
The Special Senior Officials Meeting SOM of the 26
th
ASEAN Ministers Meeting on Agriculture and Forestry AMAF, 26-28 July 2005, Mandalay,
Myanmar 73.
The Meeting noted the ASEAN Secretariat paper on the highlights and the Report of the Special SOM-AMAF Meeting, held in Mandalay on 26-28 July 2005, which appears as
ANNEX 30. 6.6 11
th
ASEAN Telecommunications Regulators Council ATRC, 16-18 August 2005, Kuala Lumpur, Malaysia
74. The Meeting noted the ASEAN Secretariat paper on the highlights and the Report of
the 11
th
ASEAN Telecommunications Regulators Council ATRC, held in Kuala Lumpur on
16-18 August 2005, which appears as ANNEX 31. 6.7
First ASEAN Ministerial Meeting on Minerals AMMin, Kuching, Sarawak, Malaysia on 4 August 2005 and Seventh ASEAN Senior
Officials Meeting on Minerals ASOMM, Kuching, Sarawak, Malaysia on 2 August 2005
75. The Meeting noted that the First ASEAN Ministerial Meeting on Minerals AMMin
was held in Kuching, Malaysia on 4 August 2005 and that this was preceded by the Seventh ASEAN Senior Officials Meeting on Minerals ASOMM on 2 August 2005. The ASEAN
Secretariat paper containing the highlights and the reports of these meetings appears as ANNEX 32.
AGENDA ITEM 7.
MATTERS RELATING TO ASEAN’S RELATIONS WITH DIALOGUE AND SECTORAL PARTNERS
7.1 ASEAN FTAs with Dialogue Partners
76. The Meeting exchanged views on the proposed Institutional Mechanism for the
ASEAN FTAs with Dialogue Partners contained in the ASEAN Secretariat paper appearing as ANNEX 33. The Meeting noted all the views raised and agreed that:
a there is no urgency in deciding on the matter at this juncture since, of
ASEAN’s 5 FTA arrangements, only that with China is in the advanced stage. b
Individual Member Countries shall be responsible for enhancing their current set-up for handling ASEAN’s FTAs, e.g. either they make use of their National
AFTA Units or put up FTA Units relative to each FTA.
Page 14 of 23 c
Member Countries should ensure closer coordination and put in place an effective system for information dissemination especially among their various
negotiators.
d Expand the scope of work of the various sectoral bodies e.g. CCCA, CCS,
CCI in order to give them the opportunity to provide their viewsinputs to ASEAN’s FTA process.
e The ASEAN Secretariat shall refine its paper taking into account the
suggestions made by Member Countries, particularly on the aspects of the level of the proposed Free Trade Commission SEOM level or deputy-SEOM
level; the proposed Joint Commission reporting directly to SEOM,
77. The Meeting considered the letter from the Chairman of the ASEAN Iron and Steel
Industry Federation AISIF, which appears as ANNEX 34, requesting Member Countries to constructively protect investments in the steel industry by including steel products in the
highly sensitive list when negotiating FTAs or any economic integration initiatives with trading partners. The Meeting noted the request of the AISIF but viewed that, since Member
Countries have different interests and industrial structures, the classification of products in the highly sensitive lists in ASEAN’s FTA arrangements is a matter best left for individual
Member Countries to determine.
7.2 ASEAN – China
7.2.1 ASEAN – China Free Trade Area
78. Thailand, as the ASEAN Co-chair of the ACTNC, briefed the Meeting on the progress
of the implementation of the TIG Agreement and the status of the negotiations for the services and investment agreements, which have been identified as possible deliverables for
the ASEAN Summit. The ASEAN Secretariat paper containing the highlights and the Report of the 19
th
ACTNC meeting, held in Beijing on 22-23 June 2005, appears as ANNEX 35.
79. Viet Nam also briefed the Meeting on the successful completion of her bilateral
consultations with China as outstanding issues relating to the modality for tariff reduction have been resolved. Her bilateral agreement with China in the form of a MOU, which
would include the concrete tariff reduction schedule, will be transmitted to all parties once this has been finalised. Viet Nam is currently in the process of carrying out internal
procedures for the ratification of the TIG agreement as well as for the issuance of her legal enactment which would enable her to implement her commitments hopefully by October
2005. In response to Viet Nam’s query on whether a Protocol would be necessary to provide legal effect of its MOU, the Meeting agreed to Singapore’s offer to check on the
matter with the Chairman of the ACFTA Working Group on DSM. 80.
Thailand raised the problem of scheduling the next ACTNC meeting which was crucial if the Services and Investment Agreements were to be delivered at the Summit. It
was noted that the next meeting is being scheduled on 19-21 September 2005; however, as the meeting is too close to the Vientiane meetings, some countries may have difficulty
sending their negotiators to this meeting which will be held at the ASEAN Secretariat. 81.
The Meeting noted the view of some countries that if the three outstanding issues in the Services Agreement are resolved by the next TNC meeting, it may still be possible have
the agreement signed at the Summit even without a first package of commitments.
Page 15 of 23 82.
As for the investment negotiations, the main obstacles lies on the divergent views in the approach towards investment liberalisation. Whereas ASEAN members want to adopt
the negative list approach, China wants to apply the positive list approach. Thailand concurred with Viet Nam’s views on investment negotiations that the fundamental deterrent
to the negotiation is the AIA Plus approach taken by ASEAN and added that ASEAN should take cautious consideration on implementing the negative list approach to non-ASEAN
parties. She suggested the possibility of reviewing this position stressing that a pragmatic approach where no rigid positions are taken and where parties are open to possible
compromises would be critical for an investment agreement to be finalised in the most immediate future.
7.2.2. High Level Seminar on Promoting SMEs Development and Investment in East Asia, 27-28 October 2005
83.
The Meeting noted the letter of invitation from China, appearing as ANNEX 36,
regarding the High-level Seminar on Promoting SMEs Development and Investment in East Asia, which will be held in Beijing on 27-28 October 2005.
84. The Meeting also noted that the SME agencies of Member Countries would be
informed of the Seminar through their respective Ministry of Foreign Affairs. The Meeting encouraged SME agencies to actively participate in the said Seminar.
7.2.3 Preparations for the 9
th
SEOM – MOFCOM Consultations, 24 August 2005, Bangkok, Thailand
85. The Meeting endorsed the provisional agenda for the 9
th
SEOM-MOFCOM
Consultations, which appears as ANNEX 37. 7.3
ASEAN – Japan 7.3.1 ASEAN-Japan Comprehensive Economic Partnership AJCEP
86. The Philippines, as the ASEAN Co-chair of the ASEAN-Japan Committee on
Comprehensive Economic Partnership, briefed the Meeting on the status of the negotiations for the regional CEP since formal negotiations were launched in Tokyo in April 2005. The
Meeting noted that ASEAN negotiators continue to struggle on the relationship between the bilateral EPAs and the regional CEP, particularly on the rules of origin and Japan’s proposal
to address the “missing link” related thereto. 87.
The Meeting also noted that 2 papers have been submitted by Japan to the AJCCEP and the preliminary views of some Member Countries that while the Japanese proposal
could be regarded as a step forward for Japan, it still falls short of what ASEAN envisages for the AJCEP.
88.
The Meeting endorsed the strategy proposed by the Philippines, i.e. continue to push for a common package of AJCEP regional concessions between ASEAN and Japan up to
the AEM and if there is no positive response from Japan, no further meetings of the AJCCEP should be considered until the Ministers have given guidance on the matter.
7.3.2 ASEAN-Japan Business Council
89. The Meeting, noting that the ACCI has endorsed the Terms of Reference TOR for
the ASEAN-Japan Business Council, did not object to the TOR, which appears as ANNEX 38.
Page 16 of 23
7.3.3 Preparations for the SEOM – METI 211 Consultations, 24 August 2005, Bangkok, Thailand
90. The Meeting, reiterating its previous decision that matters pertaining to the AJCEP
shall not be discussed at the SEOM-METI Consultations, endorsed the provisional agenda doe the SEOM-METI 211 Consultations subject to the deletion of agenda item 4.2. The
revised provisional agenda for the SEOM-METI Consultations appears as ANNEX 39.
7.4 ASEAN – Korea
7.4.1 ASEAN – Korea Free Trade Area AKFTA
91. Singapore, the ASEAN Co-chair of the ASEAN-Korea Trade Negotiating Committee
AKTNC, briefed the Meeting on the status of the negotiations for the AKFTA. The ASEAN Secretariat paper containing the highlights and the Report of the 4
th
AKTNC meeting, held in
Bangkok on 19-20 July 2005 appears as ANNEX 40. 92.
In updating the Meeting on the AKFTA negotiations, Singapore highlighted that while Korea is pushing for the finalisation of the TIG Agreement at the same time as the
Framework Agreement as Korea has indicated that she would not be able to submit the Framework to her Parliament without the TIG Agreement, this may not just be possible
because of some outstanding issues on the modality, which include:
a The proposal of Korea to complete tariff elimination on 90 of all tariff lines
to be consistent with the “substantially all trade” condition of the WTO by 2010. ASEAN Member Countries have differing views on this time line, e.g.
2011, 2012 or even 2016 in the case of the Philippines.
b Whether the 10 threshold for the Sensitive Track would be based on tariff
lines or trade value or both. c
The suggestion of Korea to put products subject to TRQs and products to be excluded from trade liberalisation in the Highly Sensitive List.
d The request of CLMV for more flexibility, e.g. longer timeframe and later
starting date instead of 80 in 2009, 70 in 2014 or 2016. 93.
Given these outstanding issues, should Korea insist that negotiations for the TIG Agreement are completed by the end of the year, the view of the Meeting is that ASEAN
could strategically push Korea to accept more of ASEAN’s terms. 94.
The Meeting noted that the next AKTNC meeting is scheduled in Seoul on 5-9 September 2005. The Meeting urged all parties to endeavour to resolve the outstanding
issues so that targets are achieved as scheduled. The Meeting expressed its appreciation to the Indonesian government for lending the premises of her Embassy in Seoul for the venue
of the ASEAN Caucus for the 5
th
AKTNC meeting.
7.4.2 Preparations for the 4
th
SEOM – ROK Consultations, 25 August 2005, Bangkok, Thailand
95. The Meeting endorsed the provisional agenda for the 4
th
SEOM–ROK Consultations,
which appears as ANNEX 41.
Page 17 of 23
7.5 ASEAN + 3
7.5.1 The Future of ASEAN + 3 Economic Cooperation
96. The Meeting, recalling the mandate of the Ministers for SEOM to come up with a
structured view on the AEM Plus 3 process, re-affirmed the importance of moving forward ASEAN Plus 3 economic cooperation beyond reviewing and approving cooperation projects.
The Meeting, however, also recalled the previous decision of the Ministers regarding the completion of the ASEAN’s FTA with China, Korea and Japan before the proposal for the
East Asia Free Trade EAFTA could be considered. 97.
Given the current situation, the Meeting agreed to recommend to the forthcoming 8
th
AEM Plus 3 Consultations moving forward ASEAN Plus 3 engagement should first focus on the improvement of project management, as agreed at SEOM 236. The expansion of the
agenda of SEOMAEM Plus 3 consultations shall await the outcome of the Track 2 study being undertaken by the Expert Group on the East Asia Free Trade Area EAFTA.
7.5.2 Preparations for the 12
th
SEOM+3 Consultations, 25 August 2005, Bangkok, Thailand
98. The Meeting endorsed the provisional agenda for the 12
th
SEOM+3 Consultations,
which appears as ANNEX 42. 7.6 ASEAN-India
7.6.1 ASEAN-India Free Trade Area AIFTA
99. Malaysia, the ASEAN Co-chair for the ASEAN-India Trade Negotiating Committee
AITNC, briefed the Meeting on the latest developments on the FTA negotiations between ASEAN and India, particularly on the ROO. The Meeting noted two papers circulated on the
ROO: i Malaysia’s paper: ASEAN’s Proposal for the ASEAN-India Rules of Origin for FTA in Goods; and ii India’s Concept Paper: India’s Approach on Preferential Rules of Origin,
which appear as ANNEXES 43 and 44, respectively. 100. The Meeting considered India’s concept paper and expressed its observation that
India has not moved on its position as it continues to push for the 40+CTH as the general rule for the AIFTA. Noting however that India has cited the agreement reached at the
SEOM-India Consultations in Makati City for ASEAN and India to exchange concept papers on the ROO, the Meeting agreed that ASEAN should also transmit a paper reiterating its
original position. Notwithstanding this counter-action, the Meeting agreed on the importance of moving forward the AIFTA negotiations which has already been stalled for several
months. Recalling that the TF-ROO exercise on the matrix of Member Countries’ indicative position on the ROO for all tariff lines shall be completed sometime in October, the Meeting
urged the Working Group on ROO to meet sometime in November so that a report could be submitted to the Leaders in Kuala Lumpur.
101. The Meeting also recalled that according to the Framework Agreement, parties should start implementing the AIFTA beginning 1 January 2006. Recognising the
impossibility of achieving this milestone, the Meeting agreed to raise to the Ministers the possibility of coming up with a rider to the Framework Agreement that would extend the
completion date for negotiating the TIG agreement and the implementation date by, tentatively, one year. The Meeting agreed to raise these issues at the forthcoming SEOM-
India Consultations.
Page 18 of 23
7.6.2 Preparations for the 7
th
SEOM - India Consultations, 25 August 2005, Bangkok, Thailand
102. The Meeting endorsed the provisional agenda for the 7
th
SEOM–India Consultations,
which appears as ANNEX 45. 7.7
ASEAN – CER 7.7.1 ASEAN–Australia-New Zealand Free Trade Area
103. Brunei, the ASEAN Co-chair of the ASEAN-Australia-New Zealand Trade Negotiating
Committee AANZTNC, briefed the Meeting on the latest developments on the negotiations for the AANZFTA. The ASEAN Secretariat paper containing the highlights and the reports of
the 2
nd
and 3
rd
meetings of the AANZTNC, held in Auckland on 29 June to 1 July 2005 and in
Chiang Mai on 18-20 August 2005, respectively, appears as ANNEX 46. 104. The Meeting exchanged views on the various issues highlighted by Brunei. The
following transpired:
a The ASEAN Co-Chair stressed the importance of Member Countries actively
participating in the TNC discussions and being frank in conveying their difficulties, if any.
b After three sessions, the TORs for the Working Groups on ROO, Services,
Investment and, Legal and Institutional Issues have yet to be endorsed owing to the difficulty of ASEAN in endorsing the establishment of the proposed
Expert Group on Intellectual Property. SEOM was requested to convey to Australia and New Zealand, at the forthcoming SEOM-CER Consultations,
that ASEAN’s concerns should be recognised and that the TORs should not be held in abeyance because of the difficult issue of IP. SEOM should also
urge Australia and New Zealand that IP be discussed at the TNC.
c The difficulty of Member Countries in conducting concurrent negotiations on
goods, services and investment because of limited resources should be reiterated to Australia and New Zealand. The previous decision of ASEAN to
adopt a single undertaking approach for the AANZFTA but finish the negotiations for TIG-related issues before negotiating services, investment
and other issues should be reiterated.
d ASEAN’s position on government procurement, competition policy and, labour
and environment should be strongly conveyed to Australia and New Zealand. 105. The Meeting endorsed the recommendations enumerated above and agreed to
convey them all to Australia and New Zealand at the SEOM-CER Consultations.
7.7.2 Preparations for the 15
th
SEOM – CER Consultations, 24 August 2005, Bangkok, Thailand
106. The Meeting endorsed the provisional agenda for the 15
th
SEOM–CER
Consultations, which appears as ANNEX 47.
Page 19 of 23
7.8 ASEAN – EU
7.8.1 Trans-Regional EU-ASEAN Trade Initiative TREATI
107. The Meeting considered Thailand’s non-paper on the ASEAN-EU TREATI Cooperation on Investment, which appears as ANNEX 48. The Meeting noted the paper
and agreed that this be submitted to EU, through the Country Coordinator Viet Nam. 108.
Viet Nam expressed her concern over the slow progress in the implementation of the TREATI despite the mandate from the Ministers to expand and broaden the coverage of the
TREATI. Brunei observed that one of the reasons for this is the reactive attitude towards the projectsactivities proposed by EU that ASEAN sectoral bodies have taken over time.
109.
The Meeting agreed that the ASEAN sectoral bodies, even those outside the purview of SEOM, should be asked to play a proactive role in identifying projectsactivities under the
TREATI. Noting further that the Ministers have identified four priority areas for TREATI and that these areas are among the sectors identified by ASEAN for priority integration, the
Meeting agreed that the concerned Country Coordinators should also consider and submit recommendations on how ASEAN could take advantage of the TREATI in facilitating and
advancing ASEAN integration in their respective sectors.
7.8.2 Vision Group on ASEAN-EU FTA
110. Viet Nam briefed the Meeting on the outcome of the Inaugural Meeting of the ASEAN-EU Vision Group held in Hanoi on 21-22 July 2005. The progress report of the
ASEAN-EU Vision Group, which includes the Terms of Reference not only for the ASEAN- EU Vision Group but also for the conduct of the two supporting studies, appears as ANNEX
49. 111. The Meeting noted that Cambodia’s proposal to include consideration for additional
benefits to less-developed ASEAN members to enable them to join possible ASEAN-EU FTA engagement in the future has been supported by the Vision Group and has been
incorporated in the TOR for the studies. 112. On the issue of the funding for the Vision Group meetings, which appeared in
square-brackets in paragraph 7 of the TOR of the Vision Group, the Meeting agreed to adopt Option 2, i.e. Member Countries fund their participation to the Vision Group meetings.
113. The Meeting noted the intention of the Vision Group to have its second meeting in November in order to consider the preliminary result of the studies. In this regard, the
Meeting requested Myanmar to nominate her officials to participate in the study as soon as possible. The Meeting further agreed that ASEAN shall have a caucus meeting before each
Vision Group meeting. 114.
The Meeting further noted that EU Trade Commissioner Peter Mandelson had invited AEM for consultations at the sidelines of the ASEM EMM-6 in Rotterdam on 16-17
September 2005.
7.9 ASEAN - US
7.9.1 ASEAN-US Trade and Investment Framework Agreement TIFA
115. Indonesia informed the Meeting that no response had been received from the US with regard to the proposed text of ASEAN-US Trade and Investment Framework Agreement
Page 20 of 23 TIFA. The Meeting noted that despite the approach taken by the US in its engagement of
ASEAN, the progress in their bilateral negotiations with concerned ASEAN members had also been limited.
116. The Meeting confirmed that no AEM-USTR Consultations shall take place in Vientiane on 30 September 2005 should the USTR not be able to participate.
7.9.2 Preparations for the 6
th
SEOM – AUSTR Consultations, 26 August 2005, Bangkok, Thailand
117. The Meeting endorsed the provisional agenda for the 6
th
SEOM–AUSTR
Consultations, which appears as ANNEX 50. The Meeting noted that Ms. Lisa Cohen will attend on behalf of Ms. Barbara Weisel for the consultations.
AGENDA ITEM 8.
OTHER MATTERS 8.1
Preparations for the Meeting of the High Level Task Force HLTF on ASEAN Economic Integration, 2-3 September 2005, the Philippines
118. The Philippines briefed the Meeting on her preparations for the forthcoming meeting
of the HLTF which is scheduled in Manila on 2-3 September 2005 highlighting the possibility of low attendance due to the tight schedules of ASEAN meetings.
119. Schedule of HLTF Meetings. The Meeting noted the current schedule of HLTF meetings i.e. two weeks before the regular AEM and the AEM Retreat and observed that
with such schedule, SEOM’s work could not be timely guided by HLTF’s viewinputs. In this regard, the Meeting agreed to submit to the forthcoming HLTF that the following schedule be
considered in their future meetings: i to meet back-to-back with the first and third SEOM meetings; or ii to meet one month after the ASEAN Summit.
120. Agenda of the HTLF. The Meeting noted the draft agenda of the HLTF meeting, which appears as Annex 51, and agreed to recommend that the following items be included
in the agenda of the HLTF, in addition to the regular agenda of the HLTF i.e. implementation of the Bali Concord II and the regular report to the Ministers:
a Stock-taking of the status of implementation of economic-related sections of
the Vientiane Action Programme VAP. b
Review of the implementation of the sectoral roadmaps for priority integration. c
Review of ASEAN FTA negotiations with various Dialogue Partners. 121.
The Meeting also noted the ASEAN Secretariat’s proposal to transform the HLTF into a Strategic Planning Group. While indicating preference to retain the HLTF name as is, the
Meeting welcomed such added functions and agreed that such recommendation be forwarded to the HLTF for decision.
8.2 Preparations for the 37
th
ASEAN Economic Ministers’ Meeting AEM, September 2005, Vientiane, Lao PDR
122. Lao PDR briefed the Meeting on her preparations for the 37
th
AEM and other AEM- related meetings which will be held in Vientiane in September 2005. The revised tentative
Page 21 of 23 programme of activities for the Vientiane Ministerial meetings as of 26 August 2005
appears as ANNEX 52. 123. The Meeting also considered the ASEAN Secretariat’s outlines for the SEOM
Chairman’s Report to the 37
th
AEM and 19
th
AFTA Council meetings, which appears as
ANNEXES 53 and 54, respectively. 8.3
Preparations for the 11
th
ASEAN Summit, December 2005, Kuala Lumpur, Malaysia
124. Malaysia briefed the Meeting on her preparations for the 11
th
ASEAN Summit and other Summit-related activities which will be held in Kuala Lumpur on 12-14 December 2005.
As regards the programme of activities for the Summit and other related activities, Member Countries were advised to refer to the programme circulated at the recent AMM in Vientiane.
Nonetheless, the Meeting took note of the following dates provided by Malaysia:
6 December 2005 -
SEOM Working Dinner 7 December 2005
- Preparatory SEOM
8 December 2005 -
AEM Informal Dinner 9 December 2005
- AEM
10 December 2005 - Opening of ASEAN BIS 0900 – 1000 hrs
- Opening of the East Asia Business Exhibit 1500–1600 hrs
11 December 2005 - ASEAN Business Forum
125. Malaysia also informed the Meeting that a Joint Consultative Meeting JCM is being
proposed to be held on 17-18 November 2005 and proposed that a SEOM be convened on 16 November 2005. The Meeting agreed on the JCM and a SEOM to precede it; the dates
however would have to be confirmed as the proposed dates may coincide with the APEC Economy Leaders’ Meeting.
126. The Meeting noted the indicative list of AEM deliverables for the 11
th
ASEAN
Summit, appearing as ANNEX 55, and agreed to consider this at the Prep-SEOM in Vientiane.
8.4 Asia-Europe Meeting ASEM
