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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
