Index of /ProdukHukum/kehutanan

DOC. NO. AGENDA ITEM

03 3

M

ATTERS

A

RISING FROM

SEOM

&

AEM

M

EETINGS

THE 3rd

ACCSQ-WB PWG MEETING Bangkok, Thailand, 15-16 December 2005

Agenda Item 3

FOLLOW UP FROM THE SEOM AND AEM MEETINGS

1. The Fourth ASEAN Senior Economic Officials Meeting of the Thirty-Sixth ASEAN Economic Ministers Meeting (SEOM 4/36) and the Thirty-Seventh ASEAN Economic Ministers Meeting (AEM) were held on 22-23 August 2005 in Bangkok, Thailand and 28 September 2005 in Vientiane, Lao PDR, respectively.

Outcomes of AEM

Integration of Priority Sectors, COPS

2. AEM welcomed the convening of the Consultative Meeting on the Priority Sectors (COPS) on 8-9 July 2005 in the ASEAN Secretariat, Jakarta and noted the recommendations of the COPS on how to achieve market integration in ASEAN. AEM specifically noted the recommendation on sector-specific measures, which include refining existing measures under each Roadmap to reflect the current conditions in the different sectors and ensure that each measures is effectively and timely implemented.

ACCSQ

3. AEM endorsed the ASEAN Policy Guidelines on Standards and Conformance and assigned the ACCSQ to oversee its implementation. The Policy Guidelines is attached for the Working Group’s reference and compliance.

Outcomes of SEOM

Integration of Priority Sectors, COPS

4. As a follow up to the outcomes of the Consultative Meeting on the Priority Sectors (COPS), SEOM agreed that the COPS provided an excellent opportunity for all bodies responsible for implementing measures in the Roadmaps for the Priority Sector to network and exchange view on improving coordination and possible recommendation for regional integration. SEOM also agreed that this should be convened on a regular basis and that more private sector representatives should be involved;

5. SEOM agreed that the Chair of COPS to convey recommendation of the COPS to the various implementing bodies, which should then develop a work programme, including specific targets and deadlines, on the implementation of the measures. A progress report of the implementation of the work programme should be reported to SEOM every 6 months;

6. SEOM noted that the progress in the implementation of the priority integration initiative should be reported to the HLTF and to the AEM. Measures in the current Roadmap which have been completed should be highlighted to the AEM;

7. SEOM agreed that the measures for the priority integration in each of the sector should incorporate a strategic component.

ACCSQ

8. SEOM considered and endorsed the report of the 26th ACCSQ Meeting held in Manila, Philippines on 3-5 August 2005.

9. SEOM welcomed the ACCSQ’s initiatives on the establishment of a Trust Fund for the ACCSQ Medical Device Product Working Group (MDPWG) to implement the various activities under the work programme and to facilitate the participation of Member Countries in the MDPWG Meetings. SEOM suggested the need for clear agreement on the definition of costs and profit to avoid unnecessary conflict between Member Countries. The Fund would be mobilized from the participation cost of the private sector in the meetings or workshop. Endorsement from ASC (ASEAN Standing Committee) would be sought for the establishment of the Trust Fund.

10. SEOM endorsed the ASEAN Policy Guidelines on Standards and Conformance which aim to guide all ASEAN bodies working in the areas of standards and conformance in implementing measures on standards, technical regulations and conformity assessment procedures to facilitate the fast-track integration of priority sectors by 2010 and the realization of the ASEAN Economic Community by 2020.;

11. SEOM noted that the Draft Agreement on ASEAN Harmonized Electrical Electronic Equipment Regulatory Regime is targeted for signing at the 11th ASEAN Summit in December 2005.

The Meeting may wish to take note of the above.

The full report of the Fourth ASEAN Senior Economic Officials Meeting of the Sixth ASEAN Economic Ministers Meeting (SEOM 4/36) and the Thirty-Seventh ASEAN Economic Ministers Meeting (AEM) is attached for reference.

DOC. NO. AGENDA ITEM

03 3

A

TTACHMENT

2:

R

EPORT OF THE

37

TH

AEM

THE 3rd

ACCSQ-WB PWG MEETING Bangkok, Thailand, 15-16 December 2005

REPORT OF THE THIRTY-SEVENTH MEETING OF THE ASEAN ECONOMIC MINISTERS

VIENTIANE, LAO PDR, 28 SEPTEMBER 2005

INTRODUCTION

1. The Thirty-Seventh Meeting of the ASEAN Economic Ministers (AEM) was held in Vientiane, Lao PDR on 28 September 2005 and was preceded by the following meetings:

(a) Preparatory Meeting of the ASEAN Senior Economic Officials Meeting (Prep-SEOM), 24-26 August 2005;

(b) 8th AIA Council Meeting, 27 September 2005; and (c) 19th AFTA Council Meeting, 27 September 2005; 2. The Meeting was attended by:

(a) H.E. Mr. Soulivong Daravong, Minister of Commerce, Lao PDR and Chairman of the AEM;

(b) H.E. Pehin Dato Lim Jock Seng, Second Minister of Foreign Affairs and Trade, Brunei Darussalam;

(c) H.E. Mr. Cham Prasidh, Senior Minister and Minister of Commerce, Cambodia;

(d) H.E. Ms. Mari Elka Pangestu, Minister of Trade, Indonesia;

(e) H.E. Dato’ Seri Rafidah Aziz, Minister for International Trade and Industry, Malaysia;

(f) H.E. U Soe Tha, Minister for National Planning and Economic Development, Myanmar;

(g) H.E. Mr. Peter B. Favila, Secretary of Trade and Industry, the Philippines; (h) H.E. Mr. Lim Hng Kiang, Minister for Trade and Industry, Singapore;

(i) H.E. Mr. Somkid Jatusripitak, Deputy Prime Minister and Minister of Commerce, Thailand;

(j) H.E. Mr. Truong Dinh Tuyen, Minister of Trade, Viet Nam; and (k) H.E. Mr. Ong Keng Yong, Secretary-General of ASEAN. 3. The list of delegates appears as ANNEX 1.

4. The 37th AEM Meeting was formally opened by H.E. Mr. Bounhang Vorachit, Prime Minister of Lao PDR on 28 September 2005.

5. In his opening remarks, the Prime Minister underscored the great significance of the Meeting because not only does it provide a platform for further laying a firmer ground to enhance internal integration but also a forum where measures to overcome challenges that the region is and will be facing will be identified and decided on. The Prime Minister also emphasised the importance of convergence of the national and community interest which largely depend on the extent of ASEAN integration. The success of ASEAN integration also hinges on narrowing the development gap among ASEAN Member Countries and between ASEAN and other regions. One way to address this development gap is by focusing common efforts in the development and utilisation of information technology. He called on Member Countries to assist each other in the area of human development, i.e. entrepreneurship and infrastructure development through technical cooperation, among others.

6. Noting that ASEAN is facing many challenges (such as the oil price hike), ASEAN would need to go beyond trade liberalisation to create a favorable and stable environment to stimulate more FDI and promote tourism into ASEAN. The Prime Minister also called for the promotion of SMEs being important engines of growth. He proposed for the setting up of a fund to help the SMEs get better access to resources.

7. The Prime Minister also stressed that it is important for the AEM to work closely with the ASEAN Ministers Responsible for Energy Cooperation to enhance cooperation in the various areas of energy, especially those linked to agricultural development, through the identification of appropriate measures. In addition, the role of the AEM should be further expanded so that they can play the coordinating and advisory role for meetings of other economic-related sectoral bodies in ASEAN.

8. The text of the Prime Minister’s Opening Address and the Welcome Remarks of H.E. Soulivong Daravong jointly appears as ANNEX 2.

AGENDA ITEM 1: ELECTION OF CHAIRMAN AND VICE-CHAIRMAN

9. The Meeting elected H.E. Mr. Soulivong Daravong, Minister of Commerce, Lao PDR as Chairman and H.E. Dato’ Seri Rafidah Aziz, Minister of International Trade and Industry, Malaysia as Vice-Chairman.

AGENDA ITEM 2: ADOPTION OF AGENDA

10. The Meeting adopted the Agenda, which appears as ANNEX 3.

AGENDA ITEM 3: BUSINESS ARRANGEMENTS

11. The Meeting was held in plenary.

AGENDA ITEM 4: REPORT OF THE ASEAN SECRETARY-GENERAL TO THE THIRTY-SEVENTH MEETING OF THE ASEAN ECONOMIC MINISTERS

12. H.E. Mr. Ong Keng Yong, Secretary-General of ASEAN, presented his report to the AEM, which appears as ANNEX 4. In his report, the Secretary-General touched upon the recent economic and trade developments, ASEAN’s economic performance, the progress on ASEAN economic integration and the challenges facing ASEAN in the realisation of its ASEAN Economic Community (AEC) goals. The Secretary-General also submitted several recommendations to address the challenges, particularly, in the areas of rules of origin (ROO), elimination of non-tariff barriers (NTBs), review of national trade and economic policies, and in ASEAN’s on-going negotiations for FTAs and CEPs.

13. The Meeting noted the importance of providing a thorough analysis on the economic performance of ASEAN to avoid inaccurate interpretation on the trends in trade and investment flows into ASEAN. The Meeting also noted that some Member Countries do not have the resources and capability to undertake their own economic analysis. Being dependent on the ASEAN Secretariat, these Member Countries suggested that the ASEAN Secretariat be strengthened to enable them to do research and analysis. The Meeting recommended that the ASEAN Secretariat explore ways to enhance its human resource capacity in order to carry out more in-depth analysis. Viet Nam also suggested that a study on the impact of the hike in oil price on the region’s economy be undertaken to recommend how Member Countries can cooperate in the area of oil price management.

14. The Meeting tasked the Senior Officials to look into the recommendations made by the Secretary-General.

AGENDA ITEM 5: CONSIDERATION AND ADOPTION OF THE REPORT OF THE EIGHTH MEETING OF THE ASEAN INVESTMENT AREA (AIA) COUNCIL, VIENTIANE, LAO PDR, 27 SEPTEMBER 2005

15. The Secretary-General of ASEAN, on the request of the AIA Chairman, presented the highlights of the 8th AIA Council Report. In presenting his report, the Secretary-General took the opportunity to highlight the recent mission to the European Union (EU) by the ASEAN Finance Ministers in September 2005. He highlighted two important points for AEM’s notation:

(a) The interest of EU fund and portfolio managers towards Latin American countries, which have become an attractive FDI destination because of their open and transparent regimes.

(b) Prospective investors required country specific data rather than generic information as precise information was necessary to facilitate matching between potential investors and host countries.

16. The Secretary-General also informed the Meeting that ASEAN is jointly cooperating with FTSE to develop two indices on ASEAN: 180 companies strong reference index and ASEAN 40 to meet the needs of institutional and retail fund managers.

17. Noting the points highlighted by the Secretary-General, the Meeting stressed that portfolio as well as direct investment (e.g. FDI in infrastructure, telecommunications and manufacturing - the type of FDI that stayed in a host country for long periods) were equally important and that ASEAN should continue to promote both types of investment. The Meeting, also noting that some of the findings of the AIA Council were not new, agreed on the need for ASEAN to look at the core issues necessary to transform ASEAN into a seamless production network.

18. The Meeting agreed to adopt the recommendation of the 8th AIA Council concerning the need for ASEAN’s trade and investment policies to work in tandem to ensure ASEAN’s competitiveness. The AIA Council’s recommendation was for all businesses to operate seamlessly within ASEAN as though it is a single economic entity for both trade and investment. For this to happen, it is imperative that for all value-added activities in ASEAN, spanning production and all its supporting services (e.g. marketing, design and R&D), ASEAN should treat them as if they occurred in the same country. This would require the capturing of all ASEAN value content for trade computation purposes. The Meeting also noted the feedback from the business community that ASEAN in reality still operated as 10 separate economic entities and not as a single production base. Thus, the Meeting agreed that the officials would work out and submit their recommendations on the operationalisation of this initiative by the AEM Retreat in 2006.

19. Recognising the value and importance of promoting in-bound investment missions to ASEAN, the Meeting welcomed Singapore’s offer for her BOI to work with respective ASEAN BOIs to promote feasible in-bound missions to respective ASEAN countries during the IMF-WB meeting in Singapore in 2006.

20. The Meeting adopted the report of the 8th Meeting of the AIA Council held in Vientiane Lao PDR on 27 September 2005, which appears as ANNEX 5.

AGENDA ITEM 6: CONSIDERATION AND ADOPTION OF THE REPORT OF THE NINETEENTH MEETING OF THE ASEAN FREE TRADE AREA (AFTA) COUNCIL, VIENTIANE, LAO PDR, 27 SEPTEMBER 2005

21. The Meeting considered and endorsed the Report of the 19th AFTA Council Meeting held on 27 September 2005 in Vientiane, Lao PDR and the decisions contained therein. The Report appears as ANNEX 6.

AGENDA ITEM 7: CONSIDERATION OF THE REPORT OF THE HIGH LEVEL TASK FORCE ON ASEAN ECONOMIC INTEGRATION

22. Dato’ Sidek Hassan, Secretary-General of the Ministry of International Trade and Industry, Malaysia presented the HLTF report to the AEM, which appears as ANNEX 7. His report focused mostly on the implementation update of the AEC and, the issues and problems encountered in the implementation.

23. The discussions on the report of the HLTF focused mainly on three areas: (a) public-private sector mechanism

24. The Meeting emphasised the need for the private sector to play a greater role in strengthening the various roadmaps for integration. Towards this end, the Meeting tasked the Senior Officials to look into how a public-private sector consultation mechanism can be developed within the context of the priority integration sectors. This mechanism could also be used in getting relevant inputs from the private sector especially when ASEAN commences work on synchronising trade and investment policies.

(b) ASEAN Single Window (ASW)

25. The Meeting viewed that the full implementation of the ASW should be realised earlier than the 2010/2012 end-date recommended by the HLTF as the initiative would be beneficial to all Member Countries. As the ASEAN-6 indicated their readiness to implement

their National Single Windows, the Meeting agreed that the establishment of National Windows in ASEAN-6 should be no later than 2008. The target for CLMV would be 2012. This would pave the way and ensure that the ASW would be in place by 2012, at the latest. The Meeting also agreed on the need to provide capacity-building on customs matters and procedures so that Member Countries can efficiently implement the ASW.

26. The Meeting noted that the ASW Task Force will meet in November to finalise the ASW Agreement. Recalling their previous decision to submit the ASW as one of the deliverables at the 11th _{ASEAN Summit, the Meeting endorsed in principle the draft ASW}

Agreement, appearing as ANNEX 8, so that Member Countries can commence internal procedures to have the document signed at the Summit. The Meeting agreed to recommend that the ASW Agreement be signed by the AEM.

27. Indonesia informed the Meeting of her plan to implement the ASW as a pilot project in selected areas, including Batam Island, in 2006.

(c) Acceleration of trade in services

28. The Ministers, emphasising the need to adopt a strategic and dynamic approach using existing mechanisms to accelerate regional integration, particularly in the area of trade in services, agreed that the integration of tourism and air travel can be done at an even faster pace. The Meeting agreed to recommend to the relevant sectoral Ministers to identify additional measures to accelerate integration in these two services sectors. Officials were also asked to study and identify measures to develop the logistics services sector.

29. The Meeting also exchanged views on ASEAN’s dual approach in regional integration, i.e. internal with the AEC as the end-goal and external, through the various FTA negotiations with Dialogue Partners. The Meeting, recalling the ASEAN Secretariat initiative to undertake studies on sectoral integration, agreed that the impact of the bilateral FTAs in ASEAN economic integration be included in such studies.

(d) Continuation of the HLTF

30. The Meeting agreed that the HLTF shall continue to be responsible for monitoring the progress of ASEAN economic integration. On the possible overlap in the functions of the HLTF and SEOM, the Meeting agreed that the role of the HLTF should be more visionary and strategic in coming up with recommendations to accelerate regional integration. SEOM shall continue to monitor and coordinate the implementation of all ASEAN economic cooperation programs and activities.

AGENDA ITEM 8: CONSIDERATION OF THE REPORT OF SEOM CHAIRMAN TO THE THIRTY-SEVENTH MEETING OF THE ASEAN ECONOMIC MINISTERS

31. The Meeting considered the Report of the SEOM Chairman to the 37th _{AEM Meeting.}

The SEOM Chairman reported that since the 36th _{AEM Meeting, SEOM met four times since}

the 36th AEM Meeting and had taken appropriate follow-up actions on the decisions of the Ministers and the Leaders, at the Tenth ASEAN Summit held in Vientiane, Lao PDR, including the priority integration sectors, economic cooperation projects and activities in the various sectors, ASEAN’s external economic relations particularly the on-going FTA negotiations with some Dialogue Partners, and other activities and initiatives pertinent to ASEAN economic integration. The SEOM Chairman’s Report appears as ANNEX 9.

32. The Meeting considered the recommendations contained in the SEOM Chairman’s report and took the following courses of action:

Priority Sectors

33. The Meeting welcomed the convening of the Consultative Meeting on the Priority Sectors (COPS) at the ASEAN Secretariat on 8-9 July 20005 and noted the recommendations of the COPS on how to achieve market integration in ASEAN. The Meeting specifically noted the recommendations on sector-specific measures, which include refining existing measures under each Roadmap to reflect the current conditions in the different sectors and ensure that each measure is effectively and timely implemented. The Meeting also proposed that new measures to facilitate market integration be considered. Each sector also recognised the importance of close coordination with other ASEAN bodies, ASEAN-BAC and the ASEAN-CCI.

34. The Meeting endorsed the recommendation to convene the COPS on a regular basis and encouraged more private sector representatives and industry groups to be involved. The Meeting also endorsed the work plan of SEOM for a Phase 2 which could include amendments, improvements and additions to the existing product lists and measures. The Meeting also agreed that its earlier decision to further fast-track tourism and air-travel would be part of Phase 2. The Meeting tasked SEOM to submit its Phase 2 recommendations to the Ministers at the AEM Retreat next year.

ASEAN Integration System of Preference (AISP)

35. The Meeting noted the implementation status of AISP and the following transpired: (a) Cambodia suggested that the preference-giving countries submit their AISP

data to the ASEAN Secretariat every 3 months, to enable the Secretariat to undertake the analysis on its utilisation.

The Secretary-General pointed out that the low utilisation of the AISP was attributed to the submission of products by CLMV that are not produced in their countries. The Secretary-General therefore encouraged CLMV countries to study carefully the products to be requested. Malaysia added that to ensure maximum benefits from the AISP, it has to be market driven. As such, consultations with the private sector need to be undertaken.

Cambodia concurred with the Secretary-General and Malaysia and indicated her need for capacity building to enable her to analyse her industrial structure. She also requested the ASEAN-6 to provide CLMV with the updated MFN tariff rates based on AHTN to avoid requesting products whose tariffs have already been eliminated.

(b) Cambodia, Lao PDR, Myanmar and Viet Nam expressed their appreciation to ASEAN-6 for granting them tariff preferences under the Scheme.

Standards and Conformance

36. The Meeting endorsed the ASEAN Policy Guideline on Standards and Conformance, appearing as ANNEX 10, and assigned the ACCSQ to oversee its implementation.

37. The Meeting welcomed the progress of services liberalisation in ASEAN including the following:

(a) the target completion of the 5th _{Package of Services Commitments by 1}

August 2006 and the conclusion of the 4th _{round of services negotiations and}

signing of the Protocol to Implement the Package of Services of Commitments by the 38th _{AEM in September 2006;}

(b) the sectors/sub-sectors to be liberalised and the target level/parameters of services liberalisation under the 4th round of services negotiations; and

(c) exchange of offers of Member Countries under the 4th round of services negotiations.

38. The Meeting noted as well the status of services liberalisation in the air and financial services sectors, which are under the purview of the ASEAN Transport Ministers and the Finance Ministers, respectively.

39. The Meeting highlighted that services contributes significantly to the ASEAN economy specifically, as source of growth and creator of employment opportunities, and plays a key role in the competitiveness of ASEAN as a regional trading bloc. The Meeting reaffirmed their commitment for the opening up of the services sector and endorsed 2015 as the target date for the liberalisation of all services sectors, with flexibility for some sectors/sub-sectors.

40. The Meeting likewise endorsed the targets and other parameters to guide services negotiations as follows:

(a) Modes 1 and 2 commitments for all sub-sectors shall be “None” for both market access and national treatment. For sub-sectors where a Member Country could not schedule as “None”, the respective Member Country should provide due reasons.

(b) Mode 3 foreign equity participation targets for the priority services sectors shall be with flexibility as follows: 49% by 2006, 51% by 2008, and 70% by 2010. For other services sectors, the targets with flexibility shall be as follows: 30% by 2006, 49% by 2008, 51% by 2010, and 70% by 2015. For construction services, the target foreign equity participation for the 4th round of negotiations or by 2006 shall not be less than 51%.

(c) Mode 3 liberalisation shall also address the elimination of all other market access and national treatment limitations and conditionalities.

(d) Commitments for Mode 4 under the 4th _{round of negotiations shall be}

improved compared to the current level of commitments under the AFAS. 41. The Meeting also agreed to develop roadmaps to map out the liberalisation and integration of the different services sectors toward 2015, with flexibility, and explore alternative approaches, including the possible application of the “2 plus X” approach or the CEPT approach. Further, the Meeting agreed to a fast track acceleration of the liberalisation and prioritisation of key strategic and interrelated services, e.g. tourism and transport services, to maximise the potential of ASEAN. Views were also expressed on the need to develop business outsourcing and logistic services sector in ASEAN.

42. The Meeting also welcomed the positive updates on the MRA on Engineering and Nursing. The Meeting urged Member Countries to complete the internal process for the MRA on Engineering and encouraged them to endeavour finalising the MRA on Nursing for signing at the ASEAN Summit in December 2005.

ASEAN Industrial Cooperation (AICO) Scheme

43. The Meeting, noting that Indonesia is still at the final stage of ratifying the Protocol to Amend the Basic Agreement on the AICO Scheme, urged Indonesia to expedite her process of ratification.

44. Waiver of the 30% National Equity Requirement. The Meeting agreed on the

extension of the waiver of the 30% national equity requirement under the AICO Scheme until 31 December 2006.

Small and Medium Enterprises (SMEs)

45. The Meeting noted the developments in implementing the ASEAN Policy Blueprint for SME Development (APBSD) 2004-2014 and agreed that beyond 2014, ASEAN SMEs should be able to be part of the ASEAN and Greater East Asia supply chain. To achieve this, the Meeting tasked the AWGSME to develop a database of ASEAN SMEs, which can be used for match-making and networking activities in ASEAN. The Meeting agreed that such database should also be able to encourage ASEAN outsourcing for both trade in goods and services.

ASEAN-India Free Trade Area (AIFTA)

46. The Meeting noted the briefing given by Malaysia on the developments in the ASEAN-India FTA negotiations and urged ROO negotiators to maximise efforts to resolve the fundamental differences in the positions without compromising the need to have rules that are trade facilitating, business/user-friendly and easy to implement. The Meeting also noted that a workshop will be held at the ASEAN Secretariat on 17-18 October 2005, with the aim of getting a clear understanding of India’s proposal on the ROO. The ASEAN-India Trade Negotiating Committee and its Working Group on Rules of Origin will be convened sometime in November 2005.

47. The Meeting agreed in principle on the need for a “rider” to the Framework Agreement that would extend the completion date for the FTA negotiations and the new date for implementing the AIFTA, i.e. 1 January 2007.

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)

48. The Meeting noted the briefing made by the Philippines on the developments in the negotiations for the AJCEP, which highlighted the difficulties encountered in the negotiations, Japan’s proposals to address the difficulties and the “unintended side effects” of Japan’s proposal. The Meeting agreed to convey to Japan at the AEM-METI Consultations ASEAN’s concerns, including: (a) working out a cumulative AJCEP ROO based on a negotiated common list; (b) mitigating the sharp divide that may unintentionally arise out of Japan's two-tiered approach to the regional and bilateral economic partnerships with ASEAN; and (c) speeding up all on-going and scheduled negotiations with a view to enriching the regional engagement between ASEAN and Japan.

49. The Meeting viewed that while speeding up on-going EPA negotiations could contribute to the resolution of the outstanding issues in the regional AJCEP negotiations, there is still the concern that Japan is not engaging all Member Countries for bilateral EPAs.

The Meeting agreed to take the opportunity provided by the AEM-METI Consultations to discuss the issues.

ASEAN-Korea Free Trade Area (AKFTA)

50. The Meeting noted the briefing given by Singapore on the progress of the on-going negotiations for the ASEAN-Korea Free Trade Area highlighting on the key parameters to move forward the negotiations in order to finalise the Framework Agreement and the Trade in Goods Agreement for signing at the forthcoming Summit in Kuala Lumpur.

51. In order to engage the Ministers in a frank exchange on AKFTA issues, the Meeting agreed to have a Minister+2 AEM-ROK Consultations where discussions would focus on the following key issues: (a) the timeframe to achieve tariff elimination on 90% of all products in the Normal Track; (b) the dual criteria for the threshold of the Sensitive Track (tariff lines and import value); and (c) flexibility in the Highly Sensitive List.

ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

52. The Meeting was briefed by Brunei on the status of the AANZFTA negotiations. The Meeting noted that the SEOM-CER Consultations preparatory to the AEM-CER agreed to endorse the Terms of Reference of four Working Groups, i.e. ROO, Services, Investment and, Legal and Institutional Issues. On the issue of Australia’s proposal to establish a working group on intellectual property (IP), the agreement was that IP shall be taken up at the TNC. ASEAN, Australia and New Zealand also agreed that the TNC discuss the new issues, i.e. government procurement, competition policy and IP, without prejudice to the outcome of the negotiations.

ASEAN-JAPAN: AMEICC

53. The Meeting agreed to request METI, during the AEM-METI Consultations, to include other sub-regional groups, e.g. BIMP-EAGA, in AMEICC’s activities on the policy side to narrow the gaps among ASEAN Member Countries.

ASEAN-EU

54. Viet Nam, as the Country Coordinator, highlighted that she has coordinated the initiation of the TREATI programme, which covers a number of common activities as well as some of the 11 priority sectors. She pointed out that the initiative was in line with the views of the AEM on the need to focus on the areas where ASEAN has strong competitiveness. She added however that the implementation progress of TREATI was slow.

55. Viet Nam further briefed the Meeting on the recent establishment of the Vision Group. The inaugural meeting of the ASEAN-EU Vision Group was held in Ha Noi from 21-22 July 2005, in accordance with the decision made at the 6th _{AEM-EU Consultation held in}

April in Ha Long.

ASEAN-CANADA

56. The Meeting welcomed the establishment of formal economic links between the Senior Economic Officials of ASEAN and Canada.

ASEAN-RUSSIA

57. The Meeting encouraged the convening of regular SEOM-Russia Consultations. Cambodia agreed to be the country coordinator for Russia.

ASEAN-PAKISTAN

58. The Meeting endorsed the recommendation of SEOM for a joint study to be undertaken together with Pakistani researchers to enhance and expand overall ASEAN-Pakistani economic engagement. Myanmar agreed to be the country coordinator for Pakistan

AGENDA ITEM 9: CONSIDERATION OF THE REPORT OF SECTORAL MINISTERIAL MEETINGS

59. The Ministers expressed the importance of strengthening the coordination mechanism among the AEM and other Sectoral Ministers so as to ensure the effectiveness and efficient implementation of the measures towards the realisation of the AEC. In this regard, the Ministers agreed to task the Secretary-General to highlight to the various Sectoral Ministers the concerns raised by some of the Ministers with regard to the coordination issue.

9.1 26TH MEETING OF THE ASEAN MINISTERS ON AGRICULTURE AND

FORESTRY (AMAF)

60. The Meeting noted the Report of the 26th Meeting of the ASEAN Ministers on Agriculture and Forestry (AMAF) held in Yangon on 7 October 2004. The Report appears as

ANNEX 11.

9.2 10TH ASEAN TRANSPORT MINISTERS MEETING (ATM)

61. The Meeting noted the Report of the 10th ASEAN Transport Ministers Meeting (ATM) held in Cambodia on 23 November 2004. The Report appears as ANNEX 12.

9.3 6TH MINISTERIAL MEETING ON THE ASEAN-MEKONG BASIN

DEVELOPMENT COOPERATION (AMBDC)

62. The Meeting noted the Report of the 6th Ministerial Meeting on the ASEAN-Mekong Basin Development Cooperation (AMBDC) held in Vientiane on 21-22 December 2004. The Report appears as ANNEX 13.

63. Malaysia informed the Meeting of the next AMBDC Ministerial Meeting which will be convened in Kuala Lumpur on 28 November 2005. This will be preceded by the AMBDC Steering Committee meeting on 25-26 November 2005. She also expressed her concern over the slow progress in the implementation of some of the AMBDC projects which could be attributed to lack of funds. She also emphasised the need to reinvigorate the committees under the AMBDC.

64. Noting that the Finance Committee of the AMBDC is chaired by Thailand, the Meeting requested Thailand’s assistance in mobilising resources for the AMBDC projects, particularly hard infrastructure projects such as the Singapore-Kunming Railway.

9.4 8TH MEETING OF ASEAN TOURISM MINISTERS (M-ATM)

65. The Meeting noted the Report of the 8th Meeting of the ASEAN Tourism Ministers (M-ATM) held in Langkawi, Malaysia on 24 January 2005. The Report appears as ANNEX 14. The Meeting specifically noted that the Ministers have established a Special Working Group

on ASEAN Tourism Integration, under the ASEAN NTOs, which would facilitate and recommend further tourism integration measures towards realising the AEC.

9.5 23RD ASEAN MINISTERS ON ENERGY MEETING (AMEM)

66. The Meeting noted the Report of the 23rd _{ASEAN Ministers on Energy Meeting}

(AMEM) held in Siem Reap, Cambodia on 13 July 2005. The Report appears as ANNEX 15.

9.6 1ST ASEAN MINISTERIAL MEETING ON MINERALS (AMMin)

67. The Meeting noted the Report of the 1st ASEAN Ministerial Meeting on Minerals (AMMin) held in Kuching, Malaysia on 4 August 2005. The Report appears as ANNEX 16. The Meeting, in particular, noted that AMMin signed a Ministerial Understanding (MU) on ASEAN Cooperation in Minerals to formalise regional cooperation in minerals. The MU also aims to develop the minerals sector to be an engine for greater economic growth and social progress in the ASEAN region; enhance trade and investment in the ASEAN minerals sector; and promote environmentally sound and socially responsible mineral development practices in the sustainable management and optimum utilisation of mineral resources.

AGENDA ITEM 10: JOINT APPROACHES TO INTERNATIONAL AND REGIONAL ECONOMIC ISSUES

10.1 WORLD TRADE ORGANISATION (WTO)

68. Viet Nam updated the Meeting on her accession to the WTO. She highlighted her difficulty to conclude bilateral discussions with the US, which has tabled some requests perceived to go beyond WTO standards; while Australia and New Zealand were asking for tariff reduction as extended under AFTA. She also briefed the Meeting on the positive progress on the multilateral talks in the Working Party and thanked ASEAN for its support. She sought further support from ASEAN in persuading the US, Australia and New Zealand to refrain from making unreasonable demands to Viet Nam.

69. The Ministers pledged their support to Viet Nam for its early accession to the WTO. 70. The Meeting noted the briefing of Singapore on the preparations for the WTO Ministerial Meeting scheduled in Hong Kong in December 2005.

10.2 ASIA-PACIFIC ECONOMIC COOPERATION (APEC)

71. Viet Nam briefed the Meeting on her preparations in hosting APEC 2006, including the schedule of APEC meetings. To assist her in the preparations, Viet Nam requested Member Countries to provide comments on the topics and themes for the APEC meetings for consolidation and sought the assistance of ASEAN Member Countries for them to successfully organise the APEC Leaders’ meeting. The Meeting noted the offer of Brunei and Thailand on this regard.

72. The Meeting also expressed their support and assistance to enable Viet Nam to successfully host the APEC Meetings in 2006.

10.3 ASIA-EUROPE MEETING (ASEM)

73. Indonesia, as the coordinating country for the Asia-Europe Meeting (ASEM), briefed the Meeting on the recent developments in ASEM. She informed the Meeting that no

Minister from Asia side was present at the scheduled 6th Economic Ministers Meeting (EMM) held in Rotterdam on 16-17 September 2005. The issue on the need to reconvene the EMM prior to the ASEM Summit in Helsinki was raised during the Meeting. Indonesia sought the views of ASEAN Member Countries on the issue. The outcomes of the said meeting appears as ANNEX 17.

AGENDA ITEM 11: PREPARATIONS FOR THE AEM CONSULTATIONS

74. The Meeting considered and endorsed the provisional agenda for the following consultations with Dialogue Partners:

(a) 4th AEM-MOFCOM Consultation; (b) 12th AEM-METI Consultation; (c) 2nd AEM-Korea Consultation; (d) 4th AEM-India Consultation;

(e) 8th AEM Plus Three Consultations, including consultations with EABC; and (f) 10th AEM-CER Consultation,

which appears in ANNEX 18.

AGENDA ITEM 12: PREPARATIONS FOR THE 11TH ASEAN SUMMIT, KUALA LUMPUR, MALAYSIA, DECEMBER 2005

75. Malaysia briefed the Meeting on her preparations for the 11th ASEAN Summit and other Summit-related activities, which will be held in Kuala Lumpur on 7-14 December 2005. The tentative programme for the Summit appears as ANNEX 19. The Meeting also agreed to work on the Summit deliverables, which appear as ANNEX 20.

AGENDA ITEM 13: OTHER PREPARATIONS

76. The Meeting considered the possibility of bringing forward the realisation of the AEC from 2020 to 2015, in line with the decision to accelerate to 2015 the liberalisation of services.

AGENDA ITEM 14: CONSIDERATION AND ADOPTION OF THE MEDIA STATEMENT

77. The Meeting considered and endorsed the Joint Media Statement of the 37th AEM Meeting, which appears as ANNEX 21.

AGENDA ITEM 15: DATE AND VENUE OF THE THIRTY-EIGHTH MEETING OF THE ASEAN ECONOMIC MINISTERS

78. The Meeting agreed that the Thirty-Eighth Meeting of the ASEAN Economic Ministers will be held in Malaysia in 2006. The Meeting noted that the exact date and venue of the said Meeting will be conveyed to the Ministers as soon as possible.

79. The Meeting considered and adopted the Report of the 37th ASEAN Economic Ministers (AEM), held in Vientiane, Lao PDR on 28 September 2005.

ACKNOWLEDGEMENT

The Meeting expressed its sincere appreciation to the Government and people of the Lao PDR for the warm hospitality extended and the excellent arrangements made for the Meeting.

DOC. NO. AGENDA ITEM

03 ₃

A

TTACHMENT

2:

R

EPORT OF THE

4/36

SEOM

THE 3rd

ACCSQ-WB PWG MEETING Bangkok, Thailand, 15-16 December 2005

REPORT OF THE FOURTH MEETING OF THE ASEAN SENIOR ECONOMIC OFFICIALS FOR THE THIRTY-SIXTH ASEAN ECONOMIC MINISTERS MEETING

(SEOM 4/36)

22 – 23 AUGUST 2005, BANGKOK, THAILAND

INTRODUCTION

1. The Fourth ASEAN Senior Economic Officials Meeting of the Thirty-Sixth ASEAN Economic Ministers Meeting (SEOM 4/36) was held on 22-23 August 2005 in Bangkok, Thailand.

2. Delegates from Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam attended the Meeting. Staff members of the ASEAN Secretariat were also in attendance. The list of delegates appears as ANNEX 1.

3. The Meeting was chaired by Mr. Herry Soetanto, Director-General of International Trade Cooperation, Ministry of Trade, Indonesia.

AGENDA ITEM 1. ADOPTION OF THE AGENDA

4. The Meeting adopted the Agenda, which appears as ANNEX 2.

AGENDA ITEM 2. BUSINESS ARRANGEMENTS

5. The Meeting was held in plenary.

AGENDA ITEM 3. FOLLOW-UP TO THE OUTCOMES OF THE CONSULTATIVE MEETING ON PRIORITY SECTORS (COPS), 8–9 JULY 2005, THE ASEAN SECRETARIAT, JAKARTA, INDONESIA

6. The Meeting considered the following documents related to the priority integration sectors:

(a) ASEAN Secretariat Paper: Outcome of the Consultative Meeting on the Priority Sectors (COPS), held at the ASEAN Secretariat on 8-9 July 2005; and (b) ASEAN Secretariat Paper: Updated Progress on the Integration of Priority

Sectors,

which appears as ANNEXES 3 and 4, respectively.

7. The Meeting exchanged views on the outcome of the COPS and agreed that the COPS provided an excellent opportunity for all bodies responsible for implementing the

measures in the Roadmaps for the Priority Sector to network and exchange ideas on improving coordination and possible recommendations for regional integration. With the success of the COPS, it was agreed that this should be convened on a regular basis and that more private sector representatives, not only industry groups, should be involved.

8. The Meeting however highlighted the importance of following through the recommendations arising from the COPS. The Meeting deliberated on the subsequent course of action so that a Phase 2 could include amendments, improvements and additions to the existing product lists and measures which could be drawn up and submitted as a deliverable to the Ministers at the AEM Retreat next year. The Meeting agreed as follows:

(a) Request the Secretary-General of ASEAN, in his capacity as the Chair of the COPS, to convey the recommendations of the COPS to the various implementing bodies, which should then develop a work programme, including specific targets and deadlines, on the implementation of the measures. A progress report on the implementation of the work programme should be submitted to SEOM every 6 months.

(b) Noting that the progress in the implementation of the priority integration initiative should be reported to the HLTF and to the AEM, the matrix presented at the COPS should be updated to take into account latest developments. Measures in the current Roadmaps which have been completed and realised should be highlighted to the AEM.

(c) The Meeting supported the initiative of the ASEAN Secretariat to engage sectoral experts to assess the various measures in the Roadmaps with the view to coming up with specific recommendations to complement the existing measures. While it was agreed that the matter of selecting sectoral experts should be left to the Secretariat, the Meeting agreed that the ASEAN Secretariat ensure that the experts/consultants engaged do not have conflicts of interest. The Secretariat was also advised to draw more from EU which has more experience on regional integration.

(d) The Terms of Reference for the Country Coordinators and Co-coordinators shall be drafted for consideration of the SEOM.

(e) The measures for priority integration in each of the sector should incorporate a strategic component. To do this, the Meeting agreed that available regional industry studies and the ASEAN Competitiveness Study by McKinsey be used as reference.

(f) Recommendations on Phase 2 shall be targeted for submission at the 2006 AEM Retreat. The “work plan” to achieve this target would be as follows: (i) The ASEAN Secretariat would be responsible for improving and

identifying additional elements in the horizontal measures while specific measures would be the responsibility of the respective Country Coordinators.

(ii) The Secretariat and the Country Coordinators will draft their recommendations on the Phase 2 within one month after which two weeks shall be given for the Secretariat to consolidate the proposals.

(iii) Member Countries shall thereafter be given one-and-a-half months to study the proposals and undertake the necessary consultations.

(iv) A Special SEOM will be convened back-to-back with SEOM 1/37 to deliberate on the proposals as well as the recommendations further suggested by the sectoral bodies during consultations. The SEOM preparatory to the 11th _{ASEAN Summit could also initially consider the}

recommendations.

(v) Member Countries shall be given one-and-a-half months to do their internal procedures in preparation for the signing of the improved roadmaps arising from Phase 2 by the AEM Retreat.

9. The Meeting noted Singapore’s letter regarding the ACCSQ’s proposal to change the implementing body of two measures in the e-ASEAN Roadmap from the ACCSQ to TELSOM, which appears as ANNEX 5.

AGENDA ITEM 4. FOLLOW-UP TO THE DECISIONS OF THE THIRD ASEAN SENIOR ECONOMIC OFFICIALS MEETING FOR THE THIRTY SIXTH ASEAN ECONOMIC MINISTERS MEETING (SEOM 3/36), 16 – 18 JUNE 2005, BANDAR SERI BEGAWAN, BRUNEI DARUSSALAM 4.1 ASEAN Single Window

10. The Meeting considered and discussed the outcome of the 5th Meeting of Task Force on the ASEAN Single Window (TF-ASW), held in Manila on 2-4 August 2005. The ASEAN Secretariat paper containing the highlights and the report, the outline of the technical document and the draft ASEAN Framework Agreement on the Establishment and Implementation of the ASEAN Single Window appear as ANNEX 6.

11. The Meeting recalled the agreement of the Ministers at the AEM Retreat in Ha Long Bay that the ASW could be a deliverable at the forthcoming ASEAN Summit. With this in mind, the Meeting agreed as follows:

(a) “Framework” in the title of the draft ASW Agreement should be deleted to read “ASEAN Agreement to Establish and Implement the ASEAN Single Window”.

(b) Recognising that most Member Countries would not be able to set up the ASW within a short period from the signing of the ASW Agreement, the Meeting agreed that the Agreement would serve as a statement of commitment from Member Countries to establish the ASW. Technical documentation of the ASW shall be in a separate Protocol.

(c) Emphasising that the establishment of the ASW is meant to facilitate trade and not a liberalisation exercise, its target date of implementation, as stipulated in Article 5 of the Agreement, shall be 2010. Flexibility shall be given to Member Countries but the establishment of the ASW should be done not later than 2012. Notwithstanding, Member Countries were encouraged to accelerate the implementation of the ASW as soon as feasible.

(d) Noting that a meeting of the TF-ASW has been scheduled at the same time of the 37th AEM meeting to consider the draft ASW Agreement, the AEM in

Vientiane shall be requested to make an endorsement in-principle so that Member Countries can commence with their internal procedures to have the ASW Agreement be signed by the ASEAN Ministers Responsible for Economic Integration at the 11th _{ASEAN Summit in Kuala Lumpur in}

December 2005.

(e) The entry into force of the ASW Agreement shall be set independent of the completion of the domestic processes of Member Countries. Appropriate provisions for Member Countries which would not be able to complete their ratification process within the specified date should be incorporated into the Agreement.

12. The Philippines and Thailand briefed the Meeting on the progress made to implement the ASW on a pilot basis. The Philippines highlighted that one of the remaining issues that she has to address is connectivity among the agencies involved in the implementation of the ASW. Thailand, on the other hand, highlighted her intention to focus first on inter-government coordination before involving the private sector stakeholders. As for the next stage of implementation for the ASW, Thailand raised that there may be a need to have a technical body to oversee the implementation of the ASW pointing our that the TF-ASW will complete its task and disbanded accordingly as provided for in its TOR.

4.2 ASEAN Common Time (ACT)

13. The Meeting exchanged views on the economic feasibility of implementing an ASEAN Common Time (ACT) with the view to making an appropriate recommendation to SOM. An ASEAN Secretariat Paper on this matter appears as ANNEX 7.

14. Taking into account the views expressed during the discussions, the Meeting agreed to recommend to SOM that since the costs of adjusting to the ACT would outweigh the economic benefits, it would be unnecessary to adopt ACT.

4.3 ASEAN Business Advisory Council

15. The Meeting noted the ASEAN Secretariat paper containing the highlights and the Report of the 16th Meeting of ASEAN Business Advisory Council (ASEAN-BAC), held in Bangkok on 29-30 July 2005, which appears as ANNEX 8.

16. Dato’ Syed Amin Al-jeffri, the current ASEAN-BAC Chair, made a presentation highlighting preparations for the Business Investment Summit (BIS) being organised in Kuala Lumpur in December 2005, the progress of the ASEAN Pioneer Project Scheme (APPS), and the establishment of the ASEAN-BAC as a corporate entity, among others. The presentation of the ASEAN-BAC appears as ANNEX 9.

17. The Meeting underlined the importance of the ASEAN-BAC’s role in advising and providing policy inputs to the Leaders particularly on matters relevant to realising the AEC goals. The Meeting noted the programme of the BIS and observed that current format of the BIS does not give much opportunity for interaction between the Leaders and the private sector. The ASEAN-BAC was requested to consider a format that would encourage the participation of more industry leaders and promote interaction in the BIS.

18. Responding to the request for them to be more involved in the area of economic integration, the ASEAN-BAC agreed to give emphasis on this issue in their report to the Leaders. On the format of the BIS, the ASEAN-BAC mentioned that although it may be

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 4/38 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 37th 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.

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 3/31 held in Bangkok on 17-19 July 2000;

(c) the decision of the 14th 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 24th Meeting of ASEAN Working Group on Intellectual Property Cooperation (AWGIPC), 20-21 July 2005, Manila, Philippines

32. The Meeting endorsed the ASEAN Secretariat paper on the highlights and Report of the 24th _{AWGIPC meeting, which appears as}

ANNEX 14.

33. Brunei, the ASEAN Co-chair for the FTA negotiations with Australia and New Zealand, informed the Meeting of Australia’s strong position on the inclusion of IP in the AANZFTA which has deterred the endorsement of the Terms of Reference (TOR) of four Working Groups under the AANZTNC and the interest of these two Dialogue Partners for IP experts from both regions to get together in a forum that would provide better understanding of each other’s position on IP. In this regard, the Meeting agreed to request the WGIPC to

engage the two countries in a consultation. The Meeting further agreed that flexibility should be given to the WGIPC on the areas to be discussed which could include capacity-building and the status of Member Countries’ compliance with TRIPS and accession to other IP-related international conventions.

5.2 38th Meeting of Coordinating Committee on the Implementation of the CEPT Scheme for AFTA (CCCA), 3-5 August 2005, Bangkok, Thailand

34. Indonesia, in her capacity as CCCA Chair, briefed the Meeting on the outcome of the 38th CCCA meeting held in Bangkok on 3-5 August 2005, The ASEAN Secretariat paper, including the report of the said meeting appears as ANNEX 15.

35. The Meeting exchanged views on the various issues highlighted in the CCCA report. The following transpired:

(a) Rules of Origin

36. The Meeting noted the discussion of the CCCA on the “anomaly in AFTA” which was raised by CCI at the Brunei SEOM. The Meeting concurred that the Regional Business Model (RBM), which the AFTA Council endorsed for implementation on a pilot-project basis, could address the perceived “anomaly in AFTA”. Noting however that no request for an RBM arrangement has been received since the decision was made at the last AFTA Council meeting, the Meeting agreed to report the status of the RBM to the AFTA Council which could include possible reasons for the lack of interest from the private sector in pursuing an RBM arrangement.

37. The Meeting also reiterated that, while other sectoral bodies (e.g. CCI) could raise issues relevant to ASEAN economic integration, matters relating to the CEPT-AFTA and the ROO should be handled by the CCCA and ROO-TF.

38. The Meeting emphasised that the overall review to determine the thrust of ASEAN’s ROO is crucial not only for the realisation of the ASEAN’s economic community goals but for ASEAN’s FTA arrangements with Dialogue Partners most especially. Noting the on-going comprehensive exercise being undertaken by the ROO-TF, the Meeting urged countries concerned to endeavour submitting their completed matrix by 26 August 2005 or, if not possible, not later than 31 October 2005.

39. The Meeting endorsed the Substantial Transformation Rules for Iron and Steel, which appears as ANNEX 16.

(b) Questionnaire on the Utilisation of the CEPT Form D

40. The Meeting noted that a preliminary survey on the utilisation of the CEPT Form D is currently being undertaken and that the ASEAN-BAC and the ASEAN-CCI are helping in the distribution of the questionnaire endorsed by the CCCA. Highlighting the need to report to the AFTA Council Form D utilisation, Lao PDR suggested that this be discussed with the ASEAN-CCI aimed at accelerating the process.

(c) Issuance of Legal Enactments

41. ASEAN documents, especially legal enactments to implement committed tariff reduction schedules, while issued in national languages, should also have English translations (not necessarily official or certified) issued soon after the issuance of the legal

enactment. The ASEAN Secretariat was requested to convey this decision to the relevant bodies for issuing legal enactments, e.g. ECCM/Customs DGs, in Member Countries.

(d) Elimination of Non-Tariff Barriers

42. The Meeting recalled the following mandate under the Bali Concord II: (i) set clear criteria to identify NTBs by mid-2005; and (ii) set a clear and definitive work programme for the removal of NTBs by 2005. The Meeting noted that all Member Countries, except the Philippines, endorsed, in principle, the criteria for classifying all NTMs according to the red/green/amber boxes (appearing as ANNEX 17), on the understanding that the criteria would only serve as guidelines for the elimination of NTBs and subject to flexibility where Member Countries would have the room to provide justifications for their measures or introduce special measures should the need arise.

43. The Philippines informed the Meeting that she cannot endorse the criteria because she is not clear on: (i) ASEAN’s work on NTMs vis-à-vis other international fora; and (ii) how the NTMs in ASEAN’s existing database will be subject to the criteria, i.e. whether all the elements in each of the box would have to be satisfied for an NTM to be classified in that particular box, or whether satisfaction of one or two elements would be enough for an NTM to be classified in that box.

44. The Meeting explored possible options to address the concerns of the Philippines yet she was still unable to endorse the criteria. Noting that the deadline in the Bali Concord II has lapsed, the Meeting requested the ASEAN Secretariat to complete its simulation exercise of the criteria vis-à-vis Member Countries’ list of NTMs so that concerned Member Countries could have a better appreciation of the exercise and submit these to the Prep-SEOM in Vientiane for consideration. Meanwhile, the Philippines was requested to re-consider her position, taking into account the views raised, and revert at the Prep-SEOM.

(e) Transfer of Sugar and Rice into the CEPT Inclusion List

45. The Meeting noted the difficulty of Indonesia and the Philippines to move rice (and sugar, for Indonesia) out of the Highly Sensitive List. The Meeting agreed that these issues should be raised to the Ministers at the 19th AFTA Council meeting in Vientiane.

(f) 10th ITWG (March 1995) Decision on the Flexibility when Fixing the CEPT Rates within the 0-5% Range

46. The Meeting recalled that SEOM has tasked the CCCA to develop conditions/ guidelines which Member Countries would adhere to in invoking the ITWG decision and have it ready for endorsement by the 19th AFTA Council meeting in September 2005 in Lao PDR.

47. The Meeting noted the ASEAN Secretariat’s proposed guidelines for the ITWG decision and the compilation of Member Countries’ inputs to the guidelines, which appears as ANNEX 18. The Meeting further noted that, at the CCCA, only the Philippines and Viet Nam could not support the recommendation to nullify the 10th _{ITWG decision.}

48. The Philippines reiterated that the flexibility provided by the ITWG decision was necessary to address unforeseen situations caused by economic uncertainties, political instability and strategic and significant investments as well as other circumstances not covered in any of the agreement/protocol under the CEPT. This being the case, her preference is as follows: (a) not to limit such flexibility only to those products which have CEPT rates of above 0% and below 5%; (b) not to subject the option to pre-approval by the

AFTA Council or any compensatory adjustment; and (c) not to have the option expire by 2010.

49. In discussing the issue, the Meeting recalled that the mandate given by the 18th

AFTA Council was for SEOM to study whether to make the ITWG option available to address extremely difficult situations or whether to instead look into other options that would provide the same recourse to Member Countries while at the same time preserving the integrity of AFTA and ASEAN economic integration. To this end, the Meeting noted that the CCCA is also considering the text of the proposed “Article ZZ”, appearing as ANNEX 19, which they agreed to incorporate into the CEPT Agreement as a “safeguard measure” for Member Countries encountering economic and financial difficulties. Most Member Countries pointed out that the proposed “Article ZZ” would already provide sufficient recourse for Member Countries when confronted with the difficulties described by the Philippines. Some Member Countries also expressed concern over the possibility of ASEAN being treated less favourably than its FTA partners since these FTA agreements (e.g. ACFTA) do not provide the same flexibility offered by the ITWG decision.

50. Recalling that no consensus was reached on the recommendation to nullify the ITWG decision at the 18th AFTA Council and that since no consensus could be reached at this Meeting on the proposed guidelines, the Meeting agreed to elevate the matter to the AFTA Council confining the issues to: (i) whether the flexibility will also be made available to products whose tariffs have at any time been eliminated; (ii) the matter of securing prior approval from the AFTA Council; and (iii) the expiry date of 2010 for ASEAN-6 and 2015 for CLMV, should a decision be taken to maintain the ITWG decision. The Meeting requested the Philippines and Viet Nam to reconsider their position, taking into account the views and concerns raised during the discussion, and revert at the Prep-SEOM in Vientiane.

(g) Review of the General Exception List

51. The Meeting noted the on-going review of the General Exception List and tasked the CCCA to discuss the modality for tariff reduction and elimination for products transferred out of the GE List and consider a modality for the subsequent phasing-out of the GE List. The Meeting endorsed the Work Programme recommended by the CCCA, which has been amended to incorporate the decision on the modality. The revised work programme for the GE review appears as ANNEX 20.

(h) Trade Data

52. The Meeting considered the proposal of the ASEAN Secretariat to establish a Task Force on Trade Data to provide the forum for discussing matters pertaining to the issues/problems in trade data submission. The Meeting, while recognising the perennial problem on trade data submission, viewed that the establishment of a Task Force may not be the solution to the problems as these were more related to inadequacies in data collection, generation and dissemination that may possibly be addressed by a format which countries could more easily adhere to or through capacity building (e.g. workshops on data collection).

53. The Meeting also considered the request of the ASEAN Secretariat to allow to the use of trade data from other sources in its report to the AFTA Council on ASEAN’s trade performance. In putting forward its request, the ASEAN Secretariat pointed out that the use of the sources would not allow the Secretariat to submit detailed report, especially in the utilisation of existing Schemes in ASEAN such as the CEPT and AISP Schemes.

54. The Meeting agreed to seek guidance from the AFTA Council on the issue of trade data submission, highlighting the various problems raised by the Secretariat. The Meeting also agreed to seek AFTA Council’s views on the use of other sources for ASEAN’s trade data. The Meeting noted the agreed format for the submission of general and Form D trade data adopted in previous CCCA meetings, which appears as ANNEX 21.

55. The Meeting endorsed the report to the 38th _CCCA.

5.3 26th Meeting of ASEAN Consultative Committee on Standards and Quality (ACCSQ), 3-5 August 2005, Makati, Philippines

56. The Meeting considered and endorsed the Report of the 26th ACCSQ held in Manila on 3-5 August 2005, which appears as ANNEX 22.

57. While the Meeting welcomed ACCSQ’s initiatives on the establishment of a Trust Fund, it has concerns over the potential vested interest by the private sector contributing to the Trust Fund. The Meeting suggested the need for clear agreement on the definition of costs and profit to avoid unnecessary conflict between Member Countries. Responding to the concerns raised, the ASEAN Secretariat informed the Meeting that it has cautioned the ACCSQ on this matter but was advised that the Fund would be mobilised from the participation cost of the private sector in the meetings or workshop. The Secretariat added that endorsement from ASC would also be sought for the establishment of the Trust Fund. 58. The Meeting endorsed the ASEAN Policy Guideline on Standards and Conformance, appearing as ANNEX 23, which aim to guide all ASEAN bodies working in the areas of standards and conformance in implementing measures on standards, technical regulations and conformity assessment procedures to facilitate the fast-track integration of priority sectors by 2010 and the realisation of the AEC by 2020.

59. The Meeting also noted that the Draft Agreement on ASEAN Harmonised Electrical Electronic Equipment Regulatory Regime, which has to be revised to take out the reference to the ASEAN Conformity Mark, is targeted for signing at the 11th ASEAN Summit in December 2005.

5.4 43rd Meeting of Coordinating Committee on Services (CCS), 17-18 August 2005, Ha Noi, Viet Nam

60. The Meeting considered and endorsed the Report of the 43rd Meeting of Coordinating Committee on Services (CCS) held in Ha Noi on 17-18 August 2005. The ASEAN Secretariat paper containing the highlights and the Report of the said meeting appears as

ANNEX 24.

61. The Meeting specifically endorsed the recommendation of the CCS that the foreign equity participation for the priority services sectors shall be as follows, with flexibility: 49% by 2006; 51% by 2008; and 70% by 2010. The Meeting also endorsed the revised TOR for the proposed study under the AADCP-REPSF on the desirability, feasibility and options for establishing an emergency safeguard mechanism within the AFAS. The Meeting noted the view that such exercise is useful in light of the growing number of free trade area negotiations being undertaken by ASEAN.

62. The Meeting also noted that, in some Member Countries, social services may qualify under the conditions stipulated under paragraph 3 of GATS Article 1 which allows for exception of services provided in the exercise of governmental authority.

63. The Meeting noted and welcomed the successful implementation of the ASEAN Services Forum held in Ha Noi on 5-6 July 2005.

5.5 28th Meeting of Coordinating Committee on Investment (CCI), 4-5 August 2005, Kuala Lumpur, Malaysia

64. The Meeting considered and endorsed the Report of the 28th _{Meeting of the}

Coordinating Committee on Investment (CCI) held in Kuala Lumpur on 4-5 August 2005. The ASEAN Secretariat paper containing the highlights and the Report of the said meeting appears as ANNEX 25.

65. The Meeting noted the CCI decision to allow Dr. Suthad Setboonsarng of Price Waterhouse Coopers (PWC), who is engaged to undertake the AISR 2005 project, to present the AISR to the AIA Council instead of the Secretary-General of ASEAN at the 8th AIA Council Meeting. This was based on the understanding that any follow-ups from the AISR would be tasked to the appropriate working groups, and endorsed through SEOM as appropriate.

66. The Meeting re-iterated its previous decision that the CCI shall report to the AIA Council, through SEOM, similar to the other existing Coordinating Committees/Working Groups under the purview of SEOM.

67. The Meeting approved the request of the CCI for SEOM to lobby for support from Dialogue Partners to undertake and support the inbound/outbound investment missions.

AGENDA ITEM 6. HIGHLIGHTS OF OTHER ASEAN ECONOMIC MEETINGS

6.1 Special Telecommunication Senior Officials Meeting (TELSOM), 4-7 July 2005, Yangon, Myanmar

68. The Meeting noted the ASEAN Secretariat paper containing the highlights and the Report of the Special Telecommunication Senior Officials Meeting (TELSOM), held in Yangon on 4-7 July 2005, which appears as ANNEX 26.

6.2 23rd ASEAN Ministers on Energy Meeting (AMEM) and Senior Officials Meeting on Energy (SOME), 11-13 July 2005, Siem Reap, Cambodia

69. The Meeting noted the ASEAN Secretariat paper containing the highlights and Reports of the 23rd ASEAN Ministers on Energy Meeting (AMEM) and the Senior Officials Meeting on Energy (SOME), held in Siem Reap on 11-13 July 2005, which appears as

ANNEX 27.

6.3 4th ASEAN Senior Officials Meeting on Development Planning, 14-15 July 2005, Bali, Indonesia

70. The Meeting noted the Report of the 4th _{ASEAN Senior Officials Meeting on}

Development Planning, held in Bali on 14-15 July 2005, which appears as ANNEX 28.

71. Responding to Brunei’s query on the possibility of convening a Ministerial-level meeting of the Development Planning agencies, the Secretariat mentioned that this was the original intention of bringing together officials from the Development Planning agencies of ASEAN Member Countries. However, as some Developing Planning agencies were headed

by Prime Ministers, it was agreed that this sectoral body would be operating at the Senior Officials mode.

6.4 20th 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 20th _{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 26th 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 11th 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 11th 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.

7.6.2 Preparations for the 7th SEOM - India Consultations, 25 August 2005, Bangkok, Thailand

102. The Meeting endorsed the provisional agenda for the 7th _{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 2nd and 3rd 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 15th SEOM – CER Consultations, 24 August 2005, Bangkok, Thailand

106. The Meeting endorsed the provisional agenda for the 15th SEOM–CER Consultations, which appears as ANNEX 47.

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 projects/activities 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 projects/activities 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 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

(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 6th SEOM – AUSTR Consultations, 26 August 2005, Bangkok, Thailand

117. The Meeting endorsed the provisional agenda for the 6th 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 view/inputs. 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 37th ASEAN Economic Ministers’ Meeting (AEM), September 2005, Vientiane, Lao PDR

122. Lao PDR briefed the Meeting on her preparations for the 37th AEM and other AEM-related meetings which will be held in Vientiane in September 2005. The revised tentative

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 37th _{AEM and 19}th _{AFTA Council meetings, which appears as}

ANNEXES 53 and 54, respectively.

8.3 Preparations for the 11th ASEAN Summit, December 2005, Kuala Lumpur, Malaysia

124. Malaysia briefed the Meeting on her preparations for the 11th 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 11th ASEAN Summit, appearing as ANNEX 55, and agreed to consider this at the Prep-SEOM in Vientiane.

8.4 Asia-Europe Meeting (ASEM)

127. The Meeting noted the developments in ASEM as reported by Indonesia. The following documents were also noted:

(a) Chairman’s Summary for the 10th ASEM Senior Officials on Trade and Investment (SOMTI), held in Qingdao on 18-19 July 2005;

(b) SOMTI 10 Trade Facilitation Action Plan (TFAP) Concrete Goals 2005-2006; and

(c) ASEM Contact Persons, which jointly appear as ANNEX 56.

8.5 Pakistan

128. The Meeting noted the letter of the Secretary-General of ASEAN on Pakistan’s proposal to conduct a feasibility study to establish an ASEAN-Pakistan Free Trade Area (FTA), which appears as ANNEX 57.

129. The Meeting, noting that Pakistan still has to establish itself as full Dialogue Partner of ASEAN, agreed that the study proposed by Pakistan could proceed on a joint-study basis, involving researchers from both sides. Such study should however be broader than just exploring the possibility of an FTA but should also assess and make recommendations for an overall ASEAN-Pakistan economic engagement.

130. The Meeting also noted the view of some Member Countries that ASEAN should look into a master plan (or strategy) for its FTA engagements rather than just responding to the approach of other countries.

8.6 Russia

131. Singapore informed the Meeting of the request from Russia to establish regular dialogue with ASEAN and the proposal to look into the possibility of establishing an ASEAN-Russia Preferential Trade Zone.

132. The Meeting noted the views of some Member Countries on the growing importance of Russia as a trading partner. It was also noted the view that Russia may not be interested in pursuing an FTA with ASEAN as its current priority is acceding to the WTO. Taking into account the views raised, the Meeting agreed to start regular consultations with Russia.

8.7 SEOM-Canada

133. The Meeting recalled that a number of follow-up actions has to be undertaken following the SEOM-Canada Consultations held in May 2005. Recalling further that the next consultations will be held sometime next year, the Meeting requested Indonesia, as the Country Coordinator for Canada, and Member Countries to work on the follow-up actions accordingly.

134. The Meeting noted that one of this is the undertaking of Canada to provide capacity building to ASEAN and that part of this would be the participation of Canadian experts to the next ASEAN ROO-TF meeting to explain the NAFTA ROO.

8.8 Structure of Future SEOM

135. The Meeting, recognising the growing need to discuss issues relating to ASEAN’s FTA engagements, agreed that future SEOM should be scheduled for three days where 1½ days would be devoted to discuss internal issues, one day to discuss external (FTA) issues and ½ day for the adoption of the report. The Meeting agreed to adopt this structure starting at the SEOM 1/37.

8.9 ASEAN Development Fund (ADF)

136. The Meeting agreed to discuss this matter at the preparatory SEOM for the 37th _AEM

meeting.

AGENDA ITEM 9. DATE AND VENUE OF THE NEXT MEETING

137. The Meeting agreed to discuss the date and venue of SEOM 1/37 at the Preparatory SEOM for the 37th AEM Meeting in Vientiane, Lao PDR on 24 September 2005.

AGENDA ITEM 10. CONSIDERATION AND ADOPTION OF THE REPORT

138. The Meeting considered and adopted the Report of the Fourth Meeting of the ASEAN Senior Economic Officials for the 36th _{ASEAN Economic Ministers Meeting (SEOM 4/36)}

held in Bangkok, Thailand on 22-23 August 2005.

ACKNOWLEDGEMENT

The delegations from Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Viet Nam and the ASEAN Secretariat expressed their sincere appreciation and gratitude to the Royal Government of Thailand for the warm hospitality accorded to them and the excellent arrangements made for the Meeting.