Database
on Basic Documents of Japan-ASEAN Relations
Department of
Advanced Social and International Studies,
FRAMEWORK AGREEMENT ON ENHANCING ASEAN ECONOMIC COOPERATION
The Sultan of Brunei Darussalam, the President of the Republic of
Indonesia, the Prime Minister of Malaysia, the President of the Republic of the
Philippines, the Prime Minister of the Republic of Singapore and the Prime
Minister of the Kingdom of Thailand:
REAFFIRMING their commitment to the ASEAN Declaration of 8 August 1967,
the Declaration of ASEAN Concord of 24 February 1976, the Treaty of Amity and
Cooperation in
DESIRING to enhance intra-ASEAN economic cooperation to sustain the
economic growth and development of all Member States which are essential to the
stability and prosperity of the region;
REITERATING their commitment to the principles of the General Agreement
on Tariffs and Trade
(hereinafter
referred to as "GATT");
RECOGNISING that tariff and non-tariff barriers are impediments to
intra-ASEAN trade and investment flows, and that existing commitments to remove
these trade barriers could be extensively improved upon;
NOTING the significant unilateral efforts made by Member States in recent
years to liberalise trade and promote investments,
and the importance of extending such policies to further open up their
economies, given the comparative advantages and complementarity
of their economies;
RECOGNISING that Member States, having different economic interests,
could benefit from sub-regional arrangements;
CONSCIOUS of the rapid and pervasive changes in the international
political and economic landscape, as well as both challenges and opportunities
yielded thereof, which need more cohesive and effective performance of
intra-ASEAN economic cooperation;
MINDFUL of the need to extend the spirit of friendship and cooperation
among Member States to other regional economies, as well as those outside the
region which contribute to the overall economic development of Member States;
RECOGNISING further the importance of enhancing other fields of economic
cooperation such as in science and technology, agriculture, financial services
and tourism;
HAVE AGREED AS FOLLOWS:
Article 1: Principles
1. Member States shall endeavour to strengthen
their economic cooperation through an outward-looking attitude so that their
cooperation contributes to the promotion of global trade liberalisation.
2. Member States shall abide by the principle of mutual benefit in the
implementation of measures or initiatives aimed at enhancing ASEAN economic
cooperation.
3. All Member States shall participate in intra-ASEAN economic
arrangements. However, in the implementation of these economic arrangements,
two or more Member States may proceed first if other Member States are not
ready to implement these arrangements.
Article 2: Areas of Cooperation
A. Cooperation in Trade
1. All Member States agree to establish and participate in the ASEAN Free
Trade Area (AFTA) within 15 years. A ministerial-level Council will be set up
to supervise, coordinate and review the implementation of the AFTA.
2. The Common Effective Preferential Tariff (CEPT) Scheme shall be the
main mechanism for the AFTA. For products not covered by the CEPT Scheme, the
ASEAN Preferential Trading Arrangements (PTA) or any other mechanism to be
agreed upon, may be used.
3. Member States shall reduce or eliminate non-tariff barriers between
and among each other on the import and export of products as specifically
agreed upon under existing arrangements or any other arrangements arising out
of this Agreement.
4. Member States shall explore further measures on border and non-border
areas of cooperation to supplement and complement the liberalisation
of trade.
B. Cooperation in Industry, Minerals and Energy
1. Member States agree to increase investments, industrial linkages and complementarity by adopting new and innovative measures, as
well as strengthening existing arrangements in ASEAN.
2. Member States shall provide flexibility for new forms of industrial
cooperation. ASEAN shall strengthen cooperation in the development of the
minerals sector.
3. Member States shall enhance cooperation in the field of energy,
including energy planning, exchange of information, transfer of technology,
research and development, manpower training, conservation and efficiency, and
the exploration, production and supply of energy resources.
C. Cooperation in Finance and Banking
1. Member States shall strengthen and develop further ASEAN economic
cooperation in the field of capital markets, as well as find new measures to
increase cooperation in this area.
2. Member States shall encourage and facilitate free movement of capital
and other financial resources, including further liberalisation
of the use of ASEAN currencies in trade and investments, taking into account
their respective national laws, monetary controls and development objectives.
D. Cooperation in Food, Agriculture and Forestry
1. Member States agree to strengthen regional cooperation in the areas of
development, production and promotion of agricultural products for ensuring
food security and upgrading information exchanges in ASEAN.
2. Member States agree to enhance technical joint cooperation to better
manage, conserve, develop and market forest resources.
E. Cooperation in Transportation and Communications
1. Member States agree to further enhance regional cooperation for
providing safe, efficient and innovative transportation and communications
infrastructure network.
2. Member States shall also continue to improve and develop the intra-country
postal and telecommunications system to provide cost-effective, high quality
and customer-oriented services.
Article 3: Other Areas of Cooperation
1. Member States agree to increase cooperation in research and
development, technology transfer, tourism promotion, human resource development
and other economic related areas. Full account shall also be taken of existing
ASEAN arrangements in these areas.
2. Member States, through the appropriate ASEAN bodies, shall regularly
consult and exchange views on regional and international developments and
trends, and identify ASEAN priorities and challenges.
Article 4: Sub-regional Economic Arrangements
Member States acknowledge that sub-regional arrangements among
themselves, or between
Article 5: Extra-ASEAN Economic Cooperation
To complement and enhance economic cooperation among Member States, and
to respond to the rapidly changing external conditions and trends in both the
economic and political fields, Member States agree to establish and/or
strengthen cooperation with other countries, as well as regional and
international organisations and arrangements.
Article 6: Private Sector Participation
Member States recognise the complementarity
of trade and investment opportunities, and therefore encourage, among others,
cooperation and exchanges among the ASEAN private sectors and between ASEAN and
non-ASEAN private sectors, and the consideration of appropriate policies aimed
at promoting greater intra-ASEAN and extra-ASEAN investments and other economic
activities.
Article 7: Monitoring Body
The ASEAN Secretariat shall function as the body responsible for
monitoring the progress of any arrangements arising from this Agreement. Member
States shall cooperate with the ASEAN Secretariat in the performance of its
duties.
Article 8: Review of Progress
The ASEAN Economic Ministers' Meeting and its subsidiary bodies shall
review the progress of implementation and coordination of the elements
contained in this Agreement.
Article 9: Settlement of Disputes
Any differences between the Member States concerning the interpretation
or application of this Agreement or any arrangements arising therefrom shall, as far as possible, be settled amicably
between the parties. Whenever necessary, an appropriate body shall be
designated for the settlement of disputes.
Article 10: Supplementary Agreements or Arrangements
Appropriate ASEAN economic agreements or arrangements, arising from this
Agreement, shall form an integral part of this Agreement.
Article 11: Other Agreements
1. This Agreement or any action taken under it shall not affect the
rights and obligations of the Member States under any existing agreements to
which they are parties.
2. Nothing in this Agreement shall affect the power of Member States to
enter into other agreements not contrary to the terms and objectives of this
Agreement.
Article 12: General Exceptions
Nothing in this Agreement shall prevent any Member State from taking
action and adopting measures which it considers necessary for the protection of
its national security, the protection of public morals, the protection of
human, animal or plant life and health, and the protection of articles of artistic,
historic and archaeological value.
Article 13: Amendments
All Articles of this Agreement may be modified through amendments to this
Agreement agreed upon by all the Member States. All amendments shall become
effective upon acceptance by all Member States.
Article 14: Entry Into Force
This Agreement shall be effective upon signing.
Article 15: Final Provision
This Agreement shall be deposited with the Secretary General of the ASEAN
Secretariat who shall promptly furnish a certified copy thereof to each
IN WITNESS WHEREOF, the undersigned have signed this Framework Agreement
on Enhancing ASEAN Economic Cooperation.
DONE at
For
sgd
HAJI HASSANAL BOLKIAH
Sultan of
For the
sgd
SOEHARTO
President
For
sgd
DR MAHATHIR BIN MOHAMAD
Prime Minister
For the Republic of the
sgd
CORAZON C AQUINO
President
For the
sgd
GOH CHOK TONG
Prime Minister
For the
sgd
ANAND PANYARACHUN
Prime Minister