Progress on the Implementation of Eleven Priority Sectors (as of 6 July 2005)
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1 Progress on the Implementation of Eleven Priority Sectors (as of 6 July 2005) 1 Agro-based Products A Special SOM-AMAF Meeting will be held on July The Meeting will discuss priority sector Roadmaps on Agro-based Products, Fisheries, Rubber-based Products, and Wood-based Products. On the products covered under the Agro-based Products Roadmap, palm oil will be included in the scope of the product coverage in the agro-based sector in the second phase. These were inadvertently excluded in the first phase due to the transposition of the tariff nomenclature to the AHTN. An expert on agro-based products has been recruited by the ASEAN Secretariat. The expert will assist the Secretariat in providing support to Country Coordinators in enhancing implementation of the measures in the roadmaps, by identifying measures to be taken to increase competitiveness of ASEAN as a production base for the concerned sector. The experts would also be requested to undertake necessary studies to support the policy making process. ACCSQ PWG has identified four areas for harmonization of technical requirements: (i) Food Labelling; (ii) Import-Export Certification and Registration Procedure; (iii) Food Fortification and GMO; and (iv) HACCP and GMP Inspection and Certification. This harmonization of technical requirements will pave the way towards future mutual recognition arrangements on prepared foodstuff in ASEAN. An ASEAN Consultative Network on Prepared Foodstuff has been established which provides forum for regulatory authorities in ASEAN Member Countries, scientific experts and industry to interact on any issues related to prepared foodstuff. The Network also provides with concerned stakeholders all necessary information on food legislation of Member Countries. 2 Air Travel The 11 th ATWG Meeting held in Ho Chi Minh City on March 2005 recommended the following for STOM regarding the implementation of the roadmap: Page 1 of 7
2 For Air Freight Services Liberalization: Amending the 2002 ASEAN MOU on Air Freight Services, to achieve the agreed liberalization of air freight services with no limitation of third and fourth freedom traffic rights and with increased tonnage and additional designated points by December Member Countries will provide their recommendations on the following: (a) incremental tonnage; and (b) additional designated points, for deliberation at the next ATWG Meeting. Application of the 2 + X Approach, to achieve full liberalization of ASEAN air freight services by December 2008, using the existing Multilateral Agreement on the Full Liberalization of All Cargo Air Services as a model. This existing agreement based on the 2 + X Approach to which Brunei Darussalam, Cambodia, Singapore and Thailand are Parties has the following features: the exercise of full 3 rd, 4 th, and 5 th freedom traffic rights, an open route schedule and unlimited code-share arrangements. For Scheduled Passenger Services Liberalization: Developing the appropriate implementation instrument to address the six agreed measures/commitments for Liberalization of Scheduled Passenger Services under the Roadmap. Viet Nam will prepare the draft of the instrument for consideration at the next ATWG meeting. Thailand convened the Consultative Meeting on the Implementation of ASEAN Roadmap for Integration of Air Travel Sector on 7 April 2005 in Bangkok. The following proposals on air travel cooperation and facilitation had been discussed: Development of Ground Handling and Transport Services Connected with Airports Slot Allocation in Secondary Airports in ASEAN Development of Low Cost Airports Promoting the Use of Internet booking and e-ticketing Air Travel Appearances & Catering Cooperation Qualification Recognition of Air Crews in ASEAN Page 2 of 7
3 Recognition of Aircraft Parts and Components Manufactured in ASEAN Development of Frozen Warehouse and qualified facilities Airport Security Enhancement Enhance greater expeditious on Air Travel Representative from private sector also raised the issue of double taxation within ASEAN for the meeting to consider since the airlines have to pay tax twice in some ASEAN Member Countries which creates more operating cost. The Meeting took note of this issue and would consult with the concerned authority. The Meeting agreed to submit these proposals and recommendations to STOM for further elaboration and consideration. Then STOM would provide feedbacks or comments to SEOM for further improvement of the roadmap. 3 Automotives ASEAN Automotive Integration Working Group reconvened on 3 March 2005 in Da Nang, Viet Nam. Specific countries and AAF has been assigned to pursue the measures in the roadmaps. But while participants had a fruitful discussion on the measures in the Roadmaps, no specific recommendations have been made at this point. An expert on automotives had been recruited to assist the integration of the sector at the end of April e-asean The 3 rd Priority Sector Conference on the e-asean sector was held n 8 March 2005, in Singapore. Private and public sector representatives from ASEAN attended the conference to do a stock-take of the progress of the measures of the e-asean roadmap and to brainstorm proposals to add new measures and/or to improve certain existing measures. Some new measures suggested by conference participants included: o Eliminating the imposition of withholding taxes for ICT goods and services provided by ASEAN companies by December 2007 o Allowing for more freedom in the movement of capital and easier joint venture opportunities o Enabling a freer flow of talent within ASEAN o Developing a common quality mark in ASEAN to establish trustworthiness and quality of companies in the e-asean sector o Establishing a body, system or platform to monitor cyber-security trends, and allow for Page 3 of 7
4 effective information sharing o Developing an early warning system and disaster and data recovery system o Putting in place standards on electronic data storage o Promoting the alignment of frequency spectrum and power output limit for RFID applications. Countries are to study the e-asean product coverage list, and inform if any other relevant products should be included in the product coverage list. Countries were encouraged to look into reducing their negative lists, as the countries with the least number of items in the negative lists were the ones doing best in this sector. 5 Electronics The ASEAN Electronics Forum will continue its work in the implementation of the Electronics Roadmap. The 5 th AEF Meeting will be held on 4-5 August 2005 in Mactan, Cebu City Philippines. The Philippines also presented a project proposal on the convening of an ASEAN Reverse Trade Fair, which would support the realisation of market and production base integration of the electronic industry. The project proposal under consideration. An expert on electronic sector will be recruited by the ASEAN Secretariat by second half of ASEAN Sectoral Mutual Recognition Arrangements (MRAs) has been well progress. All Member Countries have notified their participation in the acceptance of test report and/or product certification. Four testing laboratories and one certification body have been designated and listed to provide testing and certification services under the ASEAN EE MRA, five testing laboratories are under verification process of technical competence. The Operation Procedures for the ASEAN EE MRA has also been developed to provide detailed guidance on the implementation of the ASEAN EE MRA. The development of the Agreement on ASEAN Harmonized Electrical and Electronic Equipment Regulatory Regime is under consideration for possible signing by in early In addition to accomplishment of harmonization of standards with 130 international standards which cover widely electrical and electronic equipments, another 24 standards have been identified for harmonization in ASEAN from Fisheries An ASEAN Working Group on Fisheries Meeting was held on May 2005 in Yangon. The Meeting discussed the specific measures under the Road Map on Fisheries and the possible Page 4 of 7
5 Lead/Volunteer Countries to implement those measures. The 4 th ASEAN Consultative Meeting on Agro-based Products and Fisheries was held on 19 May 2005 in Yangon. The Meeting discussed proposed changes to existing measures as follows: (a) Measure 52 Exchange of experts, technical expertise and researchers in mutually agreed fields; and (b) Measure 53 Establish short-term and long-term training programmes, seminars and workshops for fisheries and fisheries-related workers from ASEAN Member Countries within available resources. 7 Healthcare Singapore held the 3 rd priority sector conference on the healthcare sector on 8 March Private and public sector representatives from ASEAN attended the conference to do a stocktake of the progress of the measures of the healthcare roadmap and to brainstorm proposal to add new measures and/or to improve certain existing measures. The private sector requested that certain Chapter 29 products ( ) be included in the roadmap s product coverage, as these items are ingredients of pharmaceuticals and thus relevant to the healthcare sector. The Medical Devices and Equipment Working Group (MD&E WG) and the Traditional Medicines and Health Supplements Working Group (TMHS WG) have met. The officials in these working groups are committed to agreeing on specific measures under their purview to be included into the healthcare roadmap. In particular, the MD&E WG has agreed to immediately commence work on the following 2 sectors: (i) conducting a comparative study on standards of medical devices (that Malaysia will lead on); and (ii) formalising a post marketing alert system for defective devices (Singapore to lead). For Cosmetics, a series of technical documents, guidelines and training modules have been developed, (in particular, in the areas of Good Manufacturing Practice and Post Marketing Surveillance), in order to support Member Countries in complying with the Cosmetic Agreement. Post Marketing Surveillance Alert for Unsafe/Defective Cosmetic Products is being developed for implementation from 31 December For Pharmaceuticals, there are ongoing efforts to implement the ASEAN Common Technical Dossiers (ATCD) and ASEAN Coming Technical Requirements (ATCRs). A series of guidelines for the implementation of the ATCR have been developed, and the development of an MRA is under consideration. 8 Rubber-based Products Product Working Group on Rubber-based Products has been established by the ACCSQ to Page 5 of 7
6 implement the specific measures on the establishment of testing facilities and harmonisation of standards and regulation on rubber products, among others. On the sector specific measure on the promotion of the usage of natural rubber, the Malaysian Rubber Glove Manufacturers Association, the focal point for ASEAN Rubber Glove Manufacturers, will be hosting a Conference on the :Use of Natural Rubber Gloves on Hospital Environment: in mid For other rubber products, Member Countries were requested to contact the Malaysian focal point. 9 Textiles and Apparels The private sector suggested that ASEAN raise the possibility of applying ASEAN cumulation in the GSP Scheme in its dialogue with major importers such as the US and EU. WGIC has been requested to invite AFTEX representatives at their next meeting for consultations on the promotion of outsourcing activities among ASEAN companies. The ASEAN textile and apparel website is already in operation and ways to expand the website are being explored. AFTEX was participating at the Textile Exhibition in Hong Kong in March A study on the impact of the liberalization of global textile trade (post-mfa) has been conducted by the ASEAN Secretariat. The paper will be transmitted to the Country Coordinator for further consideration by the private sector. An expert on textile will be recruited by the ASEAN Secretariat soon. The expert will assist the Secretariat in providing support to Country Coordinators in enhancing implementation of the measures in the roadmaps, by identifying measures to be taken to increase competitiveness of ASEAN as a production base for the concerned sector. The expert would also be requested to undertake necessary studies to support the policy making process. 10 Tourism Thailand held a Consultative Meeting on the Implementation of the Roadmap for the Integration of Tourism Sector on 7 April 2005 in Bangkok. The Meeting discussed the progress of the implementation f the measures in the Roadmap and found that all the measures are in the process of implementation by relevant ASEAN bodies. Proposals to amend current measures were also discussed. In addition, the meeting was informed by representative from ASENA Business Advisory Council (ASEAN-BAC) that ASEAN-BAC adopted the criteria for the projects eligible under ASEAN Pioneer Project Scheme (APPS) and has already presented them to the ASEAN leaders at the 10 th ASEAN Summit held in Vientiane at the end of last year. For this year, ASEAN-BAC together with ASEAN-CCI will focus on the promotion of the scheme among ASEAN private sector. ASEAN-BAC also came out with concept ideas of APPS projects. These Page 6 of 7
7 include developing a low-cost ASEAN and international transport (land and air); establishing three star hotel chains; promoting coach and sea ferry linking diverse tourism destination; road improvement for the logistics of agricultural products and development of new tourism destination. The Meeting urged ASEAN-BAC to speed up with its promotion activity so that APPS projects could be lunched soonest. The Thailand Research Fund (TRF) has implemented the first phase of ASEAN Collaborative Tourism Research Databank project via ASEAN Tourism Stakeholders Network. This project is expected to provide ASEAN tourism industry with higher economic benefits and also environmental care and conservation to finally reach sustainable tourism development. TRF will organize an ASEAN Tourism Research Conference in July 2005, Bangkok. ASEAN National Tourism Organizations (ASEAN NTOs) have set up a Special Working Group on Tourism Integration led by ASEAN Secretariat in cooperation with Thailand. The Special Working Group will be tasked to provide guidelines for the implementation of the measures under ASSERAN NTO s purview; identify criteria and performance indicators; consider additional measures for the period beyond the First Meeting of the Special Working Group on Tourism Integration was held on April 2005 in Manila, Philippines. The ASEAN Secretariat is in the process of collating procedures for the issuance of visas to international travellers from individual ASEAN Member Countries and to come up with recommendations on how to harmonise the visa issuance procedures. 11 Wood-based Products The 4 th Meeting of the ASEAN Wood-based Industry Integration was held on 11 April 2005 in Jakarta, Indonesia. However only four countries were present (Indonesia, Malaysia, Philippines and Viet Nam). The Meeting agreed in principle on the following: Measure 43: efforts will be undertaken to work with relevant NGOs on specific public awareness activities. Joint meetings with NGOs can be organised during ASOF related meetings Measure 44: Malaysia volunteered to lead on certification. EU representative will be invited to future meetings of Adhoc Working Group on Pan-ASEAN Timber Initiative. Measure 46: Agreed to participate in existing furniture exhibitions in the region. These exhibitions could be expanded to include other wood products. Page 7 of 7
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