Statement on the ASEAN - Japan
Commemorative Summit, December 2003
The 29th Asean-Japan Business Meeting
9-11 October, 2003 The Peninsula Manila Hotel, Philippines
As a result of the ASEAN - Japan Ministerial Meetings, it was agreed that ASEAN and Japan pursue a Comprehensive Economic Partnership Agreement (CEPA) to improve further its economic relationships.
It was viewed that global developments indicate that regional free trade agreements have increased in number while awaiting the full implementation of the multilateral trade agreement under the WTO.
Discussions between ASEAN and the countries in ASEAN have been conducted with Japan regarding the form and content of the proposed CEPA. As a result, Singapore and Japan had already concluded an EPA since November 2002.
All participants know the benefits that could be derived by expanding trade, encouraging the exchange of people, reforming economic structures, and promoting the liberalization of world trade.
ASEAN, in its effort to consolidate its market, has entered into the ASEAN Free Trade Agreement (AFTA) which has transitionary provisions for Cambodia, Laos, Myanmar and Vietnam (CLMV). The period and the date for the full uniform implementation of the AFTA has been set. In addition, the ASEAN Summit of 2003 in Bali forged a concord to transform the region into a free trade zone by 2020.
Under the WTO agreement, in order for regional FTAs to qualify under the said agreement, it must be comprehensive in scope and also follow the principle of open regionalism. So the AJCEPA would include not only trade goods and services and investments, but should cover people and cultural exchanges, cooperation in science technology, environment, resources, energy, and a provision for Mutual Recognition Arrangement (MRA) and capacity building, and other items covered in the framework agreement signed in Bali on October 8, 2003.
Considering these factors, the countries of ASEAN and Japan can negotiate bilateral CEPAs without prejudice to ASEAN negotiating with Japan.
In order to facilitate the CEPA negotiations, each country as well as ASEAN, should organize to meet the negotiating requirements, such as the definition of positions, process of consultations, progress reports, and legislative action for an early conclusion of agreements, whether bilaterally and/or with ASEAN. An early harvest of benefits could be attained if the agreement is concluded early so the region could remain competitive and attractive to investors.
In recognition of the need for closer economic partnership, the 29th AJBM urges the leaders meeting during the Commemorative Summit in Tokyo, Japan on December 11 - 12, 2003 to assure an early implementation of the Comprehensive Economic Partnership Agreement.