Tianjin Initiative
on Closer ASEM Economic and Financial Cooperation
26 June 2005 , Tianjin , China
INTRODUCTION
1. The Sixth ASEM Finance Ministers' Meeting (ASEM FMM) was held in
PROPOSALS
2. Ministers reviewed the progress of the activities and initiatives under the ASEM FMM process and called on joint ASEM efforts in further strengthening the economic and financial cooperation in the following areas:
I The ASEM Trust Fund (ATF)
3. Established in 1998, the ASEM Trust Fund (ATF) was aimed at providing technical assistance to the Asian countries affected by the financial crisis, helping them to make economic recoveries. With the joint contributions from
4. Ministers reaffirmed the important role of ATF in enhancing financial cooperation between
5. Ministers approved the Deputies' proposal to undertake a thorough review of the ATF by taking stock of the experiences of the two phases and to explore the options for a future funding modality. This will take into account the reviews of the current ATF.
II Strengthening
6. Capacity building has been one of the priority areas in the ASEM FMM process. It helps the developing members with institutional building and human resources development in better responding to the challenges brought about by globalization. It promotes the complementarity of the comparative advantages of
7. Ministers welcomed the progress achieved in ASEM capacity building in the recent years. Recognizing the new global situations and the dynamic feature of the growing economic and financial interdependencies between the two regions, Ministers called on deepening ASEM cooperation on capacity building through broad-based and in-depth exchanges of experiences and carrying out training activities, seminars and workshops. To ensure the efficiency and effectiveness, Ministers asked members to identify the most suitable issues for the activities, which should be demand-driven, better reflect the common challenges confronting both regions and matching the responsibilities of the Finance Ministers.
8. Ministers encouraged all members to make contributions to capacity building in the regions through concrete activities. In this regard, Ministers welcomed the proposal by the
III Review of the ASEM Taskforce Report on Closer Economic Partnership
9. To implement the recommendations on working "towards a closer ASEM economic partnership" adopted by Leaders at the ASEM Summit Four in Copenhagen, 2002, the ASEM Taskforce on Closer Economic Partnership was established and submitted its final report to the ASEM Summit Five in Vietnam in 2004. Two of the action-oriented recommendations for ASEM financial cooperation were creating an ASEM "YES" Bond Market and an ASEM Bond Fund. The aims were to accelerate the development of the Asian bond market in facilitating the Asia-Europe economic integration in the future. ASEM Leaders called on Finance Ministers to further explore the recommendations and other ways to strengthen the partnership within their responsibilities.
10. Ministers reviewed the Taskforce's Report and welcomed its general recommendations for ASEM financial cooperation, and noted the need for further studies on its concrete recommendations, including consultation with market participants in respect of identification of specific needs.
IV Establishing an ASEM Contingency Dialogue Mechanism for Emergent Economic and Financial Events
11. In the context of globalization, crises or disasters spread beyond the territorial boundaries and affect economies and individual lives. The tsunami happened in the
12. Recognizing the importance of strengthening the ASEM capability of responding to emergencies through institutional building and raising the common awareness of joint responsibilities on crises or disasters prevention and management, Ministers agreed that the ASEM Contingency Dialogue Mechanism for Emergent Economic and Financial Events be established to conduct timely consultation and coordination on emergent events. The meeting could be summoned by the host country of the FMM, with member participation at Deputies or Senior Officials' levels, whichever is viewed suitable.
NEXT STEPS
13. Ministers agreed that a taskforce under the ASEM FMM be established to further explore the Tianjin Initiative and make proposals for future steps. The taskforce will be jointly chaired by