7 July 1982]
THE INDUSTRY AND TRADE COMMITTEE
[Continued
3
close to the ASEAN countries and capable of supplying many of the capital goods needed. It was not until the level of world trade began to ebb that an increasing number of British companies turned their attention to the ASEAN market. By then the Japanese suppliers were well established and US companies had consolidated their already strong position; both these groups were able to exploit favourable terms of trade. In these circumstances it has been difficult for British companies to make headway in the non-traditional markets and they have had to work hard not to lose more ground in Malaysia and Singapore.
13. The great potential of the ASEAN markets, nonetheless, is recognised and the Department has an important role to play in informing UK industry of the opportunities and encouraging and helping companies to explore the markets. The Government's efforts towards this end can be summarised as follows:
(1) the conduct of Government to Government commercial relations, the protection of
UK commercial interests, and the use of Ministerial visits to promote trade;
(2) the provision of market information, advice and, when appropriate, financial
assistance to the individual exporter;
(3) the provision of financial and practical assistance for inward and outward missions,
seminars and fairs; and
(4) the promotion, in conjunction with the South East Asia Trade Advisory Group (SEATAG) of the British Overseas Trade Board (see para 18 below), of greater awareness of the opportunities and problems of the region.
Government to Government Relations
14. We have sought over the last two years to intensify Government to Government commercial relations with the ASEAN countries, primarily by increasing contact at Ministerial level. In 1980 and 1981, 8 UK Ministers visited one or more ASEAN countries. So far in 1982, 3 UK Ministers have visited the area and it is likely that a further 2 visits will take place later in the year. The Chairman of the BOTB visited ASEAN in 1980. Where appropriate leading businessmen from the private and public sectors accompany Ministers on these visits. In addition, officials from the Department make visits to the area.
Support for the Individual Exporter
15. As part of the reorganisation of the Department of Trade's export promotion services, which come under the guidance of the BOTB, the South East Asia Market Section has been strengthened. Together with the Projects and Export Policy Division of the Department, and our Posts in the area, its job is to provide up-to-date advice for exporters both on the market and on the assistance available in Whitehall to promote their bids. A note by the Foreign and Commonwealth Office on the export promotion activities of the diplomatic staff in Posts overseas, and their deployment in the ASEAN countries, together with details of the number of the Department of Trade, staff in the Market Section employed on trade with the area, is at Annex D.
16. The enormous potential of the area for development has stimulated the use of aggressive tactics of our competitors' Governments in support of the efforts of their exporters to win major project business with attractive financial packages including aid. In addition to UK bilateral capital aid for some of the major markets of this region, our support is provided by means of the Aid and Trade Provision (ATP) which is part of the UK aid programme, from the Overseas Projects Fund and, where appropriate, from the full range of export credit insurance services of the Export Credit Guarantee Department ECDG. A list of successful bids which have been supported with ATP, together with others at present under discussion, is at Annex E. In addition to those projects receiving assistance from the ATP. the Department has been closely concerned with the promotion of several other bids for large products.