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Summary Information
Full Title

1980 Basic Agreement on ASEAN Industrial Projects

Short Title / Abbreviations

BAAIP

CIL Subject Classification
Date of Adoption 06/03/1980
Place of Adoption Kuala Lumpur, Malaysia
Issued/Adopted by Foreign Ministers of ASEAN
Dispute settlement provisions

Chapter XIII, ‘Consultations’:

Article 14:

“1. Each Contracting State shall accord adequate opportunity for consultations regarding such representations as may be made by any Contracting State with respect to any matter affecting the implementation of this Agreement may, at the request of any Contracting State, consult with any other Contracting State in respect of any matter for which it has not been posse to find a satisfactory solution during previous consultations.

2. If any Contracting State should consider that any other Contracting State has not carried out its obligations under this Agreement, the affected contracting State may make representations or proposals to the other Contracting State concerned which shall consider said representation or proposal within sixty (60) days from receipt thereof.

3. If no satisfactory solution is effected between the Contracting States, the matter may be referred to COIME which shall consult with the Contracting States concerned and arrive at a solution mutually acceptable to the States concerned. If no satisfactory solution is arrived at in COIME, the matter shall be referred to the ASEAN Economic Ministers for the final settlement.”

This Agreement is one of the ‘Covered Agreements’ pursuant to Article 1.1 of the 2019 ASEAN Protocol on Enhanced Dispute Settlement Mechanism read together with its Appendix 1. This Agreement was previously one of the ‘Covered Agreements’ pursuant to Article 1.1 of the 1996 Protocol on Dispute Settlement Mechanism read together with its Appendix 1, as well as one of the ‘Covered Agreements’ pursuant to Article 1.1 of the 2004 ASEAN Protocol on Enhanced Dispute Settlement Mechanism read together with its Appendix I.”

The 2019 Protocol will only apply with respect to new requests for consultations made on or after its entry into force (20 June 2022). Likewise, the 2004 Protocol will only apply with respect to disputes that arose after its entry into force (29 November 2004). The 1996 Protocol applies to all other disputes.

Depository

Secretary-General of ASEAN Secretariat

Entry Into Force Status In Force
Source

ASEAN Legal Instruments

Date of Entry into Force

16/10/1981

Entry into Force / Termination Provisions

Chapter XVII ‘Entry Into Force’

Article 18.1:

“This Agreement shall enter into force on the thirtieth (30th) day after the deposit of the fifth Instrument of Ratification.”

Status
ASEAN States (Source:

ASEAN Legal Instruments

as of 18/07/2022)
Brunei Darussalam
Cambodia
Indonesia Signature 06/03/1980
Ratification 23/10/1980
Lao PDR
Malaysia Signature 06/03/1980
Ratification 04/08/1980
Myanmar
Philippines Signature 06/03/1980
Ratification 17/09/1980
Singapore Signature 06/03/1980
Ratification 15/10/1980
Thailand Signature 06/03/1980
Ratification 16/09/1981
Vietnam
Related Instruments
Protocols / Amendments to this instrument

1991 Supplementary Agreement To The Basic Agreement On ASEAN Industrial Projects – ASEAN Potash Mining Project (Thailand)

1984 Supplementary Agreement to the Basic Agreement on ASEAN Industrial Projects – ASEAN Vaccine Project (Singapore)

1982 Draft Supplementary Agreement to the Basic Agreement on ASEAN Industrial Projects for the ASEAN Copper Fabrication Project (Philippines)

1980 Supplementary Agreement to the Basic Agreement on ASEAN Industrial Projects: ASEAN Urea Project (Malaysia)

1980 Supplementary Agreement to the Basic Agreement on ASEAN Industrial Project: ASEAN Urea Project (Indonesia)

Related Instruments

1992 Agreement on the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area

1992 Framework Agreement on Enhancing ASEAN Economic Cooperation

1981 Basic Agreement on ASEAN Industrial Complementation

1980 Protocol to the Basic Agreement on ASEAN Industrial Projects on the CIF Selling Price of Soda Ash of the ASEAN Rock Salt-Soda Ash Project (Thailand)

1977 Agreement on the ASEAN Preferential Trading Arrangements

1976 Declaration of ASEAN Concord

External Links
Additional Information

Dates of ratification given above were obtained from the ASEAN Secretariat’s Legal Instruments website and its electronic collection of instruments of ratification, accession and notification. The dates given appear to be the dates of execution of the instruments of ratification/accession, rather than their date of receipt by the depository.

Note Chapter XV, ‘Supplementary Agreement’

Article 16: “Special provisions concerning each individual ASEAN Industrial Project shall be set out in a Supplementary Agreement which shall be deemed to be Part of this Basic Agreement.”

The text of this agreement and was agreed and initialed by the ASEAN Economic Ministers at their 6th Meeting in 1979, along with the texts of the supplementary agreements for the projects in Indonesia and Malaysia. The texts were then passed on to the ASEAN Foreign Ministers for signing, as was the practice at the time. The initial five approved projects under the programme were: Indonesia-Urea fertilizer, Malaysia-Urea fertilizer, Philippines-Superphosphate, Thailand-Soda Ash, Singapore-Diesel engines.

Rodolfo Severino describes how the scheme floundered in all cases except the urea fertilizer plants in Indonesia and Malaysia.  The Philippines replaced its proposal for a superphospate plant with subsequent proposals for ammonium sulfate fertilizer, pulp and paper, and finally a copper fabrication plant approved by the Economic Ministers in 1982. Thailand withdrew the soda-ash project in 1986 and replaced it with potash mining, approved in 1990. The potash mining project was withdrawn from the AIP in 2003. Singapore replaced the diesel engine proposal in 1984 with hepatitis-B vaccine, which was in turn withdrawn in 1987. (Severino, Rodolfo. Southeast Asia in Search of an ASEAN Community (2006). pp 217-219.)