1. ASEAN recognized at an early stage the need for MRAs to facilitate the realization of ASEAN Free Trade Area (AFTA).  Back in 1997, the ASEAN Economic Ministers agreed on an umbrella agreement to provide the basis for the development of the specific MRAs among ASEAN member countries.  As a follow-up to the decision, the ASEAN Framework Agreement on MRAs was signed by the ASEAN Economic Ministers (AEM) in 16 December 1998.

2. Upon signing of the ASEAN Framework Agreement on MRAs, the ACCSQ through its MRA Working Group initiated efforts to identify priority areas for development of sectoral MRAs.  The identification processes were undertaken based on the following criteria stipulated in the Framework Agreement:

a)      with a special focus on but not limited to the list of 20 priority product groups identified for harmonization of standards;

b)      the volume of intra-ASEAN trade affected;

c)      the existence and extent of the technical barrier to trade;

d)      the readiness of technical infrastructure in the majority of member countries;

e)      the interest of the majority of member countries

3. Based on the above criteria, a regional survey conducted by the MRA WG in the year 2000 identified Prepared Foodstuff as one possible area for development of sectoral MRAs. This recommendation was endorsed by the 16^th ACCSQ Meeting in August 2000 and subsequently brought to the attention of SOM AMAF and received their endorsement in the 22^nd SOM AMAF Meeting in October 2002.

4. Recognizing the need for regulators and industry to be involved in the consideration of MRAs, the MRA WG further conducted a regional seminar on Possible MRAs for Prepared Foodstuff in November 2002 which was attended by food regulators and private sectors from ASEAN member countries.  The Seminar recorded interests to explore the possibility of MRAs for Prepared foodstuff.

5. The 21^st ACCSQ Meeting held in Brunei Darussalam in March 2003 considered the outcome of the seminar and approved the recommendation of the MRA WG to form an ACCSQ Product Working Group (PWG) on Prepared Foodstuff to explore the possibility of sectoral MRAs, with Indonesia as the Lead Country.  In coming up with the decision, the ACCSQ also took into account the following:

i.       that 6 countries (i.e. Brunei Darussalam, Indonesia, Philippines, Singapore, Thailand and Viet Nam) confirmed its interest in participating in the proposed PWG for Prepared Foodstuff;

ii.       the decision of the AEM Retreat held in Genting Highland, Malaysia on 6 July 2002 that the 10-x principle should be applied to developing and implementing MRAs  The Meeting also recalled one of the two fast track sectors recommended by the ASEAN Competitiveness Study was consumer goods, covering food products and personal care products.

6. The ACCSQ further agreed that as in the case with other ACCSQ PWGs, food regulators and industry would be invited to participate in the newly established PWG for Prepared Foodstuff.

Source: Report of the first meeting of ACCSQ PF PWG.