European Commission launches a ‘new partnership’ with South East Asia, July 2003

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Series Details 13.7.03
Publication Date 13/07/2003
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The European Commission turned its focus to South East Asia on 9 July 2003, adopting plans to strengthen the EU's relations with the region, which the European Commission views as one of the most dynamic growth area's in the world economy.

The Communication on a new partnership with South East Asia [COM(2003)399] concentrates on deepening co-operation on human rights, good governance and the fight against terrorism. It is widely seen as being a stepping stone to establishing a free trade agreement between the two regions.

Commenting on its adoption, the European Commissioner for External Relations, Chris Patten, said:

'Asia should always be close to the top of Europe's agenda. We are not only major trading partners, but partners in the fight against terrorism, organised crime, and drugs trade. Europe is the first donor of development assistance to help South East Asia tackle the poverty which helps breed instability. But we can do more together - and today's Communication sets out a flexible strategy for deeper co operation with individual countries within a regional framework'.
[IP/03/961]

Background

Owing to the vast size of the Asian continent, the EU divides the area into five regions:

The South East Asia region encompasses the countries of Brunei Darussalam, Burma/Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam - and soon East Timor, with a total population of 532 million, 8.5% of the world's total.

The average per capita income is $1,020 (ranging from $260 in Cambodia, through $3,400 in Malaysia, to $29,610 in Singapore). Three countries in the region (Burma/Myanmar, Cambodia, Laos) are clasified as Least-Developed countries by the United Nations.

To date, the EU's relations with the region have largely been conducted through the Association of South-East Asian Nations (ASEAN), which was established in 1967 as a regional forum aimed at ensuring peace and stability in the region. ASEAN's economic efforts have taken on an increasing political dimension in recent years, with the establishment of the ASEAN Regional Forum (ARF) in 1994. In recent years the region has expereinced steady economic growth, which reached 5.5% in 2000 before falling to 2.8% in 2001 and improving to 4.5% in 2002.

On the economic front, EU-ASEAN trade represented 5.1% of total world trade in 2002 with the EU accounting for 14% of ASEAN trade, making it the group's third largest trading partner. The EU is also the destination of 16% of ASEAN exports, making it the region's second largest export market after the United States. Conversely, 4% of the EU's total world exports go to the ASEAN region.

In terms of political relations, ministers from the EU and ASEAN meet on an annual basis and since 1980 co-operation between the two regions has been formalised in a Co-operation agreement., which was signed by Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam. Protocols for the accession of Laos and Cambodia to the Agreement were signed in July 2000 and are in the process of ratification. However, the EU has said that it cannot agree to negotiate an extension of this agreement to Burma/Myanmar as long as the situation as regards democracy and human rights in that country does not make significant progress. Burma/Myanmar, therefore cannot participate in EC-ASEAN co-operation actions.

A new partnership

Aside from the tensions in EU-South East Asia relations over the Burma/Mynanamr issue, the European Union is keen to strengthen its ties with the area. In September 2001, the European Commission adopted a Commuincation on 'Europe and Asia, a Strategic Framework for Enhanced Partnerships' [COM(2001)469], which has since been endorsed by the Council of the European Union and the Parliament. The document sets out a number of ideas about deepening relations between the EU and Asia and and, in particular, emphasises the importance of South East Asia as a locomotive for overall relations between Europe and Asia.

The latest Communication sets out the European Commission's strategy for enhancing relations with the region, based on the belief that the countries of Europe and Asia share many common features and values, as well as important economic and political interests. It also recognises that many problems in today's world such as terrorism, environmental degradation and organised crime are most effectively addressed through international co-operation.

The proposal on a new partnership with South East Asia identifies six strategic priorities:

  1. Supporting regional stability and the fight against terrorism - policy dialogue; EU suuport for actions in the area of conflict prevention and conflict settlement; EU assistance in taking measures against international terrorism irrespective of the country's position on human rights
     
  2. Promoting human rights, democratic principles and good governance - build constructive partnerships with ASEAN and national governments based on dialogue, encouragement and effective support. New 'bilateral agreements' with countries in the region will be dependent on good human rights records whilst the EU may decide to launch specific human rights bilateral dialogues with particular countries.
     
  3. Mainstreaming justice and home affairs issues - issues of migration, trafficking in human beings, organised crime, money laundering and drugs should all be incorporated into regional and bilateral dialogues between the EU and SE Asia.
     
  4. Injecting a new dynamism into regional trade and investment relations - proposal for a trade action plan, to be known as the Trans-Regional EU-ASEAN Trade Initiative (TREATI), to expand trade and investment flows and establish an effective framework for dialogue and regulatory co-operation on trade facilitation, market access and investment issues between the two regions.
     
  5. Continuing to support the development of less prosperous countries - the EU will continue to provide assistance towards strengthening the social infrastructure of the poorest countries in the region, particularly in the fields of health and education.
     
  6. Intensifying dialogue and co-operation in specific policy areas - such as economic and trade issues, science and technology, transport, energy, the environment, information society, higher education and culture, and justice and home affairs.

The detailed list of actions in the Communication suggests that much of the work on these priorities will be conducted through the ASEAN forum rather than with individual countries.

Perhaps most notable of the priorities is the proposal for a Trans-Regional EU-ASEAN Trade Initiative, which many commentators believe could serve as a prercursor to a free trade agreement between the two regions. However, in this instance it is likely that negotiations would be conducted on a country by country basis as the EU's refusal to deepen ties with the military ruled state of Burma prevents a new EU-Asean agreement. Singapore, Thailaind and Malaysia are expected to be first in line to push for a full free trade agreement with the EU, which could be negotiated after the successful conclusion of the Doha round of world trade talks.

Aware of the stiff competition that the EU faces in the region from a strong Chinese, Japanese and US presence the Communication also proposes launching a new visibility strategy in the region. Currently the EU faces difficulties in establishing its identity in the region with the EU's institutions and the Member States both operating there. As one Philippne diplomant has commented, 'Our public still has a diffiuclt time thinking about the EU ... you have the Commission, the Council and then the Member States'. As part of the visibility strategy, the European Commission suggests targeting a wider audience beyond the traditional one of ogvernment circles, to include people in business, academia, the media and ultimately the general population as a whole. The resources of headquarters, delegations the Member States' respresentations would be used to spread key messages.

The European Commission's Communication will now be passed to the Council of the European Union and the European Parliament for approval. The progress of the proposal can be traced through the decision-making progress using the following services:

  • Pre-Lex (provides a full and concise calendar of the proposal, bibliographical references and some hyperlinks to full text sources)

The next ASEAN-EU Ministerial meeting is not scheduled to take place until 2005, by which time the European Union should have agreed on the way it intends to further its relationship with the region, which a recent study by the French Institute for International Relations suggests will emerge as the world's largest exporter by 2050.

Further links within European Sources Online

European Sources Online: In Focus
EU-Asia Relations: The ASEM process
 
European Sources Online: Financial Times
05.07.01: Brussels to beef up presence in SE Asia
22.01.02: Asia cautious amid efforts to push euro as reserve currency
19.11.02: Governments' willingness to use trade pacts to cement diplomatic ties and forge alliances risks slowing the momentum behind multilateral trade talks
03.04.03: EU and ASEAN in trade talks

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

EU Institutions

European Commission

DG Press and Communication
Press Releases:
  29.05.02: Commission provides more than Euro 4 million in humanitarian aid for South-East Asia [IP/02/770]
  26.03.03: Lamy in Thailand, Malaysia and Laos to strengthen EU-ASEAN trade relations [IP/03/441]
  09.07.01: Commission launches a 'new partnership' with South East Asia [IP/03/961]
 
Memos:
  23.07.01: The ASEAN regional forum [MEMO/01/274]
 
Speeches:
  12.03.99: Europe-Asia relations [SPEECH/99/45]
  18.10.01: The EU and Asia in the new Millennium [SPEECH/00/383]
 
DG External Relations
The EU's Relations with Asia
  The EU and South East Asia
  The EU and the Association of South East Asian Nations [ASEAN]
  Communication: A new partnership with South East Asia [COM(2003)399]
  EC Development Co-operation with South East Asia
  EU-ASEAN Trade and Investment Relations
  The Asia-Europe meeting [ASEM]
 
DG Trade
The EU's Relations with Asia
 
European Parliament
Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy
Reports:
  Report on the Commission Communication on Europe and Asia - A Strategic Framework for Enhanced Partnerships [COM(2001)469] [A5-0270, July 2002]
  Report on the Commission Working Document: Perspectives and Priorities for the ASEM Process (Asia Europe Meeting) into the new decade [COM(2000)241] [A5-0270/2001]
 
Regional Organisations
 
Association of South-East Asian Nations
Homepage
  Overview
  Member countries
  ASEAN - European Union relations
 
Miscellaneous Organisations
 
European Institute for Asian Studies
Homepage
  EurAsia Bulletin
  Asia and Europe: Shared values after the Iraq war [April 2003]
 
Asia Europe Foundation
Homepage
 
The European Policy Centre
Homepage
  Will ASEAN become an Asian EU? [March 2001]
  Globalisation: An Asia-Pacific perspective [April 2002]
  New challenges facing ASEAN: Singapore's point of view [January 2003]

News Organisations

BBC News Online:
05.11.01: ASEAN leaders' trade hopes
07.11.01: East Asian pact trades up
27.01.03: Burma attends EU meeting
28.01.03: EU-ASEAN to boost anti-terror ties

Helen Bower

Compiled: 13 July 2003

The European Commission adopted a Communication on a new partnership with South East Asia [COM(2003)399] on 9 July 2003, with the emphais on deepening co-operation on human rights, good governance and the fight against terrorism.

Countries / Regions