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Burma Related News - July 14, 2003.



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BURMA RELATED NEWS - July 14, 2003.

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HEADLINES

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AFP - Myanmar junta sends petition to US over threatened exports ban

AFP - Minister tells British travel firms: stay out of Myanmar

AFP - Agreement signed on Myanmar's second international carrier

Reuters - Myanmar accuses West of meddling

AP - Australian police say Thais, Myanmar and Russians being forced into sex

AP - Myanmar suggests U.S. and European intervention in its affairs

Asia Pulse - India, Myanmar to Boost Joint Trade Ties

Asia Pulse - Asean Ministers Agree to Accelerate Integration Process

Channel NewsAsia - Singapore's Q3 economic performance to be significantly better: George Yeo

ST - Asean plans tribunal to settle trade rows

TT - ASEAN outlines a coordinated policy on customs rules

WP - Editorial - Stop Stalling on Burma

The Nation - New EU strategy: moving closer to Asean

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Monday July 14, 4:33 PM
Myanmar junta sends petition to US over threatened exports ban

YANGON (AFP) -Myanmar's military government has sent President George W. Bush a petition signed by 350,000 textile workers appealing against a threatened US import ban.

The US Senate last month passed legislation banning the import of goods made in Myanmar and froze the military government's assets in the United States to protest a recent crack-down on the pro-democracy opposition that included the detention of Nobel peace laureate Aung San Suu Kyi.

The Myanmar Times said the bill, which must be passed by the House of Representatives and endorsed by Bush before it becomes law, threatens exports worth 356 million dollars in the year to March.

"A ban on imports from Myanmar could cut the country's export earnings by up to a third," the semi-official weekly said, adding that most US-bound exports were from the garment trade.

"If the ban takes effect, it will threaten the future of about 250 garment factories in Yangon, at which 90 percent of the workforce is women, many of whom are the only bread-winners in their families."

The Myanmar Times said the petition was organised by the Union of Myanmar Federation of Chambers of Commerce and Industry and sent to Bush on July 2.

Petitions are unheard of in the military-run state, where the ruling generals swiftly suppress any large gatherings or expressions of protest, and it is unlikely to be a genuine gesture from the workers.

However, the move is an indication of how seriously the government is taking the threatened action from the United States, which was triggered by the regime's decision to take opposition leader Aung San Suu Kyi into detention on May 30.

The "Burmese Freedom and Democracy Act of 2003" being considered by US lawmakers contains a basket of economic and political sanctions.

They include expansion of an existing visa ban on past and present members of the junta, their family members and associates, and a requirement that Washington opposes loans or aid to Yangon by international financial institutions.

The European Union has also tightened sanctions in the wake of the May 30 incident in which Aung San Suu Kyi's supporters were attacked by a pro-junta mob in northern Myanmar before she was arrested. Dissidents say dozens were killed in the violence.

Myanmar's generals have said the democracy activists were responsible for inciting the clashes and that Aung San Suu Kyi had been temporarily detained for her own safety.

Senior members of her National League for Democracy (NLD), which won 1990 elections in a landslide but has never been allowed to rule, are also under house arrest in Yangon.

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Monday July 14, 9:18 PM

Minister tells British travel firms: stay out of Myanmar

LONDON, July 14 (AFP) - A British Foreign Office minister on Monday urged travel firms that arrange trips to Myanmar to consider pulling out because of the country's human rights record.

The strongly-worded warning by Mike O'Brien steps up the pressure on British firms doing business with the Southeast Asian country following recent calls by both O'Brien and Prime Minister Tony Blair for tobacco firm BAT to withdraw.

Myanmar's rights record has been put under the spotlight since opposition leader Aung San Suu Kyi was put in custody after vicious clashes between her followers and pro-regime elements at the end of May.

The military regime government says four people were killed in the clashes but dissident groups say dozens died, and blamed the violence on government-backed mobs.

In a statement released by the Foreign Office, O'Brien said he had written to the head of the Association of British Travel Agents (ABTA) to discuss the current situation in Myanmar, formerly known as Burma.

"In the light of the recent dreadful developments in Burma, I have today written to ABTA to ask tour operators to stop arranging holidays there," O'Brien said.

There were "compelling reasons" not to take a holiday in the country, including the economic and political benefits the regime gained from foreign visits, he said.

"Moreover, there are many well-documented cases of human rights abuses associated with Burma's tourist industry," he argued.

"Forced labour has been used to build some of Burma's tourist infrastructure. Local communities have been forcibly relocated to make way for tourism-related developments."

While the decision was ultimately one for individual tourists, "I think it is right that those considering a holiday to the country -- and the travel operators which promote them -- should think twice before proceeding," the minister said.

At the end of last month, BAT insisted it would remain involved in Myanmar, where it runs a cigarette factory in a joint venture with the regime, despite heavy British government pressure to pull out.

Aung Saan Suu Kyi, a Nobel Peace Prize winner, has endured several years of house arrest following 1990 elections won overwhelmingly by her National League for Democracy, a result not recognised by the junta.

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Monday July 14, 3:18 PM

Agreement signed on Myanmar's second international carrier

YANGON, July 14 (AFP) - Myanmar aviation officials have signed an agreement to launch the military-run nation's second international carrier, a report said Monday.

The Myanmar Times said state-owned domestic carrier Myanma Airways (Eds: correct) signed the joint venture deal Friday with Hong Kong-based Sunshine Strategic Investments Holding Company and its partners, Fortune International and Myanmar Smooth Travels Service Company.

The new airline, United Myanmar Airlines (UMA), is scheduled to launch in September with services to Bangkok, Singapore, Kuala Lumpur, Penang, Hong Kong and Mandalay, using two leased Boeing 737-400s, it said.

The services replace some dropped from Myanmar Airways International's itinerary last year.

Sunshine Strategic Investments CEO Edward Tan has reportedly said the initial investment in the airline was 15 million dollars, expected to eventually rise to 100 million dollars.

Myanmar's ruling junta sees the tourism industry as an important source of foreign exchange to boost the country's economy, which is in tatters due to economic mismanagement and ongoing international sanctions.

Sanctions have been tightened in recent weeks by the United States and the European Union following the junta's detention of opposition leader Aung San Suu Kyi.
Her party, the National League for Democracy (NLD), supports a ban on tourism to the country until it introduces democratic reforms.

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Monday July 14, 3:55 PM
Myanmar accuses West of meddling

YANGON (Reuters) - Myanmar's military rulers, under growing international pressure to free pro-democracy leader Aung San Suu Kyi, have accused Western nations of "blind and prejudiced meddling" in its internal affairs.

The comments, made in an article carried on Monday by several newspapers considered mouthpieces for the junta, also warned of an "endless cycle of military coups" if a Western-style democracy was imposed on the Southeast Asian country.

The government has so far resisted pressure to free Nobel laureate Suu Kyi, who was arrested on May 30 following a clash between her supporters and pro-government groups while she was on a tour outside the capital, Yangon.

Key donor Japan has suspended new aid to Myanmar, formerly known as Burma, and the United States and European Union have threatened harsher sanctions if she is not released.

"This blind and prejudiced meddling in Myanmar's home affairs, supporting one side while opposing the other by America and its West European allies, have adversely affected the nation's internal stability," the commentary said.

"It has created obstacles and hindered the nation's efforts to establish peace and stability in the country and to set up a democratic state and a market-oriented economy," it added.

Myanmar's economy is in tatters after years of misrule and international sanctions.

The junta has repeatedly said its ultimate goal is a national reconciliation and a transition to democracy, but that moving too quickly could lead to instability.

"If such were the situation, there would follow an endless cycle of military coups with military rule leaving the house by the front door and entering it again from the window," the newspaper commentaries said.

Suu Kyi's National League for Democracy, which won 1990 elections in Myanmar but has never been allowed to take power, says the government has refused to begin substantive dialogue.

After her arrest, witnesses who fled to neighbouring Thailand said hundreds of pro-government supporters had attacked Suu Kyi's convoy, killing dozens of people.

The junta denied the claims, blaming Suu Kyi for the clash in which it says four people were killed.

Yangon responded to international pressure by sending two senior ministers on a tour of Asian capitals earlier this month, showing pictures of Suu Kyi in detention in efforts to allay concern.

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Monday July 14, 1:20 PM

Australian police say Thais, Myanmar and Russians being forced into sex

CANBERRA, Australia (AP) - Thai, Myanmar and Russian women are being smuggled into Australia to work for little or no pay as prostitutes, a newspaper reported Monday, days after the country's first cases of sex slavery went to court.

The Age newspaper reported that women recruited overseas were being forced by brothel operators in the southern city of Melbourne to service up to 800 clients for virtually no pay until they have repaid the cost of their passage to Australia.

After six months of being paid a pittance, the women were allowed to keep half their earnings, said the report, which cited unidentified police sources in Melbourne, the capital of Victoria state.

Dave Spencer, a spokesman for the Victorian state police force, said a police investigation, expected to take several months, began two weeks ago. Police have not yet gauged the extent of the sex slavery and how many women are involved, he said.

The probe, involving local authorities and sex worker groups, has found illegal brothels in the state. It aims to find better ways to police the sex industry.

Last week, Australia's first sexual slavery cases began under new laws to stamp out human trafficking.

Four people appeared in a court Friday charged with the enslavement and sexual enslavement of five Thai women after federal police raids on a Melbourne brothel. They face up to 25 years in prison if convicted.

Police believe two immigration scams are used to smuggle women into Australia for prostitution, the Age reported.

The first involved mainly poor Thai and Myanmar women who had money deposited into their bank accounts so they could apply for a tourist visa.

Once in Australia, the women claimed refugee status and then were made to work in brothels for 12 months until their cases were heard.

The second scam, the newspaper reported, involved Russian women who were paid up to 50,000 Australian dollars (US$33,000) to marry Australian men.

Once in the country, the women worked in brothels to repay debts supposedly incurred in bringing them into the country.

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Monday July 14, 5:41 PM

Myanmar suggests U.S. and European intervention in its affairs

YANGON, Myanmar (AP) - Military-ruled Myanmar lashed out at the United States and Europe on Monday, claiming the Western powers were hindering its efforts to become democratic and suggesting that their intervention could lead to a series of coups.

The comments in all three state-run newspapers come as the United States and the European Union _ both of which already have political and economic sanctions against Myanmar _ have slapped even tougher measures against the Southeast Asian nation because of its latest detention of opposition leader Aung San Suu Kyi.

The commentary did not directly mention the sanctions, but in an apparent reference to them it said that it would be ``totally wrong'' to assume that greater hardships ``will cause unrest in the name of democracy in Myanmar today.''

It said that a rise in poverty would lead to an increase in gangsterism.

``If such were the situation there would follow an endless cycle of military coups with military rule leaving the house by the front door and entering it again from the window,'' the commentary said. ``In such a state of affairs there will be no other option but a military coup.''

The commentary accused the United States of ``launching limited wars, imposing economic sanctions and applying pressures through the U.N.'' to topple established governments and appoint its ``minions'' to rule.

It said Western powers have tried to foist their vision of democracy on Myanmar and meddle in its affairs unsuccessfully for 15 years.

``It has created obstacles and hindered the nation's efforts to establish peace and stability ... to set up a democratic state and a market-oriented economy,'' the commentary said.

The commentary identified Aung Moe San as its writer, however it was not clear who this person was.

Myanmar has been ruled by the military for more than four decades. The current regime took power after crushing a pro-democracy uprising in 1988. The opposition National League for Democracy party, led by Nobel peace laureate Suu Kyi, won 1990 elections, but was never allowed to rule.

Suu Kyi and the other NLD leaders were detained after a May 30 clash between opposition supporters and a pro-government mob. NLD offices were also shut nationwide.

An imminent U.S. ban on imports from Myanmar is expected to cut its export earnings by up to a third. The European Union earlier this month broadened an arms embargo against Myanmar, accusing the junta of serious human rights violations.

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Monday July 14, 7:51 AM
India, Myanmar to Boost Joint Trade Ties

NEW DELHI, July 14 Asia Pulse - Aiming to further boost bilateral trade ties, India and Myanmar will soon ink a Memorandum of Understanding [MoU] for creation of a Joint Trade Committee.

The MoU, to be signed during the visit of India's Commerce and Industry Minister Arun Jaitley to Myanmar beginning July 14, will pave the way for setting up of a trade committee which will meet at regular intervals to explore the possibilities of boosting bilateral trade, official sources said here.

Jaitley is scheduled to meet his Myanmarese counterpart and Myanmar's Deputy Prime Minister during his 3-day visit is also expected to look into the difficulties faced by Indian companies operating there due to discontinuation of import and export licences to foreign trading firms.

In April-September 2002, Myanmar's exports to India were to the tune of US$194.22 million while its imports stood at US$59.91 million.

India's total exports to Mayanmar were at US$39.26 million as against imports worth US$197.32 million.

Their total trade which stood at about US$328 million in 1997-98 has witnessed a rise with balance of trade in favour of Myanmar.

Myanmar is the 2nd largest supplier of beans and pluses and 5th largest supplier of timber to India while India exports steel, steel bars, drugs and pharmaceuticals, cotton yarn, auto parts betel nut, resins and medicinal herbs.

India entered into a border trade agreement with Myanmar in 1994 for trade on barter basis at the traditional border.

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Monday July 14, 1:52 PM
Asean Ministers Agree to Accelerate Integration Process

JAKARTA, July 14 Asia Pulse - ASEAN ministers of trade and industry have agreed to accelerate the integration process of their economy as an effort to anticipate increased global challenges, a spokesman said yesterday.

"ASEAN won't compete effectively in global trade unless trade and investment have become stable," Brunei's Minister for Industry and Primary Resources Pehin Dato Abdul Rahman Taib, chairman of the Special Informal Meeting of the ASEAN Economic Ministers (AEM), told reporters.

Abdul Rahman said ASEAN members had so many problems to be addressed to in the spirit of good relations.

He said the ministers in their two-day meeting which ended on Sunday discussed various issues to solve such disputes rising among the ASEAN members as regulations on the origin of goods, standardisation, customs procedures and related issues with increased intra-Asean trade and investment.

According to him, they also touched on non-tariff barriers in the region.

Indonesian Industry and Trade Minister Rini Suwandi said different procedures on customs among ASEAN members were needed to be harmonized to boost trade among its members.

"These cause Indonesia and Singapore release different figures on their bilateral trade," she said.

Rini said the ministers agreed to appoint coordinating countries to handle priority industries.

Rini did not tell the reasons for these countries appointment as coordinators.

The result of their work will be reported to the 35th AEM meeting in Cambodia in September 2003.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, the Philippines, Thailand and Vietnam.

ASEAN general secretary Ong Keng Yong also attended the meeting.

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Channel NewsAsia
Monday July 14, 8:17 PM
Singapore's Q3 economic performance to be significantly better: George Yeo

Singapore's economic performance should be significantly better in the third quarter of this year, Trade and Industry Minister George Yeo has said.

He gave this optimistic assessment on the sidelines of the ASEAN Economic Ministers Meeting in Jakarta.

With the Iraq war and SARS hitting the region, it was not surprising that Singapore's economic performance in the second quarter, was, as Brigadier-General Yeo said, "unusually bad".

So, in a sense, Singapore hopes the worst is over.

"It's already clear the third quarter would be significantly better and we hope that, barring unforseen circumstances like the return of SARS or some acts of terrorism, the second half will be significantly better than the first half. That's our expectation," General Yeo said.

On bilateral ties with Indonesia, General Yeo, who met his Indonesian counterpart Rini Soewandi while in Jakarta, said progress has been made over the release of trade data.

This issue had cropped up in recent weeks when Indonesian accused Singapore of not being transparent.

Singapore maintains it hasn't been hiding anything.

"They have now accepted that we have always released the trade statistics to them and it was the decision of successive governments in Jakarta not to release those stats. This was an agreement going back to 1974," General Yeo said.

But future disagreements among ASEAN members could have a new platform.

The economic ministers have agreed to work towards a tribunal where trade disputes can be legally and independently addressed.

"If we can agree to this in Bali, I believe we will really break new ground and bring ASEAN to a new level," General Yeo said.

"It will give tremendous confidence to investors that when they have problems, these problems will be resolved in an objective and impartial manner according to the agreement we have made," he said.

The new initiative is some way off as old problems still sting relations between and among ASEAN countries.

ASEAN has recently moved to censure Myanmar and the historical baggage which has burdened the grouping needs also to be addressed candidly.

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The Straits Times - JULY 14, 2003 MON
Asean plans tribunal to settle trade rows
Singapore hails the move, saying it will allow independent handling of disputes and keep them from becoming politicised
By Derwin Pereira

JAKARTA - Asean economic ministers are working on a plan to establish an independent tribunal to resolve trade disputes.

In an effort to boost trade and investment in the region, the ministers, ending a two-day meeting here yesterday, also agreed to harmonise Customs procedures and work with the private sector to boost the competitiveness of Asean's key industries.

Brunei's Trade Minister, Abdul Rahman bin Dato Mohammad Talib, who chaired the discussion among the 10 ministers, told reporters:

'These issues have been considered as hampering the implementation of the Asean free trade area. We will discuss the more concrete steps at the Asean summit in Bali in October.'

Top on the agenda, however, appeared to be Asean's plan to create a tribunal.

Singapore's Trade and Industry Minister George Yeo said that it would 'really break new ground and bring Asean to a new level'.

The idea, he said, stemmed from a need to create a dispute-settlement mechanism like in other trading blocs such as the North American Free Trade Area and in Europe. He noted that in Asean, disputes handled by ministers tended to become politicised. With independent tribunals, there was little chance of that happening.
'If anything, the issue is depoliticised,' he said.

'It will be legal arguments based on agreements that have been drawn up. This will give tremendous confidence to investors that when they have problems, they will be resolved in an objective and impartial manner.'

He said the ministers would discuss the matter next month when they meet in Phnom Penh, Cambodia, before raising it formally with Asean leaders at a summit in Bali in October.

The overall objective, he said, was to move in the direction of an Asean economic community.

He said: 'The more we are one economic space, one productive space and one market, the more we will strengthen our competitive position with respect to other regions in the world, and the more we will be able to attract investments.'

An Asean report said recently that South-east Asia, which in the 1980s and early 1990s attracted capital from around the world, was now struggling to lure investors whose focus has shifted to China since Beijing joined the World Trade Organisation more than a year ago.

The task had been complicated by the Bali bombing in October last year that highlighted the growing threat of terrorism in the region.

But the Asean economic ministers appeared to rise to the challenge by identifying ways to bring money in. Besides reducing trade obstacles like barriers and harmonising Customs, they also laid out a proposal to work with the private sector.

According to their plan, Singapore will coordinate e-business and health care, the Philippines will become the coordinator for the electronic industry and Indonesia will coordinate the wood-based and automotive industries.

Myanmar will focus on the agro-based industry and fisheries.

Thailand will be in charge of airlines and tourism, and Malaysia will take charge of rubber-based products, textiles and garments.

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The Taipei Times
ASEAN outlines a coordinated policy on customs rules
BLOOMBERG

Monday, Jul 14, 2003,Page 12

Nations in Southeast Asia will harmonize customs procedures and dispute settlement mechanisms in an effort to boost trade and investment within the region.

Economic ministers of the 10-member Association of Southeast Asian Nations, or ASEAN, agreed to cooperate in settling issues such as the rule of origin, customs procedures, dispute settlement mechanism, and standard and performance of goods and services, Brunei's Minister of Industry and Primary Resources Abdul Rahman Bin Dato Mohammad Taib said.

"These issues have been considered as hampering the implementation of the ASEAN free-trade area," Taib, who was serving as the chair of a two-day ASEAN economic ministers meeting, told reporters in Jakarta.

"We will discuss the more concrete steps at the ASEAN summit in Bali in October," he said.

The ministers also agreed to appoint coordinators to cooperate with the private sector in an effort to boost the competitiveness of ASEAN's key industries, Taib said.

The Philippines will become the coordinator for the electronic industry. Indonesia will coordinate the wood-based and automotive industry; Myanmar for agro-based and fisheries.

Thailand will be in charge for airlines and tourism, Malaysia for rubber-based, textiles and garments. Singapore will coordinate e-business and healthcare, Taib said.

The region, which in the early 1990s attracted capital from around the world, is struggling to lure investors whose focus has shifted to China since the world's fastest-growing and most populous nation joined the WTO more than a year ago, an ASEAN report said.

The task has been complicated by the Bali bomb attack in October last year that highlighted the growing threat of terrorism in the region.

Singapore, Malaysia, Indonesia and the Philippines have arrested members of the Jemaah Islamiyah group, which they say has links to al-Qaeda.

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The Washington Post
Editorial - Stop Stalling on Burma
Monday, July 14, 2003; Page A20

U.N. SECRETARY GENERAL Kofi Annan is scheduled to meet with President Bush at the White House today. Ahead of time, U.N. officials said they expected the two men to discuss Liberia, the Middle East and other matters. We trust that among those other matters will be a subject about which both leaders have claimed to be highly concerned: the crackdown on democracy activists in Burma. The leader of that Southeast Asian nation's democracy movement -- the rightful leader of the country, in fact -- remains in captivity, and neither Mr. Bush nor Mr. Annan has rallied to her defense as strenuously as one would expect.

It's been a month since Secretary of State Colin L. Powell promised prompt action to penalize the generals he referred to as "the thugs who run the Burmese government." The time had come, he said in an op-ed article in the Wall Street Journal, to freeze their financial assets and ban remittances to Burma. But the administration has taken no such steps. It's been six weeks since the junta sent 3,000 vigilantes, armed with wooden bats and sharpened iron rods, to beat and stab Aung San Suu Kyi's supporters as they traveled with her in the hinterland. Aung San Suu Kyi, a Nobel peace laureate, apparently escaped injury but was taken into custody and, except for one brief interview with a U.N. envoy, has not been heard from since. The Senate shortly thereafter approved a measure banning imports from Burma, where the generals control most companies, but the bill has yet to emerge from the House. It's scheduled for action this week; the House should vote and the president should sign the bill quickly into law.

And the United Nations? You might think the Security Council would have swung into action to demand freedom for one of the world's most courageous leaders and for her colleagues and to address the threat to regional stability posed by the increasingly erratic junta. After all, there is no dispute as to her legitimacy; the party she leads overwhelmingly won an election in 1990 but has never been permitted to take its rightful place in government. So far, however, the chief U.N. response has been the election of Burma -- or Myanmar, as the generals call it -- to the vice presidency of the General Assembly for the session that begins in September.

For many years now, the United Nations and the United States have supported dialogue between Aung San Suu Kyi and the nation's junta leading toward peaceful democratization. She has consistently endorsed such a nonviolent process, even during many years of house arrest. With their murderous attack of May 30 and subsequent incarceration of her, Burma's leaders have shown contempt for the idea, and so far they have paid little price. The president and the secretary general could begin to change that equation today.

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The Nation
REGIONAL PERSPECTIVE: New EU strategy: moving closer to Asean
KAVI CHONGKITTAVORN

Published on Jul 14, 2003

The new EU strategy for Southeast Asia has rejuvenated the spirit of Karlsrule in 1994 when its "Towards a New Asia Policy" was first announced. It sharpens the focus on the region during an age of globalisation.

The new strategy is comprehensive and deals with the whole gamut of EU-Asean relations, as befitting Asean's oldest dislogue partner, dating back to 1972. It also reflects a realistic assessment by the US of the Southeast Asian region and Asean. Gone is the notion of the region's indestructible economic potential, known "the Asian miracle".

The EU strategy will not only deepen cooperation but also build a broad-based partnership for all pivotal issues: economic and business links, development cooperation and political and security dialogue as well as the fight against terrorism, organised crime and the drug trade. The EU is also proposing a regional trade-action plan, the Trans-Regional EU-Asean Trade Initiative (Treati), to promote investment in Asean and bring down trade barriers.

The EU is Asean's third largest trading partner, after the US and Japan. Treati will pave the way for Asean or its individual members to enter into a free-trade agreement with the EU in the near future.

The EU also reiterates that cooperation in human rights, good governance, justice and issue of law and order are also high on the agenda. In the past, the EU was more discreet. Discussing these issues officially reflects the maturity of EU-Asean relations. More than both sides would like to admit, they realise that the full potential of their relations has not yet been met because they have been hampered by the divergent views and political orientations of Asean members. Since the EU defined a common position towards Burma in 1996, Asean-EU relations have been held hostage by Burma's domestic politics and worsening human-rights record.

The situation only got worse after Burma's admission into Asean in 1997. The May 30 incident and subsequent detention of Aung San Suu Kyi, the Nobel Peace Prize laureate, has sunk the grouping's reputation with the outside world. This time around, while EU toughened its reaction, Asean also took Burma to task and called for Suu Kyi's release.

At the moment, Burma is not party to Asean-European Commission cooperation. The commission refuses to include Burma until a solution to the current political stalemate is found. But the EU agreed to conduct dialogue with Asean, with Burma's participation in 2000, as part of a bloc-to-bloc meeting. The grouping's new attitude on Burma augurs well for the EU new approach because the EU, and Asean members as well, do not want to link the whole EU-Asean dialogue process with the political crisis in Burma.

Before the May incident, as a rule, Asean would have automatically defended Burma as the grouping has done faithfully for six years. Asean even frequently criticised the EU for discriminating against Burma.

With Suu Kyi in detention, Burma has undermined its own future ties with EU, which had expressed its wish to start a meaningful political dialogue with Burma. Now it has also become more difficult to admit Burma, along with Laos and Cambodia, as new members of the Asia-Europe Meeting (Asem) despite Asean's firm support. Earlier, Asean leaders agreed that the three should be admitted to Asem together. Now it is an open secret that Laos and Cambodia do not want to wait until Burma is ready.

The EU new strategy is flexible as it enables those Asean members which are ready to enter bilateral agreements with the EU. Doubtless this approach will strengthen the overall EU presence and cooperation in the region. In other words, the EU will respond to the same level of ambition put forward by Asean.
It remains to be seen how EU-Asean ties can evolve with the Burmese crisis unresolved. One hopes that the bilateral agreements signed between the EU and individual Asean members will provide enough incentive for other members to change and catch up with the rest of the group. Singapore's free-trade agreement with the US has already propelled other Asean countries to do the same.

In comparison with other regional organisations such as the South Asian Association for Regional Cooperation and the African Union, despite the Burmese hiccup, Asean still has one of the closest relations with the EU. Proactive priorities will cement relations further.

Finally, the strategy will also pave the way for Asean to learn more from the EU experience in economic and political integration. Despite its diversity, Asean is moving towards establishing an Asean Economic Community and is now mulling over the Indonesian-proposed Asean Security Community. Asean will find EU experience in these areas most valuable.

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