The EU & the Assoc. of South East Asian Nations (ASEAN)

 

Overview
Latest update: January 2003

ASEAN, a key partner for Europe

The Association of South East Asian Nations (ASEAN), encompasses 10 South East Asian countries. Its key position in the Asia-Pacific region, its dedication to peace and stability in the region and its important economic weight have made ASEAN an essential partner for the European Union in Asia. ASEAN was established on August 8, 1967 in Bangkok, Thailand with the signature of the Bangkok declaration by the five original member nations (Indonesia, Malaysia, Philippines, Singapore, and Thailand). In 1984, Brunei Darussalam was admitted as the sixth member. In 1995, Vietnam also joined ASEAN. Lao People's Democratic Republic and Burma/Myanmar became members in 1997. Cambodia joined in 1999. The Member Countries who make up ASEAN have a combined GDP of € 4,117 (2001), but large economic disparities among them. With a population of some 503 million people, they make up one of the largest regional markets in the world.

The EU-ASEAN partnership

The EU has been a longstanding Dialogue Partner of ASEAN. The political dialogue entails regular Ministerial meetings, participation in the Post Ministerial Conferences which take place immediately after ASEAN’s annual ministerial meetings and in the ASEAN Regional Forum. In September 2001 the European Commission’s presented its Communication "Europe and Asia: A Strategic Framework for Enhanced Partnerships", which identified ASEAN as a key economic and political partner of EC and emphasised its importance as a locomotive for overall relations between Europe and Asia.

Co-operation between the EU and ASEAN is based on a Co-operation Agreement (1980) between the EC and member countries of ASEAN: 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, but the EU has indicated that 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.

Political Dialogue

ASEAN makes an important contribution to peace and stability in the Asia Pacific Region in particular through the ASEAN Regional Forum (ARF), which was created in 1994 - the only security forum in Asia. The EU is a full member of the ARF and is represented in its meetings by the EU Troika. The EU and ASEAN share an over-riding common goal, a commitment to regional peace and stability.

The foreign ministers of both the EU and ASEAN have met in the framework of the political dialogue since 1978 every second year and since 1995 it has been agreed that EU-ASEAN senior officials would meet between ministerial meetings. The accession of Burma/Myanmar to ASEAN in 1997 put the political dialogue process on hold until the April 2000 EU General Affairs Council approved concurrently a toughening of the EU Common Position on Burma/Myanmar and an arrangement for the Burmese Foreign Minister to participate in EU-ASEAN Ministerial Meetings. (The political dialogue meetings are in ‘block-to block’ formation, including representatives of all EU and ASEAN countries).

The 13th EU-ASEAN Ministerial Meeting took place in Vientiane, Laos, on 11/12 December 2000. The Vientiane Declaration, issued after the meeting, reported that the meeting had reached meaningful conclusions on enhancing EU-ASEAN political and economic co-operation and that discussions had also covered a number of sensitive issues, including Burma/Myanmar and Indonesia, during a wide-ranging review of international affairs. The dialogue thus demonstrated its increasing maturity, based on the growing recognition that this is a dialogue between equals. The next, 14th Ministerial Meeting will be held in Brussels on 27/28 January 2003.

Trade relations

In 2001, the EU was ASEAN’s second largest export market and the third largest trading partner after the United States and Japan. EU exports to ASEAN were estimated at € 42.7 billion, while EU imports from ASEAN were valued at € 66.2 billion, demonstrating that the EU maintained its commitment to keeping its market open to ASEAN after the 1997 Asian Financial Crisis.

As a region, ASEAN has benefited significantly from the EU's Generalised System of Preferences. ASEAN countries such as Thailand and Indonesia have "graduated" a number of sectors where they have become competitive in the last few years, losing the benefit of the GSP for important products - in particular, fishery products for Thailand. Singapore, due to its advanced level of development, is excluded from the system. European investment was high in the region before the crisis and although the trend is rising again, it has not yet reached pre-crisis levels.

EC-ASEAN Cooperation

The EC-ASEAN Joint Co-operation Committee (JCC) promotes and keeps under review the various co-operation activities envisaged in the Co-operation Agreement. An official-level Committee, it « normally » meets every 18 months. Sub-committees have been established for Trade and Investment, Economic and Industrial Co-operation, Science and Technology, Forestry, Environment, and Narcotics. The functioning of the JCC was blocked for a time following Burma/Myanmar’s accession to ASEAN, but a meeting was held in May 1999, with Burma/Myanmar as a "passive presence" only. This meeting approved a Work Programme to re-launch EC-ASEAN Co-operation, the "New Dynamic" in EU-ASEAN Relations. Action was envisaged under a number of headings: Trade, Energy, Environment, Development Co-operation, Regional Integration, Science and Technology, Education and Training, Promotion of Mutual Understanding, Business Co-operation, Narcotics.

The September 2001 JCC undertook a thorough review of EC-ASEAN co-operation, particularly the difficulties encountered in implementing some elements of the 1999 Work Programme. The JCC reached agreement on a new approach to co-operation activities; a clear focus on policy dialogue in areas of mutual interest where the EC can support ASEAN regional integration and other key priority areas. Future co-operation programmes should derive from the policy dialogue and should be subjected to a two-way value added test: what is the added value for ASEAN in co-operating with the EC on a particular issue, what is the added value for the EC in co-operating with ASEAN as a group, rather than with individual ASEAN member countries ? The new approach is to be launched after a joint reflection on the future of EC-ASEAN co-operation, which was launched during 2002, with a view to presenting substantive proposals to the next EU-ASEAN Ministerial Meeting.

Meanwhile, implementation of already agreed co-operation projects has been significantly advanced. Six projects are now underway, with a total EC financing commitment of around € 63.5 million, supporting EC-ASEAN co-operation in energy, environment, university networking and intellectual property rights. Another two programmes to the amount of € 13 million are currently in preparation, on standards, quality and conformity assessment, and a programme to strengthen the capacity of the ASEAN Secretariat to develop regional policy initiatives. Both of these programmes will be launched in 2003.