EU-ASEAN trade
May 5, 2011
In his opening speech in Jakarta, Indonesian President Susilo Bambang Yudhoyono called for a more formal economic agreement between the Association of South-East Asian Nations (ASEAN) and the European Union.
"Europe has a long experience in economic integration and community building. ASEAN has and will continue to learn from the European experience," Yudhoyono added.
"There is no doubt that ASEAN and EU are important to each other. The EU is the second largest trading partner for ASEAN and the largest investor, while ASEAN is EU’s third largest trading partner."
The trade volume between ASEAN and the EU reached 175 billion euros in 2010.
President Yudhoyono said on Thursday that the economic outlook in Asia was "even brighter" when compared to other emerging markets. He cited an Asian Development Bank report that recently found that by 2050 the region "could account for about half of global output and half of global trade and investment".
"Thus, it is timely to increase our engagement, including discussions towards a more formal economic cooperation agreement between ASEAN and the EU," Yudhoyono added.
Talks on the way
The EU has already opened negotiations on free trade agreements with Malaysia, Singapore and Indonesia. This could pave the way for a future deal with the whole ASEAN region.
EU Trade Commissioner Karel De Gucht sees "considerable opportunities for working more closely in the coming years" given the economic dynamism of the region. He thinks this week's talks will serve as common ground for a strong economic cooperation between the EU and ASEAN.
Hailing the summit a success, De Gucht said that the numbers of participants is very impressive with more than five hundred delegates attending the event throughout the day.
De Gucht assures "it is not a coincidence that the attendance is so high. It is a sign of the increasing importance that both business communities are giving to each other, put simply, the EU needs ASEAN and ASEAN needs the EU."
Opportunities and issues
Not only are politicians present at the summit but companies from both the EU and the ASEAN region are also there to discuss further trade opportunities. They will then present their conclusions to ASEAN ministers and the EU Trade Comissioner Karel de Gucht.
Indonesian Trade Minister Marie Pangestu outlined the future shape of an EU-ASEAN economic partnership. "Five sectors have been chosen as a focus. Maybe there will be more sectors at future summits", she explained.
"Specific recommendations will be made for these areas, which include infrastructure, agriculture and food, the car industry, healthcare and services. A background paper has been prepared on how the EU and ASEAN can potentially complement each other with investment, trade and economic cooperation."
ASEAN, which comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam hopes to create an ASEAN economic community by 2015, modelled on the European integration of the 1960s and 1970s.
Author: Zaki Amrullah/zer/dpa/AFP
Editor: Anne Thomas