Communication from the Commission - A new partnership with South East Asia
Date: 2003-07-09
Institutions: European Commission
Subjects: ASEAN, EU relations, South-East Asia, common foreign and security policy, human rights, judicial cooperation, terrorism, trading operation

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 9.7.2003
COM (2003) 399 final

COMMUNICATION FROM THE COMMISSION

A new partnership with South East Asia

Contents

Executive Summary....................................................................................................................3

1.

2.

Introduction...................................................................................................................5

A solid foundation for enhanced relations....................................................................6

a)

b)

c)

Strong economic interests...............................................................................6

Broadening the co-operation agenda with South East Asia ...........................9

Common features and values of the two regions..........................................11

3.

Strategic priorities and related action points ..............................................................11

a)

b)

c)

d)

e)

f)

Supporting regional stability and the fight against terrorism .......................12

Promoting human rights, democratic principles and good
governance....................................................................................................14

Mainstreaming Justice and Home Affairs issues..........................................16

 Injecting a new dynamism into regional trade and investment
relations ........................................................................................................17

Continuing to support the development of less prosperous countries ..........18

Intensifying dialogue and co-operation in specific sectors ..........................20

4.

Providing adequate institutional framework and resources........................................22

a)

b)

Regional versus bilateral institutional framework........................................23

Optimum use of institutional framework and available resources ...............24

Launching a new visibility strategy for an enhanced partnership ..............................26

Conclusion ..................................................................................................................27

5.

6.

Annexes: ...................................................................................................................................28

2

Executive Summary

This  communication  proposes  revitalising  the  EU’s  relations  with  ASEAN  and  the
countries of South East Asia. The need to develop these relations further was noted in
the Commission’s September 2001 Communication on ‘Europe and Asia, a Strategic
Framework  for  Enhanced  Partnerships’,  since  endorsed  by  the  Council  and  the
Parliament.

There  are  several  reasons  for  this  strategy  of  enhanced  relations.  There  is  a  solid
foundation for strengthened co-operation in the fact that the countries of Europe and
South  East  Asia  share  many  common  features  and  values,  as  well  as  important
political  and  economic  interests.  These  include  a  deep  respect  for  cultural,  religious
and linguistic diversity, and  a  commitment  to  regional  integration.  There  is  also  the
increasing  realisation  that  many  problems  –  such  as  terrorism,  environmental
degradation, diseases, organised crime – are truly global in their nature, and can only
be addressed effectively through international co-operation. Economic imperatives for
closer co-operation include the fact that South East Asia is set to become one of the
most dynamic growth areas in the world economy.

This  Communication  identifies  the  following  six  strategic  priorities,  and  outlines
actions by which the EU’s relationship with ASEAN and the countries of South East
Asia could be improved:

a) Supporting regional stability and the fight against terrorism: A strong ASEAN
is  probably  the  best  guarantee  for  peace  and  stability  in  the  region.  The  EU  can
contribute  through  using  ASEAN  and  ASEM  as  frameworks  for  conducting  policy
dialogue, and through providing its expertise in regional integration, if asked. The EU
stands  ready  to  continue  support  to  actions  in  the  area  of  conflict  prevention  and
conflict  settlement.  Regarding  terrorism,  the  EU  is  prepared  to  assist  countries  in
taking measures against international terrorism without prejudice to the respect by the
countries  concerned  of  basic  human  rights  principles  and  peaceful  political
opposition.

b)  Human  Rights,  democratic  principles  and  good  governance  should  be
promoted in all aspects of EC policy dialogue and development co-operation, through
building  constructive  partnerships  with  ASEAN  and  national  governments  based  on
dialogue,  encouragement  and  effective  support.  New  bilateral  agreements  with
countries  of  the  region  should  all  contain  the  ‘essential  element’  clause  regarding
human  rights,  while  the  EU  and  particular  countries  in  the  region  may  decide  to
launch Human Rights-specific bilateral dialogues.

c) Mainstreaming Justice and Home Affairs issues: In striving to create in the EU
an area of freedom, justice and security, it is essential to incorporate this dimension in
our  external  relations.  Issues  of  migration,  trafficking  in  human  beings,  money
laundering, piracy, organised crime and drugs need to be incorporated systematically
into our regional and bilateral dialogues with South East Asia.

3

d) Injecting a new dynamism into  regional  trade  and  investment  relations:  The
EU  and  ASEAN  have  a  strong  interest  in  reinforcing  their  economic  ties.  The
Commission is proposing a trade action plan,  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.  TREATI  will  thus  permit
serious consideration to be given to entering into a Free Trade Agreement following a
successful  outcome  of  the  current  round  of  multilateral  trade  negotiations.  Such  an
agreement  would  be  based  on  the  “WTO-plus”  principle,  would  be  subject  to
sufficient progress on regulatory convergence and would ensure mutual benefits.

e) Continuing to support  the  development  of  less  prosperous  countries:  Poverty
reduction  will  remain  an  important  development  priority  for  the  EU  and  we  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.
Other  priority  areas  for  co-operation  include  in  particular  good  governance,  human
rights,  environment  and  forestry,  trade-related  technical  assistance  and  counter-
terrorism.

f)  Intensifying  dialogue  and  co-operation  in  specific  policy  areas  will  be  an
important  way  of  re-invigorating  EU  relations  with  South  East  Asia.  Such  sectoral
areas include economic and trade issues, justice and home affairs matters, science and
technology,  higher  education  and  culture,  transport,  energy,  the  environment,  and
information society.

In seeking to  enhance  its  relations  with  South  East  Asia  in  these  ways,  the  EU  will
offer new bilateral agreements to countries in the region, while seeking to maximise
the  utility  of  the  existing  institutional  frameworks,  both  bilateral  and  multilateral.  It
will  also  look  to  make  the  best  use  of  available  resources,  such  as  the  newly
completed network of Commission delegations in South East Asia.

Finally,  it  is  important  that  the  deepening  of  EU  co-operation  with  South  East  Asia
envisaged in this communication is visible not only to government circles, but also to
a  wider  audience  of  people  in  business,  academia,  the  media,  and  ultimately  to  the
general  populations  as  a  whole.  This  paper  proposes  launching  a  new  visibility
strategy, using the resources of both Headquarters, Delegations and Member States to
spread a number of key messages.

4

1.

INTRODUCTION

For  many  centuries,  the  common  history  of  European  and  South  East  Asian  countries  only
featured  explorers,  missionaries,  traders  and  a  few  colourful  diplomatic  missions.  There
followed the difficult  history  of  the  colonial  era  and the Cold War period, some legacies of
which  still  remain.  Thirty  years  of  official  relations  between  Europe  and  the  ASEAN  have
improved  mutual  awareness,  but  they  have  so  far  failed  to  realise  the  true  potential  of  this
relationship. Today, there is a widespread perception in both Europe and South East Asia that
the coherence, impact and political visibility of our relations has not matched the ambitions of
the long-established partnership.

In  the  context  of  a  breathtaking  acceleration  of  globalisation,  many  hard  strategic,  political
and economic facts now demand that our relations with South East Asia1 be reinvigorated.

Box 1: South East Asia at a glance

Population: 532 million
(8.5 % of world total)

GNP: 1.117 billion $

GDP per capita: 1.217 €
(average)

Range of Per Capita Incomes:
Cambodia: $270, Thailand: $1.970, Singapore: $24.740

ASEAN economic growth:
2000: 5.5 %, 2001: 2.8 %, 2002: 4.5 %

Number of people under (national) poverty line:
160 million (out of 485 million*)

ASEAN share of world trade 5.1 %

ASEAN’s share of EU exports and imports: 4.3 and 6.4 %

EU exports to ASEAN as percentage of world export: 4 %

* (No data available for Burma/Myanmar)

Source: World Bank, World Development Report 2003; ASEAN Secretariat

In  its  September  2001  communication  on  “Europe  and  Asia,  a  Strategic  Framework  for
Enhanced  Partnerships”,  the  European  Commission  proposed  six  core  objectives2  later

1

2

South East Asia is defined as covering the association of South East Asian Nations (ASEAN) as a regional
grouping,  its  10  individual  countries:  Brunei  Darussalam,  Burma/Myanmar,  Cambodia,  Indonesia,  Lao
PDR, Malaysia, the Philippines, Singapore, Thailand, Vietnam, as well as East Timor,  which is not  yet a
member of ASEAN.
COM  (2001)  469  of  4  September  2001;  ‘Europe  and  Asia:  A  Strategic  Framework  for  Enhanced
Partnerships’, (‘Asia Strategy’) objectives are to:
- contribute to peace and security in the region and globally, through a broadening of our engagement with
the region;
- further strengthen our mutual trade and investment flows with the region;
-  promote  the  development  of  the  less  prosperous  countries  of  the  region,  addressing  the  root  causes  of
poverty;
- contribute to the spreading of democracy, good governance and the rule of law;

5

                                                
endorsed  by  Member  States3  and  the  European  Parliament4.  This  Asia  strategy  sets  the
priorities and actions points for EU-Asia relations across the board but also calls for strategies
to  be  developed  for  each  of  Asia’s  sub-regions  and  key  partners.  In  particular,  the  Asia
strategy had already recognised that:

“The EU-ASEAN relationship has since the 1970’s been a constant factor in our partnerships
in Asia. Recent developments in the region make it even more important to strengthen further
our  co-operation  in  all  areas  –political,  economic  and  social.  Particular  attention  will  be
given to enhancing mutual understanding and to developing global partnerships, as well as to
the need to further strengthen our relations with key ASEAN partners.”5

In  the  context  of  the  six  wider  objectives  for  our  relations  with  Asia,  the  present
communication proposes to give EU’s relations with ASEAN and the countries of South East
Asia a new impetus. It identifies the  reasons why this is necessary.  It also proposes a set of
global objectives, a new policy agenda in specific sectors and addresses the institutional and
resources dimensions of its implementation.

2.

A SOLID FOUNDATION FOR ENHANCED RELATIONS

Today, the EU has stronger common interests – economic, political and security – with South
East Asia than ever before. The values and features shared by the two regions are a good basis
for enhancing relations to a level commensurate with those interests.

a)

Strong economic interests

A recent major study on long-term developments in international trade has predicted that by
2050 the centre of gravity of the world economy will have shifted to the Asia Pacific region,
with  ASEAN  emerging  as  the  world’s  largest  exporter.6  In  spite  of  the  uncertainty  of  such
long-term predictions, it can hardly be doubted that South East Asia will increasingly be one
of  the  most  dynamic  growth  engines  of  the  world  economy.  With  its  growing  export-led
economies  and  a  quickly  developing  domestic  market  of  530  million  people,  ASEAN  is  a
region of great economic importance. For its part, the enlarged European Union is the biggest
single economic market in the world, with nearly 500 million people and accounting for 27%
of  world  GDP.7  As  a  result,  there  are  very  strong  mutual  economic  interests  between  these
two regions, that take a number of forms.

Trade  –  In  2002,  EU-ASEAN  trade  represented  5,1%  of  total  world  trade.  The  EU  is
currently  ASEAN’s  3rd  largest  trading  partner,  accounting  for  14%  of  ASEAN  trade.
Significantly, 16% of ASEAN exports are destined for the EU, which makes it ASEAN’s 2nd
largest  export  market  after  the  US.  After  EU  enlargement,  ASEAN  will  be  the  EU’s  3rd
largest trading partner, just ahead of China.

-  build  global  partnerships  and  alliances  with  Asian  countries,  in  appropriate  international  fora,  to  help
address both the challenges and the opportunities offered by globalisation;
- and help strengthen the awareness of Europe in Asia (and vice versa).
Council Decision of 20 December 2001.
European Parliament, Resolution of 5 September 2002, A5-0270/2002.
COM (2001) 469 (Asia Strategy), p. 21.
‘Le  Commerce  Mondial  au  XXI  Siecle’,  Institut  Francais  des  Relations  Internationales  (IFRI),  2002.
Assumes a continuation of current trends, without major policy actions.
Eurostat sources throughout, unless otherwise stated.

3

4

5

6

7

6

                                                                                                                                                        
EU and ASEAN Trade Flows, 2002

Source: Eurostat

ASEAN Main Import Partners, 2002
Japan
18%

EU Main Import Partners 2002

Rest of
World
49%

China
7%

Rest of 
World
50%

USA
14%

EU
12%

ASEAN
6%

USA
18%

Candidate 
countries
15%

EFTA
11%

ASEAN Main Export Partners, 2002

EU Main Export Partners 2002

Rest of 
World
45%

USA
19%

EU
16%

Rest of 
World
45%

China
6%

Japan
14%

ASEAN
4%

EFTA
10%

USA
24%

Candidate
countries
17%

Despite the fact that the European economy, particularly its banking sector, was affected by
the  shock  waves  of  the  Asian  financial  crisis,  Europe  kept  its  markets  open,  allowing
countries  of  South  East  Asia  to  ‘export  themselves  out  of  the  crisis’.  As  the  table  below
demonstrates,  this  resulted  in  the  EU’s  trade  deficit  with  the  region  rocketing  up  to  20-30
billion € after 1997.

EU TRADE WITH SOUTHEAST ASIA, mio Euro

80.000

60.000

40.000

20.000

-

(20.000)

(40.000)

1996

1997

1998

1999

2000

2001

2002

EU exports toS.E. Asia countries
EU imports fromS.E. Asia countries
EU balance

Source  : Eurostat

7

Most  of  Europe’s  main  economic  partners  and  competitors  are  currently  forging  economic
partnerships  and  alliances  with  the  region  and/or  its  individual  members,  which  could
challenge  EU  interests  in  the  region8.  Therefore  the  EU  will  have  to  play  its  part  in  this
intense  inter-weaving  of  economic  ties  with  South  East  Asia.  Its  strategy  should  be  both
‘offensive’, seeking to improve the  EU’s position  in  this  important market,  and ‘defensive’,
protecting its existing economic interests in the region.

Investment  –  South  East  Asia’s  current  economic  strengths  and  its  great  longer-term
potential continue to make it an attractive region for investment from EU economic operators.
As the table below demonstrates the EU is an important investor into ASEAN.

Main FDI sources into ASEAN, 1999-2001

10

$US Billions

8

6

4

2

0

EU

USA

Japan

Others

1999

2000

2001

Source: Asean Secretariat

However,  the  proportion  of  the  total  amount  of  EU  FDI  received  by  ASEAN  has  steadily
declined from 3.3% in 1998 to 2.6% in 1999, 1.6% in 2000 and 1.8% in 2001. This reflects
the fact that other markets have become more attractive  as destinations for  EU  investments.
Although  the  countries  of  the  region  are  concerned  about  the  decline  of  their  share  of  total
FDI  to  Asia,9  as  that  of  China  increases,  China’s  growing  importance  should  be  seen  as  an
opportunity rather than a threat. On the one hand, there is a limit on the degree to which China
can increase its market share in FDI and exports; on the other, China’s strength can serve as a
catalyst, accelerating the pace of reforms in South East Asia, and creating a new division of
labour  in  East  Asia  from  which  ASEAN  countries  can  benefit.  Already  many  countries  in
South East Asia have responded with increasing vigour to China’s emergence and are again
displaying impressive growth figures. The attractiveness of South East Asia as a destination
for investment is likely to increase in the future.

8

9

e.g. ASEAN-China FTA by 2010, US-Singapore FTA 2002.
From 35.1% in 1995 to 18.3% in 2000 or adjusted without Indonesia from 28.8% to 24.4%. The figures for
Indonesia only are 6.4% in 1995 and –6.1% in  2000.  (Source:  ‘China  Report’,  Deutsche  Bank  Research,
Frankfurt am Main, Germany, January 15, 2003).

8

                                                
ASEAN Annual GDP

Source ASEAN Surveillance Co-ordination Unit (ASCU)

7,3

4,1

5,5

3,6

4,5

2,8

1996

1997

1998

1999

2000

2001

2002

-7,1

10
8
6
4
2
0
-2
-4
-6
-8

ASEAN has also made commendable efforts towards creating a regional economic space that
helps attract FDI. The establishment of the ASEAN Free Trade Area (AFTA) in January 2003
is the first milestone in this direction. However, more policy and regulatory steps are needed
for the creation of a true single market. Interestingly, ASEAN is looking at the initial features
of the European model to inspire these efforts, which – if asked – the EU shall fully support.

Strong economic interests:

(cid:1)  South East Asia is likely to become one of the most dynamic growth engines for the world

economy

(cid:1)  ASEAN is striving to create regional economic spaces both within South East Asia and in

partnership with China, Japan and Korea

(cid:1)  In the context of multiplication of bilateral and regional free trade initiatives in South East
Asia, the EU has both offensive and defensive interests in forging stronger economic ties
with the region

b)

Broadening the co-operation agenda with South East Asia

In the ‘global village’, both EU and South East Asia find themselves more dependent on one
another,  not  only  economically  but  also  in  addressing  global  challenges  such  as
environmental degradation, new health challenges, terrorism and transnational criminality. At
the  same  time,  the  EU’s  approach  to  its  external  relations  has  developed  in  light  of  its
increased  ambitions  to  address  a  wider  agenda.  For  example,  the  EU  now  insists  on
incorporating dialogue on human rights into all its relations with third countries.

As a result, a new policy agenda is emerging with regard to South East Asia. While the EU
remains committed to poverty reduction and improving basic health and education services as
main  priorities  for  development  assistance,  the  scope  of  its  co-operation  activities  has
broadened  to  include  related  issues  such  as  migration  and  counter-terrorism.  The  terrorist
attacks  carried  out  in  September  2001  in  New  York  and  October  2002  in  Bali  tragically
demonstrated the global nature of the threat of terrorism. Indeed, it was in recognition of this
fact that UN Security Council Resolution 1373 called upon all countries to assist each other in
the  fight  against  terrorism.  To  date,  a  total  of  21  mio  €  has  been  designated  to  support
counter-terrorism  measures  in  the  region,  focusing  on  border  management  and  capacity
building of the judiciary.

9

Moreover,  the  EC  takes  a  holistic  approach  to  its  broadened  policy  agenda,  acknowledging
the  inter-relationship  of  different  issues  and  addressing  them  through  integrated  policies.
Thus, terrorism, organised crime and illegal migration undermine the rule of law, discourage
investment,  and  hinder  development.  Similarly  economic  and  trade  development  can  best
flourish in countries that not only encourage economic freedom but also respect human rights
and  the  rule  of  law,  practice  good  governance  and  rule  democratically.  The  Forest  Law
Enforcement,  Governance  and  Trade  programme  is  a  good  example  of  this.  It  sees  the
problem of illegal logging in a number of South East Asian countries as involving economic,
social, environmental and political dimensions, and recommends acting on a number of levels
in response.10

In  view  of  this  expanding  agenda,  EC  co-operation  assistance  to  South  East  Asia  is
increasing.  Over  the  period  1999-2001,  committed  funds  amounted  to  334  mio  €;  over  the
following  three  years  cycle  the  National  Indicative  Programmes  for  2002-2004  foresee  an
amount of 438 mio €, which represents a 31% increase. In addition, South East Asia benefits
from  the  substantial  regional  envelopes,  both  Asia-wide  programmes  and  specific  EC-
ASEAN co-operation assistance (70 mio € since 1998).

South East Asia
Indicative amounts in millions by main sectors of co-
operation based on 2002-2004 adopted NIPs

Education 92,5

Health 70,0

Trade and 
Investment 79,0

Rural 
Development 
164,7

Good 
Governance and 
Democratisation 
32,0

Broadening co-operation:

(cid:1)  EU  and  South  East  Asia  experience  increased  interdependence  in  addressing  global

challenges

(cid:1)  As  the  economy  can  best  flourish  in  countries  that  respect  human  rights  and  the  rule  of
law,  practice  good  governance  and  rule  democratically,  both  sides  take  an  holistic
approach to the co-operation agenda

10

Forest Law Enforcement, Governance and Trade: Proposal for an EU Action Plan, COM (2003) 251 final;
emphasises  governance  reforms  and  capacity  building,  supported  by  actions  aimed  at  developing  multi-
lateral  co-operation  and  comprehensive  demand-side  measures  designed  to  reduce  the  consumption  of
illegally harvested timber in the EU (and ultimately major consumer markets elsewhere in the world).

10

                                                
c)

Common features and values of the two regions

In  addition to  sharing mutual  economic,  political  and  security  interests,  the  countries  of  the
EU and of South East Asia also share common features and values, which will facilitate the
development of enhanced relations between each other.

For  both  regions,  diversity  is  an  intrinsic  reality  and  one  of  the  political  and  cultural
cornerstones of the relations between their countries. Countries from both regions cherish the
respect for their cultural, religious and linguistic identity. They call for international relations
that preserve this diversity.

Both  regions  have  a  preference  for  a  peaceful  and  rule-based  multi-polar  world,  organised
under the aegis of strong and respected multilateral organisations. Neither the EU nor South
East Asia poses a threat to the world. Both have an interest in promoting the sort of balanced
international relations that will best guarantee their security and independence.

The clearest manifestation of the common interests and values shared by EU Member States
and  countries  of  South  East  Asia  is  their  commitment  to  regional  integration.  Countries  of
both regions have realised that creating a regional entity is the best way to sustain economic
development, to reinforce their security – both between themselves and with their neighbours
– and to have a strong voice in world affairs.

On  such  foundations,  the  EU  and  its  Member  States  on  one  side,  and  ASEAN  and  the
countries of South East Asia on the other, can develop a strong partnership, both improving
their  region-to-region  relationship  and  reinforcing  the  network  of  their  bilateral  ties.  In  this
context,  the  Commission  proposes  the  six  strategic  priorities  and  related  action  points
presented below.

Shared features and values, both regions:

(cid:1)  Cherish diversity

(cid:1)  Prefer a rule-based multi-polar world with strong multilateral organisations

(cid:1)  Are conducting a process of regional integration

3.

STRATEGIC PRIORITIES AND RELATED ACTION POINTS

The  EU  and  South  East  Asia  share  enough  interests  and  values  to  work  together  for  a  new
partnership  aiming  at  reinvigorating  and  guiding  their  relationship.  In  tune  with  the  core
objectives of the Asia wide strategy11, this new partnership should include the six following
elements:

(cid:1)  Supporting regional stability and the fight against terrorism
(cid:1)  Promoting Human Rights, democratic principles and good governance
(cid:1)  Mainstreaming Justice and Home Affairs issues
(cid:1)  Injecting a new dynamism into regional trade and investment relations
(cid:1)  Continuing to support the development of less prosperous countries
(cid:1)  Intensifying dialogue and co-operation in specific policy areas

11

Defined in footnote on pages 5 and 6.

11

                                                
a)

Supporting regional stability and the fight against terrorism

ASEAN  was  founded  as,  and  is  in  essence  still,  a  reasonably  successful  crisis  prevention
mechanism which granted peace to its members for nearly forty years. As regards terrorism,
recent  events  in  South  East  Asia  have  shown  that  some  of  the  locally  inspired  terrorism
groups  have  established  links  with  international  terrorism.  It  poses  a  threat  not  only  to  the
stability and territorial integrity of some countries of the region but also to the world at large.
Sadly, recent events have also shown that relations between individual members of ASEAN
were  not  immune  from  sudden  and  violent  deterioration.  Despite  the  recent  and  welcomed
adoption of a Code of Conduct between interested parties12, territorial disputes in  the  South
China Sea remain of concern. Of even more concern is the potential impact of events in Iraq
and the Middle East on the moderate Islamic countries of South East Asia.

In  the  face  of  these  various  concerns  for  the  stability  of  South  East  Asia,  the  EU  must
continue to support the stability and territorial integrity of all countries in the region. Through
dialogue and other appropriate action with the region and its countries, it should contribute to
all  efforts  towards  conflict  prevention,  peace  and  stability.  It  should  also  co-operate  with
interested partners in the fight against terrorism.

Elements for political dialogue and other action:

(cid:1)  Support stability in the region

(cid:1)  Support territorial integrity of all countries in the region

(cid:1)  Contribute to conflict prevention and peace making in the region

a.1.) Conducting political dialogue in multilateral fora

Notwithstanding  the  possible  development  of  bilateral  dialogues,  the  political  dialogue
between the EU and South East Asia takes place mainly in multilateral fora.

A  strong  ASEAN  is  probably  the  best  guarantee  for  peace  and  stability  in  the  region.  It
mutually reinforces member countries in their relations with powerful neighbours. It strives to
create an economic space that is attractive to foreign investors and traders and that stimulates
wealth creation.  It should develop solidarity between poorer  and  richer  members.  However,
impatience  is  sometimes  felt  in  Europe  about  the  pace  and  depth  of  regional  integration  in
ASEAN,  ignoring  the  fact  that  ASEAN  are  not  engaged  –  at  least  for  the  moment  –  in  a
process  of  integration  comparable  to  the  European  one.  For  the  time  being,  unrealistic
expectations  must  therefore  not  be  put  on  ASEAN  or  its  secretariat  to  act  as  a  partner  in
policy  dialogue  or  in  co-operation.  Only  ASEAN  countries  will  determine  the  content  and
rhythm  of  the  original  process  that  they  are  keen  to  develop  between  themselves.  The  EU
must stand ready to fully support and ASEAN’s integration efforts with an open mind and in
the fields where assistance is requested. In particular the EU can share its half-century’s worth
of  experience  in  regional  integration  and  provide  technical  assistance  that  is  needed  to
reinforce  ASEAN  institutions.  In  addition,  choosing  ASEAN  as  a  framework  to  conduct
policy  dialogue  and  for  targeted  co-operative  activities  will  substantively  stimulate
regionalism through activities developed and managed in common. Political dialogue should,

12

Declaration on the Conduct of Parties in the South China Sea, concluded at 8th ASEAN Summit in Phnom
Penh, November 2002, (ASEAN + China meeting).

12

                                                
to the extent possible, concentrate on region to region subjects of interest and concern, leaving
global issues to ASEM.

All EU countries and the Commission take part in ASEM alongside China, Japan, Korea and
all but three ASEAN countries13. This Asia-Europe summit meeting was very much initiated
by South East Asians, highlighting their desire to balance their relation with the United States
and to engage East Asia in a proper multilateral dialogue. ASEM has also developed into an
open forum for global issues where political dialogue is not a priori constrained by the strict
application of the principle of non-interference in internal affairs14.

The  EU  and  ASEM  partners,  in  particular  those  of  South  East  Asia,  will  have  to  meet  the
challenge of their respective enlargement in time for the 2004 Hanoi Summit. In this regard it
is encouraging to note that the members of ASEAN have recently and publicly expressed their
support to the resuming of the national reconciliation process in Burma/Mynamar. Both sides
will strive to avoid letting the question of the participation of Burma/Myanmar endanger the
ASEM process itself.

The  ASEAN  Regional  Forum  (ARF)15  should  evolve  from  confidence  building  towards
preventive  diplomacy  and  ultimately  conflict  resolution.  The  EU  like  most  non-ASEAN
members of ARF would prefer a quicker pace for this planned evolution. The EU should play
a  more 
Intersessional
co-chairing 
the  ARF 
Group meetings and by reviezing its presence at the military tables of the ARF.

inter  alia  by 

active 

role 

in 

Political dialogue in ASEM, ASEAN, ARF:

(cid:1)  ASEM is the most appropriate framework to deal with global issues, while region specific

issues should be dealt with in the ASEAN context.

(cid:1)  The  EU  to  actively  support  the  integration  process  of  ASEAN  and  develop  the  specific

region to region dialogue and co-operation process.

(cid:1)  Both  sides  will  have  to  meet  the  challenge  of  a  successful  enlargement  of  ASEM  at  the

next 2004 Summit in Hanoi.

(cid:1)  The  EU  needs  to  play  a  more  active  role  in  ARF,  including  by  co-chairing  the

Intersessional Group meetings

a.2.) Co-operating in the fight against terrorism

The  EU  is  deeply  engaged  in  the  fight  against  terrorism  and  in  supporting  countries  of  the
region  that  require  its  assistance  for  the  implementation  of  the  UNSC  resolution  1373  and
relevant  UN  conventions.  However,  in  the  opinion  of  the  EU,  effective  action  against
terrorism needs not only to include security and public order measures but also to be linked to
broader issues of political, social, economic and financial governance. Only then can it tackle
the complex root causes of terrorism. This is why fighting terrorism must be included in the

13

14

15

Cambodia, Laos, Burma/Myanmar.
The  Asia-Europe  Co-operation  Framework  (AECF)  2000,  art.  12;  “in  the  political  field......not  excluding
any issue beforehand.....”.
ASEAN  Regional  Forum  is  an  informal  multilateral  dialogue  which  brings  together  Asian  countries  and
other world powers to discuss security issues in the Asia-Pacific region.

13

                                                
development  strategy  of  all  countries  concerned  and  should  lead  whenever  necessary  to
longer  term  actions.  Finally,  the  EU  needs  to  encourage  its  partners  to  distinguish  clearly
between international terrorism and peaceful political opposition.

Box 2: The threat of terrorism and related EC assistance

Terrorist attacks in Bali and the Philippines in autumn 2002 threw into sharp relief the threat
to the South East Asia region from terrorist attacks. Threat assessments undertaken in the EU
identify  significant  activity  on  the  part  of  terrorist  groups  throughout  the  region.  Enhanced
regional  co-operation,  for  example  with  respect  to  intelligence  sharing  and  judicial  co-
operation, is  a  vital  element  of  any  strategy  to  successfully  counter  this  threat,  in  particular
given the difficulties in effectively monitoring the extensive land and sea borders within the
ASEAN  region.  The  EU  is  committed  to  co-operating  with  the  region  and  sharing  its
experience  in  the  fight  against  terrorism.  The  14th  EU-ASEAN  Meeting  between  Foreign
Ministers of  the  EU  and  ASEAN  (27-28  January  2003)  adopted  a  Joint  Declaration  on  Co-
operation to Combat Terrorism. The ASEM 4 Summit (Copenhagen, 22-24 September 2002)
adopted  a  declaration  and  action  plan  on  the  fight  against  terrorism.  The  EU  is  also
participating  actively  in  the  work  of  the  ASEAN  Regional  Forum  (ARF)  on  counter-
terrorism. In addition, the EU is bringing assistance to countries of the region that request it in
support of the discharging of their obligations under UNSC resolution 1373 and relevant UN
conventions.  Regarding  substantive  measures,  the  European  Commission  is  providing
assistance under the EC Rapid Reaction Mechanism to the Philippines, in the fields of border
management and money laundering, and to Indonesia, in the field of judicial capacity building
and  fight  against  the  financing  of  terrorism.  Further  assistance  may  be  provided  to  support
initiative such as the Counter Terrorism Centre in Malaysia.

The fight against terrorism:

(cid:1)  The EU is committed to supporting regional co-operation to fight terrorism and to share its

experience in the fight against terrorism

(cid:1)  The EU is prepared to consider support to any willing country in the region in the context

of the implementation of UNSC 1373 and relevant UN conventions.

(cid:1)  The  EU  encourages  its  partners  in  South  East  Asia  to  combat  terrorism  with  a
comprehensive strategy, taking care to respect basic human rights principles and peaceful
political opposition.

b)

Promoting human rights, democratic principles and good governance

The promotion of democracy, the rule of law, and respect for human rights and fundamental
freedoms  constitute  core  objectives  in  external  relations  of  the  European  Union  and  its
development co-operation with third countries.16

In order to pursue these objectives, we need to build constructive and positive partnerships in
this  field  with  ASEAN  and  the  governments  of  the  countries  of  South  East  Asia,  based  on
dialogue, encouragement and effective support.

16

COM (2001) 252 final, COM (2001) 469 final.

14

                                                
b1.) Human Rights and Democratic Principles

Three  countries  in  South  East  Asia  have  signed  co-operation  agreements,  which  include  an
“essential element” clause.17 This clause stipulates that respect for fundamental human rights
and  democratic  principles,  as  laid  down  in  the  Universal  Declaration  on  Human  Rights,
underpins  the  internal  and  external  policies  of  the  parties  and  constitutes  an  “essential
element”  of  the  agreement.18  This  “essential  element”  clause  must  be  included  in  all  future
bilateral  agreements  with  countries  of  South  East  Asia.  But  even  where  an  agreement
including  such  clause  is  not  in  force,  the  EU’s  political  and  development  dialogue  with  its
South East Asian partners will mirror the Treaty provisions on human rights and democracy.19

In order to examine human rights issues in greater depth, the EU and a particular South East
Asian country20 may also decide to initiate a bilateral dialogue specifically on human rights.
This  dialogue  should  be  constructed  in  such  a  way  as  to  enable  the  partners  to  establish
confidence  and  explore  possibilities  for  co-operation,  as  well  as  to  join  forces  on  issues  of
common concern in international fora, including the United Nations. Partners in the bilateral
dialogue should jointly establish goals and benchmarks taking into account the particularity of
the  situation  in  the  partner  country.  Issues  of  particular  interest  are,  for  instance,  the
ratification  and  implementation  of  fundamental  human  rights  instruments  and  their
implementation, as well as the abolition of the death penalty.

Linked to this bilateral dialogue, EC's assistance and co-operation programmes should support
the  functioning  of  democratic  structures  (including  through  giving  support  to  electoral
processes),  building  the  capacity  of  institutions,  improving  the  rule  of  law  and  governance,
strengthening civil society, facilitating the accession to the Rome Statute of the International
Criminal Court, and addressing the issues of trafficking in human beings, sexual exploitation
of children and women, and indigenous peoples’ rights21.

Human Rights and Democratic principles:

(cid:1)  New  bilateral  agreements  with  countries  of  the  region  should  all  contain  the  ‘essential

element’ clause, providing both parties with an agreed set of references for dialogue

(cid:1)  The EU and particular countries in the region may decide to launch Human Rights-specific

bilateral dialogues

(cid:1)  Specific co-operation activities should support these dialogue processes

Vietnam, Laos, Cambodia.

17
18 Article  1  of  the  Co-operation  Agreement  between  the  European  Community  and  the  Kingdom  of
Cambodia,  OJ  L  269,  19.10.1999,  p.18;  Article  1  of  the  Co-operation  Agreement  between  the  European
Community and the Socialist Republic of Vietnam, OJ L 136, 7.6.1996, p.29; Article 1 of the Co-operation
Agreement  between  the  European  Community  and  the  Lao  People’s  Democratic  Republic,  OJ  L334,
5.12.1997,  p.  15; by  contrast,  the  Co-operation  Agreement  between  the  European  Economic  Community
and Indonesia, Malaysia, the Philippines, Singapore and Thailand - member countries of the Association of
South-East Asian Nations, OJ L 144 , 10.6.1980, p. 2, does not contain an “essential elements” clause.
Articles 6 and 11 TEU, Articles 177 and 181a TEC.
European Union guidelines on Human Rights dialogues, Council Conclusions of 13 December 2001.
Commission Working Document on Support for indigenous peoples in the development co-operation of the
Community and the Member States, SEC (1998) 773 final.

19

21

20

15

                                                
b.2.) Good governance

Good governance is one of the six core priorities of the EC development policy22, and should
be integrated into all aspects of EC policy dialogue and development co-operation.

Following years of dynamic economic development and impressive growth figures, the Asian
financial crisis has highlighted how crucial proper governance of the economy and the society
is  for  sustained  prosperity.  Investment  and  trade  will  only  increase  if  domestic  and  foreign
operators have confidence in the public decision-making process, the judicial system and the
legal and regulatory framework. The same  can be said for the sustainability of development
co-operation efforts.

EU’s development co-operation efforts should be linked to the reform policy agenda of South
East Asian developing countries that give priority to strengthening institutional and regulatory
frameworks and fighting corruption. This will be done through specific co-operation activities
and by mainstreaming the promotion of good governance in our political and policy regional
and  bilateral  dialogues  as  well  as  in  all  our  co-operation  activities  with  the  region  and  its
countries.

Good Governance:

(cid:1)  Good governance is crucial for a stable and prosperous society

(cid:1)  EU’s development co-operation efforts should be matched by robust policy reform agendas
in the partner  countries, with  sufficient  emphasis  given  to  strengthening  institutional  and
regulatory frameworks and fighting corruption

c)

Mainstreaming Justice and Home Affairs issues

Justice  and  Home  affairs  issues  are  an  essential  part  of  the  EC  Treaty23.  While  striving  to
create in the EU an area of freedom, justice and security, it is also essential to incorporate this
dimension  in  our  external  relations.  As  a  major  player  on  the  international  scene,  the  EU
supports  political  stability,  economic  prosperity  and  the  rule  of  law.  This  encompasses
overcoming such challenges as ensuring law  enforcement, controlling migratory movements
and  fighting  organised  crime  in  close  co-operation  with  partner  countries  and  international
organisations  such  as  the  OECD  and  the  United  Nations.  Issues  of  migration24  and  asylum,
trafficking  in  human  beings,  money  laundering,  piracy  and  counterfeiting  need  to  be
incorporated  systematically  into  our  regional  and  bilateral  dialogues  with  South  East  Asia.
Furthermore, the problems of organised crime and drugs are challenges for both the EU and
South East Asia that need to be tackled vigorously, both at a regional level and through  co-
operation with the competent multilateral agencies. Both regions also have a concrete interest
in co-operating actively in the field of Maritime Security (see further details in Annex III, pp.
45-46, on migration, pp. 38-39).

22

23

24

COM (2000) 212 final, ‘Communication from the Commission to the Council and the European Parliament
on the European Community’s Development Policy’, of 26 April 2000.
Treaty of Amsterdam, in force since May 1999, Title IV.
Commission  Communication  on  Integrating  migration  issues  in  the  EU’s  relations  with  third  countries,
COM (2002) 703 final.

16

                                                
Mainstreaming JHA issues:

(cid:1)  Migration,  combating  organised  crime,  trafficking  in  human  beings,  money  laundering,
illicit drugs, piracy and counterfeiting to be incorporated systematically into regional and
bilateral dialogues with South East Asia.

d)

 Injecting a new dynamism into regional trade and investment relations

As explained above, all medium and long term economic forecasts indicate that both the EU
and ASEAN have a strong interest in reinforcing their economic ties.

A  partnership  to  achieve  a  mutually  satisfactory  and  successful  conclusion  of  the  Doha
Development Round (DDA) of world trade negotiations. As open, export-oriented economies,
ASEAN  and  the  EU  share  a  vital  interest  in  the  development  of  a  rules-based  multilateral
trading system. While their trade with each other is important, trade with third countries will
continue to outweigh their bilateral trade and needs the legal certainty  and  the liberalisation
that will come with the successful conclusion of the DDA. Co-operation with each other on
WTO should therefore be the first priority on the trade agendas of ASEAN and the EU.

The  Commission  is  proposing  a  trade  action  plan,  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. This process of dialogue and co-operation should
aim at informing partners about each other’s regulatory systems and eventually develop into
an exercise of approximation and harmonisation. The selection of policy sectors will be made
through  informal  consultations  and  be  agreed  upon  by  both  sides.  Actual  dialogue  with  the
Commission could start as soon as at least two ASEAN countries indicate that they are ready
for it. Other ASEAN countries will be able to join as observers.

The details of TREATI are described in annex II.

ASEAN is currently engaging many of its key trading partners in FTAs, in order to develop
and expand its economic and political ties. Some ASEAN countries have expressed a desire to
pursue  a  similar  commitment  with  the  EU.  The  EU  has  traditionally  taken  a  different  path
with  regard  to  its  trading  partners  in  establishing  preferential  trading  agreements.  EU
experience has demonstrated that such  agreements  deliver  their  greatest  benefits where they
build upon an existing base of mutual trust and understanding. A so-called deeper FTA may
then  become  the  logical  next  step  to  continue  developing  this  partnership.  Deeper  FTAs,
encompassing  regulatory  co-operation,  addressing  non-tariff  barriers  such  as  standards  and
customs procedures, and dealing  comprehensively with  aspects such  as services, investment
and  competition  as  well  as  goods,  are  capable  of  producing  a  substantial  impact  on  trade
flows.

At  this  stage,  work  remains  to  be  done  to  develop  a  foundation  of  shared  knowledge  and
experience  between  the  EU  and  ASEAN,  to  put  in  place  the  mechanisms  and  processes  to
create greater transparency and convergence between the regions, and to evaluate the potential
benefits, as well as the impact on both EU and ASEAN policies, of any future FTA. Future
relations  within  a  differentiated  framework  should  respond  to  progress  made  by  the  partner
countries notably in economic and administrative reform. By developing a stable, predictable

17

and  transparent  framework  for  our  future  trade  relations,  the  TREATI  will  enable  the
establishment  of  a  closer  economic  relationship  between  two  important  trading  regions.
TREATI  will  thus  permit  serious  consideration  to  be  given  to  entering  into  a  Free  Trade
Agreement  following  the  successful  outcome  of  the  current  round  of  multilateral  trade
negotiations,  where  each  side  will  be  able  to  assess  the  opportunities  of  eventually  going
further  together  with  regard  to  liberalisation  and  regulatory  harmonisation,  based  on  the
“WTO-plus” principle.

An EC-ASEAN Free Trade Agreement should:

(cid:1)  only come after the successful conclusion of the Doha Development Round (DDA)

(cid:1)  be subject to sufficient progress on regulatory convergence and lead to mutual benefits

(cid:1)  be  prepared  in  substance  by  a  region-to-region,  comprehensive  and  flexible  dialogue

mechanism, called the Trans Regional EU-ASEAN Trade Initiative (TREATI)

e)

Continuing to support the development of less prosperous countries

European  funding  for  co-operation  activities  in  South  East  Asia  is  anchored  to  the  six
priorities identified in the joint Commission-Council Statement on EC Development policy25.
Poverty reduction will remain  an important  EU  priority,  and  our  assistance  will  continue  to
focus on the poorest countries for the building of their social infrastructure, particularly in the
fields  of  health  and  education26.  The  Commission  is  committed  to  the  achievement  of  the
Millennium Development Goals27 (MDG), the reduction of poverty by 2015 and in particular
to the targets set in basic health and education. Country Strategies will differ from country to
country but some common priorities can be identified for the region, such as: assisting poor
countries in their integration in the world economy (e.g. Trade Related Technical Assistance);
promoting  good  governance  and  respect  for  Human  Rights;  supporting  progress  on
Environment  and  Forestry  issues,  supporting  private  sector  development  and  where
appropriate the reform of state-owned enterprises28, as well as matters relating to Justice and
Home  Affairs;  contributing  to  the  common  fight  against  terrorism.  Obviously,  a  part  of  EC
assistance will also be devoted to supporting TREATI and ASEAN general and institutional
integration  efforts.  EC  humanitarian  assistance  will  continue  to  be  extended  to  parts  of  the
region affected by crises, in particular to refugees and internally displaced persons.

25

26

27

28

1. Trade and Development, including development of trade and investment policies
2. Regional Integration and Co-operation
3. Support to macroeconomic policies with an explicit link to poverty reduction
4. Transport
5. Food security and sustainable rural development strategies
6. Institutional capacity building, good governance and rule of law.
In the case of Burma/Myanmar the EU Common Position (2003/297/CFSP of 28 April 2003) suspends all
non-humanitarian aid or development programmes with the exception of programmes in support of human
rights and democracy, poverty reduction programmes in the context of decentralised co-operation through
local  authorities  and  NGOs  and  programmes  in  support  of  health  and  basic  education  implemented  by
NGOs.
UN 2000, United Nations Millennium Declaration.
Communication  on  the  Commission’s  approach  to  future  support  for  the  development  of  the  Business
sector  (COM  (2003)  267);  Communication  on  The  Reform  of  State-Owned  Enterprises  in  Developing
Countries with focus on public utilities (COM (2003) 326).

18

                                                
Identification of policy priorities for EC assistance should always be made in consideration of
the policy  and  reform  agenda  of  partner  countries  themselves. The Country  Strategy  Papers
process and the National Indicative Programmes agreed with local authorities are specifically
designed to promote ownership. EC assistance must be closely co-ordinated with that of EU
Member  States,29  with  greater  emphasis  being  given  to  strategic  dialogue,  both  in  the  field
and in the Brussels-based decision-making committees.

EC assistance will follow a number of additional guiding principles:

(cid:1)  Assistance  will  be  concentrated  in  a  limited  number  of  key  areas  in  order  to  maximise

impact and the use of limited funds.

(cid:1)  Sector-wide approaches focusing on a few sectors, in particular health and education will

replace the traditional project approach, whenever local conditions permit.

(cid:1)  EC  assistance  will  also  promote  the  participation  of  non-state  actors  although  it  will
continue to be mainly conducted in partnership with governments and firmly grounded in
policy reform.

(cid:1)  Most  of  EC  development  assistance  shall  be  implemented  through  bilateral  channels,
which allow for  a real policy dialogue and  reform in social sectors. Regional  approaches
will, however, be chosen when economies of scale are evident, where the development of
country-neutral  toolboxes  makes  sense  (support  to  private  sector  development,  matching
local authorities  from  both  regions, promoting university  networks,  etc.)  or  in  support  of
dialogue  conducted  at  regional  level.  Regional  programmes  will  have  to  include  specific
provisions to favour the participation of the less prosperous countries of the region.

Levels of development vary greatly from country to country in South East Asia. Some richer
countries will soon be no longer eligible for EC development assistance whilst others are still
fighting  extreme  poverty.  In  addition  to  continuing  to  extend  bilateral  co-operation  to  these
countries,  EC  assistance  must  remain  available  and  accessible  to  all  countries  in  support  of
ASEAN  regional  integration  efforts.  Special  attention  must  be  paid  to  the  Initiative  for
ASEAN Integration (IAI)30 and to helping  promoting  regional solidarity  between  richer  and
poorer countries  of South  East Asia.  In  this  context,  we  should  introduce  new  forms  of  co-
operation  allowing  the  EC  and  member  states  willing  to  participate  in  joining  efforts  with
more developed countries of South East Asia  to assist poorer ones. This could be  achieved,
for  instance,  through  parallel  financing  of  jointly  defined  modular  programmes.  The
Commission will propose involving the richer ASEAN countries at the strategic programming
stage  of  our  co-operation  and  sign  Memoranda  of  Understanding  with  those  prepared  to
engage in so-called “trilateral co-operation”.

The Commission, with the participation of EU Member States, will also introduce ‘twinning’
arrangements  whereby  EU  member  States  public  Institutions  will  be  able  to  enter  into
partnerships with their counterparts from South East Asian Countries. This system has been
successfully tested and used in Eastern Europe, in preparation for EU enlargement. With the

29

30

‘Guidelines  for  strengthening  operational  co-ordination  between  the  Community  and  Member  States’,
Council Conclusions of January 2001; Art. 1; ‘operational co-ordination between the Community and the
Member States should be strengthened in all developing countries‘,  Art. 3 on co-ordination arrangements
‘.these arrangements should cover all co-operation instruments and areas’.
Initiative  for  ASEAN  Integration  (IAI):  work  programme  to  bridge  the  development  gap  between  six
original ASEAN members and the newcomers: Vietnam, Laos, Cambodia, Burma/Myanmar.

19

                                                
support of the Community budget, each participating EU institution would provide technical
assistance  and  contribute  to  the  strengthening  of  the  sister  institutions  in  South  East  Asia.
‘Twinning’ in South East Asia should concentrate on a limited number of priority areas to be
identified through consultations with Member States and partner countries in the region.

Development co-operation elements and priorities:

(cid:1)  Poverty reduction will remain a priority for EC’s assistance to the region.

(cid:1)  Other priorities will be inter alia assisting poor countries in their Integration in the World
Economy,  Governance  and  Human  Rights,  Environment  and  Forestry,  Justice  and  Home
Affairs issues, Fight against Terrorism and Trade Related Technical Assistance, supporting
the TREATI process and ASEAN’s integration process.

(cid:1)  Implementing  principles  of  assistance  will  be:  ensuring  ownership  by  partner  country,
concentrating assistance in limited number of sectors, developing with EU Member States
strategic  dialogue  on  programming  and  close  co-ordination  in  the  field,  encourage  the
participation  of  non-state  actors,  where  possible  shift  from  projects  and  programmes  to
Sector Wide Approach.

(cid:1)  Promote Trilateral co-operation through the signing of MOUs with interested countries of

the region

(cid:1)  Introduce ‘twinning’ arrangements

f)

Intensifying dialogue and co-operation in specific sectors

Reinvigorating  relations  with  South  East  Asia  also  means  offering  and  developing  dialogue
and co-operation in a number of sectors. This chapter provides a ‘menu’ of such sectors (the
details  of  which  are  presented  in  Annex  III)  from  which  both  sides  could  chose,  through
informal  consultation  at  ASEAN  and  bilateral  level.  For  each  identified  sector,  parties  will
then choose between a regional and a bilateral approach or a combination of both to conduct
the  dialogue.  Each  dialogue  could  develop  at  a  jointly  agreed  pace  and  progressively  lead
from
(cid:1)  A simple exchange of information on legislation and policy, to

(cid:1)  Regulatory co-operation and approximation, to

(cid:1)  Conclusion of protocols within the framework of Co-operation Agreements

(cid:1)  Related technical assistance and co-operation.

This  flexible  approach  is  designed  to  ensure  that  both  sides  enter  into  dialogue  and  co-
operation on subjects of true mutual interest. It also allows for tailoring format and intensity
in  a  dynamic  way  as  dialogue  and  co-operation  progress,  taking  into  account  feasibility,
impact and resources that both sides are able or willing to commit.

In Annex III all sectors are presented with a short description of (1) the ‘present situation’, (2)
the ‘identified issues’ and (3) the suggested ‘line of action’. Only main headings are thereafter
briefly introduced.

20

Economic and trade issues:

For  most  economic  and  trade  or  trade  related  issues,  the  appropriate  regional  dialogue
mechanism  will  be  provided  by  TREATI,  as  presented  under  point  3.d.  and  in  Annex  II.
However, some  policy areas  have  more  to  them  than  a  trade  angle  and  can  be  addressed  in
other  regional  or  bilateral  frameworks.  Trade  related  aspects  can  be  dealt  with  within
TREATI  on  a  regional  basis,  whilst  capacity  building  can  be  envisaged  in  the  context  of
bilateral co-operation. The list of economic and trade subjects suggested for dialogue and co-
operation can be found in Annex III, pp. 33-38.

Justice and Home Affairs issues:

Migration, trafficking in human beings, money laundering, piracy and counterfeiting, need to
be incorporated systematically into our regional and bilateral dialogues with South East Asia.
Furthermore,  the  fight  against  organised  crime  and  illicit  drugs  can  be  identified  as  a
challenge for both the EU and South East Asia that need to be tackled vigorously at regional
level and in co-operation with the competent multilateral agencies. Both regions also have a
concrete interest in co-operating actively in the field of Maritime Security. The list of Justice
and Home Affairs issues suggested for dialogue and co-operation can be found in Annex III,
pp. 38-42.

Environment:

Environmental dialogue and co-operation with South East Asia will  remain a priority in the
years ahead. The Commission will continue to support bilateral and regional natural resource
conservation and natural resource management projects and programmes. Amongst a number
of pressing environmental issues, such as water and air pollution, waste management and bio-
diversity,  forestry  stands  out  as  a  major  dialogue  and  co-operation  priority  under  the  new
FLEGT policy31. Environmental issues which relate to products also occasionally raise trade
concerns,  which  can  be  dealt  with  under  TREATI.  Further  projects  and  programmes  in  the
areas  of  bio-diversity  conservation,  water  resources  management,  and  forestry  are  under
preparation. The list of environmental issues suggested for dialogue and co-operation can be
found in Annex III, pp. 42-43.

Science & Technology, Research & Development:

In both regions, science and technology  is  an essential element in the pursuit of sustainable
economic and social development, as well as the basis for competitiveness. The EU will strive
to  develop  bi-regional  S&T  dialogue  and  co-operation  and  to  support  access  of  South  East
Asian  institutions  to  EU  Research  programmes.  The  details  of  the  S&T  suggested  co-
operation and dialogue can be found in Annex III, pp. 43-44.

Higher education and Culture:

In  addition  to  putting  basic  education  at  the  centre  of  its  poverty  reduction  strategy,  the
Commission is also dedicated to higher education as a key sector for scientific development
and for improving understanding and awareness of Europe in South East Asia. Therefore, it

31

EU Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT); ‘The Action Plan must be
placed  in  the  context  of  the  overall  efforts  of  the  European  Community  to  achieve  sustainable  forest
management, both within and outside the EU’, p. 5.

21

                                                
will continue to support relevant programmes and develop strategic dialogue at national and
regional  level.  Co-operation  in  the  field  of  culture  is  equally  essential  in  enhancing  mutual
understanding between  the  civil  societies in South East  Asia and  Europe. The  details of the
suggested dialogue and co-operation in the fields of higher education and culture can be found
in Annex III, p. 44.

Energy:

The strategic importance of energy and ASEAN’s key position in the supply and/or transport
of  energy  resources  warrant  a  strategic  dialogue  at  regional  level,  as  well  as  further  co-
operation in the fields of co-generation and renewable energies. The details of the suggested
dialogue and co-operation in the field of energy can be found in Annex III, pp. 44-45.

Transport:

In relation to transport, the EU has an obvious interest in both maritime and air connections
with  South  East  Asia.  The  problem  of  maritime  security  in  South  East  Asia  has  a  direct
relevance  for  the  economic  prosperity  of  the  region  as  well  as  for  its  trading  partners,
including  the  EU.  Therefore,  the  launching  of  a  region-to-region  dialogue  on  strategies  to
improve  maritime  safety  would  make  a  lot  of  sense.  In  the  field  of  air  transport,  the  EU  is
embarking  on  the  development  of  a  common  international  air  transport  policy  and  will  be
seeking to intensify relations with this region in order to expand opportunities for airlines and
their  passengers.  In  addition,  co-operation  should  also  be  continued  on  aviation  safety  and
airworthiness.  The  list  of  transport  issues  suggested  for  dialogue  and  co-operation  can  be
found in Annex III, pp. 45-47.

Information Society:

Information  technology  and  electronic  communication  networks  and  services  underpin
economic and social development as well as development of the Information Society. South
East Asian countries and ASEAN are  putting  considerable  focus  on  the  development  of  the
Information Society and are keen to stimulate concrete co-operation in this area, which they
see as one of great potential for increased trade, closer social cohesion and cultural ties, and
economic growth. Closer  co-ordination  and  co-operation between EU  and South East Asian
policies is in the interest of both regions’ economic development. The details of the suggested
dialogue and co-operation in the field of Information Society can be found in Annex III, p. 47.

Statistics:

To serve these specific objectives, reliable, harmonised and accurate statistical information is
needed for the implementation and evaluation of the main policies, especially in the field of
the economic and trade issues (external trade, foreign direct investment) (see Annex III,p. 48).

If necessary, strategies and actions to strengthen the statistical systems could be drawn up and
carried out, at a regional level (ASEAN) as well as at a national level.

4.

PROVIDING ADEQUATE INSTITUTIONAL FRAMEWORK AND RESOURCES

In  order  to  conduct  political  and  policy  dialogue  and  to  develop  co-operation,  the  EU  and
South East Asia need a proper institutional framework, of which they should make optimum
use. Likewise they should make best use of available resources.

22

a)

Regional versus bilateral institutional framework

Alongside  the  bilateral  relations  that  EU  Member  States  have  with  countries  of  South  East
Asia, the overall architecture of EU – South East Asia relations can be described as follows:

(cid:1)  An old EC-ASEAN regional agreement with no realistic prospect of re-negotiation but still
providing a rather useful – though incomplete – institutional framework for co-operation32.
Political dialogue is handled through biannual meetings of EU-ASEAN Foreign Ministers
while  economic  dialogue  is  maintained  in  regular  EC-ASEAN  Economic  Ministers
meetings. Work under  the EC-ASEAN  agreement  is dealt with through a senior  officials
joint  co-operation  committee  (JCC)  supported  by  a  wide  range  of  sub  committees  at  a
technical level, on issues ranging from trade to narcotics.

(cid:1)  Three bilateral “third generation” agreements concluded with Vietnam in 1996, Cambodia
and Laos in 1999, when the three countries were still outside ASEAN. These agreements
are  broader  in  scope  and  contain  more  detailed  provisions  than  the  regional  EC-ASEAN
agreement. Notably, they feature the so-called “essential clause” about the commitment of
parties  towards  human  rights  and  democratic  principles.  Other  provisions  concern
intellectual  property  rights,  environment,  information  and  drug  abuse  control,  which  are
not at all covered in the EC-ASEAN agreement.

(cid:1)  In the absence of a specific legal basis, bilateral relations with other countries in the region
are  conducted  in  a  pragmatic  way,  for  example  through  ad  hoc  arrangements  for  Senior
Officials and other meetings. However, these ad hoc meetings do not necessarily cover all
issues of interest to the two parties.

(cid:1)  The EU participation as a dialogue partner– in the troika format- in the ASEAN Regional
Forum  (ARF),  which  brings  together  Asian  countries  and  other  world  powers  to  discuss
security issues in the Asia-Pacific region.

(cid:1)  The participation of seven of the ASEAN countries on the Asian side of ASEM alongside

China, Japan and Korea.

However desirable, the modernisation of the existing EC-ASEAN agreement remains, for the
time being, out of reach33. Co-operation at regional level can –to the extent possible- continue
to be based on the structure and provisions of the current agreement, in combination, where
appropriate with declarations adopted by the EU – ASEAN Ministerial meetings.

Reinvigorating  the  relationship  with  South  East  Asia  also  involves  reinforcing  bilateral
relations  with  countries  of  the  region.  Indeed,  in  the  case  of  several  South  East  Asian
countries,  co-operation  at  bilateral  level  remains  hampered  by  the  absence  of  a  set  of
commonly  defined  anchors  for  policy  dialogue  and  co-operation.  New  bilateral  agreements
would provide the needed reference frameworks, strengthen the link between policy dialogue
and co-operation and raise the prospects of timely and effective delivery of development co-

32

33

The agreement entered into force in 1980 and is rather limited in scope. It provides Most Favoured Nation
treatment  for  trade  between  the  two  regions,  a  commitment  to  joint  actions  for  improving  commercial,
investment and scientific relations and some provisions on development co-operation.
The  EU  Common  Position  on  Burma/Myanmar  prevents  ‘de  facto’  the  conclusion  of  new  contractual
relations with the country, or for that matter with ASEAN of which Burma/Myanmar became a member in
1997.

23

                                                
operation activities in each of the countries concerned. Such a strengthening of bilateral ties in
the  region  would  also  respond  to  the  demand  of  several  countries  in  the  region.  The
Commission therefore proposes to launch consultations with those countries in the region that
have expressed interest.

Regional versus bilateral institutional framework:

(cid:1)  Renegotiations of 1980 EC-ASEAN regional agreement politically not feasible but current
agreement  can  still  provide  a  framework  for  dialogue  and  co-operation  in  some  sectors,
especially the trade related ones

(cid:1)  3rd  generation  agreements  with  interested  South  East  Asian  countries  will  complete  the

network of bilateral co-operation agreements in the region

b)

Optimum use of institutional framework and available resources

The  question  remains  how  to  make  optimum  use  of  the  institutional  framework  and  scarce
resources. The best response is to assess, flexibly and pragmatically, how and on what level
(bilateral/regional) to proceed in each sector of common interest, using the following criteria:

(cid:1)  Political and institutional feasibility

(cid:1)  Achievement of maximum impact

(cid:1)  Demand from the region or the country

(cid:1)  Best possible use of available resources

At  the  ministerial  level,  the  regular  EU-ASEAN  Foreign  Ministers  meeting  provides  the
strategic  guidance  for  monitoring  progress  in  political  dialogue.  ASEM  Summits  and
Ministerial and ARF Ministerial meetings are excellent venues to discuss global and security
issues. ASEAN-EC Economic Ministers  consultations  could  continue to  discuss  multilateral
and  regional  trade  and  economic  issues  as  well  as  oversee  progress  and  provide  overall
guidance for TREATI.

To the extent possible, the EU and South East Asian partners should seek to avoid duplication
of agenda items in the various fora. Both sides should agree on introducing a certain degree of
specialisation for each forum on broad categories of subjects. Avoiding unnecessary repetition
would strengthen the interest for each meeting and contribute to ensuring the highest possible
level of attendance at these meetings.

At  the  level  of  officials,  the  EC-ASEAN  Joint  Co-operation  Committee  should  mainly
concentrate on:

(cid:1)  Selecting  the  topics  for  regional  dialogue,  adapting  the  Working  Group  structure

accordingly and monitoring progress

(cid:1)  Providing  overall  guidance  for  EC-ASEAN  co-operation,  in  particular  in  the  field  of

support to ASEAN integration.

(cid:1)  The overall implementation of the EC-ASEAN agreement

24

While  the  three  official  bilateral  Joint  Commissions  and  related  Working  Groups  will
continue to steer the implementation of existing bilateral agreements, informal bilateral Senior
Officials Meetings, with their related Working Groups, will be  refocused on  the  negotiation
and  implementation  of  the  new  bilateral  agreements,  with  SOM’s  transformed  into  Joint
Commissions, once the agreements are concluded.

With  the  opening  of  four  new  Delegations  (Cambodia,  Laos,  Malaysia,  Singapore),  the
Commission  will  be  represented  in  all  ASEAN  countries  save  for  Burma/Myanmar  and
Brunei. This  greater presence in  the  region, together  with the  so-called  “deconcentration”34,
provides  substantial  new  resources,  which  can  greatly  facilitate  both  regional  and  bilateral
upgrading of relations.

Initiatives such as TREATI and other regional/bilateral dialogues and co-operation on sectoral
issues  will  demand  an  increased  commitment,  as  well  as  additional  human  and  financial
resources.  There  is  a  need  to  expand  the  involvement  of  personnel  from  various  services
throughout the Commission, including the delegations, to support these new objectives. The
specialised nature of many topics will require visits by officials throughout the region in the
future,  to  proactively  improve  the  communication  and  exchange  of  information  with  local
officials, especially on EU policy issues.

The  Commission  has  introduced  a  proposal  for  a  new  regulation,  providing  a  revised  legal
basis  for  EC  co-operation  with  Asia35.  This  new  framework  aims  to  reinforce  dialogue
between the Commission and EU Member States on strategic programming of co-operation as
well as to allow for speedier delivery of projects and programmes.  It will also provide legal
continuity  to  the  present  system  of  Strategy  Papers  and  Indicative  Programmes,  which
mobilise  all  financial  instruments  available  to  support  each  individual  country  and  region.
While  the  Commission  completed  in  2002  the  CSP/NIP  for  all  eligible  individual  SEA
countries, the programming of co-operation with ASEAN will be issued by the end of 2003.
In general, with financial resources for the region likely to remain stable for the foreseeable
future,  the  strategy  papers  and  indicative  programmes  guarantee  enhanced  quality  and
efficiency  of  EC  assistance  to  the  region.  Annex  IV  outlines  the  present  framework  for  co-
operation with SEA.

Finally, the Commission and the European Investment Bank (EIB) will be looking for greater
synergies  of  their  operations  in  the  region  (see  Annex  V).  For  those  South  East  Asian
countries  that  have  not  yet  got  framework  agreements  (FA)  with  the  EIB,  the  Commission
will support their establishment in order to extend EIB direct loan operations in the region. It
will  also  encourage  the  creation  of  lines  of  credit  for  projects  too  small  for  direct  EIB
financing.  The  EIB  and  the  Commission  will  co-ordinate  their  strategies,  in  particular,  in
terms on priority sectors. The EIB is considering posting a regional representative in Bangkok
to supervise its operations in South East Asia.

34

35

Delegations that implement EC development assistance have receive from Head Quarters more autonomous
powers in the identification and implementation of  programs  as  well  as  in  their  contractual  and  financial
management. The concerned delegations have been adequately reinforced in staff.
COM (2002) 340, of 2 July 2003; Commission proposal for a new Asia/Latin America Regulation.

25

                                                
Making the best use of the institutional framework:

(cid:1)  EU-ASEAN ministerial for regional political dialogue

(cid:1)  ASEM Summit and Ministerial and ARF Ministerial for global and security issues

(cid:1)  ASEAN-EC Economic Ministers consultations  could  continue  to  discuss  multilateral  and
regional  trade  and  economic  issues  as  well  as  oversee  progress  and  provide  overall
guidance for TREATI.

(cid:1)  Official bilateral institutional framework for implementation of agreements

Making the best use of available resources:

(cid:1)  taking  advantage  on  the  newly  completed  network  of  Commission  delegations  in  South

East Asia.

(cid:1)  With financial resources likely to remain stable, improving the quality and timely delivery
of EC external assistance to the region through better multi-annual strategic programming
and decision making devolved to the field

(cid:1)  Looking  for  greater  synergies  between  EIB  and  Commission  operations  in  the  region

through co-ordination of strategies and possibly of financial instruments.

5.

LAUNCHING A NEW VISIBILITY STRATEGY FOR AN ENHANCED PARTNERSHIP

The  September  2001  communication  on  “Europe  and  Asia,  a  Strategic  Framework  for
Enhanced  Partnerships”  notes  that  much  remains  to  be  done  to  raise  mutual  awareness
between Asia and Europe, not only between Government, academic and business circles but
also of ordinary citizens.

Efforts  have  been  made  and  should  be  intensified  in  the  fields  of  academic,  scientific  and
cultural exchanges. Contacts between with Civil Society and Youth organisations should also
be actively supported and developed.

Furthermore  ordinary  citizens  of  Europe  and  South  East  Asia  must  be  encouraged  to  learn
more  about  each  other  than  the  traditional  clichés.  The  European  Commission  and  the
Member States should campaign in a co-ordinated manner to explain the nature of the EU and
its role in the world, and to promote the new partnership with South East Asia. The European
Commission  will  launch  a  structured  communication  initiative,  open  to  Member  States
participation and including the following elements:

(cid:1)  A limited number of key messages presented in a co-ordinated way should help improving
South East Asians’ perception of the EU and promoting EU – South East Asia relations.

In Asia, the target population would include opinion makers, media, universities, business and
government circles. In Europe, young citizens, business circles and opinion makers would be
targeted.

The  strengthened  network  of  EC  delegations  in  the  region  should  participate  fully  in  this
communication initiative in close collaboration with Member States missions.

26

Region specific information guidelines and tool-kits should be developed for EC Delegations
and travelling officials from Head Quarters.

This  strategy  should  also  be  supported  by  a  variety  of  information  products  and  events,
including, for instance, EU film festivals, EU University fairs, and electronic as well as paper
brochures on specific issues central to the EU – South East Asia relationship.

An EU visibility strategy in South East Asia:

(cid:1)  Reaching  out,  not  only  governments,  academic  and  business  circles  but  also  ordinary

citizens through media and opinion makers

(cid:1)  Based on a limited number of key messages

(cid:1)  Making  use  of  professional  expertise  and  of  all  available  human  resources  from

Headquarters and in Delegations

(cid:1)  Opening activities and events to Member States

6.

CONCLUSION

This communication proposes that the EU’s relationships with ASEAN and the countries of
South East Asia should be re-invigorated, on the basis of shared values and common political
and  economic  interests,  in  the  manner  described  above.  It  is  worthwhile  in  conclusion  to
highlight some of the strengths of the proposed strategy, and to draw attention to some of the
factors that will contribute to its success.

Most  significantly,  the  paper  suggests  creating  the  framework  for  bilateral  agreements  that
will enable the adoption of a more modern agenda – going beyond development co-operation
into  political  and  economic  areas.  This  accords  with  the  European  Union’s  holistic  view  of
co-operation with third countries: that is to say, matters of trade and investment are inherently
linked  to  issues  of  good  governance,  democracy,  respect  for  human  rights,  reduction  of
poverty and the rule of law. Given the diversity of the countries of the region, the flexibility of
the  new  mechanism  is  a  great  strength,  enabling  it  to  facilitate  progress,  rather  than  being
restrictive.  An  example  is  the  pragmatic  approach  to  determining  on  what  level  to  proceed
with each sectoral issue with each country, rather than dogmatically asserting an exclusively
this
regional  or  bilateral  framework.  Thirdly, 
communication are  mutually  reinforcing,  such  that  the  impact  of  the  whole  should  be  more
than the sum of the strategies parts.

the  strategic  priorities  outlined 

in 

Two  vital  factors  will  help  determine  the  overall  success  of  this  strategy,  in  addition  to  the
efforts of the Commission. Member States are invited to contribute proactively to EU efforts
in South East Asia, especially those who have  maintained or developed  close  relations with
the region. They should all expect to reap the rewards of the resulting improvement of links
with  an  economically  dynamic  region.  Likewise,  much  depends  on  the  willingness  of  our
South East Asian partners to make the best use of the instruments that the EU would hereby
establish.  It  is  not  doubted  that  the  mutual  interest  of  both  regions  lies  in  the  countries  of
South  East  Asia  taking  a  high  level  of  interest  in,  and  ownership  of,  co-operation
programmes, and committing themselves to enhancing their relationship with the EU through
dialogue on both bilateral and region-to-region levels.

27

Annexes:

I

II

Trade figures between EU and South East Asia

TREATI

III Menu for a strengthened dialogue with South East Asia

IV

Present Framework for Co-operation with South East Asia

V

EIB

28

ASEAN

ANNEX I

Population: 

Area: (1000qkm)    

Gross Domestic Product 

2002

2002

2002

539  Mio

4.480

         External DEBT 2000 (Mio euro) :

538.148

656 Bn euro

GDP Per Capita 

2002
ASEAN MERCHANDISE TRADE WITH THE WORLD

1.217 euro

EU MERCHANDISE TRADE WITH  ASEAN

(bio ecu/euro)
450,0

Imports

Exports

Balance

400,0

350,0

300,0

250,0

200,0

150,0

100,0

50,0

0,0

-50,0 

45

50

5

1980

.
122

110

-11 

1990

421

364

57

(bio ecu/euro)
70,0

Imports

Exports

Balance

60,0

50,0

40,0

30,0

20,0

10,0

0,0

-10,0 

-20,0 

-30,0 

7

7

-1

19

18

-1

2001

1980

1990

61

39

-22

2002

EU MERCHANDISE TRADE WITH  ASEAN BY PRODUCT (2002)

Imports

Exports

Balance

(bio euro)

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0

-5,0 

-10,0 

-15,0 

29,1

18,3

6,1

2,0

0,8

0,3

-0,5 

2,8

3,2

0,4

5,4

2,9

2,5

6,1

0,7

-4,2 

-10,8 

-5,4 

Agricultural products

Energy

Machinery

Transport. Material

Chemical products

Textiles and clothings

EU TRADE IN SERVICES WITH ASEAN  

ASEAN SHARE OF EU TRADE IN SERVICES

(Bio euro)

IMPORTS

EXPORTS

BALANCE

9,0

7,9

10,2

8,8

10,8

9,1

3,3%

Imports+Exports

41,0%

39,2%

-1,1 

-1,4 

-1,7 

1999

2000

2001

4,7%

11,7%

ASEAN

USA

Switzerland

Japan

Other

EU FOREIGN DIRECT INVESTMENT WITH  ASEAN 

Inflows

Outflows

Balance

(Bio euro)

Inward Stocks

Outward Stocks

7,8

5,8

2,0

6,4

3,2

3,2

6,8

4,2

45,0

40,0

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0

-2,6 

35,5

38,6

7,4

9,3

16,1

42,8

1999

2000

2001

1999

2000

2001

12,0

10,0

8,0

6,0

4,0

2,0

0,0

-2,0 

-4,0 

(Bio euro)

10,0

8,0

6,0

4,0

2,0

0,0

-2,0 

-4,0 

ASEAN : Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam

29

EU TRADE WITH S.E. ASIA

in mn ECU/E 1980

1990

1995

1996

1997

1998

1999

2000

2001

2002

EU exports
EU imports
EU balance

6.520
7.140
(620)

17.675
18.652
(977)

34.128
39.337
(5.208)

37.185
42.548
(5.363)

44.912
45.915
(1.003)

30.589
52.511
(21.922)

31.106
55.201
(24.095)

40.376
71.112
(30.736)

42.733
66.247
(23.514)

39.034
61.360
(22.326)

*S.E. Asia countries: Brunei, Cambodia, Indonesia, Laos, Myanmar/Burma, Philippines, Singapore, Thailand, Vietnam
source: Eurostat

ASEAN Trade with European Union by Country (1993-2001)

ASEAN Export to European Union by Country
(Value in Thousand US $)

COUNTRY

Brunei Darussalam
Cambodia
Indonesia
Malaysia
Myanmar
Philippines
Singapore
Thailand
TOTAL

1993

-
-

5.392.081,9
6.965.170,9

-

2.012.615,5
10.795.308,6
6.226.369,1
31.391.546,0

1994

19.900,0
-

5.788.040,6
7.937.949,5

-

2.352.401,4
12.369.811,1
6.728.252,4
35.196.355,0

1995

18.648,0
-

1996

28.460,2
-

Export
1997

386,1
-

6.760.272,0
9.602.242,6

10.335.910,2
8.970.506,8

7.825.393,6
6.806.921,2

-

3.056.440,5
14.012.994,6
10.835.324,2
44.285.921,9

-

3.594.879,8
15.249.475,2
8.746.771,6
46.926.003,8

-

4.539.413,4
17.852.475,5
9.062.132,8
46.086.722,6

1998

10.115,4
-

7.765.177,2
8.022.047,3

-

5.992.865,9
17.380.841,3
6.972.545,2
46.143.592,3

1999

194,7
-

7.082.260,1
14.780.702,7
73.623,4
6.777.189,8
17.161.406,1
9.849.572,3
55.724.949,1

2000

17.354,2
230.601,9
8.665.579,2
17.535.114,5
106.860,9
6.822.838,6
18.646.882,4
8.727.079,6
60.752.311,3

2001

12.335,5
321.324,5
7.735.053,4
15.439.847,3
220.846,9
6.194.816,4
16.250.825,1
10.506.398,1
56.681.447,2

ASEAN Import to European Union by Country
(Value in Thousand US $)

COUNTRY

Brunei Darussalam
Cambodia
Indonesia
Malaysia
Myanmar
Philippines
Singapore
Thailand
TOTAL

1993

-
-

1994
364.901,4

-

1995
354.778,0

-

1996
482.892,5

-

6.650.703,3
5.748.404,4

7.225.435,7
8.625.552,1

8.175.230,7
10.879.040,3

14.539.363,2
10.506.623,0

-

1.945.611,4
10.612.723,7
6.864.939,2
31.822.382,0

-

2.364.065,3
12.779.752,1
7.369.627,5
38.729.334,1

-

2.385.909,1
14.677.137,3
9.920.674,1
46.392.769,5

-

3.638.733,3
17.868.187,4
10.344.707,6
57.380.507,0

Import
1997
441.628,4

-

8.331.191,4
9.990.565,1

-

4.240.987,5
19.061.522,3
8.943.919,2
51.009.813,9

1998
228.294,1

-

5.822.654,5
5.992.075,9

-

2.826.464,5
14.096.996,2
4.289.648,1
33.256.133,3

1999
327.120,6

-

3.798.107,3
8.840.682,4
33.993,6
2.786.104,1
14.124.491,0
4.799.044,2
34.709.543,2

2000
144.533,9
92.181,1
4.161.095,6
10.092.947,8
73.994,5
2.974.202,2
15.251.405,6
6.167.526,7
38.957.887,4

2001
197.335,1
26.557,7
4.042.864,6
11.291.292,2
93.795,7
2.751.854,2
13.673.983,6
7.600.646,6
39.678.329,7

30

    
    
    
    
    
    
    
    
    
    
    
    
    
    
        
        
     
     
     
   
   
   
   
   
ANNEX II

TREATI

(TRANS REGIONAL EU-ASEAN TRADE INITIATIVE)

Chapters 2 and 3.d introduced the rationale for closer cooperation between ASEAN and the
EU on trade matters and the shape of the proposed new, comprehensive Trans-Regional EU-
ASEAN Trade Initiative (TREATI).

This  annex  outlines  the  details  of  this  initiative.  While  similar  strategies  are  being  pursued
with  other  EU  trading  partners,  notably  Mercosur  and  Canada,  this  annex  outlines  an
approach customised to suit ASEAN’s unique situation and requirements.

In order to support ASEAN’s own efforts towards greater economic integration, and in view
of the commonality of trade interests between ASEAN members, the additional benefits to be
obtained by  exchanging experiences and information  within a broader  forum, as well  as the
importance of achieving economies of scale and making maximum use of the finite resources
on both sides, EU-ASEAN co-operation on trade issues should take place, where feasible, on
a region-to-region basis.

The  substantial  diversity  within  ASEAN,  especially  the  various  levels  of  development  and
differing priorities, mandates the creation of  a flexible framework. Under this scenario, each
South East Asian country would select from a comprehensive menu of commonly defined and
agreed  activities,  addressing  different  areas  relating  to  trade  and  investment  facilitation  –
agricultural and industrial product standards, customs procedures, intellectual property rights,
services,  etc.,  choosing  to  sign  up  for  each  one  when  they  desire  to  do  so.  Within  this
commonly-agreed framework, a specific activity could thus commence with the involvement
of two or more ASEAN countries, and gradually expand its membership, towards the ultimate
goal of having all countries participate on an equal basis.

The new bilateral agreements to be concluded between the EU and South East Asian countries
should  foresee  for  the  bilateral  dialogue  on  economic  issues  to  be  complemented  by  a
dialogue mechanism involving the EU and  more  than  two  ASEAN  countries  (‘EU  +  x’).  A
Joint  Ministerial  Declaration  under  the  existing  EC-ASEAN  Co-operation  agreement  could
express the will of the EU and the ASEAN countries to make  as much use of  the  ‘EU  + x’
formula  as  feasible.  The  Trade  Subcommittee  of  the  EC-ASEAN  Joint  Co-operation
Committee responsible for its operational management

To  further  accommodate  individual  preferences,  certain  activities  could  be  divided  into
phases,  allowing  countries  to  gradually  intensify  their  level  of  co-operation,  starting  from
mutual  confidence  building  exercises  to  learn  about  each  other’s  systems,  then  analysing
common elements as well as differences and constraints, and moving on to identify promising
sectors  for  closer  co-operation,  thus  gradually  developing  the  foundations  for  eventually
entering into more substantial commitments between the two regions.

31

Each  country  should  develop  its  own  individual  roadmap  under  the  regional  framework,
establishing  plans  to  progress  and  participate  in  the  various  activities  within  a  certain
timeframe.

Close  co-ordination  will  be  needed  with  ongoing  EU-ASEAN  regional  and  bilateral  trade-
related technical assistance and capacity building activities to ensure that activities and results
are  supportive  and  complementary.  The  initiative  should  foster  contacts  between  EU  and
ASEAN  economic  operators,  hence  the  private  sector  from  both  sides  must  be  closely
involved  in  both  the  definition  and  implementation  of  the  various  actions,  and  special
attention  will  be  given  to  the  needs  of  SMEs,  where  appropriate.  Activities  should  also
enhance the capacity of the more developed ASEAN members to provide greater support to
the others, in line with the Initiative for ASEAN Integration (IAI).

The success of the TREATI will largely depend upon the human and financial resources that
both  sides  are  willing  to  commit,  as  well  as  the  flexibility  which  can  be  achieved  in
accommodating individual needs and interests within an overall comprehensive and coherent
framework.

In recent years, the EU’s approach to trade policy has evolved in terms of the scope and the
level  of  ambition  sought  for  both  trade  and  investment  liberalisation  and  rule-making.  The
realisation  of  benefits  from  any  potential  future  trade  agreements  between  the  EU  and
ASEAN  would  thus  require  a  substantial  degree  of  co-operation  on  non-tariff  measures,
particularly in regulatory areas, which goes significantly beyond the dismantling of tariffs.

The proposed TREATI would therefore create a stable, predictable and transparent framework
for our future trade relations, fostering regulatory convergence and the necessary integration
needed for ASEAN to develop its own common external trade policy. The TREATI could thus
pave  the  way  for  a  preferential  regional  trade  agreement  in  the  future,  once  the  successful
outcome from the current round  of  multilateral  trade  negotiations  has  allowed  both  sides  to
have demonstrated their commitment to progressive liberalisation and non-protectionism. It is
only  at  this  stage  that  it  will  become  possible  to  assess  the  opportunities  to  eventually  go
further  together  with  regard  to  liberalisation  and  regulatory  harmonisation  –  based  on  the
“WTO-plus” principle.

Potential Elements for a Trade Action Plan

Point 3.f and Annex III of the Communication lists areas, in which ASEAN and the EU could
co-operate  more  closely,  and  from  which  they  should  select  subjects  to  discuss  in  the
TREATI framework. These subjects could include , Industrial Standards, Customs, Trade and
Environment, Investment, Competition, Electronic Commerce, Information Society,Services,
Sanitary and Phyto-Sanitary issues.

32

ANNEX III

MENU FOR A STRENGTHENED DIALOGUE

WITH SOUTH EAST ASIA

This annex includes  a  number  of  areas  in  which  both  sides  may  decide  to  either  initiate  or
intensify  the  level  of  their  dialogue  and  co-operation.  Informal  consultations  should  allow
partners  to  identify  those  sectors  and  determine  the  aims  and  format  of  their  co-operation
(regional  and/or  bilateral;  exchange  of 
information;  regulatory  co-operation  and
harmonisation; technical and financial co-operation; etc.)

Economic and Trade Issues

Sanitary and phyto-sanitary (SPS) issues:

Present situation

SPS  issues are particularly  important  for many  countries of South East  Asia  exporting  food
products to the EU market and having to comply with European standards.

Identified issues

Need to increase partners’ capacity to comply with SPS standards and appropriate technical
assistance measures.

Line of action

Proper dialogue and co-operation on SPS should

(cid:1)  Include exchange of information on legislation, certification and inspection procedures.
(cid:1)  Develop a better understanding of consumer protection requirements and
(cid:1)  Improve understanding of the partners’ policies in this sector.

Technical assistance in the field should contain both regional and bilateral elements that are
well co-ordinated

Regulatory Co-operation on Industrial Products:

Present situation

The EC would like to enhance regulatory co-operation on industrial products with South East
Asia  countries  to  facilitate  trade  while  safeguarding  a  high  level  of  health,  safety,
environment and consumer protection.

Identified issues

Key  issues  are  increasing  compatibility  and  bridging  gaps  in  the  areas  of  standards,
conformity  assessment  procedures  and  technical  regulations.  The  selection  of  the  right
regulatory  instrument  will  depend  on  the  characteristics  of  the  markets;  the  regulatory
environment in the relevant country concerned, and the willingness on the part of industries,
regulators and other stakeholders to achieve agreed objectives.

33

Line of action

Dialogue should aim at promoting

(cid:1)  Regulatory  convergence/harmonisation,  including  on  co-operation  in  the  field  of

standardisation

(cid:1)  Partial, voluntary; reduced or less formal mutual recognition (for example, in the field of

accreditation and laboratories) and, where appropriate, recognition of equivalence.

(cid:1)  International standardisation

Technical assistance could be mobilised in support of the dialogue process in prioritised areas
and in a well co-ordinated mix of regional and bilateral elements.

Customs:

Present situation

Trade  between  the  two  regions  is  hampered  by  rather  complex  and  burdensome  custom
clearance mechanisms.

Identified issues

Need  to  focus  on  simplifying  and  improving  customs  procedures  to  minimise  risks  and
maximise opportunities in order to facilitate customs clearance between the two regions.

Line of action

(cid:1)  Regional  and  bilateral  dialogues  should  aim  at  identifying  concrete  measures  to  improve

procedures,

(cid:1)  Commission  prepared  to  conclude  Customs  Co-operation  Agreements  with  interested

South East Asian countries.

Investment:

Present situation

Investment flows are not smooth

Identified issues

Existence of discriminatory rules

Line of action

Create a two-way investment dialogue to

(cid:1)  enhance understanding and co-operation on investment issues,
(cid:1)  explore administrative mechanisms to facilitate investment flows and
(cid:1)  promote stable, transparent, open and non-discriminatory rules for investors.

Possible assistance in the field should include:

(cid:1)  well co-ordinated regional and bilateral elements

34

(cid:1)  a  web-based  facility  with  supporting  help-desk  in  each  region  to  provide  comprehensive
information and advice on various trade and investment issues, aimed at the private sector
(« One-stop shop concept »)

(cid:1)  the ASIA-Invest II programme, which can contribute to this line of action

Competition:

Present situation

Domestic competition restrictions impede or eliminate the beneficial effects that should result
from progressive liberalisation of trade.

Identified issues

The role of competition rules in the functioning of ASEAN and in creating an area of shared
prosperity is fundamental: they help to ensure a climate of transparency and legal confidence
for business.

Line of action

The Commission is prepared to

(cid:1)  start  a  dialogue  with  existing  and  new  competition  agencies  in  the  region  on

implementation of competition policy

(cid:1)  co-operate  with  competition  agencies  in  the  region  in  reinforcing  the  effectiveness  of

competition agencies in the enforcement of competition law and policy

(cid:1)  to consider promoting via its delegations in the region actions to achieve the above aims

Electronic commerce – information society:

Present situation

The EU and South East Asian countries have already embarked in a number of dialogue and
co-operative activities in the field of e-Commerce and Information Society. Both regions are
striving to ascertain their participation in the global information economy.

ASEM  e-Commerce  seminars  in  2001-2002  recommended  to  ASEM  countries'  regulators
how  to  create  a  favourable  regulatory  environment  for  a  rapid  growth  of  electronic
commerce between the ASEM countries. At another ASEM Conference on "Globalisation
and ICT” in March 2003, the EC explained it concept of eEurope and EU-Asian co-operation
in  the  field  of  the  Information  Society.  A  follow-up  event  due  to  take  place  in  Vietnam  is
designed  to  provide  inputs  to  the  ASEM  Summit  in  Hanoi  in  October  2004.  In  order  to
stimulate Information Technology R&D and business co-operation, the 2006 EU-South East
Asia Forum on the Information Society in Bangkok is currently under preparation. An EU
Asian  co-operation  project  has  been  initiated  in  the  field  of  high-speed  communications
infrastructure.  With  the  support  of  the  IST  Programme  and  in  the  context  of  the  eEurope
Action  Plan,  a  new  generation  backbone  for  research  communications  has  been  launched
(GEANT).  In  the  framework  of  the  implementation  of  their  eSociety  Programme,  the
Government of Singapore initiated meetings with the EC at Commissioner level in 2002 on
regulatory and technological requirements for the development of the Information Society.

35

Identified issues

An  eASEAN  Task  Force  was  created  in  late  1999  to  develop  a  broad  and  comprehensive
action plan for an ASEAN e-space and to enable ASEAN countries to compete in the global
information economy. This Task Force is to examine the technical, legal, logistical, social and
economic  infrastructure  needed  to  create  the  basis  for  ASEAN's  competitiveness  in  the  21st
century.

Line of action

Substantive  dialogue  is  to  be  extended  to  more  detailed  issues  and  conducted  mainly  at
regional level with ASEAN and ASEM partners.

Concrete co-operation initiatives should support

(cid:1)  the  integration  of  the  developing  countries  of  South  East  Asia  in  the  global  e-market
through  instruments  such  as  the  Asia  IT&C  programme  and  The  Information  Society
Programme (IST).

(cid:1)  the  construction  of  strategic  regional  backbones  and  their  linking  with  GEANT.  For  this
purpose, the EC intends to find means to connect the Trans-Eurasia Information Network
(TEIN) -- that currently links GEANT to Korea – also with South East Asia.

Services:

Present situation

Services  play  an  increasing  role  in  the  development  and  diversification  of  European  and
Asian economies.

Identified issues

There is a need to improve the competitiveness of the ASEAN countries’ services sector and
facilitate their participation in world trade in services in a manner consistent with sustainable
development.

Line of action

A dialogue process should be initiated between both regions on

(cid:1)  the regulatory environment
(cid:1)  access to markets in the multilateral GATS context
(cid:1)  access to sources of capital and technology
(cid:1)  trade promotion in services between both regions and on third countries’ markets

Public procurement:

Present situation

There is room for improvement in the transparency and non discriminatory nature of public
procurement policies in most South East Asian countries.

36

Identified issues

There  is  an  urgent  need  to  improve  understanding  of  the  respective  approaches  on  public
procurement in the two regions in view of possible reciprocal opening of markets.

Line of action

Regional  and  bilateral  dialogue  processes  should  explore  possibilities  for  reciprocal,  open,
non-discriminatory  and  transparent  procedures  for  respective  government  and  public  sector
procurement at all levels.

Intellectual property:

Present situation

Proper protection of industrial and intellectual rights is key to Foreign Direct Investment and
related transfers of technology in many economic sectors.

Identified issues

Both regions need to offer - within their respective laws, regulations and policies - adequate
and  effective  protection  of  intellectual  and  industrial  property  rights  in  accordance  with  the
highest international  standards  and  agreements,  including  effective means of enforcing such
rights.

Line of action

(cid:1)  Dialogue and co-operation on IPR must be conducted primarily at regional level.
(cid:1)  However,  issues  of  enforcement  should  also  be  included  in  bilateral  dialogue  and  co-

operation.

(cid:1)  Specific attention should be devoted to piracy and counterfeiting.

Consumer protection:

Present situation

Governments  from  both  regions  will  feel  increasing  pressure  from  their  citizens  to  provide
consumers  with  the  highest  standards  of  protection  and  safety.  EU  has  some  relevant
experience to share with South East Asia.

Identified issues

There  is  a  need  to  promote  the  concept  of  consumer  protection  across  all  sectors  of  the
economy. There is also a need to improve understanding of the partners’ policies on consumer
protection.

Line of action

(cid:1)  Dialogue  at  regional  level  should  aim  at  exchanging  information  of  both  region’s

regulatory frameworks in the field of consumer protection.

(cid:1)  Expertise and technical assistance may also be made available for co-operation at regional

or bilateral level.

37

Industrial policy:

Present situation

Economic operators in both regions are ever striving to increase their competitiveness

Identified issues

This  quest  for  competitiveness  is  particularly  sensitive  for  Small  and  Medium  Size
Enterprises that constitute one of the most dynamic and innovative segments of both regions’
economies.

Line of action

(cid:1)  The  dialogue  should  focus  at  regional  and  bilateral  level  on  exchanging  information  and
experiences  on  creating  framework  conditions  for  private  SMEs  to  improve  their
competitiveness.

(cid:1)  Co-operation  should  continue  to  support  business  matching  of  SMEs  from  both  region

stimulating in particular transfers of soft and hard technology between partners.

(cid:1)  The ASIA-Invest II programme can contribute to this line of action

Justice and Home Affairs issues

Migration:

Present situation

Countries from both regions are confronted with difficult political, social and economic issues
related to migratory flows and the management of their asylum systems.

Identified issues

The  European  Council  of  Tampere  underlined  that  partnership  with  the  countries  of  origin
and transit will be a key element in the external policies of the EU in the area of migration.
The  European  Council  of  Seville  of  June  2002  urged  that  ‘any  future  co-operation,
association or equivalent agreement which the European Union or the European Community
concludes with any country should include a clause on joint management of migration flows
and on compulsory  readmission in the event  of  illegal  immigration.’36 The  Council  adopted
on  19  May  2003  conclusions  on  integrating  migration  issues  in  the  European  Union’s
relations with third countries.

Line of action

(cid:1)  The management of migratory flows will be mainstreamed through all political, economic
and  social  dialogue  opportunities  with  ASEAN  and,  individually  with  its  member
countries.

(cid:1)  Adequate  provisions  on  migratory  flows  and  readmission  shall  be  introduced  in  bilateral

agreements with South East Asian countries.

36

Conclusions of the European Council, Seville, 21 and 22 June 2002.

38

                                                
(cid:1)  When appropriate  and possible, the establishment of  specific  and  concrete  actions  of  co-
operation should be looked for, either between the EU and ASEAN as such or on bilateral
basis with South East Asian countries.

Combating organised crime:

Present situation

International  organised  crime  is  surfing  the  wave  of  globalisation.  It  poses  a  very  serious
threat to both regions.

Identified issues

Organised  crime  is  operating  on  a  transnational  scale,  using  the  latest  technologies  in
communication  and  international  finance.  It  is  an  urgent  task  for  governments  from  both
regions to meet this technological challenge and put in place sound regional and international
anti-crime policies.

Line of action

(cid:1)  Both regions should continue to work with and promote all United Nations efforts in this

field.

(cid:1)  The  regional  dialogue  process  should  include  concrete  exchange  of  information  and

experiences on:
- establishing and implementing regional anti-crime strategies
- building regional institutions, for example as in the case of Europol and Eurojust

Trafficking in human beings:

Present situation

Trafficking  in  human  beings  leads  to  serious  violations  of  the  victims’  human  rights  as
enshrined in international law and the EU Charter on Fundamental Rights.

Identified issues

Trafficking in human beings is a major concern for EU relations with Asia due to the fact that
numerous  victims  are  trafficked  within  Asia  or  from  or  through  Asian  countries  to  EU
Member States.

Line of action

(cid:1)  The  comprehensive  European  policy  against  human  trafficking  aims  at  addressing  the

entire trafficking chain, comprising countries of origin, transit and destination.

(cid:1)  An  appropriate  bi-regional  mechanism  for  exchange  of  information  and  co-operation
should be put in place, possibly through co-operation between Europol and Aseanopol.

Money laundering:

Present situation

Money laundering is at the very heart of practically all criminal activities.

39

Identified issues

Steps taken to combat money laundering can help to strangle crime in general as well as help
combat corruption. There is an obvious need to co-operate at international level on preventing
the use of financial systems for laundering proceeds arising from criminal activities in general
and drug trafficking in particular.

Line of action

(cid:1)  The  Commission  will  continue  to  work  towards  combating  money  laundering  globally,
including  in  South  East  Asia,  through  international  bodies  such  as  the  Financial  Action
Task Force (FATF) and through regional co-operation with ASEAN and within ASEM.
(cid:1)  Regional  dialogues  should  provide  for  exchange  of  information  and  hopefully  lead  to
regulatory  co-operation  and  the  adoption  of  appropriate  standards  to  combat  money
laundering.

Counterfeiting:

Present situation

Intellectual  property  violations,  such  as  counterfeiting  and  piracy,  are  a  major  challenge
today. The production of counterfeit goods is a particular concern for South East Asia and the
EU.  This  form  of  crime,  which  tends  to  be  increasingly  in  the  hands  of  criminal  and  even
terrorist organisations, is a threat to the economy, to creativity and also to health and safety.

Identified issues

Counterfeiting is an international phenomenon which the EU must integrate as an important
subject  for  the  relations  with  non-member  countries,  including  South  East  Asian  countries
and, if need be, bring pressure to bear on the countries where counterfeiters are based.

Line of action

(cid:1)  To initiate regional and bilateral dialogues on counterfeiting and piracy

Data protection:

Present situation

In  the  light  of  the  global  fight  against  terrorism,  data  protection  rules,  or  the  lack  of  such
rules,  are  increasingly  becoming  an  area  of  possible  conflict  between  the  EU  and  various
countries.

Identified issues

There  is a need to ensure that  data  protection  systems  are  mutually  transparent  and  provide
adequate protection.

40

Line of action

(cid:1)  The parties should agree to ensure a high level of protection in the processing of personal

data and other data, in accordance with the highest international standards37.

(cid:1)  The parties should also agree to co-operate on the protection of personal data in order to
improve  the  level  of  protection,  and  to  work  towards  the  elimination  of  obstacles  to  the
free movement of personal data between the parties,  created by  insufficient  protection of
personal data.  Co-operation on personal data protection may include,  inter  alia,  technical
assistance in the form of exchange of information and experts.

Drugs:

Present situation

Some  countries  in  South  East  Asia  remain  major  illicit  markets  for  heroin  and/or  serve  as
transit  points  for  heroin  destined  for  other  parts  of  the  world.  Abuse  of  and  trafficking  in
amphetamine-type  stimulants  (ATS)  is  spreading  quickly  across  East  and  South  East  Asia.
Intravenous drug  abuse  meanwhile  continues  to  contribute  to  increases  in  the  prevalence  of
HIV infections. The EU and South East Asia are facing common and growing challenges in
fighting drug abuse and trafficking.

Identified issues

The  United  Nations  International  Narcotics  Control  Board  has  recently  noted  that  facilities
that were once used exclusively for the refining of heroin are now increasingly used  for the
manufacture  of  methamphetamines  as  well  (and  which  are  increasingly  reaching  European
markets).

Line of action

(cid:1)  formulate and implement effective regional strategies to reduce the illicit demand for these

stimulants and

(cid:1)  increase    regional  dialogue  and  co-operation  with  each  other  in  regulatory  and  law
enforcement  activities  targeting  illicit  manufacture,  trafficking,  precursors’  control,  early
warning for synthetic drugs and setting up of monitoring institutions.

(cid:1)  Support  regional  policies  on  drugs,  such  as  the  joint  ASEAN  programme  with  China

(ACCORD38) that is still in its start up phase.

37

38

Standards to take into account:
(cid:1) Guidelines for the regulation of computerised personal data files, modified by the General Assembly of

the United Nations on 20 November 1990.

(cid:1) Recommendation  of  the  OECD  Council  concerning  guidelines  governing  the  protection  of  privacy  and

trans-border flows of personal data of 23 September 1980.

(cid:1) Council  of  Europe  Convention  for  the  protection  of  individuals  with  regard  to  automatic  processing  of
personal  data  of  28  January  1981,  and  Additional  Protocol  to  the  Convention  for  the  protection  of
individuals  with  regard  to  automatic  processing  of  personal  data  regarding  supervisory  authorities  and
transborder data flows of 8 November 2001.

(cid:1) Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection
of individual with regard to the processing of personal data and on the free movement of such data and
Directive  2002/58/EC  Of  the  European  Parliament  and  of  the  Council  of  12  July  2002  concerning  the
processing of personal data and the protection of privacy in the electronic communications sector.

ASEAN  and  China  Co-operative  Operations  In  response  to  Dangerous  Drugs:  Action  Plan  concluded  in
2000.

41

                                                
(cid:1)  Seek  the  conclusion  of  an  EC-ASEAN  agreement  to  combat  the  diversion  of  chemical

precursors to the illicit manufacture of drugs.

The case for a regional approach to the drug issue:

Until now, EC anti-drugs activities in the region have been few and were based on a country-
specific  approach  (projects 
in  Thailand,  Cambodia,  Laos  and  Vietnam).  A  more
comprehensive approach is desirable reflecting the significance of the South East Asia region
to  the  drug  problem  in  Europe,  as  well  as  the  impact  of  drugs  on  the  economic  and  social
development  of  the  region  itself.  In  its  latest  policy  document  on  drugs,  the  EC  raises
attention for South East Asia, introducing a drug route strategy39 which specifically mentions
the  India/China/South East Asia synthetic  drugs  route.  Given  the  characteristics  of  the  drug
problem, a regional approach should be encouraged, also to  be able to deal  effectively with
Burma/Myanmar, a key source of drug production. There is a need to work closely together
with UN institutions (UNDCP and UNODC). The prevention of chemical precursor diversion
to South East Asia is an obvious priority. Similar conclusions were found in the first regional
dialogue between experts of the EU and ASEAN in October 2002.

Environment

Present situation

Sustainable  development  remains  a  global  challenge  for  the  EU  and  South  East  Asia.  Both
partners  are  committed  to  the  implementation  of  the  conclusions  of  the  World  Summit  on
Sustainable  Development,  which  took  place  in  Johannesburg  in  2002.  Both  partners  have  a
well  established  tradition  of  dialogue  and  co-operation  on  environmental  issues,  which  will
remain a priority in the years to come.

Co-operation on environment between EC and Asia has been ongoing for a number of years
through for example:

(cid:1)  Assistance to the ASEAN Regional Centre for Biodiversity Conservation.

(cid:1)  Asia  Eco-Best  (1997-2002),  assisting  EU  organisations  to  invest  in  co-operation  with
Asian  partners  into  Asian  environmental  products  and  technologies.  EU-Asia  Pro-Eco
programme  (2002-2007)  fosters  EU-Asia  partnerships  on  the  adoption  of  policies,
technologies  and  practices  that  promote  cleaner,  more  resource-efficient,  sustainable
solutions to environmental problems in Asia.

(cid:1)  EC-ASEAN S&T Co-operation activities  in the field  of the  Environment  under  the  EC’s

Framework Programmes on R&D.

(cid:1)  A  large  number  of  projects  and  programmes  in  natural  resources  conservation  and

management, in bio-diversity conservation, water management, etc.

39

Commission Communication on External Drugs Policy, (2003, forthcoming).

42

                                                
Identified issues

As  outlined  in  the  conclusions  of  the  Sub-Committee  on  Environment  of  the  EC-ASEAN
Joint Co-operation Committee of 17-19 September 2001, priority areas for future co-operation
have been identified:

(cid:1)  Climate change and energy efficiency;
(cid:1)  Environmental and clean technologies
(cid:1)  Capacity building in implementing and negotiating multilateral environment agreements;
(cid:1)  Coastal and marine environment.

Illegal  logging  and  trade  of  illegal  wood  receive  growing  political  attention  and  will  be  an
important  focus  of  relations  with  ASEAN  in  the  years  to  come.  There  is  growing  evidence
that  a  substantial  amount  of  the  world’s  timber  is  harvested  illegally.  Moreover,  illegal
logging  and  processing  have  started  to  undermine  the  rule  of  law,  encouraged  corruption,
social conflict and the inefficient use of resources in a number of producer countries, and is
resulting in the loss of large potential government revenues.

Line of action

(cid:1)  Support  the  adoption  of  policies,  technologies  and  practices  that  promote  cleaner,  more
resource-efficient,  sustainable  solutions  to  environmental  problems  in  South  East  Asia,
through the recently established Asia Pro Eco Programme

(cid:1)  Support  the  implementation  of  the  EC  Forest  Law  Enforcement,  Governance  and  Trade

(FLEGT)40

(cid:1)  Develop dialogue and co-operation with ASEAN in relation to the ASEAN Strategic Plan

of Action on Co-operation in Forests and Forest Products

(cid:1)  Continue  developing  dialogue  and  co-operation  at  bilateral  level  in  forestry  conservation

and management.

Science & Technology, Research & Development

Present situation

Science  and  Technology  is  an  essential  element  in  the  pursuit  of  sustainable  economic  and
social  development,  as  well  as  the  basis  for  competitiveness.  S&T  Co-operation  between
ASEAN and the EU is based on shared cultural and historical foundations and on increasing
economic links.

Identified issues

Making  scientific  research  directly  relevant  to  society  is  of  critical  importance  in  the  two
regions.  S&T  Co-operation  must  target  scientific  areas  that  have  a  direct  application  on
productive activities, and aim at assuring a link between research centres and universities on
one side, and industry on the other.

40

The  FLEGT  process  encourages  discussion  and  co-operation  between  developed  countries  and  emerging
economies,  particularly  between  those  that  produce  and  consume/import  wood  and  wood  products.  It
covers the whole range of law reform and enforcement in wood-producing countries, governance and trade
issues (in particular market access). Within this framework, the EC currently prepares a FLEGT project in
Indonesia, but there may also be scope for a related regional initiative, in particular in consideration of the
large amount of intra-regional wood trade.

43

                                                
Line of action

EU-ASEAN S&T Co-operation must include:

(cid:1)  The formulation of a strategic concept & design for bi-regional S&T Co-operation;
(cid:1)  The  implementation  of  bi-regional  S&T  Co-operation  activities  based  on  the  actual  and

potential research capacities in the two regions;

(cid:1)  Promote  specific  programmes  of  S&T  Co-operation  in  specific  domains  (among  others,
agriculture and forest biotechnology, food safety, hygiene in the food industry, e-learning).

Higher Education and Culture

Present situation

Co-operation between Europe and South East Asia on higher education and culture is key as it
is  fundamental  in  increasing  mutual  understanding  and  awareness.  The  ASIA-Link  scheme
and the EU-ASEAN University network programme have been successfully promoting higher
education co-operation between the two regions since the beginning of 2002. A large series of
multilateral  and  mutually  beneficial  co-operation  projects  and  sustainable  networking
activities are currently being set up under both initiatives.

Identified issues

Co-operation in higher education is key to

(cid:1)  improving  mutual  understanding  and  increasing  awareness  of  Europe  in  South  East  Asia

and vice versa;

(cid:1)  re-positioning Europe as a major higher education partner and as a centre of excellence in

South East Asia

(cid:1)  promoting  scientific  and 

technological  development, 

thus  enhancing  growth  and

competitiveness;

(cid:1)  strengthening the economic and cultural presence of Europe in South East Asia (and vice

versa).

Line of action

(cid:1)  Develop regional and bilateral strategic dialogues with stakeholders at the various levels of
government authorities, national associations of higher education institutions and national
rectors conferences.

(cid:1)  Continue 

implementing 

the  Asia-Link  and  ASEAN-EU  University  Network

Programmes that are successfully promoting higher education co-operation.
(cid:1)  Support scholarship activities through initiatives such as Erasmus Mundus.
(cid:1)  Promote  co-operation  in  the  field  of  culture  with  a  view  to  enhancing  mutual
understanding  between  the  civil  societies  in  South  East  Asia  and  Europe,  in  particular
through supporting the work of the Asia-Europe Foundation.

Energy

Present situation

Directly  or  indirectly,  energy  is  linked  to  each  of  the  six  sector  priorities  of  Community
development policy. Furthermore, it is an element essential to achieving the United Nations’

44

Millennium  Development  Goals.  At  the  same  time,  the  EU's  security  of  supply  is  closely
linked  to  that  of  developing  countries  including  those  in  South  East  Asia.  The  expected
increase  in  consumption  of  fossil  fuels  and  the  aggravation  of  environmental  problems,  in
particular climate change and air pollution will make the link even closer in the future.

Identified issues

In general, given the projected growth in energy demand in South East Asia and its substantial
energy  resources  (e.g.  Indonesia  is  currently  the  world’s  largest  LNG  exporter),  this  sector
should remain an important focus of co-operation. Moves towards a more interconnected and
integrated energy system in South East Asia, and possibly an ASEAN-China free trade area,
increase  the  EU  interest  in  policy  exchanges  and  the  establishment  of  a  good  trade  and
investment climate.

Line of action

(cid:1)  Initiate a strategic dialogue at regional level on energy issues
(cid:1)  Continue  existing  co-operation  initiatives  in  fields  such  as  co-generation  or  renewable

energies

Transport

Maritime Security:

Present situation

Piracy  is  a  real  problem  in  the  waters  of  South  East  Asia,  with  obvious  consequences  for
trading, transport and regional security. The concept of maritime security includes piracy, but
also  related  crimes  such  as  terrorism,  smuggling  of  migrants  and  illicit  traffic  in  drugs  and
arms, and environmental crimes. The economic downturn in the region has contributed to an
upsurge of piracy and armed robbery at sea.

Identified issues

An  EU-ASEAN  Conference  on  Maritime  Security  in  2002  in  Manila  has  highlighted  the
importance  of  the  problem  for  the  region  as  well  as  its  relevance  for  its  trading  partners,
including the EU. The ASEAN Regional Forum (ARF) has issued a statement on Piracy, the
necessity of crafting and implementing regional maritime security strategies and multilateral
co-operation41.  The  International Maritime Organisation  (IMO)  has called upon countries in
South East Asia to conclude a regional agreement on co-operation against piracy and armed
robbery against ships42. Consensus is yet to emerge on a final ASEAN wide Agreement, but
efforts are ongoing especially regarding improved information exchange.

Line of action

(cid:1)  Experts also discussed modalities for regional co-operation and EU assistance.

41

42

ARF Statement on Piracy, Intersessional Group on Confidence Building Measures, Vientiane, 2003.
SG of IMO at Regional Meeting of Maritime Security Committee in Singapore, March 2001.

45

                                                
(cid:1)  Obvious solutions lie in harmonising the implementation of the maritime security measures
adopted  in  the  International  Maritime  Organisation  (IMO)  in  December  2002,  and  in
increased  co-operation  between  the  concerned  countries  supported  with  technical
assistance from main users of the sea lanes such as Japan and EU.

(cid:1)  Possibilities should be explored to work together on ship tracking systems, maritime police
authorities and harmonisation of information and legislation to facilitate investigation and
prosecution  of  perpetrators.  EU  can  make  available  specific  expertise,  best  practices  and
help  organising  training  and  country  needs  analysis.  In  particular,  EU  should  stimulate
regional  co-operation  on  the  issue  if  real  commitment  is  taken  in  the  form  of  a  regional
agreement, or even in the case of an agreement between a number of concerned countries.

Air Transport Relations

Present situation

Air transport relations between the EU and South East Asian countries are governed today by
a  framework  of  bilateral  agreements  between  EU  Member  States  and  South  East  Asian
countries.  These  agreements  restrict  the  freedom  to  operate  flights  between  two  given
countries  to  airlines  owned  by  nationals  of  those  countries.  In  June  2003,  agreement  was
reached  in  the  EU  for  the  first  time  on  a  framework  for  the  handling  of  international  air
transport negotiations. The  agreed  framework provides  both  for the  Commission  to  conduct
negotiations  with  third  countries  on  behalf  of  the  Community  and  for  Member  States  to
continue their bilateral contacts on the basis of commonly agreed principles.

Identified Issues

Following  a  ruling  by  the  European  Court  of  Justice,  all  aviation  agreements  that  include
nationality  clauses  must  be  amended  to  reflect  the  existence  of  the  EU  and  to  remove
discrimination, either through new  bilateral negotiations or through negotiations lead  by the
Commission  on  behalf  of  the  entire  EU.  Given  the  importance  of  South  East  Asia  as  an
aviation market, serious consideration will be given to seeking negotiations with countries of
the region, in particular where a country has itself expressed an interest in making progress.

Line of Action

(cid:1)  EU  Member  States  will  be  seeking  the  amendment  of  their  existing  bilateral  agreements
with  South  East  Asian  countries  in  order  to  remove  discrimination  between  European
airlines and to bring the agreements into line with Community law.

(cid:1)  The  Community  will  examine  the  potential  for  agreements  at  Community  level  with
individual  countries  of  South  East  Asia  and  with  groups  of  countries  both  in  order  to
remove legal problems and to expand opportunities for airlines and consumers.

(cid:1)  The  Community  will  consider  any  requests  from  South  East  Asian  countries  wishing  to

intensify and expand air transport relations

Aviation safety and airworthiness:

Present situation

Aviation safety and airworthiness is an obvious area of shared interest. A substantial amount
of  co-operation  has  developed  between  the  EU  and  South  East  Asia  in  this  field.  The
Commission is supporting COSCAP programme  (Co-operative Development of Operational
Safety  and  Continuing  Airworthiness)  for  South  East  Asia,  which  aims  at  sharing  scarce

46

inspector  resources  between  member  countries  and  harmonising  the  regulations  and  other
criteria,  which  form  the  basis  of  the  inspections.  It  has  also  launched  an  EC-Asian  Civil
Aviation Co-operation project, which involves all ASEAN countries except Burma/Myanmar.

Identified issues

Some  countries  of  South  East  Asia  are  still  in  need  of  establishing  properly  managed
regulatory  bodies.  South  East  Asia  needs  to  further  harmonise  air  safety  and  airworthiness
laws and regulations.

Line of action

(cid:1)  Complementing the achievements of COSCAP-SE Asia
(cid:1)  Supporting through bilateral dialogue and  co-operation the building of properly managed

regulatory bodies in the poorer countries and regional initiatives

(cid:1)  Supporting through regional dialogue and co-operation further harmonisation of air safety

and airworthiness laws and regulations in South East Asia

Information Society

Present situation

Information  technology  and  electronic  communication  networks  and  services  underpin
economic and social development as well as development of the Information Society. In order
to  promote  the  Information  Society,  the  European  Union  has  put  in  place  the  eEurope
initiatives 2002 and 2005. At the same time many governments in the South East Asian region
are putting considerable focus on the development of the Information Society and are keen to
develop  concrete  co-operation  in  this  area  which  they  see  as  one  of  great  potential  for
increased trade, closer social cohesion and cultural ties, and economic growth.

Identified issues

A closer co-ordination of EU and South East Asian policies is in the interest of both region’s
economic development

Line of action

(cid:1)  Developing a comprehensive regional dialogue on the different aspects of the Information
Society,  including  not  only  electronic  communication  policies  and  regulation  but  also
social aspects;

(cid:1)  Co-operate towards interconnection and interoperability of European Union and South East
Asian networks and  services as  well  as  for  the  standardisation  and  dissemination  of  new
information and communications technologies;

(cid:1)  Promote  joint  projects  for  research  in  ICT  and  industrial  applications  in  electronic

communications.

(cid:1)  Put  in  place  a  network  of  contacts  between  the  European  Commission  and  the  Member

States which can guide the co-operation with Asia on the Information Society

(cid:1)  The ASIA-IT&C programme can contribute to this line of action.

47

Statistics

Present situation

1. External trade statistics:

There is no common ASEAN framework in the procedures and customs code implementation.
Consequently  there  are  some  discrepancies  in  the  EC-ASEAN  figures,  and  also  within  the
ASEAN region.

2. Foreign Direct Investment (FDI):

ASEC,  as  well  as  member  countries,  face  problem  in  compiling  harmonised  FDI  data,
including FATS. They suffer from a both lack of capacity and methodological understanding.

Identified issues

1. External trade statistics:

Need for getting harmonised figures, at both regional and national levels.

2. Foreign Direct Investment (FDI):

Needs to develop comprehensive and reliable data and statistics, including capacity building
in the ASEC and the statistical bodies of member countries.

Line of action

For both ‘External trade statistics’ and ‘Foreign Direct Investment’:

(cid:1)  Create a dialogue  with  ASEC  in  order to identify  a  set  of  actions in these  fields,  at  both

national and regional levels.

(cid:1)  Possible Technical Assistance in the fields mentioned.

In general sense:

(cid:1)  Allow for capacity building in the wider domain of statistics

To serve these specific objectives, reliable, harmonised and accurate statistical information is
needed for the implementation and evaluation of the main policies, especially in the field of
the economic and trade issues, the migrations and the good governance.

Statistical  action  plans  ultimately  contribute  to  the  strengthening  of  regional  and  national
institutions,  whilst  pursuing  the  priority  policy  areas  of  the  EC  (regional  integration,  fight
against poverty, health and education, etc.).

48

ANNEX IV

PRESENT FRAMEWORK FOR CO-OPERATION WITH SOUTH-EAST ASIA

The EC legal basis for co-operation with countries of South-east Asia is the ALA (Asia and
Latin America) regulation of 199243.

The  Commission  introduced  in  2002  a  proposal  for  a  new  ALA  regulation44.  The  proposal
takes  into  account  the  results  of  an  independent  evaluation  of  the  implementation  of  the
present  regulation  carried  out  in  2002.  This  new  legal  framework  will  greatly  reinforce
dialogue between the Commission and EU  Member  States  on  strategic  programming  of  co-
operation as well as allow for speedier delivery of projects and programmes. The proposal is
currently going to the EC decision-making process, with discussions in Council and European
Parliament.

At  present,  there  is  a  set  of  core  EC  co-operation  instruments  available  to  South-east  Asia,
which in practical terms can be classified as follows:

(1)  Thematic  /  horizontal  programmes  (inter  alia  environment  and  tropical  forests,  fight
against  drugs,  uprooted  people,  human  rights  and  democracy,  NGO  co-financing)  which
apply across the world,

(2) Asia-wide programmes (Asia IT&C, Asia-Urbs, Asia-Link, Asia-Invest),

(3) Regional co-operation with ASEAN countries,

(4)  Bilateral  economic  and  development  co-operation  with  individual  South-east  Asian
countries.

The thematic / horizontal programmes and the Asia-wide programmes are implemented on the
basis of strategic multi-annual  guidelines  and  programming  documents,  which  are  reviewed
regularly to meet the evolving EC policies.

Regional and bilateral co-operation is set out in 5-yearly Regional / Country Strategy Papers
(RSP / CSP), which include 3-yearly Regional / National Indicative Programmes (RSP / NIP).
These  documents  provide  a  coherent  framework  to  mobilise  all  the  above  financial
instruments for support to each country and region

While  the  Commission  completed  in  2002  the  CSP/NIP  for  all  eligible  individual  SEA
countries  (Indonesia,  East  Timor,  Philippines,  Vietnam,  Thailand,  Malaysia,  Cambodia,
Laos), the programming of co-operation with ASEAN (RSP/RIP) will be issued by the end of
2003. EC-ASEAN co-operation projects will focus primarily on the priority areas outlined in
the present communication

In general, with financial resources for the region likely to remain stable for the  foreseeable
future,  the  strategy  papers  and  indicative  programmes  guarantee  enhanced  quality  and
efficiency of EC assistance to the region.

43

44

Council Regulation 443/92 of 25 December 1992.
COM (2002) 340 of 2 July 2002.

49

                                                
ANNEX V

European Investment Bank (EIB)

BACKGROUND

The  European  Investment  Bank’s  operations  in  Asia  and  Latin  America  (ALA)  started  in
1993 and are aimed at supporting the EU’s policies in accordance with the terms of the ALA
Mandate entrusted to the Bank by the EU Member States.

The  Bank  selects  projects  which  serve  the  interests  of  both  the  country  in  which  they  are
located  as  well  as  the  EU  (mutual  interest).  In  this  context  particular  emphasis  is  put  on
supporting  EU  foreign  direct  investments  (FDI).  The  Bank’s  usual  criteria  (economic
justification, technical viability, self-supporting financially, and environmental sustainability)
are applied in the appraisal process. The EIB has no country ceilings and lending is therefore
largely a result of demand. During the period 1993 – 2002 almost 80% of EIB loans in Asia
were  granted  in  ASEAN  countries  even  though  the  Bank  aims  at  a  relatively  equitable
distribution among partner countries.

Increasingly, the Bank uses operations under the risk-sharing guarantee scheme implying that
the  commercial  risk  will  be  covered  by  a  prime  rate  guarantee,  whereas  the  political  risk
would  be  covered  under  the  EU  budgetary  guarantee.  Political  risk  encompasses  losses
resulting from non-transferability  of currency, expropriation,  war  and civil strife.  In support
of private sector development, some 55% of all operations in Asia have been financed under
this scheme, exceeding the 30% target foreseen in the Council Decision.

The  EIB  operates  in  Asia  under  Framework  Agreements  (FA),  signed  with  the  beneficiary
countries,  which  set  up  the  general  legal  basis  for  carrying  out  projects.  So  far,  FAs  were
concluded  with  the  following  ASEAN  countries:  Indonesia,  Philippines,  Thailand  and
Vietnam.  Other  eligible  countries,  namely  Lao  PDR,  Malaysia  and  Singapore,  which  have
been approached, have until now not signed such agreements.

Since the political risk coverage of EIB loans is tied to Framework Agreements signed with
the  beneficiary  countries,  the  loan  should  in  principle  be  utilised  in  the  country  of  the
borrower. Some of the most needy countries in the Greater Mekong programme, such as Laos
and  Cambodia,  are  hence  not  covered,  the  former  because  it  has  not  signed  a  FA,  and  the
latter because it is not even eligible. There is therefore a need for the EIB to make available
the instrument of global loans (see main text).

RESULTS AND ASSESSMENT

Since  the  inception  of  the  ALA  Mandate  in  1993,  the  EIB  has  steadily  increased  its
contribution to the financing of investments in the region. In this period, the share of ASEAN
as beneficiary of EIB loans to ALA countries broadly exceeds its share as recipient of EU FDI
in the region (28% as compared to 6%). Basic figures are summarised in the following table:

50

Table 1:

EIB lending and EU Foreign Direct Investment

EIB LENDING (1993-2002)

EU FDI 1955-2001(*)

EUR m %

EUR bn

%

Total ALA

2 898

100

Of which
ASEAN

800

. Indonesia

300

. Philippines

290

. Thailand

. Vietnam

155

 55

800

28

38

36

19

 7

2.5

3.0

6.3

1.0

228.1

12.8

100

6

20

23

49

 8

100

100

12.8

(*) source: Eurostat

A reasonable balance and diversification is also achieved as regards the sectoral breakdown:

Table 2:

Distribution of EIB loans to ASEAN countries per sector (1993-2002):

SECTOR
DISTRIBUTION

Airports

Industry (incl. Telecom)

Oil and gas

Power

Water and sewerage

Global loans SMEs

TOTAL

EUR m

 80

168

230

142

150

 30

800

%

 10

 21

 29

 18

 19

3

100

In the selection of projects, the Bank has in particular supported those which contributed to a
significant  improvement  of  services  and  lower  tariffs  through  a  more  efficient  use  of
resources  as  well  as  to  an  improvement  of  the  environmental  and  health  situation  (in
particular through water supply and sewerage projects).

In addition, the Bank has continued its efforts to pass on the benefits of its financing to SMEs
through  global  loans.  Under  the  current  ALA  III  Mandate  (2001-2007)  so  far  9%  of  funds
were allocated for such facilities; this proportion is likely to increase in the future.

51

EIB’S VALUE ADDED

EIB  operations  in  ASEAN  were  structured  in  partnership  and  in  complementarity  with  the
Asian Development Bank and the banking sector. For the latter, the EIB plays a catalytic role
and acts as a facilitator in improving project quality and financial sustainability.

In the current situation, borrowers have very limited access to medium and long term finance.
Therefore,  they  could  capitalise  on  the  benefits  of  EIB’s  financing  as  the  Bank  makes
available  long-term  resources  at  attractive  terms  (EIB  enjoys  AAA  rating)  that  would  help
strengthen the borrower’s financial structure by lengthening the maturity and grace period of
its liabilities and reducing its debt service burden.

ENHANCING EIB’S FINANCING

In spite of the aftermath of the Asian crisis and the situation in Argentina, the projects signed
or approved in the first three years of the ALA III Mandate 2000-2007 account for almost half
of the total funding available under that mandate (€ 1.2 out of € 2.4 billion). This is a clear
indication  of  the  extent  to  which  demand  for  EIB  loans  in  these  regions  exceed  the  current
resources  available.  The  Bank  was  therefore  forced  to  ration  its  financing,  in  particular
through  keeping  the  loans  in  many  cases  below  the  amount  requested,  though  these  were
within  the  ceiling  of  50%  of  total  project  cost.  This  is  bound  to  worsen  in  the  near  future
because given the limited amounts available under the current Mandate, the lending volume
would  be  of  only  EUR  320m  for  both  Asia  and  Latin  America  per  year  for  the  remaining
four-year period. This will  reduce  the  effectiveness and materiality of  a potentially efficient
tool of the EU’s instrument of co-operation with ALA countries and of economic policy.

The financing of private sector investments focuses on one particular aspect of mutual interest
in support to the EU co-operation policy. However, there are other aspects of mutual interest
in  projects,  which  could  be  relevant  for  the  EIB’s  financial  participation,  in  particular  up-
stream  infrastructure  investments  in  order  to  facilitate  private  sector  initiatives  and  co-
operation,  investments  for  the  improvement  of  environmental  and  social  conditions  and
regional  integration  for  which  the  ASEAN  partner  countries  are  increasingly  requesting  the
EIB’s  support.  In  this  respect,  reference  is  particularly  made  to  the  Greater  Mekong  Sub-
region  (GMS)  Economic  Co-operation  Programme  aiming  at  promoting  high  priority  sub-
regional projects in sector such as transports, telecom and energy.

The EIB’s role as the EU’s investment financing arm in ALA is  increasingly recognised by
those  governments  and  an  increase  of  the  amount  available  under  the  current  Mandate  was
repeatedly requested for contributing to furthering the EU development aid and co-operation
policy.  This  issue  was  raised  on  the  occasion  of  bi-regional  summits,  e.g.  the  recent
EU/ASEAN and the EU-LAC in Madrid in May 2002.

52