Asean

By Michelle Vachon
The Cambodia daily

Relations between the European Union and Asean have been a tale of two organizations trying to shape and define themselves amid political and economic crisis, while attempting to develop an alliance that would benefit both regions.

Thirty years ago, the EU became Asean’s first dialogue partner. This led in 1980 to the signing of the Cooperation Agreement between members of the newly formed Asian body and the EU, then known as the European Economic Community. This agreement still is the basis of EU-Asean relations.
Burma’s acceptance as an Asean member in 1997 led to a falling out between the two organizations and to the cancellation of the 1999 EU-Asean Foreign Ministers Meeting. The EU had taken a position against Burma in 1996 because of its human rights record and its disregard for the democratic process.

Not wanting the policy of one country to hamper relations between two regions, the EU and Asean resumed political talks at the EU-Asean Ministerial Meeting of Vientiane in December 2000. The joint statement issued at this bloc-to-bloc meeting called Asean “a cornerstone of EU’s cooperation and dialogue with Asia.”

The EU still has not extended its cooperation agreement to Burma. However, Burma representatives were allowed to attend the Asean-EC Joint Cooperation Meeting in Bangkok in May; and a EU delegation visited Burma in September and met with government officials, Aung San Suu Kyi of the National League for Democracy, and with minority-group leaders.
Last year, the EU was Asean’s second largest export market and third-largest trading partner after the US and Japan. EU statistics show that EU exports to Asean countries were estimated at $41.6 billion—still lower than before the Asian crisis—while Asean exports to the EU reached $64.8 billion.

“Trade is the common bond between the two [organizations],” said Sok Siphana, secretary of state for the Cambodian Ministry of Commerce. “The EU [has] historically been the export market for Asean.”

Many Asean countries benefit from duty-free, preferential or reduced import rates under the EU’s Generalized System of Preferences. From 1995 to 2000, the EU was Asean’s biggest source of investment, contributing more than $26 billion or a fifth of all foreign direct investment, according to Asean data. During that period, Japan invested $19.2 billion, and the US $18 billion in the region.
“The EU sees Asean as a thriving economic basin of 500 million consumers,” Sok Siphana said.
While ties between the two organizations are especially strong in trade and investment, their relationship has not endured because they share similar structures nor because of the desire of one to emulate the other. In fact, the EU and Asean have little in common beside the fact that both institutions group country members in their respective regions.

“Each organization has a uniqueness and should be treated accordingly,” said Kao Kim Hourn, executive director of the Cambodian Institute for Cooperation and Peace and an Asean expert. “It would be unfair to compare Asean to the EU since its goals and structure differ from the European organization’s.

“Asean has tried to retain its uniqueness and relevancy economically but also politically,” in the face of global and regional changes that have been especially strong over the last five years, Kao Kim Hourn said.

The same applies to the EU, said Andreas List, first counselor for the European Commission delegation in Thailand.

“The EU is a special animal that has to invent itself because there is no model,” he said.

Unlike Asean, which is a forum for consultation and exchanges without the power to impose on its members decisions agreed upon by most countries, the EU operates as a super government that can set and implement policies.
The very nature of Europe helps make this possible, said Sok Siphana.
“The EU is a bloc—it’s a continent,” he said.

In addition, the culture of most of its members is based on Christianity, he said.

Asean members are geographically divided, their political systems greatly vary, and their cultures have been shaped by numerous religions, said Sok Siphana.

In addition, there is a marked disparity in members’ economic development, he said.

Asean data shows that last year, the annual income per person was $20,847 in Singapore and $270 in Cambodia.

Asean’s political importance comes from the very fact that it includes developing nations, Kao Kim Hourn said.

“Without Asean, some nations would not have a voice [internationally],” he said.

Promoting the economic development of the region as a whole was among the three goals set by Indonesia, Malaysia, the Philippines, Singapore and Thailand when they founded Asean at a meeting in Bangkok in August 1967.
They set their objectives as fostering economic, social and cultural development of the region though cooperation; safeguarding the region’s political and economic stability against power rivalry; and serving as a forum to resolve intra-regional differences. Brunei Darussalam joined in 1984, Vietnam in 1995, Burma and Laos in 1997, and Cambodia in 1999.

The EU began as a trade organization, the European Coal and Steel Community that was set up in 1950 by Belgium, France, Germany, Italy, Luxembourg and the Netherlands. In 1958, it evolved into the European Economic Community and the European Atomic Energy Community.

The European Union was formed through the Maastricht Treaty of 1992. It now totals 15 members, and 13 more countries have applied for membership.
The European Commission, which is the EU’s executive branch with a staff of more than 17,000, can initiate legislation and submit it to the Council of Ministers that includes representatives from each member country. On some issues such as foreign policy, all member countries must agree for a draft to become law; on others, a majority vote will suffice, List said.

The European Council, which meets twice a year, consists of members’ heads of state and is the EU’s highest decision-making body. Members of the European Parliament are directly elected by the EU’s 374 million voters. It is playing an increasing role in policy-making.

Among other institutions, the EU has a Court of Justice to rule on matters of EU laws, and a Central Bank to administer the euro that became most EU countries’ sole currency on Jan 1.

To summarize, the EU has several institutions to create and implement laws on members countries.

This differs fundamentally from Asean, which adheres to a strict policy of noninterference in the affairs of its members, and makes its decisions nonbinding on member governments.

The EU’s Directorate General for External Relations says on its Web site that Asean makes an important contribution to peace and stability in the Asia/Pacific region, especially through the Asean Regional Forum—the only security forum in Asia.

In economic terms, List said, “There is this huge economic giant, China, approaching Southeast Asia.” Asean may serve as a counterweight to China, and help protect its country members’ common interests, he said.

The EU is closely following the negotiations between Asean countries and China, Korea and Japan to establish a free-trade zone, List said.

“Our biggest interest is to have world trade under an agreed set of rules,” he said.
Free-trade zones in Asia should be compatible with the requirements of the World Trade Organization, List said.

Until recently, the relationship between the EU and Asean has not had the dynamism of Asean’s relations with China, Japan or Korea, said Kao Kim Hourn. “Both [organizations] have been busy taking care of their own affairs while trying to find common grounds,” List said.

The EU has had to deal with the dissolution of the Soviet bloc, and with the conflicts and economic problems that followed. Some Asean members have struggled through foreign and domestic crises, and were hit by the Asian economic crisis that started in 1997.

In the EU’s new Asia strategy, released in September 2001, Asean gained in prominence.

“Everywhere in the world, we see regional accords forming for self-preservation and global competitiveness,” Sok Siphana said.

Still, the EU and Asean can look toward stronger ties.
“Trade will be the driving force,” he said.