eu-asean economic and trade relations

8/8/2019 Eu-Asean Economic and Trade Relations

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ASEAN Overview

The Association of South East Asian Nations (ASEAN)was establish in 8 August 1967, in Bangkok, Thailand, byfive founding members: Indonesia, Malaysia, Singapore,Thailand and Philippines.

Currently, the ASEAN comprises 10 Members: the fivefounding members and Brunei Darussalam, Vietnam,Cambodia, Myanmar and Laos.

As of 2006, the ASEAN region has a population of about560 million, a total area of 4.5 million sq km, a combined

GDP of almost US$ 1,100 billion, and a total trade ofabout US$ 1,400 billion.

ASEAN objectives: to promote peace, stability andprosperity in the region.


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EU-ASEAN Cooperation Initiatives

Timeline Cooperation Initiatives

2007 Sixteenth AEMM in Nuremberg, Germany; adoption the Nuremberg Declaration on Enhanced Partnership.

European Council authorized the Commission to commence negotiations for an FTA with ASEAN.

2006 APRIS Phase I is concluded

APRIS Phase II starts

2005 Vision Group ASEAN-EU Economic Partnership, which was to look into the feasibility of a possible ASEAN-

EU FTA and other new initiatives for enhancing economic cooperation and ties between ASEAN and the EU.

2003 TREATI (Trans-Regional EU-ASEAN Trade Initiative)

AEMM (ASEAN-EU Ministerial Meeting)APRIS (ASEAN-EC Project on Regional Integration Support)

European Commission-ASEAN Transfer for Energy Cogeneration Programme on Standards Quality and

Conformity Assessment.

2002 COGEN Phase III (Technology Transfer for Energy Cogeneration from Biomass in ASEAN Countries)

EC-ASEAN Energy Facility Programme

2001 ASEAN Economic Ministers-EU Trade Commissioner Consultations II

1998 ASEM II: Asia-Europe Cooperation Framework and Asia-EU Vision Group

1994 EPG (ad hoc Eminent Persons Group)

1980 EC-ASEAN Cooperation Agreement

JCC (Joint Cooperation Committee)

1977 ASEAN stregthen ties with COREPER (Council of Ministers of the EEC and the Committee of Permanent

Representatives)

1975 JSG (Joint Study Group)

1972 Dialogue to establish informal relations


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Background

The European Economic Community (EEC) wasthe first dialogue partner to establish informalrelations with ASEAN in 1972 through theSpecial Coordinating Committee of ASEAN

(SCCAN). 1975 creation of the EEC-ASEAN Joint Study

Group (JSG), to formalize and strengthenrelations between EEC and ASEAN.

1994 EU launched its New Asia Strategy,recognizing that Asia is dramatically changingthe world balance of economic power.

1996 the first Asia-Europe Meeting (ASEM),which was held in 1996 in Bangkok.


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Bilateral Trade Relations

ASEAN represents a potential market of more than 540million consumers, compared with 454 million for the EU.

The EU is a 2nd largest trading partner for the ASEAN,

accounting for 11,7 % of total ASEAN trade, with thevalue of trade is 133.207 million Euro. Significantly, 13 %of ASEAN exports are destined for the EU.

On the other hand, ASEAN is 5th major trading partner

for the EU, accounting to around 126.612 million Euro,its give 5 % of total EU trade, just ahead of Norway andalmost equivalent to Japan.


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Value and Percentage Share of EUs Major Trade Partners to EU

Total Trade, 2006

Rank Trading Partner Value of Trade in MillionEuro % Share to Total Trade

World 2.516.604 100,0

1 USA 444.410 17,7

2 China 255.130 10,1

3 Russia 208.966 8,3

4 Switzerland 157.651 6,3

5 Japan 121.139 4,8

6 Norway 117.232 4,7

7 Turkey 84.995 3,4

8 Korea 61.114 2,4

9 India 46.422 1,8

10 Canada 46.085 1,8

11 Romania 44.935 1,8

12 Brazil 43.963 1,7

13 Saudi Arabia 40.945 1,6

14 Taiwan 39.307 1,6

15 Singapore 38.857 1,5

ASEAN 126.612 5,0


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Value and Percentage Share of ASEANs Major Trade Partners to

EU Total Trade, 2006

Ranks Trading Partner Value of Trade in Million

Euro

% Share to Total Trade

World 1.141.405 100,0

1 USA 142.116 12,5

2 EU 133.207 11,7

3 Japan 133.207 11,7

4 China 126.922 11,1

5 Singapore 91.261 8,0

6 Malaysia 79.254 6,9

7 Hongkong 51.952 4,6

8 Korea 50.238 4,4

9 Indonesia 47.874 4,2

10 Thailand 45.631 4,0

11 Australia 34.043 3,0

12 India 23.443 2,1

13 Saudi Arabia 20.137 1,8

14 Philippines 18.936 1,7

15 United Arab Emirates 16.986 1,5


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TREATI

The most significant steps in closer EU-ASEAN tradeand economic cooperation and integration have been setin recent years with the establishment of Trans-RegionalEU-ASEAN Trade Initiatives (TREATI) and the VisionGroup on EU-ASEAN Economic Partnership.

TREATI launched in July 2003 provided the initialframework for increased cooperation and dialoguebetween the two blocs on matters related to trade and

investment. TREATI served as a precursor to the EU-ASEAN Free

Trade Agreement (FTA).


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EU-ASEAN FTA

In April 2007 the European Commission wasgiven a mandate by European Member States tonegotiate an FTA with countries of ASEAN, as

part of the Commissions Global Europe strategy.These negotiations were launched in BruneiDarussalam, May 7, 2007.

Minister from EU and ASEAN created a Vision Group

with the mandate to look into the possibility of anASEAN-EU Free Trade Agreement, and to determinewhat areas should be covered by a future trade pact.


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EU-ASEAN FTA Benefit

EU-ASEAN FTA expected to gain a mutual beneficial ineconomic and trade relation between the two regions.Following is a number gain that enables in EU-ASEANFTA:

> stimulating economic growth;

> increasing trading capacity and market accessbetween EU and ASEAN;

> Enhancing competitiveness in the global stage, e.g.

stimulating knowledge transfer;> Providing consumers more alternatives in goods and

services.


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Conclusion

Economic relations between the EU and the ASEAN have along history since the beginning. EU is an important dialogue partner of

ASEAN. Beside that, EU is also one of ASEAN largest trading partner.On the other hand, ASEAN is also become a key player for the EU, thathas an important role in Asia Pacific region. EU and ASEAN are

determined to pursue their respective goals of greater regionaleconomic development.The ASEAN represents a potential market of more than 540

million consumers, compared with 454 million for the EU. Nevertheless,the two regions differ greatly in terms of economic size, with ASEANGDP equivalent to only 6.5 per cent of EU GDP. Among ASEANmembers, EU charted the biggest trade with Singapore at 38.85 million

Euro, which is equivalent to 1.5% of EU overall trade with the world.Base on that thing, we can see that there is available trade imbalanceamongs the EU and the ASEAN Member States.


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The most significant steps in closer EU-ASEANtrade and economic cooperation and integration have beenset in recent years with the establishment of TREATI and

the Vision Group on EU-ASEAN Economic Partnership.TREATI served as a precursor to the EU-ASEAN FreeTrade Agreement.

EU-ASEAN FTA expected to gain a mutualbeneficial in economic and trade relation between the tworegions. Nonetheless, there is still a lot of circle that getsnegative assumption to the performing of EU-ASEAN FTA.The EU and ASEAN viewed as a not equal partner intrade.


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However, with high potential in terms ofeconomic growth and performance and its growingprominence in the world economy, ASEAN canpotentially play a role as a bridge for Europe to thewider Asia-Pasific region. With renewed economicgrowth in the region, ASEAN can potentiallybecome a key trade and investment partner of theEU. Further, expected that ASEAN can have anactive role and speak more in the world, especiallyon economy and trade area

eu-asean economic and trade relations

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