View from abroad: Free trade and the new world order (Originally published 01/08/2015 at Dawn.com)

The signal for exporting nations is clear: if you count — or want to count — in the new world order, make sure you join a regional free trade agreement.That’s the message that many global trading nations will be taking home if — as expected — the US-led Trans-Pacific Partnership (TPP) free trade deal is finalised this weekend in Hawaii.Certainly, most nations still pay lip service to the multilateral trading system symbolised by the World Trade Organisation (WTO). And yes, there is also a focus on bilateral free trade agreements as well as plurilateral deals.But once, again, loudly and clearly: the trend towards mega-regionals is unstoppable and that’s where savvy nations are headed.As described by one newspaper, FTAs are “the new Great Game at the dawn of the 21st century”.The TPP is about trade and commercial interests, certainly. It’s about creating growth and jobs. But it is about more than that: it’s also about overarching strategy and geopolitics and just which nation will emerge as the primary power in the Asia-Pacific region.So let’s be clear: the TPP is US-led and China — along with India and Indonesia — is excluded. Still, the TPP would create a 12-nation grouping including five countries in the Americas (Canada, the US, Chile, Mexico and Peru); five in Asia (Brunei, Japan, Malaysia, Singapore and Vietnam); and New Zealand. South Korea, the Philippines and Taiwan have voiced interest in joining.Once signed, the TPP will form a free trade area with a population of 800 million, which accounts for 30 per cent of global trade turnover and nearly 40 per cent of global output.That is impressive. And clearly those outside the TPP are worried. And are not sitting still.First, China. Convinced that TPP is meant to “contain” China’s regional and global outreach, Beijing is working on several fronts to counter the US led initiative.Beijing is actively promoting the Regional Comprehensive Economic Partnership (RCEP) which would include members of the Association of Southeast Asian Nations (ASEAN) as well as India.China is also taking up the Free Trade Area of the Asia-Pacific (FTAAP) which would bring together members of the Asia Pacific Economic Cooperation (APEC) forum.Most significantly, China’s President Xi Jinping has come up with the ambitious ‘One Belt, One Road’ initiative to connect an array of Asian and European nations through transport, infrastructure and ICT links — and ultimately through unfettered trade.India’s actions may not be that visible but Delhi is creating stronger trade links with Southeast Asian nations while also seeking to negotiate a free trade agreement with the European Union. The EU-India negotiations are in an impasse at the moment — but both sides are trying to inject much-needed momentum into the talks.Which brings us to the EU. European trade officials did not, at first, take the TPP very seriously. As the deal looks set to be signed, attitudes appear to be changing.The EU is negotiating FTAs with a number of Asian nations — Japan, Vietnam and Malaysia — which are also members of TPP. A free trade deal with New Zealand and Australia has not been ruled out. And Singapore has already signed a free trade pact with the EU.And, significantly, for the EU, China is demanding exploratory talks on the pros and cons of an EU-China FTA. Brussels has so far filibustered by insisting that it first wants to conclude ongoing negotiations on an EU-China Bilateral Investment Treaty (BIT) before considering a free trade deal. But sooner rather than later, the EU will have to acquiesce.The EU has of course responded by trying to hammer out its own Transatlantic Trade and Investment Partnership (TTIP) with Washington. But those negotiations have run afoul of civil society groups which fear that TTIP will lower EU health, food and other standards.In Asia, however, if it is to compete with the US and China, the EU needs to start FTA negotiations with the 10-member Association of Southeast Asian Nations (ASEAN). Europe could be even more ambitious and seek a trade deal which covers ASEAN as well as New Zealand and Australia.More ambitious still would be a trade agreement which would cover all 51 countries which have signed up for ASEM, the Asia Europe partnership.Clearly, therefore, trade agreements these days are about commercial and economic interests but also geopolitical outcomes.US President Barack Obama has no doubts that “if we don’t write the rules for free trade around the world, guess what, China will … and they’ll write those rules in a way that gives Chinese workers and Chinese businesses the upper hand.”Make no mistake: the TPP and other FTAs of its kind are not easy to negotiate. The scope of such deals is enormous — covering questions ranging from copyright law to labour and immigration issues, as well as more standard trade talk of import tariffs and exceptions for sensitive commodities.It is crucial that TPP — and the transatlantic TTIP if it is ever completed — keep the doors open, with no discriminatory terms set for newcomers.Finally, while it is understandable that countries, frustrated by the long-stalled Doha round of global trade talks, have turned their attention to various initiatives to set up regional FTAs, they should try to maintain the WTO’s central role in global trade liberalisation.The TPP process itself is an admission that the consensus-driven WTO is too cumbersome a venue for so-called “high-standard” trade deals. But it would be counterproductive and harmful to give up on the WTO and its ability to create a “level playing field” for all trading nations, big or small, rich or poor.

View from Abroad: A week of tears, tragedy and shame (Originally published 23/05/2015 at dawn.com)

They may disagree on many issues, but as they struggled to respond to their respective refugee crises, the European and Asian governments acted with an equally distressing disregard for human life.The Europeans showed little concern for the human rights and much — touted “European values” of tolerance etc that they often preach on the international stage and in their dealings with other states. The Asians illustrated an equal ruthlessness and lack of humanity.The Europeans turned a deaf ear to the Vatican’s appeal for mercy and charity. The Asian nations had little pity for the plight of fellow Muslims.In Europe, as the refugee crisis in the Mediterranean Sea worsened, with thousands of desperate African, Arab and Asian refugees continuing to arrive on Italian and Greek shores, the 28 European Union countries squabbled over the number of people they could “realistically” be expected to allow on to their territory.Plans were drawn up for a naval operation against the human traffickers. There was toxic talk of keeping out as many as possible of the world’s huddled masses.Take a look: In Asian seas, Rohingya migrants have nowhere to landIn Asia, the 10-nation Association of Southeast Asian Nations (Asean) showed itself to be even more inhumane as Thailand, Malaysia and Indonesia left thousands of Rohingya refugees adrift on the high seas, adamant that they could not be expected to open their doors to Myanmar’s persecuted Muslim minority.The Rohingyas were eventually given temporary shelter by Malaysia and Indonesia, but only after repeated scoldings by the United Nations to protect migrants and refugees stranded on the vessels, to give priority to saving lives, protecting rights, and respecting human dignity.Amazingly, Mynamar where persecution against the Rohingyas is rife escaped Asean censure. Thailand which has received many of the migrants said it was not going to be taking in any more. None of the other Asean states said a word of protest.A meeting to discuss the problem has been called at the end of the month — but many believe that Myanmar is unlikely to attend.Significantly, UN officials, including the UN High Commissioner for Refugees Antonio Guterres and the UN High Commissioner for Human Rights, Zeid Ra’ad Al Hussein have also appealed strongly to European leaders to put human life, rights and dignity first when agreeing on a common response to what they called the “tragedy of epic proportions” unfolding in the Mediterranean Sea, where some 1,600 people have died this year trying to flee their strife-torn homelands.Certainly, it isn’t easy for any country to open its doors to thousands of foreigners in one go and to provide them with food, water and shelter — and a future.But in a world of war, violence, extremism, persecution and poverty, the mass movement of desperate people is inevitable. Pakistan opened its doors to millions of Afghans. Jordan, Lebanon and Turkey are taking in displaced Syrians.The situation of so-called “stateless” people is even worse. Palestinian refugees have been in camps for decades as have so-called “Biharis”. The Rohingyas, chased out by the Buddhist extremists in Myanmar, are unwelcome across Southeast Asia. Lampedusa in Italy is crowded with men, women and children of many different nationalities — but as they flee war and poverty, often leaving their documents behind, they might as well be stateless.The number of migrants entering the EU illegally almost tripled last year. Of the nearly 170,000 migrants who crossed the Mediterranean to Italy in 2014, more than 3,200 lost their lives trying to reach Europe. During the first two months of this year, arrivals were up 43 per cent versus the same period last year.The outlook for Asean is equally grim. Nearly 31,000 refugees took to the boats in the last three months of 2014, followed by another 25,750 in the first quarter of 2014. Europe’s initial response to the mass arrival of the refugees was feeble, disjointed and inadequate. But the reality of the human tragedy unfolding in what many now call the “sea of death” finally forced governments into action — of sorts.It’s still not clear if the distribution of the hapless people among EU member states will take place as the European Commission would like. Britain and France have already said no. With Europe’s Far Right xenophobic leaders breathing down their necks, others are not too keen either.Asean’s callousness is not unexpected. Countries in the region don’t really have a tradition of caring much about human rights and have a policy of not interfering in the affairs of others.Still, the lack of humanity initially shown by the region towards the desperate Rohingyas is cause for dismay. Most of Myanmar’s 1.1 million Rohingya Muslims are stateless and live in apartheid-like conditions. Almost 140,000 were displaced in clashes with ethnic Rakhine Buddhists in 2012.In addition to taking in the refugees, Asean must demand that Myanmar stop the continuing violence against Rohingyas. The credibility and reputation of the region is at stake. Asean may want to focus on high economic growth and its plans to build a frontier-free common market. But it would be a pity if it lost its soul in the process.

View From Abroad: Getting connected — the secret to reviving Asia-Europe ties (Originally published 16/05/2015 at dawn.com)

To count in an increasingly complex and interdependent world, you have to be connected. This is true for individuals, institutions, companies, continents, regions and countries. The growth of social media sites is testimony to the increased connectivity of individuals and groups.No connections translate into lack of influence. It means no voice, no role and no chance to make an impact. What’s true for individuals is also true for countries. The nations which have clout in this rapidly-changing 21st century are those that are connected to the rest of the world.That’s why the European Union is busy breaking down internal barriers to trade, services and the movement of goods among its 28-member states. It is also the reason that the EU and the United States are negotiating an ambitious and trade-boosting Transatlantic Trade and Investment Partnership (TTIP) and it is also why the US is also hoping to conclude the Trans-Pacific Partnership (TTP) negotiations by the end of the year.Asians are embarked on a headline-grabbing connectivity agenda of their own. The Connectivity Masterplan drawn up by Asean (Association of South-East Asian Nations) is impressive in its scope and content. And of course China’s “One Belt, One Road” initiative is making waves worldwide.As these different initiatives illustrate, connectivity can and does take many forms. The first focus is clearly on transport — building roads, bridges, railways as well as maritime and air routes. There are also digital networks.Connectivity is also about building networks that connect people, schools and colleges, media, civil society organisations, businesses, policymakers and institutions.Being connected is good for the economy by helping to boost trade and investments and creating jobs. It is good for creativity and innovation. It is good for fostering mutual understanding. And, of course, it is very good for peace and stability.And that’s why is encouraging to see the attention now being paid to Asia-Europe connectivity. The topic is high on the agenda of Asem (Asia Europe Meetings) and is being widely recognised as a vital element in the efforts to revive Asem for its third decade.Certainly, compared to 1996 when Asem was first launched in Bangkok in 1996 or even 10 years ago, there is now a stronger EU-Asian conversation on trade, business, security and culture. As Asem celebrates its 20th anniversary in Mongolia next year, connectivity is expected to be an important driver for further Asia-Europe cooperation.Asia-Europe economic connectivity has grown. With total Asia-Europe trade in 2012 estimated at 1.37 trillion euros, Asia has become the EU’s main trading partner, accounting for a third of total trade and surpassing the North American Free Trade Agreement (Nafta). More than a quarter of European outward investments head for Asia while Asia’s emerging global players are seeking out business deals in Europe.The increased connectivity is reflected in the mutual Asia-Europe quest to negotiate Free Trade Agreements and investment accords. The EU and China are currently negotiating a bilateral investment agreement. The FTAs concluded by the EU with South Korea and Singapore and similar deals under negotiation with Japan, India and individual Asean countries are important in consolidating EU-Asia relations.Beyond trade and economics, Asia and Europe are linked through an array of cooperation accords. Discussions on climate change, pandemics, illegal immigration, maritime security, urbanisation and green growth, among others, are frequent between multiple government ministries and agencies in both regions, reflecting a growing recognition that 21st century challenges can only be tackled through improved global governance and, failing that, through “patchwork governance” involving cross-border and cross-regional alliances.Importantly, connectivity is the new Asem buzzword. The significance of Asia-Europe connectivity — including digital connectivity — was underscored by the Asem summit in Milan last year, with leaders underlining the contribution increased ties could make to economic prosperity and sustainable development and to promoting free and seamless movement of people, trade, investment, energy, information, knowledge and ideas and greater institutional linkages.The summit urged the establishment of an integrated, sustainable, secure, efficient and convenient air, maritime and land transportation system, including intermodal solutions, in and between Asia and Europe. It also noted the usefulness of an exchange of best practices and experiences on areas of common interest, relating for example to the governance of the EU Single Market and the implementation of the Master Plan on Asean Connectivity.A meeting of Asem summit in Milan transport ministers held in Riga discussed a common vision for the development of transport networks between Asia and Europe and emphasised the significance of connectivity between the two regions for achieving economic prosperity and sustainable development. The importance of railway links was especially underlined.Certainly, much of the talk on Asia-Europe connectivity is centred on Chinese President Xi Jinping’s plans for the Silk Road Economic Belt and a 21st century maritime Silk Road (termed together “One Belt, One Road”) aimed at building two economic corridors with important development implications for many nations, creates new opportunities for further China-EU cooperation in areas such as infrastructure, trade and investment as well as energy and resources.The initiative raises many questions: how will Europe benefit from the construction of the Silk Road Economic Belt? What is the potential for synergies between the Chinese and European infrastructure and connectivity policies? Which sectors are likely to benefit most from such cooperation? What will be the role of the Asian Infrastructure Investment Bank in financing the “One Belt, One Road” initiative? What is the role of youth and women in the drive to connect Asia and Europe?Is it only about infrastructure or can Asem also encourage institutional and people-to-people connectivity? The answer was given at a meeting of Asem education ministers — also in Riga — which highlighted the importance Asia-Europe cooperation in areas like mobility of students, teachers, researchers, ideas and knowledge. Finally, while increased connectivity would offer opportunities for business and trade, the darker security implications linked to the cross-border movement of arms, drugs and terrorists also need to be addressed.

View From Abroad: Getting excited about Asean (Originally published 28/02/2015 at dawn.com)

As China’s economy slows and Indian growth remains uncertain, global attention has switched to the end-year creation of a tariff-free 10-nation Southeast Asian “single market” as the newest and most exciting facet of rising Asia.The excitement is justified. Taken together, members of the Association of Southeast Asian Nations (Asean) have a population of 620 million, a growth rate of five per cent and a combined gross domestic product of almost $2.5 trillion. A growing middle class across the region has emerged as an avid consumer of foreign and domestic goods and services. Not surprisingly, global business is enthusiastic. Trade is booming and foreign investments into the region are rising.Significantly, even as they strive to get elements of the Asean Economic Community (AEC) in place by year-end, countries in the region are already crafting an even more ambitious “post-2015 vision” for further integration. The ambition is to move beyond trade and economics to focus on still largely incomplete plans for building a political and security community and preparing the groundwork for stronger social and cultural integration. One visionary goal is to create a common Asean time zone — as opposed to the current three spanning the Asean region — to facilitate cross-border business and finance.The AEC roadmap includes four pillars: a single market and production base (including the free flow of goods, services, skilled labour, capital and investment), a competitive economic region, equitable economic development and integration into the global economy.But challenges remain. First, don’t expect the AEC to enter into force with a “big bang” on Jan 1, 2016. Not all elements of the single market will or can be in place on schedule and while progress is being made to reduce trade barriers and ease investment, as well as ensure the free flow of goods, services, investment and skilled labour, the devil is in the detail — and in enforcement and implementation. An Asean Scorecard which keeps countries up to date on progress on the AEC says about 80pc of the work on completing the AEC has been done. But Asean experts acknowledge that the remaining 20pc covers “the most difficult” tasks.Malaysian Trade Minister Mustapa Mohamed, whose country holds the rotating presidency of the Southeast Asian bloc this year, has said the full impact of integration may not be felt until perhaps 2020, recognising that there are border issues, customs, immigration and different regulations, which still need to be tackled. Businesses must still navigate a complex landscape of different product standards and regulations that make it hard to sell across the region and hamper the ability of new companies to enter the market.Surprisingly, many Asean businesses appear to know little of the AEC’s pros and cons. Vietnamese officials said recently that 60pc of their country’s business community “had no idea what the AEC is”. A survey by the Singapore Business Federation in January found two out of five firms were completely unaware of it. Yet establishing the AEC will impact positively on many industries, including electronics, car parts and components, as well as chemicals, textiles, and clothing. Once completed, the hope is that the AEC will boost intra-Asean trade which currently stands at a modest 24pc of the region’s overall trade flows.Second, Asean still has much to do to connect with citizens. Increasingly vocal civil society representatives are adamant that Asean must live up to its goal of becoming “people-centred” and less elitist. In contrast to earlier years and outdated conventional wisdom, Asean civil society is proactive and striving to become deeply involved in efforts to ensure stronger human rights protection and promotion across the region. In a recent statement, the Asean People’s Forum (APF) — Asean’s largest civil society group — listed a number of problems in the region, among them grave human rights violations, corruption and poor governance. Intimidation of human rights defenders was also raised.There are signs that governments are paying heed. As current Asean chair Malaysia has indicated that one of its main priorities will be to engage Asean citizens and to promote greater understanding of Asean initiatives and projects. “We also hope to steer Asean closer to the people of Southeast Asia: to make this institution part of people’s daily lives, by creating a truly people-centred Asean,” says Malaysian Prime Minister Najib Razak. The rhetoric has to be turned into action, however.Third, for all the hype, Asean still has to deal with obstacles created by economic nationalism, protectionism and resistance to foreign-owned industries which persists in many member countries. Malaysia’s trade minister Mohamed has said he will not avoid the politically sensitive task of tackling protectionism in Asean such as local content requirements, mandatory product standards and import restrictions.More generally, maritime disputes in the South China Sea as well as incidents of religious sectarianism, rising intolerance, human trafficking and corruption are further challenges to surmount as are differences in levels of development and political and economic models among Asean states. Additionally, there is concern that Indonesia under President Jokowi may be too focused on the country’s domestic questions to play its traditional leadership role in Asean. Meanwhile Indonesian business continues to be wary of opening up the country’s markets to Asean competitors.Looking aheadThe Nay Pi Taw declaration on Asean’s post-2015 vision adopted last November sets out an impressive agenda for the region’s future. While deepening economic integration and connectivity remains on the agenda, Asean leaders have identified external relations and the building of political/security and socio-cultural communities as a priority.There is no shortage of interesting ideas: leaders of Indonesia and Malaysia in recent weeks have been pushing for a common time zone arguing that this would help businesses and allow for coordinated opening times for banks and stock markets. An Asean Open Skies Agreement is designed to create a single aviation market and allow for more flights, which will increase trade, investment and tourism. There are suggestions to set up an Asean regional infrastructure fund. Plans for strengthening the Asean Secretariat and improving coordination among member governments are being studied by a high-level task force. East Timor’s Asean membership is under internal discussion.Asean is a business opportunity for the West but also for other Asian countries — a fact that India, China and Japan are more than aware of.

View from Abroad: Europe waits for trade talks but Modi ‘looks East’ (Originally published 22/11/2014 at dawn.com)

These are busy times for Asian leaders — and Indian Prime Minister Narendra Modi is among the busiest.Last week as he criss-crossed Asia, clinching business deals, attracting much-needed investments and building strategic alliances, Modi found time for a quick meeting with the European Union’s outgoing European Council President Herman Van Rompuy to underline that the “EU should take advantage of the new economic environment in India”.The two men apparently agreed that the United Nations should hold an annual international “Yoga Day”.But not much was apparently said on the EU-India free trade agreement that the two sides have been trying to negotiate for the last seven years and which now seems to have run into the ground.EU officials are still hoping that the negotiations will be back on track soon. But the Indian leader is too busy looking elsewhere.As of this autumn, Modi has his nation and the rest of Asia abuzz with his determination to inject new life into India’s “Look East” policy which, following his incessant Asian travels, including recent talks with Asean (Association of South-East Asian Nations) and other Asian leaders in Myanmar, has morphed into what Modi proudly describes as a “Look East — and Act East” policy.India’s decision to step up its game in Asia is no surprise. As an emerging power with “great power” ambitions, India has no option but to seek a stronger role in a volatile neighbourhood and a region marked by often-changing geopolitical rivalries and alliances. Also, tapping into the region’s dynamic economies is critical for India’s own growth and reform agenda.Certainly, China has the funds needed to help finance India’s infrastructure requirements while Japan and South Korea have the technical experience and expertise. South-east Asian markets are important for Indian investors and exporters. Sustainable peace with Pakistan may still be a long way off but is essential for India’s development and peace and stability in the region.While in Myanmar, Modi made the headlines by pushing his “Make in India” campaign, which aims to turn the country into a global manufacturing hub, by cutting red tape, upgrading infrastructure and making it easier for companies to do business. Modi promised to implement long-delayed plans to boost trade and deepen ties with Asean so that current trade flows could rise from $75 billion today to $100 billion by 2015.In fact, the policy is not new. India has long spoken of developing a “Look East” policy, but has lagged behind China in forging ties with emerging economies in South-East Asia. Tackling China’s influence on Asean and South Asia is still a challenge but India benefits from the fact that Japan, Asean and others in the region are certainly looking to reduce their economic dependence on Beijing by reaching out to Delhi.Indian commentators also underline that Modi used the Asean meeting to articulate for the first time India’s intent to enhance “balance” in the Asia Pacific region, arguing that the word was carefully chosen to reflect India’s shared concerns with other Asian countries about China’s growing assertiveness in the region.Interestingly, Indian defence cooperation is being stepped up with several Indian Ocean states including Sri Lanka and Maldives. India will supply four naval patrol vessels to Hanoi as part of $100 million Line of Credit signed last month. The two countries have also decided to ramp up cooperation in the field of hydrocarbon, civil nuclear energy and space.Given Modi’s focus on the Asia-Pacific, the EU’s new leaders may have to wait a long time before he signals a real interest in upgrading bilateral ties.It is no secret that the EU-India strategic partnership needs a shot in the arm and that trade and investment flows are much too modest. But negotiations for an India-EU Bilateral Trade and Investment Agreement (BTIA) — the most important issue on the bilateral agenda — have lasted for seven years, with no end in sight. And hopes that New Delhi would put energy and effort into the successful conclusion of the elusive deal have not materialised, with differences over tariffs and market access as well as questions related to the protection of intellectual property rights continuing to impede progress.The pact could be signed in 2015 — but only if both sides can summon up the political will to look beyond the array of technical issues to the deeper strategic importance of their relations.Modi and the EU’s new leaders face the uphill task of taking the relationship to a higher and more genuinely strategic level, a move that would benefit both sides.In addition to the geopolitical value of such a decision, European investors are willing and eager to enter the Indian market. European know-how could be valuable to India’s reform and modernisation agenda. Europe, meanwhile, needs new markets to keep its modest economy on track.To inject momentum into the relationship, both sides will need to make an effort. EU and Indian leaders have not met for summit talks since February 2012. An early meeting between Modi and the EU’s new presidents of the European Commission and the EU Council this autumn will therefore be crucial in signalling a fresh start in relations.

View from Abroad: Keep watching Jokowi (Originally published 1/11/2014 at dawn.com)

You heard it here first. Two years ago, I predicted in this column (Hope amidst the madness Sept 29, 2012) that Joko Widodo, the then newly-elected governor of Jakarta, was poised to become the next president of Indonesia.On Oct 20, that prediction came true as Widodo — better known as Jokowi — became the leader of the world’s most populous Muslim majority country, fourth largest democracy and an impressive Asian economic power house.In 2012, I remember coming back from a long study tour in Indonesia where practically everyone I met had waxed lyrical about the governor of Jakarta. I was intrigued — and then I was convinced. Jokowi is special.Jokowi and Indonesia matter. They matter to Indonesia’s 250 million citizens, to the wider south-east Asian region — and also to an increasingly chaotic and depressingly violent Muslim world.Much has been written about Indonesia’s new head of state: by all accounts, he is low-key, soft-spoken, dedicated, hard-working and, in a country once ruled by the army and an unsavoury elite, he is “a man truly of the people”.He is therefore an unusual and outstanding political phenomenon. His origins are modest. He was drawn to politics late in life. In a country where family and background counts, he breaks the rules by having no army or political family connections.Comparisons have been made to US President Barack Obama. Both men emerged “out of nowhere” to lead their nations, caught the popular imagination by breaking with the past, reached out to young people and brought a message of change and hope to a tired nation.Look carefully, and the two men even share a striking physical resemblance.As Jokowi takes power, there are concerns that he may also run afoul of an old guard which is reluctant to cede power and privilege to a less skilful and less experienced political newcomer.But there is a difference. Obama heads an economy which is just beginning to sputter to life after years of stagnation. America is desperate to look inwards even as it is pulled screaming and kicking into new military adventures. Public support for Obama is eroding fast.Jokowi, in contrast, has become the leader of one of Asia’s most exciting countries and dynamic economies. Indonesia still faces an array of political, economic and societal challenges — and none of these will disappear under the new president’s watch.Significantly, what happens in Indonesia will not just stay in Indonesia — it will have strong repercussions across the country itself, the 10-member Association of South-east Asian Nations (Asean) and a curious Muslim world.Jokowi’s election is hopefully a fatal blow to the old-style politicians like Prabowo Subianto — a former general once married to the daughter of Indonesian dictator Suharto — who was also a candidate for president and refused at first to acknowledge defeat.In a region not noted for its espousal of democratic values and human rights, Indonesia stands out for having successfully ensured the transfer of power from one elected president to another.For many years, Indonesia has engaged in a massive soft power exercise of trying to export democracy to neighbouring nations, including Myanmar. Jakarta has taken the lead in trying to inject some real “people power” into Asean.Finally, Jokowi offers welcome relief in a Muslim world dominated by dictators, monarchs and unsavoury politicians.Still, it won’t be easy. Jokowi may have claimed the presidency, but he does not have a majority in parliament which last month controversially blocked the direct election of governors, mayors and district chiefs, a move which could prevent the rise of figures outside the political establishment, like Jokowi. The law is expected to be repealed — but it signals the tough political battle ahead for the new president.It’s been a good few years for the Indonesian economy — but growth is slowing down as the commodity boom wanes and exports decline. The government is under pressure to cut its generous fuel subsidies, a move which could spark civil unrest.Indonesia has not suffered a major terrorist strike since 2009 when a pair of luxury Jakarta hotels were targeted by suicide bombers but its brand of moderate and tolerant Islam is under threat from extremist forces. The country is trying hard to fight the spread of Wahabi Islam. Fighting corruption remains a challenge across the country.Most significantly, the new president faces the challenge of distancing himself from Megawati Sukarnoputri, a one-time president of the Indonesia and the daughter of the country’s first post-independence president, Sukarno.As chairwoman of the Indonesian Democratic Party of Struggle (PDI-P), which put up Jokowi as presidential candidate, Megawati still wields enormous influence and has used it to determine the members of the new president’s cabinet.Indonesian newspapers warn that the new government is the result of compromises between Jokowi and Megawati and that contrary to expectations that the new president would appoint a team of technocrats, at least 21 ministers in the 34-member cabinet are either representatives of political parties or have links to political figures.Most damagingly, is the inclusion of Puan Maharani, Megawati’s daughter as a coordinating minister for human resources development and culture.“We can only imagine that the shoe is too big for her,” warned the Jakarta Post.“We are disappointed because we had high expectations,” the newspaper warned. However, there is praise for the appointment of eight female ministers, including the country’s first-ever woman foreign minister, Retno Marsudi.As I said in an earlier column, the world needs an inspirational, forward-looking Indonesia which stands proudly for pluralism, human rights, civil society and reform in a world where these values are in short supply.Friends of Indonesia are hoping they can continue to engage with a country which can fulfil its role as a modern and promising 21st century power. And they are watching Jokowi.

APPOINTMENT OF FIRST EU ENVOY TO ASEAN WILL BOOST TIES (Originally published 25/09/14)

The European Union’s decision to appoint a special ambassador accredited to the Association of Southeast Asian Nations (ASEAN) is a welcome and long-awaited step forward in the EU’s relations with one of the world’s most dynamic and rapidly-growing regions.As a statement by the European External Action Service, the EU’s “foreign ministry”, underlined, the “important decision” reflects Europe’s growing engagement with ASEAN and an ambition to upgrade the existing partnership with the Southeast Asian grouping to a strategic one.The move also underscores the hard work put in by ASEAN members in drawing EU attention to the region over the last four years. Friends of Europe has been a strong advocate of closer and stronger EU-ASEAN relations.The new EU envoy could make an important contribution to injecting some much-needed momentum into what – until four years ago – was still a lacklustre and uninspiring relationship.Good progress has been made in recent years. However, building a solid, sustainable and strategic EU-ASEAN relationship will remain a challenge, demanding a strong effort by both regions. Certainly both sides see an interest in forging closer ties. Bilateral EU-ASEAN trade and investment flows are booming. Europe and ASEAN need each other’s’ markets to grow and thrive.But in addition to the global challenges they need to tackle, Asian and European countries face difficult tasks both at home and in their respective regions. Still grappling with slowing economic growth and unacceptably-high youth unemployment rates, Europe’s urgent foreign policy priority is to thrash out a new “beyond sanctions” strategy for dealing with an increasingly volatile and assertive Russia.European countries are also under pressure to join America’s campaign to “destroy and degrade” the so-called “Islamic State” in Iraq and Syria.ASEAN states, meanwhile, are struggling to meet their goal of forging a border-free single ASEAN market by end-2015. On the foreign policy front, they are engaged in a delicate balancing act to maintain good relations with the three Asian behemoths: China, Japan and India.Still the omens are good. Coming only a few weeks before the mega Asia Europe Meeting (ASEM) in Milan on October 16, the EU announcement on the special envoy to ASEAN sends a strong and reassuring message of continuing EU engagement with Asia in the years ahead.ASEM will bring together 53 Asian (including ASEAN) and European partners for a two day summit focusing on the key security, economic and political challenges facing both regions.Significantly, Chinese Prime Minister Li Keqiang, Japan’s Shinzo Abe and key ASEAN leaders will be attending the meeting as will Italian Premier Matteo Renzi and the EU’s top officials, Herman Van Rompuy and Jose Manuel Barroso. For both men it will be the last ASEM gathering before the change of EU leadership in November.Asian and European business leaders, parliamentarians, academics and journalists as well as civil society actors will also be gathering in Milan around the same time in separate but inter-connected fora.In another sign that Europe intends to stay engaged with Asian states despite the fires burning in its neighbourhood, the incoming EU foreign policy chief, Italian Foreign Minister Federica Mogherini, has gone out of her way in recent weeks to highlight Europe’s sustained interest in Asia, including ASEAN.Mogherini’s focus on Asia is important and reassuring. Her predecessor Catherine Ashton was roundly criticised by ASEAN governments for paying only sporadic and cursory attention to their region. She managed to get relations back on track – but it was touch and go at moments.Mogherini is expected to be more attentive. And under the new structures being designed by incoming European Commission President Jean-Claude Juncker, the EU foreign policy chief will be working in close cooperation with her colleagues who deal with trade, development aid, humanitarian affairs and climate change to forge a coherent conversation with Asia. Closer coordination with EU capitals is also expected.This is good news. Both the EU and ASEAN have worked hard over the last four years - in Brussels and in the different European and Southeast Asian capitals - to make their relationship more credible and relevant.It’s often been long and laborious. Human rights issues as well as relations with the former military junta in Myanmar cast a dark, unpleasant shadow over relations even as trade and investment flows continued to expand.Political reforms in Myanmar as well as ASEAN’s economic dynamism and newfound interest in developing an impressive - albeit still modest - human rights agenda, have helped to turn the relationship around.Looking ahead, for the EU, membership of the East Asia Summit (EAS) remains an important strategic goal. The 18-member forum which discusses security and development includes ASEAN as well as the United States, Russia, India and others. ASEAN’s reaction so far to EU membership of the East Asia Summit has varied from lukewarm to hostile, however.The appointment of the new EU envoy to ASEAN could help unlock the EU membership of EAS in the coming years. ASEAN is also looking for an EU upgrade to status of “strategic partner” and the regular convening of EU-ASEAN summits.At the same time, with the end-2015 deadline approaching for establishing a border-free ASEAN Economic Community (AEC), demands for the revival of the once-abandoned effort to negotiate an EU-ASEAN free trade deal have resurfaced. The outgoing EU Trade Commissioner Karel De Gucht has said such a pact could be negotiated once the AEC is in place. It’s still not clear if his successor Cecilia Malmstrom will be equally interested in such a deal.Certainly an EU-ASEAN FTA could increase Europe’s visibility in a landscape crowded by multiple Asian free trade initiatives including the US-led Trans Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP) linking ASEAN to all leading economies in the region.Significantly, the EU has emerged as an important partner in implementing the Master Plan on Connectivity adopted by ASEAN leaders in October. The plan, which includes the forging of physical, institutional and people-to-people links, is discussed in the EU-ASEAN Dialogue on Connectivity. The first such dialogue was held in Brussels earlier this year.A conversation on maritime security has also been initiated.These and other EU-ASEAN ventures should expand and deepen once the new – and yet to be named - EU envoy to the grouping begins working in Jakarta. Europe and ASEAN have come a long way in making their partnership more relevant in a rapidly-changing world. Both sides must maintain the momentum despite domestic and regional distractions.

EU needs stronger focus on Asian security (Originally published 01/07/13)

EU foreign policy chief Catherine Ashton’s decision to attend the ASEAN Regional Forum, Asia’s premier multilateral security platform, is an important step forward in Europe’s quest for stronger engagement on security issues with Asia.The EU has so far played up its economic credentials in Asia.  Certainly, Asians value Europe as the region’s second largest trading partner and the biggest investor.That’s only part of the story, however.  As Asia faces up to a host of old and new tensions, it’s time Europe switched the focus from trade to security in its conversation with Asia.Europeans have long believed – and many Asians have argued – that the absence of “hard” military power erodes Europe’s standing in Asia.  Europe’s “soft power” was viewed as inferior to American and Chinese “hard power”.This was possibly true a decade ago.  But Asia’s remarkable rise in the 21^st Century – and China’s rapid ascendance as the region’s dominant nation - has prompted a radical reassessment of the challenges facing the region.The US “pivot” or rebalancing toward Asia responds to some of the region’s military concerns linked to China’s rise.But military threats are not the only question on Asia’s new agenda.Asian policymakers today are increasingly turning their attention to tackling non-traditional security issues, an area where the EU has acquired special skills and expertise.Uneasy about the dangerous political and security fault lines that run across the region, many in Asia believe they can learn from Europe’s valuable experience in ensuring peace, easing tensions and handling conflicts.Indonesia’s former foreign minister Hassan Wirajuda, says the “Asian Century” must be about more than dynamic economic growth rates; rising Asia must also become a region of sustained peace and stability.The point is also made strongly by Javier Solana, the EU’s former foreign and security policy chief.  As an “unfinished continent” where historical wounds have not fully healed and where reconciliation has not been achieved, Asia needs norms, rules and institutions which ensure peaceful co-existence, Solana wrote recently.Having successfully reconciled once-warring parties, Europe has a “unique toolbox on offer”, Solana says.The EU must, however, become better at projecting these special qualities and skills.Ashton did point out at the Shangri La Dialogue in Singapore last month that the EU’s strength lies in its ability to work on a “comprehensive” approach which includes a wide range of tools and instruments – short and long-term, humanitarian and development, security and political - to tackle new challenges.And she is right: this mix does certainly make Europe a “unique global partner for Asia on security issues.”The message was delivered again at the ARF.  It needs to be repeated and articulated with more conviction, resonance – and empathy.  Asians want to learn from Europe’s successes in regional integration and institution-building.  They do not want to hear lectures about their weaknesses.Stronger engagement on Asian security issues will require a deeper EU dialogue with ASEAN – the Association of Southeast Asian Nations – which is in the forefront of pan-Asian peace-building efforts.It means regular participation in Asian meetings by European ministers and senior EU officials as well as constructive contributions to ways in which the ARF could move from its current focus on confidence-building to preventive diplomacy.Proposals to organise a gathering of all signatories of the ASEAN Treaty on Amity and Cooperation (TAC), the security blueprint for the region which the EU signed last year can also be pursued.The EU’s security interest in the region is not just about ensuring the safety of sea lanes and navigation in Asian waters.  Europe can help and inspire Asia as it seeks to ease historical enmities, build sustained peace and tackle non-traditional security challenges.

As Asians talk security, Europe cannot be on the sidelines (Originally published 09/07/12)

As senior EU policymakers get ready to attend Asia’s top security conference in Cambodia on 11-12 July, there should be no doubt: Europe and Asia need to work more actively and forcefully together.Debates on whether or not the EU should seek stronger engagement with Asian nations or be content with a marginal role in the region may be intellectually stimulating – but they are pointless.Certainly, the EU will never be a “Pacific power” and should have no ambition of becoming one. But neither can it remain passively on the side lines of developments in Asia.In an inter-dependent, globalised world where no one nation, bloc or region can claim to lead the rest, where security is about more than military spending and where nations’ are connected to each other by a dense web of trade and investments, Europe-Asia cooperation is the only option.It’s not about whether Europeans have the time, energy or interest in Asia or whether Asians think Europe is still relevant. It’s about the economy and the challenge of ensuring sustained global growth. It’s about dealing with climate change, pandemics, humanitarian disasters and poverty. It’s also about preventing tensions and conflicts which can endanger global peace and security.None of these challenges can be tackled by one nation or region on its own. Certainly US Secretary of State Hillary Clinton will be in Phnom Penh for the ASEAN Regional Forum (ARF) to reassure Southeast Asian nations of America’s renewed commitment to the region. But, exhausted by two long-drawn wars and beset by shrill election-year domestic concerns, the US has made clear that it is no longer ready to play global policeman or global peacemaker.Despite its growing economic clout, China has never laid claim to being an international leader and is unlikely to do so in the near future. Russia’s global ambitions are not credible. India is not interested.In contrast, whether they like it or not, Europeans are expected to think and act globally, stand up for certain key universal principles, to be generous and kind to victims and get tough with bullies.For all their criticism of Europe – and despite the Eurozone crisis – even the fiercest Asian commentators recognise that Asians can learn much from Europe. Asians have never liked European “arrogance” in lecturing and hectoring them on their perceived deficits and weaknesses. But they admire much that is European including European technology, products and culture. In order to keep growing, Asians need European markets and investments.When she sits down with Hillary Clinton at the ARF meeting later this week, Catherine Ashton, the EU's chief diplomat, should remember that Asia-Europe cooperation is a necessity – although reaching out to countries in the region is not always easy.Political reform in China remains a distant dream, economic liberalisation is patchy and dissidence is met with repression. Indian democracy is messy and even as it claims Great Power status, millions of Indians live in dire poverty. ASEAN integration is slow, painful and incomplete and decision-making in the 10-nation bloc is often very complicated.But the economic reality is simple: The EU is China's biggest and ASEAN's third-biggest trading partner. It is also the largest investor in ASEAN countries with an average of 20.6% of foreign direct investment over the past three years.The EU has signed free trade agreements with South Korea and is negotiating others with India, Singapore, Malaysia and Vietnam. An EU-ASEAN free trade agreement could be negotiated as of 2015.The recent EU-ASEAN ministerial meeting in Brunei saw the adoption of an action plan aimed at further building ties between the two regions. In Cambodia, the EU is expected to finally sign the ASEAN Treaty of Amity and Cooperation which could pave the way for EU participation – one day - in the increasingly influential East Asia Summit.Without a hard military presence in Asia, the EU will never carry as much clout as the US. As they fret about China’s territorial claims in the South China Seas, Vietnam and the Philippines need America’s reassuring embrace. Certainly a crisis in the South China Sea would also be disastrous for EU trade with the region. As such, Ashton’s presence at the ASEAN Regional Forum is a good signal of EU interest and concern.Europe can make other constructive contributions, especially since the basic premise of ASEAN security discussions is about building trust and confidence, preventive diplomacy and conflict resolution, issues that Europeans know a thing or two about.The ARF meeting in Cambodia will also discuss disaster management – another area of strong European expertise.In November EU Council President Herman Van Rompuy and European Commission President José Manuel Barroso will be in Vientiane, Laos, for a summit with 19 leading Asian leaders. Barroso is also expected to attend the Bali Democracy Forum and make an official visit to Indonesia.Last year’s US “pivot” or renewed engagement with Asia has certain prompted Europe to put some new life into its lacklustre relations with the region. The challenge now is to ensure Europe’s sustained presence in Asia, in the interest of both regions.

Rising Asia and old Europe need to work together (Originally published 21/03/12, co-authored with Giles Merritt)

Tempting as it may be, it would be wrong to write off Europe as yesterday’s power. Europe still matters even though this is not the message some EU policymakers have been sending out to a watching world.The impression that Europe is too busy dealing with internal challenges to play a strong global role is especially strong in Asia. True, China gets a great deal of EU attention. And the EU’s outreach on trade remains strong. But there is more to Asia than China - and trade and investment agreements must not be made a substitute for a more pro-active EU foreign policy.The EU must engage more strongly with South Asian and Southeast Asian countries on foreign policy and security questions, not just trade. This means top-level EU participation in Asian security fora such as the ASEAN Regional Forum (ARF). It means showing up and seriously participating in ministerial meetings with Asian countries such as the EU-ASEAN gathering of foreign ministers in Brunei in April. It also requires regular and consistent high-level conversations on global and regional challenges with India and other South Asian nations.Apart from trips to China, EU foreign policy chief Catherine Ashton has been a rare visitor to the rest of Asia. Her decision to stay away from the ARF last year, for a second year running, was a serious faux pas. Not surprisingly, Asians have put Europe’s request to join the East Asia Summit – the region’s prime security club – on hold and insist that Europeans must first prove they are ready for a serious conversation with Asia on security.European policymakers are selling Europe short. Asia cannot take Europe seriously unless it does a better job of communicating with the region – and gains better understanding of what makes increasingly self-confident Asians tick.Dealing with a changing and rising Asia will require that the EU engages in new courtships and new alliances with governments, businesses and civil society leaders in the region.The name of the game has to be partnership between Rising Asia and Old Europe. But by failing to engage seriously and consistently with Asia, Europeans are propagating a myth of European weakness and irrelevance.The reality of Europe – the eurozone crisis notwithstanding - is different. Given its experience in turning enemies into friends, voluntarily pooling sovereignty and achieving economic and political integration, the EU has a wealth of experience to share with Asia on future frameworks for global governance. More so, it scarcely needs saying, than the United States.Asians pressing ahead with their own efforts at regional integration and cross-border cooperation still look at the EU for inspiration. Interestingly, this is still the case although Europe’s practice of lecturing ASEAN on the subject has irked many Asians.The EU’s predominance in world trade is undiminished. EU-Asia trade is booming and is crucial both for Europe’s economic recovery and ensuring that Asian growth remains on track. The EU-Korea free trade agreement is the first in a series of trade-expanding deals that Europe is negotiating with Asian partners, including India, Malaysia, Singapore and Vietnam.Europe is the biggest source of foreign investments in Asia. Today, the eurozone crisis has made Europe’s frontier-free single market even more of a magnet for Asian investors. A recent survey underlined that 45 % of businesses in Asia are either currently doing or looking to make strategic acquisitions in Europe in the next 12 months, compared with just 14 % cent in the Middle East and 7 % in North America.Although Asian exporters and businesses may complain about Brussels’ heavy-handed ways, the EU has fostered the development of high-quality rules and standards which help shape global norms in areas such as food and consumer products, cars, chemicals, aircraft emissions. European companies are leading innovators in clean and green technologies that Asia needs to meet the challenge of low-carbon growth and urbanisation and realise their plans for increased connectivity among nations.It is the coming overhaul of the many aspects of the EU rulebook – from financial services to climate issues – that will maintain the EU’s clout and influence.Neither Europe nor Asia can work alone to tackle threats to global stability that range from resource competition, nuclear proliferation, overpopulation to climate change.Europe isn’t indifferent and certainly not irrelevant to Asia’s rise. As the US speaks of the Asia Pacific Century and seems to reinforce its presence in Asia, Europe must develop its own blueprint for improved engagement with the region.

Asia, Europe and One Health (Originally published 10/11/11)

With the world population now estimated at 7 billion, international attention has focused on the impact of the rising population on the battle against poverty, global food security and climate change. A more crowded world is also likely to be more vulnerable to emerging and rapidly-spreading infectious diseases.Recent health crises such as SARS (Severe Acute Respiratory Syndrome) and the avian influenza epidemic have highlighted the intricate relationships and linkages between people, animals and ecosystems as well as the ease and rapidity with which diseases travel across borders.Tackling epidemics and pandemics in today’s globalised world clearly requires international cooperation. With a majority of human infectious diseases commonly attributed to have originated in animals, working across disciplines is also necessary.Asian and European governments are committed to integrating the One Health approach, which seeks to promote, improve, and defend the health and well-being of all species, into their policies.The European Union has set up a new animal health strategy and initiated joint infectious diseases research programmes in key areas such as vector-borne diseases, vaccine development and neglected zoonoses (diseases transmitted from animals to humans).Meanwhile, the Association of Southeast Asian Nations (ASEAN) is playing a leading role in regional arrangements involving animal and human health sectors, in particular, in terms of how to respond to outbreaks of infectious diseases at a regional level.Having made an early pledge to integrate the "One Health" approach in its regional mechanisms, ASEAN is already committed to going beyond animal health, towards the human health and environmental sectors. ASEAN is also taking into consideration the influence of other sectors such as education, infrastructure, trade and tourism.Recent health crises have in fact encouraged ASEAN members to work together at a regional level. In addition, ASEAN Plus Three (China, Japan, and Republic of Korea) have developed the Emerging Infectious Diseases Programme to tackle pandemics such as SARS and avian flu.The 2007-2011 Strategy for Regional EU-Asia Cooperation sets aside a total of 48 million euros worth of EU regional funds fir health-based cross-border cooperation in Asia, combining animal and human health cooperation for the first time, in addition to the environment.A separate Highly Pathogenic Emerging and Re-emerging diseases (HPED) programme, started by the Commission in January 2010, aims to strengthen the institutional capacities of ASEAN, SAARC (South Asia Association for Regional Cooperation) and their Secretariats to control HPED and to improve epidemic and pandemic preparedness in the region in a sustainable manner.For the next three years, the Commission’s major focus will be on driving the "One Health" approach forward in tandem with its major international partners.There is potential for more Asia Europe cooperation on One Health initiatives. A recently published EU-funded study showcases ten “One Health” case studies in Asia and Europe including emergency measures to address serious outbreaks of infectious disease, community engagement projects to improve disease surveillance and control and communication strategies to change risky behaviour.The document, which also includes a catalogue of data bases covering key One Health documents, focal points and One Health programmes and activities, provides a good basis for further Asia-Europe discussion – and cooperation – on One Health initiatives.Such collaboration can be done best through the framework provided by the Asia-Europe Meeting (ASEM). An ASEM meeting on One Health is in fact planned for next year.ASEM can help combine Asia's experience in communicable diseases outbreaks with the EU's experience in institution building. Asia and Europe can learn from each other’s experience by exchanging information and “best practice”, including through collaboration between universities, research institutes and pharmaceutical companies.Better coordination of existing initiatives, projects and programmes can also be assured through the connection of a One Health ASEM network and the connection of existing data bases.

Time for a new EU-ASEAN strategy (Originally published 12/04/11)

As the Association of Southeast Asian Nations (ASEAN) rises along with the rest of Asia – in some cases notching up even stronger growth rates than Asia’s other booming economies – EU policymakers must step up engage with Asia’s oldest, but newly-re-energised, region-wide power.The EU has provided technical help and expertise to ASEAN’s regional integration efforts for many decades. Trade, aid and investment relations between the two sides are booming. With a combined GDP of around US$700 billion and a market of more than 550 million people, ASEAN offers great economic opportunities for European business.However, stronger business ties need to be buttressed by a supportive political environment. As such, Europeans must ensure their political and security relations keep pace with rapid changes in ASEAN and Southeast Asia’s growing global clout.If the EU is serious about restoring its credibility and influence in Asia, it must look beyond relations with China and India and develop a new strategy for engaging with a re-vitalised and vibrant ASEAN. Failure to do so could mean being excluded from an array of exciting new multilateral initiatives on issues like climate change, immigration and food security. A lack of political engagement could also act as a brake on the further development of EU-ASEAN economic ties.The 10-member ASEAN certainly has a new spring in its step. Growth rates are high, plans for ASEAN economic integration are picking up momentum, Timor Leste is set to become the newest member of the organisation and ASEAN is in the driver’s seat of an array of free trade and regional integration initiatives spanning the continent. G20 member Indonesia, as current chair of the organisation, is expected to give ASEAN an even stronger international profile.Significant challenges remain, however. The Jakarta-based ASEAN Secretariat remains weak, cash-strapped and under-staffed. The organisation’s member states include a disparate mix of emerging economic giants and some of the world’s poorest nations as well as democracies, monarchies and authoritarian governments. ASEAN experts warn of a “democratic recession” in the region, pointing out that even Indonesia, the world’s third biggest democracy after India and the United States, is “flawed”. Border disputes such as the recent flare-up between Cambodia and Thailand pose a serious challenge to ASEAN’s credentials as peace-maker.After a slow start, the pace of ASEAN regional integration is picking up. The six major ASEAN countries (comprising Indonesia, Malaysia, the Philippines, Singapore, Brunei and Thailand) have rebounded from the global economic crisis. The region stands determinedly at the centre of a host of ambitious pan-Asian trade and political networks, emerging as a strong third pillar in a region dominated by new economic powerhouses China and India.Expectations are high as regards Indonesia’s current chairmanship of the organisation. Indonesian Foreign Minister Marty Natalegawa has said he intends to focus on making progress toward the fulfilment of the ASEAN Community, establishing a “dynamic equilibrium” between ASEAN and the world’s major powers and increasing ASEAN’s role in the global community of nations.As ASEAN’s oldest Dialogue Partner, the EU has provided help and expertise to ASEAN’s regional integration efforts. The EU-ASEAN relationship has, however, turned lacklustre with time; today it is in dire need of a new lease of life.The first ever ASEAN-EU Business Summit to be held in Jakarta in early May could provide some of the much-needed impetus. Bilateral economic and trade agreements that the EU is seeking to negotiate with Singapore and Malaysia as well as the Philippines, Vietnam and possibly Brunei, will also help boost relations. But such initiatives are not enough. The EU needs to take a leaf from the US foreign policy book by taking its engagement with ASEAN to a higher level.Giving more impetus to EU-ASEAN relations will require a fresh look at the region, a focus on security and political issues of interest to ASEAN as well as initiatives such as visa-free travel for business leaders. Once the current EU review of strategic partnerships is complete, policymakers should consider making ASEAN a strategic partner, on a par with China and India.Interestingly, not unlike the EU, ASEAN is entangled in a debate on whether to widen or deepen its membership. ASEAN also faces a tough balancing act in its relationship with China. Traditionally ASEAN’s closest ally, the US under the Obama Administration has become an even stronger guarantor of the region’s security. Australia and Japan are drawing ever closer to ASEAN.As Europe struggles to rebuild its economy, it needs to trade and investment more in one of the world’s most dynamic regions. It cannot afford to remain on the periphery of ASEAN’s expanding ring of friends.