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.

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.

THE NEED FOR A STRATEGIC EUROPEAN VISION ON ASIA (Originally published 02/02/11)

Europe and Asia have good trade and business ties but need to develop an equally dynamic and forward-looking political and security relationship. This is crucial if Europe is to become a credible partner for a rising Asia. With the structure of the new European External Action Service finally in place, it’s time to start work on a much-needed new European strategic vision for engaging with Asia.

Relations with China must be top of the agenda but EU policymakers must also look beyond the current preoccupation with Beijing.  Stronger ties must be built up with India and Indonesia as well as the Association of Southeast Asian Nations (ASEAN).  The EU-Japan relationship needs new momentum.  A stronger EU-Asia conversation is needed on global flashpoints including Iran, North Korea and Burma as well as recent tensions in the East and South China Seas.

Discussions should focus on cooperation to manage urbanisation, develop low-carbon technology, tackle climate change, combat poverty, ensure energy security and pursue anti-piracy actions.

Free trade negotiations with Asian countries need to be pursued and more ambitious pacts covering wider economic cooperation should be explored with other countries, including Japan, which are looking for closer trade ties with the EU.  EU-Asia investments must be facilitated in both directions.  Discussions on easing the financial and monetary crisis are vital.

Closer ties between European and Asian civil society groups should be encouraged, with a special emphasis on reaching out to young people.

Above all, Europe must not only talk to Asia – it must also listen.

Dealing with ascendant Asia will require that the EU changes its traditional way of dealing with the region.   Emerging Asian countries like China and India do not fall into neat categories of “rich” and “poor”; as such, they require sophisticated handling.

The Asia-Europe Meeting (ASEM) held in Brussels last October - attended by most Asian leaders - is proof that the majority of Asian countries want close relations with Europe, and see the EU market as vital for their domestic growth and development.

The EU's problem is simple: it has been unable to leverage its economic power in Asia into real, sustained political clout.

Dealing with a changing and rising Asia will require a change in European mindsets, new courtships and new alliances.

Correcting the view among many Asian policymakers that the EU is an irrelevant global player will take time, energy and effort.   Failure to do so, however, could mean a brake on  Europe’s ambitions to become a potent global actor.

It is with these challenges in mind that Friends of Europe has launched a high-profile Asia Programme which will study and analyse ascending Asia and assess the different ways in which it impacts on the European Union.

Through a range of diverse activities, including high-level conferences, seminars, roundtable discussions and publications, including policy recommendations, our new Asia Programme will strive to contribute to the development of a new EU strategy for Asia