Myanmar today: Tackling the good, the bad and the ugly (Originally published 09/04/2014, co-authored with Patricia Diaz)
After five decades of repressive military rule, Myanmar’s political and economic transformation continues to impress. The country is preparing for milestone elections in autumn 2015, ceasefire talks have opened with ethnic groups and work begun on important constitutional changes ahead of next year’s polls. With the economy growing by 6-7 percent a year and labour costs still low, foreign investments are pouring in. Myanmar’s current chairmanship of the Association of Southeast Asian Nations (ASEAN) provides President Thein Sein with a further opportunity to boost the country’s regional and international profile.And yet. Initial optimism over Myanmar’s transition is beginning to wear thin. Increasing ethnic violence and civil unrest, especially in Rakhine state, among Buddhist groups and the stateless Rohingya Muslims, is a big, dark spot on Myanmar’s credentials. With thousands of Rohingya forced to live in overcrowded camps or flee by boat, beleaguered relief agencies – many of which have been forced out of the country - have warned of a humanitarian crisis in the strife-hit state.International criticism of the government’s failure to stem the violence is increasing, with 46 countries, including the United States (US), recently joining forces with the European Union (EU) at the United Nations Human Rights Council to express serious concern over the situation of the Rohingya and other minorities in Rakhine State. The resolution also asked for the extension of the mandate of the Special Rapporteur on Myanmar for one more year and urged an opening of the Office of the High Commissioner for Human Rights in the country.Inclusive growthAdditionally, there is concern that while growth rates are high, Myanmar remains one of Southeast Asia’s most impoverished countries. Foreign partners worry that any slowdown in reform efforts in the run up to elections will make it even more difficult for the government to ensure inclusive and sustainable growth.On the bright side, attracted by a growing consumer base and low-cost workforce, foreign investors are lining up to establish a foothold in Myanmar. A foreign investment law was passed in 2012 allowing some overseas firms to fully own ventures. In a bid to further open up, a Telecommunications Law was passed last year and foreign energy companies have recently been given rights to explore offshore Myanmar. The country is also slowly opening up its banking sector, with foreign banks expected to be allowed to operate independently by the end of the year. About 35 international banks already have representative offices in Myanmar.The next stage of political reform looks set to be especially challenging. The government is hoping for progress toward peace through the signature of a Nationwide Ceasefire Agreement with ethnic armed groups. Preliminary talks were held in Thailand at the end of January and the second round in Yangon, on March 9-10. The third round to coordinate the joint-drafting of a single nationwide document was completed on April 8, with both sides agreeing on the titles of the seven-chapter draft which will be further discussed in early May. Formal high-level peace talks to set a date for the signing of the agreement are expected to take place in Hpa-an, capital of Kayin state. Once ready, the deal will be signed by the government, parliament, the armed forces, political parties and leaders of different ethnic groups.The government has also embarked on the difficult task of amending the constitution, including article 59(f), which debars opposition leader Aung San Suu Kyi from becoming president because of the foreign citizenship of her children and late husband. The process is proving to be more complex than anticipated, however, prompting fears the reform process is running out of steam.President Sein raised hopes earlier this year by voicing support for changing the constitution to allow “any citizen,” to run for the presidency in 2015. But preliminary non-binding recommendations issued in January by the Constitutional Review Joint Committee, a 109-member parliamentary body tasked with reviewing proposals to amend the nation’s 2008 military-drafted constitution, suggest insufficient support for this change although a greater devolution of authority to states and regions, a key demand of many ethnic groups, appears to have the green light. These recommendations will now be reviewed by a 31-member committee which will, in turn, report to the parliament.The census currently under way in the country – which also asks sensitive questions about race and ethnicity that human rights groups have repeatedly warned puts vulnerable populations such as the Rohingya (regarded by the authorities as illegal Bengali immigrants) at additional risk, is another complication. Ethnic minorities, which together make up about 40 percent of Myanmar’s population, contend that they were not properly consulted ahead of the census, which requires respondents to identify themselves as one of 135 ethnic groups.Cautious ASEAN chairMyanmar joined ASEAN in 1997 and was to take the ASEAN chairmanship in 2006 but was passed over amid international pressure due to its poor human rights record. Although the country now shines in the global spotlight, as current ASEAN chair, Myanmar faces a tough regional agenda, with its partners and the international community anxious about the country’s ability to host the multiple high-level meetings scheduled for the year and to keep ASEAN on course to meet its 2015 end-target for establishing a frontier-free economic community.At a time when ASEAN needs strong leadership, dealing with difficult issues such as conflicting territorial claims in the South China Sea between China and ASEAN members Vietnam and the Philippines will also be a challenge. Analysts say Myanmar performed well at the first informal meeting of ASEAN foreign ministers held in Bagan earlier this year by steering the group to release a short statement calling on states to settle disputes by peaceful means in accordance with international law, including the 1982 United Nations Convention on the Law of the Sea. In comparison, two years ago, when Cambodia was ASEAN chair, the organisation split under pressure from Beijing to avoid any mention of the South China Sea.Significantly, Myanmar is also current chair of the ASEAN Intergovernmental Commission on Human Rights (AICHR), and as such is under strong pressure from increasingly vocal ASEAN civil society groups to adhere to the human rights commitments which are part of the ASEAN Charter.A role for Europe Despite competition from the US, China, Japan, India and others, the EU has quickly emerged as a key partner for Myanmar. EU sanctions – except on exports of weapons - were lifted in April 2013 and the country was brought into the “Everything but Arms” trade regime which provides duty free and quota access for exports from least developed states. As a result, bilateral EU-Myanmar trade is expanding rapidly, climbing up to €569 million last year, a 41% increase compared to 2012 (€403 million).EU investment in Myanmar has so far been limited as a result of sanctions. According to Myanmar’s official figures, cumulated existing EU investments amounted to some US$ 3.1 billion in 2013 (9% of Myanmar’s FDI). This is set to change, however, as investors scour the country for business opportunities and the EU and Myanmar launch negotiations on an investment protection treaty which Trade Commissioner Karel De Gucht has said will become an important accelerator for reform in the country.“Experience has shown that improving legal certainty and predictability for investments is key in providing business opportunities and much-needed development for this growing economy,” De Gucht said during a recent visit to Myanmar. The deal is expected to provide European investors with guarantees against discrimination, expropriation without compensation and protection against unfair and inequitable treatment.EU aid to Myanmar is increasing. The EU committed €100 million of the total €150 million in assistance to the country in 2012, with the money being spent on existing education and health support schemes and for people who have been internally displaced as a result of the country's numerous ethnic conflicts. In 2013, commitments totaled €50 million covering longer-term support to trade and the private sector, ethnic peace, climate change as well as more support to civil society. EU aid to Myanmar is expected to increase by 20 percent in 2014. There is also an agreement in principle that the European Investment Bank (EIB) will extend its operations to Myanmar, with a focus on infrastructure projects including transport and energy, forestry and the opening of credit lines to selected local banks for on-lending to small and medium-sized enterprises.An important balancing act The EU’s focus on economics is important. Through trade and aid, Europe can help ease poverty in the country and play a vital role in helping the government to strike the right balance between rapid economic growth and sustainable and inclusive development.Encouragingly, Europe is also keeping up the pressure on human rights in both its bilateral contacts with Myanmar and in international fora such as the United Nations Human Rights Council. Acting on different fronts, EU funds are being used to help Myanmar’s political and economic transition through government capacity-building, support for the Myanmar Human Rights Commission and the Election Commission. EU support is also being channelled to the Myanmar Peace Centre (MPC), created by the government to secure peace in ethnic areas as well as to the peace process and the development of ethnic areas. In addition, ethnic groups have also received assistance to enable their participation in peace talks.As it deepens its engagement with Myanmar – and ASEAN – the EU should continue to balance its economic overtures to the country with continuing pressure on issues of human rights, good governance and the rule of law.Myanmar has come a long way in a very short time. Visionaries in the government and the region say there is no reason the country cannot fulfil its long-term ambition to become a regional powerhouse. To make the dream a reality, however, Myanmar will have to learn that economic growth and progress must be shared by all its people, human rights must be respected – and there must be a place in the country for all ethnic groups, whatever their religion.
Fashioning "Global Europe" for the 21st Century (Originally published 01/10/13)
It’s not enough to talk about the European Union's standing and influence in today’s rapidly changing world: the EU needs to thrash out a new foreign policy adapted and responsive to 21st century challenges.This is urgent. True, EU leaders, foreign ministers and senior official often engage in bouts of hand-wringing over Europe’s “loss of influence” and declining presence on the global stage. This is often followed by a resounding thumping of chests as everyone agrees that Europe is – after all – still an important and relevant international player. It’s not that simple, however.Europe certainly has much to offer. The EU single market attracts goods, investments and people from across the globe. European technology helps the world tackle climate change, urbanisation and other 21st-century challenges, European design excites fashionistas the world over and tourists flock to European cities to enjoy good food, wine and visit exquisite monuments.Europe’s ‘soft power’ resonates when it comes to peace-making and reconciliation, trade, aid and the promotion of democracy and the rule of law. With Croatia now in and others lining up to join, the EU retains its zone of influence in the neighbourhood. And as the Eurozone crisis gives way to recovery, however fragile, global concerns about Europe’s economic performance are easing.And yet. There is no doubt that the EU’s star does not shine as brightly as it should in many skies. EU-watchers who once – too optimistically – believed that the Lisbon Treaty and the creation of the European External Action Service would lead to a more forceful EU foreign policy are disappointed.Their disappointment is even stronger when it comes to European security and defence policy. Many believe that because it has no army, navy or air force at its command, the EU will always be a second class international actor, handing out cheques but not pro-actively influencing global events and decisions.No appetite for military actionEurope’s partners know that while governments in France and Britain may still have an appetite for military interventions in response to international crisis, their citizens – and Europeans more generally – certainly don’t. Significantly, Germany, Europe’s most powerful economy and an industrial machine that’s the envy of the planet, has made clear that it is not overly interested in taking on global responsibilities of the military kind.Germany is viewed by many as a reluctant giant which, as one newspaper recently put it, seems content to lurk in the shadows. German Chancellor Angela Merkel is fond of saying that Europe must become more competitive as China and other powers rise. “The world doesn’t sleep,” she said recently. However, she hasn’t coupled that with any grand visions for a continental revival.Within Europe, the doomsayers — of which there are many — insist that the Eurozone crisis and the impact of economic stagnation on European societies have accelerated the loss of EU influence in the international arena.China, India, Russia, Brazil and others are often seen in the EU as fierce rivals who want a ‘full-scale reversal’ of their relationship with the West by demanding better representation in multilateral fora and a stronger voice in global governance. Others argue that Europe should be more assertive and more self-confident when dealing with the cheeky new kids on the bloc.It was partly to respond to such concerns that the EEAS was set up three years ago to act as an EU foreign ministry — and certainly the EU flag is now more often seen flying across the world. But in today’s competitive world of rising powers, new alliances and increased geo-strategic competition, the EEAS is still seen as under-performing.Much of the criticism is levelled at Catherine Ashton, the head of the EEAS and the EU’s de facto foreign minister. It has to be said, however, that Ashton’s role is a difficult one and constrained by the limited space she is allowed by some of the EU’s bigger member states, including Britain and France.Pressure for a more effective foreign policyThe good news is that some EU countries want to go further. The foreign ministers of Italy, Poland, Spain and Sweden argued recently that Europe needs a strategic framework to help it navigate a more complex world. The famous question posed by Henry Kissinger, the former US national security adviser and secretary of state, about the dialling code for Europe has, by now, by and large been answered, the ministers said.“The critical question is no longer how to reach us, but instead what Europe should say when the phone rings,” they complained, adding: “we now have the hardware of institutions in place, we need to focus on the software of policies that makes the entire thing operate in a clear and credible way.”
The ministers are right: Europe needs a new strategic framework to help it navigate a more complex world than the one that existed in 2003, when Javier Solana, the former EU “high representative” for foreign and security policy, drew up the first-ever EU strategy for living in a globalised world.
Such a new blueprint for “global Europe” need not be long and complicated. It needs to start by recognising that the world has changed dramatically in the last decade - and include recommendations for a few pivotal changes in policies and attitudes.
While the 2003 document centred on traditional security threats, the focus should now shift to non-traditional challenges – climate change, energy and food security, maritime piracy, cyber security - which must be tackled urgently.
The EU has strong expertise and experience in all these areas. But concerted international action on these and other issues requires that countries and organisations build new networks and alliances. It means working with like-minded nations but above all also cooperating with non-like minded countries. It means talking with others, not haranguing or talking down to them. And this means a change of EU diplomatic tone and style.
Respect for emerging powers
Global competition for influence has increased as China, Russia, India and Brazil become more assertive and more vocal on the global stage. The EU may have “strategic partnerships” with these countries, but the agreements need to be reinforced and strengthened – and the EU has to learn to treat these nations with respect and use their insight to readjust its worldview.
Working only with the big guys of the emerging world is not enough. The new world order is being fashioned not just by China and Brazil but also by countries like Indonesia and Mexico, Kenya, Australia and organisations such as ASEAN. The EU needs urgently to upgrade its ties with these nations and bring them on board as partners.
The compelling need for better global governance in today's still-chaotic multipolar world demands such cooperation.
Relations with Turkey are an albatross around the EU's neck. They need to be repaired urgently in order to allow for real consultation on regional and global flash-points. Europe's relations with Turkey are under close scrutiny the world over, with people questioning just why the EU remains so reluctant to open its doors to such an important regional and international actor. The answers are not edifying.
The EU's international and moral standing are conditional on its ability to build an inclusive society which celebrates diversity instead of fearing it. Europe cannot condemn discrimination against minorities in Pakistan and Myanmar if its own track record in dealing with such issues is not above reproach.
Democracy and human rights
Europe's values - democracy, the rule of law, human rights (to name a few) - are important and should be promoted more actively across the globe. But those doing the promotion should do so with sensitivity and humility. The message is too important to be drowned out by arrogance.
While often irked by EU hectoring and lecturing on human rights, many countries are anxious to learn more from Europe about regional integration, reconciliation and reform. Europe's "soft power" lies in its ability to teach an anxious world about conflict management and peace-building.
The point has been made most sharply by Asian leaders like former Indonesian foreign minister Hasan Wirajuda who have warned that the gains of the "Asian Century" are at risk because of unresolved historical conflicts and abiding mistrust in the region.
Ironicially while the new world order demands the establishment of networks and coalitions, the EU will become a more significant power if it builds on its uniqueness as a foreign policy actor. As such, while the transatlantic relationship is vital and important, hanging on to US coat-tails, especially when it comes to Asia, is not a good option.
The Transatlantic Trade and Investment Partnership certainly has its value in terms of jobs and growth on both sides of the Atlantic but it would be unfortunate if it is seen as the West "ganging up" against the rest. For the moment, that is how China and other Asians see it. The EU should act urgently to correct that impression - and invest more in the outcome of the Bali ministerial meeting of the World Trade Organisation in December.
Civil society actorsForeign policy today is not just the exclusive preserve of diplomats. Civil society actors, social media, sports personalities, artists, academics and think tanks are now an essential part of the game. The EU's new global outreach must include such thought-leaders. As the Arab Spring has shown, dealing only with governments is no longer an option.As Javier Solana, the EU’s former ‘high representative’ for foreign and security policy said recently, in today’s world of flux, the nature of power is changing. Power was once measured in the size of armies and population, not in terms of GDP per capita, reputation and whether you get to host the Olympic Games. It is also about ideas, innovation, art and culture.It is worth remembering that while military force and interventions can provoke regime change, in the end, all parties — the victorious and the defeated — have to come to the negotiating table and find political solutions. And this is something the EU and Europeans are very good at.It is often argued that further EU integration will lead to a united, coherent, and effective European foreign policy. This is true of course. But the integration process remains slow and painful. The need for a smarter and more forceful EU foreign policy is urgent.
Renewing ASEM ahead of 2014 summit (Originally published 25/09/13)
Most multilateral organisations face the daunting task of adapting to new 21st century economic, political and social realities.Set up in the aftermath of World War II, global institutions at the core of the international system, such as the United Nations, the International Monetary Fund and the World Bank are under pressure to respond to the rise of the world’s emerging powers.The G20, which brings together industrialised countries and the world’s leading rising powers - including China, India and Brazil - was created in 1999 to complement the more restricted G8 composed of traditional industrialised powers. Demands for more effective governance now also beset the G20.Not surprisingly, renewal and reform are also the name of the game for ASEM, the Asia-Europe partnership launched in Bangkok in March 1996 to build stronger region-to-region ties.ASEM (Asia-Europe Meeting), with its 51 partners, is an important multilateral platform for Asia-Europe contacts which allows the two regions to interact in myriad ways.Trade and investment flows are booming, the two regions share concerns about regional and global peace and security and meet regularly within the ASEM framework to discuss issues as varied as urbanisation, river basin management, food security and education.But there is no doubt: ASEM must adapt to the changing landscape in both Asia and Europe if it is to remain credible and relevant.Interestingly, that means going back to the original informality and flexibility of ASEM and the immense Asia-Europe networking opportunities it offers.On the plus side, ASEM includes five of the European Union’s strategic partners – China, Japan, India, South Korea and Russia - and four of the UN Security Council’s permanent members – China, Russia, Britain and France.The fact that new countries continue to demand entry into the club – which began with 26 founding members in 1996 – is a mark of ASEM’s attractiveness and vigour. Once inside the partnership, European and Asian countries of all sizes interact with each other on an equal footing.The forum also provides a platform for ample bilateral contacts between leaders and officials of both sides.Yet, the need for renewal is pressing. ASEM meetings over the years have become more formal and ritualistic, with ministers and leaders reading out well-prepared statements instead of engaging in direct dialogue.Meetings of ASEM senior officials have become long and drawn-out as participants talk more about procedures and dates than substantial questions.The progress they make can appear slow, plodding and incremental. ASEM participants often complain that their work is not visible to the public, that ASEM does not punch its weight in the over-crowded field of global cooperation platforms.The consensus is that 17 years after its launch amid much fanfare, ASEM is in need of a new lease of life.Ironically this could be achieved by taking ASEM “back to the future” and rediscovering the initial rationale behind the partnership. The aim is to recover ASEM’s initial focus on substance over protocol and ritual.Efforts to make ASEM more pragmatic, effective and result-oriented – and more relevant to partners’ economic and social priorities – have dominated deliberations for the last few years.Progress on revitalising ASEM is gaining momentum in the run-up to the ASEM summit hosted by the EU and set to be held in Milan, Italy, in autumn 2014.ASEM foreign ministers meeting in Delhi on November 11-12 are expected to endorse a number of changes which many hope will inject new life into the Asia-Europe partnership.Asian and European policymakers have agreed to streamline and simplify ASEM working methods to ensure that ASEM foreign ministers and leaders engage in a real, in-depth and focused conversation on key concerns.As such, when they meet in Delhi in November, in addition to attending 2 official plenary sessions, ASEM foreign ministers will engage in a “retreat” to ensure more intensive and interactive dialogue.Discussions in the plenaries will focus on sustainable economic growth and development and on non-traditional security issues, including issues such as food, energy and water security, cyber security and counter-terrorism.The “retreat” will look at international and regional flashpoints including the Middle East, North Korea and Iran.Efforts are being made to ensure that chair’s statements and other documents issued at the end of ASEM meetings are short, simple and to-the-point.Based on existing mechanisms, there is now agreement to work on cooperation projects which are even more visible and tangible for benefit of Asia and Europe.Following the recent membership of Norway, Switzerland and Bangladesh, ASEM expansion is expected to continue as Croatia, which became the 28th member state of the EU on July 1 2013, formally joins ASEM next year.ASEM partners also face the uphill task of securing stronger public understanding, awareness and support for the Asia-Europe partnership, especially in the run up to the summit in 2014 and two years later when ASEM celebrates its 20th anniversary.If ASEM reform is implemented as planned, 2016 could become an important milestone in a reinvigorated Asia-Europe partnership, a must in the 21st century.
Australia under Abbott to stay engaged in Asia (Originally published 09/09/13)
Tony Abbott is set to be sworn in as Australia’s new conservative prime minister this week, replacing outgoing Labor leader Kevin Rudd and ending six years of Labor party rule.Following a landslide victory on September 7, the PM elect has already said his top priorities are to abolish Australia’s carbon emissions tax and to stop asylum-seekers arriving by boat.Significantly, he has also made clear that Australia will maintain strong links with its Asia Pacific neighbours, with an emphasis on China and Indonesia.As the last elections have illustrated, Australian politics are dramatic, passionate and almost Shakespearian in the endless narrative of unexpected betrayal, ruthlessness, revenge and the search for redemption.The run-up to the polls was dominated by the battle between Abbott and Rudd but also by the even tougher and continuing saga of hate and revenge between Rudd and Julia Gillard, the former Labor prime minister who Rudd unceremoniously — and very dramatically — kicked out of office in June this year.Not many tears were shed for Gillard since she had played a similar dirty trick on Rudd in June 2010. Australian politics, it can be said, leave Bollywood drama in the shade.Australia has come a long way in the last few years. Although the Australian economy may not be growing as it fast as it did in recent years, its steady 2.6 percent GDP growth rates for the year are still higher than for any other developed nation.The country’s economic performance is certainly a far cry from the 1980s when Lee Kuan Yew, the outspoken former prime minister of Singapore, warned that the country was living way beyond its means and in danger of becoming the “poor white trash” of Asia.Gone also are the days when Malaysia’s former prime minister Mahathir Mohamad refused to accept Australian membership of Asian groupings because, as he insisted "they are Europeans, they cannot be Asians".The feisty Malaysian leader may not have changed his mind, but his successors certainly have – as have all other Asian countries, including China.Australia’s tough line on asylum seekers and refugees creates unease in Asia. As Jane McAdam of the University of New South Wales says many of the country’s’ initiatives including the mandatory detention for all unlawful arrivals, the excision of the whole Australian mainland from Australia's "migration zone, the removal of boat arrivals to offshore processing centers in small Pacific island countries, with no prospect for resettlement in Australia, are against the spirit of international law.And as she points out, such measures are surprising in a country as wealthy, multicultural and big as Australia. But there is more to the country that muddled asylum policies.Over recent years Australia has impressed by making a determined bid to become serious players in the Asia-Pacific– or the Indo-Pacific as the Australians describe the region. Analysts say Australia is pulling its weight as a global middle power and also a Southern Hemisphere power.As Benjamin Reilly of Murdoch University underlines, “While engagement with East Asia and the United States remains the main game, Australian ‘soft power’ is increasing across the globe’s southern segment in a range of areas, from aid and trade to scientific research to peacekeeping.”Significantly, the G20 summit in 2014 will be held in Brisbane. In Brussels, Australia has stalwartly pushed for stronger European Union engagement with Asia.Australia along with New Zealand joined the Asia Europe Meetings (ASEM) in 2010, many years after their application. Their membership has certainly helped to increase the credibility of ASEM and bring new perspectives into the club.In recent months, Australia has published a voluminous white paper on its Asian connections, urging students to learn more Asian languages, including of course Chinese.Relations with China may be volatile but exports of raw materials to the country have kept the Australian economy on an even keel.Not surprisingly, Abbott has said his first travel priorities would be Indonesia, China, Japan and South Korea, rather than traditional and long-standing allies like the United States and Britain.“Only after our regional and trading partners have been suitably attended to would I make the traditional trips to Washington and London,” he said, adding: “Decisions which impact on our national interests will be made in Jakarta, in Beijing, in Tokyo, in Seoul, as much as they will be made in Washington.
Asia-Europe increase focus on security (Originally published 17/07/13)
Trade and business have long dominated Asia-Europe relations. Economic links are still vitally important in relations between the two regions. But Asian and European policymakers are also steadily stepping up their engagement on security issues.The emphasis on Asia-Europe security ties is not new – but it is becoming stronger and more visible.In both regions, there is a growing awareness that while the “Asian Century” has so far focused on strong economic growth and development, Asia also needs to tackle many difficult and potentially explosive historical enmities and complex crises.Unease about the dangerous political and security fault lines that run across the region, has prompted many in Asia to take a closer look at Europe’s experience in ensuring peace, easing tensions and handling conflicts.Europeans too are becoming more aware of the global implications of instability in Asia, not least in view of the unprecedented level of economic interdependence between the two regions.This has meant strong European Union condemnation of North Korea’s missile and nuclear activities and calls for a negotiated settlement of conflicting national territorial claims in the East and South China Seas.Stronger engagement on Asian security issues has meant a deeper EU dialogue with ASEAN – the Association of Southeast Asian Nations – which is in the forefront of pan-Asian peace-building efforts.Last year, the European Union signed the Treaty of Amity and Cooperation (TAC), ASEAN’s security blueprint for the region.High-level European and Asian representatives have met in recent months in the ASEAN Regional Forum (ARF), Asia’s prime security forum, as well as the Shangri La Dialogue, an annual informal gathering of security experts held in Singapore, which EU HRVP Ashton attended this year for the first time.Discussions on security issues are also an important part of political pillar in ASEM, the process of Asia–Europe meetings launched in 1996.“Asia still has to deal with security issues that have been settled in Europe,” says Viorel Isticioaia Budura, Managing Director for Asia and the Pacific at the European Union’s External Action Service (EEAS).“We admire Asia’s economic rise. But many Asian countries still face the challenges associated with nation and state-building. They are burdened by disputes and security flashpoints which need proper handling and solutions. If left unattended, these disputes could cause trouble for everyone,” he says.As Asian governments seek to build sustainable peace and stability in the region, Europe’s experience in healing historical wounds and reconciliation can be helpful.“We are interesting partners for Asia. We do not claim to be a "model". It’s not a question of copying Europe, it’s about learning from our past, including from our own mistakes, and seeking inspiration in what may be relevant.”Conventional military threats and conflicts are not the only question on Asia’s new agenda.Asian policymakers today are increasingly turning their attention to non-traditional security threats, an area where the EU has acquired special skills and expertise.Europe has the know-how to work with Asia on questions like disaster-prevention and management, climate change, pandemics, terrorism and questions linked to food, water, energy and cyber security.The EU’s “comprehensive approach” to security calls for the deployment of a wide range of tools and instruments – short and long-term, humanitarian and development, security and political - to tackle new challenges.“Europe’s experience in community and institution-building and in constructing structures for regional security is an added asset for its partners,” says Isticioaia Budura.“We have learned how to engage in preventive diplomacy, confidence-building and establishing norms and rules to ensure regional peace and stability.”Peace in Europe was a long time coming. In contrast, “Asia is in a rush…so we must find a smart way to share all relevant experiences,” he adds.ASEM provides an ideal, and “unbelievably meaningful” format for Asia-Europe exchanges on all issues of mutual interest, including security challenges, says Isticioaia Budura.“It allows us to better understand the complexity of developments in Asia… to take the pulse, take into account challenges and see how we can contribute.”Regular ASEM meetings help Asia and Europe to improve their mutual understanding, identify common interests and cooperation, he says, adding: “It is good to have Asian and European leaders talking to each other.”“In a process of globalisation which keeps accelerating, ASEM has a very distinct relevance.”Since its launch, ASEM has worked to prevent the decoupling of regions and stopping Asia and Europe from turning inwards. This is still true. “We are moving together in the same direction,” Isticioaia Budura underlines.Despite the Eurozone crisis, Europe is continuing to engage with Asia. By voicing their confidence in Europe’s economic future, Asian countries, for their part, have helped to stabilise the Euro.ASEM’s informality, large membership and flexibility mean that all countries have the freedom to bring up any issue that interests them. “Both regions can talk about their major concerns. They can choose what they see as relevant,” says Isticioaia Budura.Discussions focus on questions as diverse as disaster-prevention, non-proliferation, disarmament, human rights, energy and water management. In these and other areas, “there is a useful exchange of information and experience,” he notes.When they meet in October next year, ASEM leaders will focus on recovery, growth and jobs, Isticioaia Budura predicts.The ASEM message is also likely to be that Europe can work with Asia to build sustained peace in the region and tackle non-traditional security challenges.
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 21st 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.
Exploring ideas on ASEM’s future (Originally published 03/06/13)
Ever since the first high-profile Asia-Europe Meeting (ASEM) in Bangkok in March 1996, Asian and European leaders, ministers and officials have been working on myriad fronts to forge a stronger region-to-region partnership on issues as diverse as green growth, global peace and prosperity, human rights, education and urbanisation.Their work may not always make the headlines. And the progress they make can appear slow, plodding and incremental. ASEM participants often complain that their work is not visible to the public, that ASEM does not punch its weight in the over-crowded field of global cooperation platforms and that 17 years after its launch amid much fanfare, ASEM is in need of a new lease of life.With the next ASEM summit set to be held in Brussels in autumn 2014, the race is on to try and inject fresh impetus into a process which all 51 ASEM partners agree is a compelling necessity – but one which must be deepened and made more dynamic to stay relevant in a rapidly-changing world.ASEM foreign ministers, who gather in New Delhi on November 11-12, are expected to come up with fresh ideas for reviving the Asia-Europe partnership.As illustrated at a recent symposium held in Yangzhou, China, the problem facing ASEM is not a lack of initiatives on revitalizing the relationship; rather, the challenge is to find common ground among the many suggestions being put forward by ASEM partners – and then to refine and streamline recommendations before presentation to ministers and leaders.Significantly, all 51 partners continue to underline the strategic significance of ASEM in the 21st Century. The fact that new countries continue to demand entry into the club – which began with 26 founding partners in 1996 – is seen as a mark of ASEM’s attractiveness and vigour.Over the years, ASEM has also served as a “new Silk Road” connecting the two continents and providing a unique platform for dialogue and cooperation, says an Asian official, adding: “Asia and Europe need each other…we are closely interconnected and interdependent and draw on each other’s’ strengths.”European policymakers say they are similarly confident that ASEM has great merits. “Its relevance has increased. ASEM is informal, comprehensive and still very attractive,” said one European official in Yangzhou.The challenge is to maintain ASEM’s unique informality, networking and flexibility but also make it more pragmatic, effective and result-oriented – and more relevant to partners’ economic and social priorities.ASEM should identify “more cooperation projects which are visible, tangible and serve the interests of people,” said an Asian official, adding: “ASEM should be a forum for action.”More frequent meetings of ASEM economic officials and ministers were mooted, with participants also suggesting that ASEM should be used to explore new ideas, to stimulate and facilitate progress in other fora and encourage capacity-building across sectors.The need for more ASEM contacts with civil society, including members of parliament, business representatives, scholars and journalists as well as local authorities, was underlined.The most difficult task facing policymakers is a much-awaited overhaul of ASEM’s working methods in order to make meetings – especially leaders’ summits held once every two years – more interesting, relevant and productive.Recapturing the excitement and energy evident at ASEM’s launch in 1996 will not be easy, however. Over the years, ASEM meetings have become more formal and ritualistic, with ministers and leaders reading out well-prepared statements instead of engaging in direct dialogue.Meetings of ASEM senior officials have also become long and drawn-out as participants talk more about procedures and dates than substantial questions. “These meeting are a bottleneck in ASEM” said one senior official in Yangzhou. “We have become a housekeeping body.”Instead of reviewing a series of global and regional developments, ASEM summits should have a more streamlined agenda, allowing leaders to engage in a real, in-depth and focused conversation on key concerns.Leaders and foreign ministers should also meet in a so-called “retreat” format to ensure more intensive and interactive dialogue. “We want them to really get to know each other, forge friendships and understanding,” said one participant.Chair’s statements and other documents issued at the end of ASEM meetings should be short, simple and to-the-point rather than long and procedural. They should be media-friendly and understandable to the general public, helping to enhance ASEM visibility.The long-running debate on whether or not ASEM needs a secretariat to provide institutional back-up was discussed. The drive to set up an ASEM Secretariat is essentially driven by Asian partners of ASEM who feel the need for such an institution on their side.Europeans, on the other hand, are generally satisfied with the current situation since the European External Action Service plays an important coordination role for European partners.As preparations intensify for the meeting of foreign ministers in Delhi, the conversation on strengthening ASEM is likely to gain pace. The aim is to prepare not only for the summit in Brussels in 2014 but for ASEM’s 20th anniversary celebrations in 2016.As participants in Yangzhou said, the upcoming anniversary should not only take stock of ASEM cooperation so far but also set it on a new and revitalised course for the future.
A roadmap for strengthened EU-ASEAN ties (Originally published 21/05/13)
Relations between the European Union and the Association of Southeast Asian Nations (ASEAN) are finally picking up much-needed momentum.Recent talks held in Ho Chi Minh City between EU and ASEAN senior officials appear to have made important headway in implementing a new agenda for cooperation, with both sides seeking ways to take the relationship to a higher and more strategic level.The switch from recrimination over issues like Myanmar and human rights to serious consultation on non-traditional security challenges and other questions is indeed welcome. It is time the EU took relations with ASEAN as seriously as other global players, including the United States.The progress made in Vietnam now needs to be followed up urgently by efforts to improve the structure of EU-ASEAN cooperation, inject more ambitious content and change the tone and style of the relationship.A changing relationshipMuch has changed in Europe and in Southeast Asia since the signature of the EU-ASEAN cooperation agreement in March 1980.The last 33 years have seen a massive change in the contour, ambitions and role of the European Union. ASEAN has also undergone deep transformation through the adoption of the ASEAN charter, expansion of the club to include new members and a renewed drive for strengthened economic integration.Both the EU and ASEAN have succeeded in bringing peace to their regions. Both have worked for economic prosperity and both have to deal with the challenge of big and difficult neighbours.Increasingly, both face a similar uphill task in ensuring their relevance, influence and importance in the 21st Century.ASEAN has to affirm its centrality in a rapidly changing region which includes an increasingly assertive China. It is also struggling to maintain its unity in the face of Beijing.Europe is still battling with the currency crisis, massive unemployment and has to adapt to living in a world where the power has shifted from the West to Asia. When it comes to China – or Russia - the EU is still struggling to speak with one voice.The EU-ASEAN relationship today is also very different from what it was all those years ago – reflecting the changes in both organisations.The challenge facing both sides is to take their relationship into the future – into the 21st Century. This can be done through changes in three key areas: E-ASEAN structures, content and tone:Structures: 2012 saw several significant improvements in EU-ASEAN relations: the EU acceded to the Treaty of Amity and Cooperation in Southeast Asia, ASEAN’s core document for ensuring peace and stability in the region.A recent meeting of EU-ASEAN foreign ministers in Brunei pledged to further improve bilateral ties between the two regions by adopting a Plan of Action.Significantly also, Baroness Catherine Ashton, High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, attended the ASEAN Regional Forum in Phnom Penh in July after a much-remarked two-year absence.In addition, the EU decision to lift sanctions against Myanmar, giving a boost to relations with ASEAN.However, more needs to be done to further broaden, deepen and strengthen the current level of EU-ASEAN engagement. It is important that the momentum achieved in the last year is not lost.The EU and ASEAN need to recognise each other as strategic partners. It is quite surprising that this has not been done given the importance of the economic relationship and shared regional integration goals.This will necessarily mean the organization of regular summits between EU and ASEAN leaders – although these gatherings need not be annual. They could be held back-to-back with the Asia Europe Meeting (ASEM) which is organised every two years.The EU should appoint a special ambassador in Jakarta with sole responsibility for relations with ASEAN to ensure implementation of the ambitious Plan of Action on EU-ASEAN relations adopted last year in Brunei.The head of such an EU delegation would have the task of overseeing EU-ASEAN relations, establishing contacts with the ASEAN Committee of Permanent Representatives and other important ASEAN officials. This is already being done by the US, China and Japan which have appointed special ambassadors to deal with ASEAN. Australia is in the process of sending its own ASEAN envoy to Jakarta.If EU-ASEAN relations are to be brought to a “higher level” within the context of a global power shift to Asia-Pacific and regional security dynamics, the management of ASEAN-EU relations needs to be a full-time job.The conclusion of an EU-ASEAN free trade agreement would also boost the relationship. Although this is unlikely to be possible in the short-term, it should remain a medium-term goal for both sides.The EU has already concluded a free trade deal with Singapore and is negotiating with Thailand. These and others in the pipeline should become building blocks for a region-to-region accord once the ASEAN economic community takes more concrete form as of 2016.Increase ASEAN visibility ASEAN also needs to enhance its visibility in Europe. Very little is known about the organization, its ambitions and achievements in Europe. Public support for stronger EU-ASEAN ties can only be built up if there is wider media coverage and discussions in universities and in think tanks about the subject.Content:Trade and economic issues will remain the backbone of the relationship, with both sides also working on expanding their investment flows. Sharing best practice on regional integration also continues to be important in view of ASEAN’s enhanced regional ambitions and the need to build ASEAN capacity in an increased number of areas.The EU can provide lessons in building connectivity – especially as regards institutions and people, students, academics, scientists. Discussions on human rights – once a taboo question for ASEAN countries – are gaining momentum as attitudes change in ASEAN.EU special envoy for human rights Stavros Lambrinidis was recently in Jakarta for talks with the ASEAN Inter Governmental Human Rights Commission (AICHR), the first such encounter between the two sides.Lambrinidis also met with the ASEAN Committee of Permanent Representatives to ASEAN, as well as other ASEAN stakeholders, including regional civil society organisations.In a break with past practice of lecturing ASEAN on human rights deficiencies, the EU envoy underlined that the basis of EU-ASEAN cooperation would be based on "mutual inspiration”.Meanwhile, EU development cooperation and humanitarian aid programmes remain crucially important for the poorer ASEAN countries, including Myanmar, Laos and Cambodia.The EU will never be a military power in the Asia-Pacific. But as ASEAN forges full speed ahead with constructing a region-wide security architecture, the EU needs to define how best it can contribute to regional peace in the Asia-Pacific.The focus should be on non-traditional security, confidence building measures and possibly joint exploitation of the resources in the South China Seas.Maritime security, disaster Resilience, conflict prevention and crisis management as well as peace-building are other subjects where the EU has know-how and experience as are challenges related to health, terrorism, cyber security, climate change and the environment.These moves – many of which are already being explored - would have the added advantage of helping beef up the case for EU membership of the East Asia Summit.Finally, the EU must move to ease travel restrictions in place for ASEAN citizens and encourage youth exchanges and the establishment of study centers in European and Asian universities that focus on the relationship between Asia-Pacific and Europe.Tone and Style:Relations between ASEAN and the European Union have too long been complicated by a narrative of competition – and a history of mistrust.ASEAN has never liked European “arrogance” in lecturing and hectoring them on their perceived deficits and weaknesses. But people in the region admire much that is European, including European technology, products and culture. To keep growing, both sides need each other’s markets and investments.Europeans should steer clear of any prescriptive approach to the way the Association of Southeast Asian Nations (ASEAN) should evolve.ASEAN decision-making is slow, messy and the organisation is currently divided over how best to deal with China. But this is no different from intra-EU debates on the future of the Union and Europe’s own failure to speak with one voice on China.The EU cannot expect imitation, but – despite the current economic crisis - it can inspire and help ASEAN on its future trajectory.The EU and ASEAN have made a good start in reviewing their relationship and seeking fresh avenues for cooperation. The meeting in Vietnam appears to have been constructive and positive. The effort must be maintained in the months ahead so that both sides can work more closely together to tackle complex 21st Century challenges.
EU can help Pakistan’s new PM tackle tough agenda (Originally published 13/05/13)
As Pakistan’s next prime minister, Nawaz Sharif faces daunting domestic and foreign policy challenges.While attention is inevitably focused on Sharif’s relations with the United States, India and Afghanistan, the election of a new democratically elected government also opens up new avenues for stronger EU-Pakistan relations.The EU should move fast to forge stronger and more comprehensive ties with Islamabad, including the convening of a third EU-Pakistan summit to hammer out a new agenda for deeper long-term relations.Landmark elections – but what happens next?The landmark elections, marking the first transfer of power between two elected civilian governments in Pakistan, give hope that 67 years after independence, democracy is finally taking root in the South Asian nation of 180 million people.The EU’s chief election observer, Michael Gahler, has noted “considerable improvements” in the conduct of the polls compared to five years ago as regards voters’ rolls, independence of the Election Commission and media freedom. Unlike in 2008, there were also no reports of widespread rigging or bogus polling stations.Although it’s long hide and seek with democracy may have ended for the moment, Pakistan remains a troubled and fragile state.Violence and bloodshed marred the election campaign and polling day in in many cities as the Taliban relentlessly pursued their anti-democracy agenda by targeting secular parties, sparing only former cricketer Imran Khan’s Tehreek-I-Insaf party.Pakistan’s economy is in shambles, with talks expected soon on an International Monetary Fund bail-out package. Corruption is rampant. The army and security services continue to exert an unhealthy influence over politics and policy. And relations with the US as well as most neighbouring countries, including India and Afghanistan, remain tense.Pakistani people deserve credit
Last week’s elections provided additional evidence of the resilience, determination and dynamism of millions of men and women who defied threats of violence, intimidation and centuries-old discrimination to cast their ballots in unprecedented numbers.No room for generalsMany millions of young Pakistanis voted for the first time. The turnout of women voters was impressive. An election commission spokesman said turnout had been around 60%, compared to 44 % in 2008.Sharif, an industrialist who has been prime minister twice before - his last period in office ending 14 years ago in a military coup followed by his trial and exile – has said generals have no place in politics. He has also said he will talk to the Taliban in order to end an insurgency which has raged across the country for the last few years.His dismissal as premier in the 1990s was greeted by relief by many Pakistanis but many are hoping that Sharif has learned lessons from his last time in power.Certainly, his party has a good record on economic management.He advocates free-market economics and is likely to pursue privatization and deregulation to revive flagging growth.Formidable tasks aheadThe tasks he faces are formidable. Public discontent over endemic corruption is rife; the economy is crippled by chronic power cuts and crumbling infrastructure. One of Sharif’s first likely tasks will be to negotiate with the IMF for a multi-billion-dollar bailout. To raise domestic revenues, he will have to bite the bullet and increase tax collection.Sharif’s government faces the challenge of putting tense relations with the US back on an even keel. He has vowed to review Pakistan's support for America's "war on terror" but is unlikely to jeopardise 2 billion dollars in annual US aid. Washington’s support will also be essential if Pakistan is to secure desperately needed aid from the IMF, the World Bank and other global institutions. He will also have to improve ties with Afghanistan and India.While in office the last time around, Sharif tried to make peace with India but his initiatives were opposed by the army. There is concern that plans for stronger India-Pakistan trade relations – something that Sharif favours – could once again be jeopardised by an uncompromising army.Pakistan will have a crucial role to play in ensuring peace and stability in Afghanistan following the withdrawal of foreign troops from the country in 2014.Relations with Pakistan's traditional ally, China will remain strong but Beijing is worried that militant Uighur Muslims are still receiving training in Pakistan.Hold another EU-Pakistan summitThe EU should lose no time in seeking an upgrade of ties with Pakistan’s new government. A third EU-Pakistan summit should be organised without too much delay and both sides should move quickly to hammer out a new agenda for deeper long-term relations.EU foreign ministers admitted earlier this year that the so-called “5-Year Engagement Plan” with Pakistan needed to be reinvigorated through early meetings with the new Pakistani ministers and senior officials, saying progress in such fora could lead to a third EU-Pakistan summit.
It’s not just about tradeCertainly, Pakistan needs help to boost its exports to Europe and elsewhere. The EU has already given Pakistan improved market access by introducing autonomous trade preferences following a WTO waiver. The hope now is that Pakistan will secure access next year to the GSP Plus scheme for zero-duty, zero-quota exports to the EU.A strategic dialogue launched earlier this year between Catherine Ashton, EU foreign policy chief, and her former Pakistani colleague Hina Rabbani Khar seeks to cover cooperation in areas of trade, investment, human rights, governance, energy, education and socio economic development.The rhetoric needs to be translated into action. To change the dynamics of the so-far relatively lukewarm EU-Pakistan relationship, the EU will have to pay more sustained attention to Pakistan.Once on the periphery of the EU’s Asia policy, Pakistan is climbing slowly up the EU’s foreign policy agenda, mainly because of the strong link with security in Afghanistan, connections between tribal areas in Pakistan and Europe’s “home grown” terrorists and persistent US and British insistence that the EU should help stabilise the country.A long engagementThe adoption by EU foreign ministers last year of a so-called “5-Year Engagement Plan” aimed at boosting civilian institutions and civil society in Pakistan as well as a commitment to start a strategic dialogue with the country are recent illustrations of stronger EU interest in Pakistan.It has not always been an easy relationship, however. Pakistan has used most of its time and energy to lobby for better market access for its textile exports and bristled at EU comments on its treatment of women and minorities.Volatile politics in Pakistan have also meant the EU has had to constantly adjust and re-adjust its approaches depending on whether the army or civilians are in power.The EU does not have America’s clout in Pakistan. The absence of an EU role in providing military support has built up Europe’s credibility with Pakistani civil society but has also meant lack of leverage with the military.Meanwhile, strong EU-Pakistan economic ties – the EU is Pakistan's largest trading partner - have also not translated into significant political influence.The EU needs to be more innovative and creative in forging a new strategy which looks at Pakistan not merely as a developing country, requiring traditional development aid actions, but as a fragile country in transition which needs help and assistance to modernise and reform its flagging economy, reinforce weakened political institutions and to strengthen the rule of law.Work on supporting the strengthening of democratic institutions and the electoral framework with particular focus on institution building, legislative reform and voter participation will have to continue. Pakistan’s army and security services still need counter-terrorism training to tackle the insurgency and fight radicalisation.The EU and its member states are beginning to invest time and effort in crafting a multi-faceted strategy capable of responding to the multiple and complex challenges facing Pakistan.Such actions must continue and expand, with the EU also encouraging closer regional integration in South Asia. Pakistan will continue to need support from its friends to stay on the democratic path. Successful elections alone will not anchor democracy in Pakistan.
Nobody doubts Asia’s rise, but the issue is how to fashion new partnerships (Originally published 10/04/13)
Relations between Asia and the European Union have too long been complicated by a narrative of competition – and a history of mistrust. Many in both Asia and Europe cling to the out-dated black-and-white view that the rise of Asia inevitably means the decline of Europe. It’s a vision where Europeans refuse to adjust to Asia’s economic power, and still seek to create a world in their own image.European politicians and policymakers have done little to correct the impression of an EU that is reluctant to adapt to a rapidly changing world. Many of them stoke fears of globalisation and Asia’s growing economic and political clout. They reinforce the image of an uncertain and uneasy Europe faced with a self-confident and assertive Asia.In Asia too, many influential women and men believe that the EU as an established status quo power is unwilling to adjust to Asia’s rise. Others warned that Europe is becoming “irrelevant” as Asia becomes more influential and powerful.This discussion is important and intellectually stimulating. It has been useful in focusing Asian and European minds on the changing world order, and spotlighting the need for stronger Asia-Europe understanding and engagement. But it is time to move on.The simplistic narrative of Asia versus Europe, of winner-takes-all, and of one region being “better” than the other, has far outlived its usefulness and needs to change. In an increasingly 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 co-operation has become 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 economic growth, moving beyond the eurozone crisis 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 that endanger global peace and security.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. To keep growing, Asians need European markets and investments.Asia-Europe relations in this new era cannot be dominated by a narrative of rivalry and competition. The focus has to be on partnership to deal with complex 21st Century challenges.Clearly, the EU must make room in the Bretton Woods Institutions for Asia’s rising powers. Pressure from Asia for such changes could help speed-up a decision on the EU having a single seat in these fora – and perhaps even in the United Nations Security Council.Europeans may no longer set the global agenda, but the “European values” they espouse are really universal norms and freedoms which have been adopted by all UN members. The EU can be less aggressive in promoting them, but should not abandon themIt is true that Europeans should steer clear of any prescriptive approach to the way the Association of Southeast Asian Nations (ASEAN) should evolve. It and its 10 members have a distinctive approach to integration; ASEAN decision-making is slow, messy and the organisation is currently divided over how best to deal with China. But this is no different from intra-EU debates on the future of the Union and Europe’s own failure to speak with one voice on China. The EU cannot expect imitation, but it can inspire and help ASEAN on its future trajectory.Although there is no European military presence in Asia, the EU can make a constructive contribution to the region’s security discussions in areas such as preventive diplomacy, conflict resolution and disaster management. The sparring over Asia’s rise and Europe’s fall must give way to a less confrontational approach based on partnership and co-operation.
Time to gear up EU-Japan relations (Originally published 20/03/13)
The launch on March 25 of negotiations on a first-ever EU-Japan political accord and a parallel trade-expanding comprehensive Economic Partnership Agreement aims to open a new era of closer and stronger relations between Japan and the European Union.
The two agreements can certainly inject fresh life into the EU-Japan partnership. “They are about making the EU-Japan relationship closer and more substantial,” says Kojiro Shiojiri, Japan’s Ambassador to the EU.
To get good results, however, both sides will have to commit time, energy and effort to the exercise. Most importantly, European and Japanese policymakers will have to find the right balance between their high political ambitions and hard-nosed bargaining on key trade questions, including agriculture and automobiles.
Both sets of negotiations were launched at a “telephone summit” between EU Council and Commission heads Herman Van Rompuy and Jose Manuel Barroso, and Japan's Prime Minister Shinzo Abe. The telephone talks replaced a face-to-face summit scheduled to be held in Tokyo after EU leaders said they were grappling with debt problems in Cyprus.
The move to strengthen EU-Japan ties comes as Japan also prepares to join discussions on a Trans-Pacific Partnership, a free trade deal including the United States and several leading Asia Pacific economies. A triangular trade deal is also being explored with China and South Korea…(the rest remains unchanged)
The EU is a crucial partner for Japan
“For Japan, the EU is a crucial partner, not just a strategic partner,” says Ambassador Shiojiri. “Both the economic and political agreements between the EU and Japan are very relevant. The political agreement is about peace, security and responsibilities. The economic one is about revitalising our economies and societies.”
“The world is changing. The political agreement will allow the EU and Japan to work together to respond more effectively and take on bigger responsibilities to tackle global challenges,” Shiojiri told Friends of Europe ahead of the Tokyo summit.
“We have political declarations but Japan and the EU do not have a joint enterprise or project. This time we should be ambitious and produce added value for our relationship,” he said. “We should be closer. The width and depth of our relations are not commensurate with the importance of our partnership. We should shift gears and transform our relations.”
Japan saw the EU as a “super soft power” and believed there was room for enhanced EU-Japan cooperation in areas like disaster and crisis management, cyber security, counter-terrorism, combating pandemics and other global challenges. The EU with its commitment to democracy, human rights, the rule of law and the market economy was a “value promoter” and an important global player and partner for Japan.
Economic Partnership Agreement
Japan is interested in negotiating an ambitious Economic Partnership Agreement, not just a free trade deal, because the focus must be on growth and jobs in both Europe and Japan, the Ambassador underlined, adding: “this is not only about markets but about reinvigorating our economies and societies.”
While it was important to reduce tariffs to boost EU-Japan trade, Shiojiri said he believed that regulatory reform and harmonisation were even more essential to reduce costs and step up competitiveness. “Regulatory change is the bigger prize with a bigger impact on economies and societies. We are more interested in reform to build a more resilient economy and society.”
Both the EU and Japan were becoming less competitive in their performance on East Asia’s dynamic markets, he added. “This means we are losing competitiveness…this is a big concern.” The Economic Partnership Agreement would help both Japan and the EU to upgrade their performance in a very competitive globalised world.
To tap the full potential of their relations, the EU-Japan partnership must also encourage closer contacts between civil society actors, business leaders, academics and politicians. “The agreements will be a tool to make our relations stronger,” the Ambassador said.
We should not miss this chance,” he underlined. “Time is of the essence. We should conclude the agreements in the shortest possible time. If it takes too long, we will be in a very different world. It is our responsibility not to take too long.”
The EU view: Japan is serious about market opening
The EU mandate for the Economic Partnership Agreement with Japan was agreed at the end of November last year. According to EU Trade Commissioner Karel De Gucht, the mandate sets out a strict and clear parallelism between the elimination of EU duties and non-tariff barriers in Japan. There's a safeguard clause to protect sensitive European sectors and the EU will “explicitly reserve the right 'to pull the plug' on the negotiations after one year if Japan does not live up to its commitments on removing non-tariff barriers.”
Japan is serious about opening up its market and had already started to remove a number of key non-tariff barriers up front – such as granting liquor licenses to European operators, the Commissioner said, adding: “Such moves have given us all the reassurance we could reasonably expect before a formal negotiation is opened. And no other partner has ever gone as far as Japan before we sat down at the negotiation table together.”
Potential benefits of an EU-Japan EPA:
The European Commission foresees:
- A boost to Europe's economy by 0.8% of GDP
- EU exports to Japan could increase by 32.7%, while Japanese exports to the EU would increase by 23.5%
- 420,000 additional jobs in the EU are expected as a result of this agreement
The negotiating directives:
- Japanese non-tariff barriers will have to be eliminated in parallel to any tariff reductions on the EU side.
- The European Commission should suspend negotiations if progress as specified in the non-tariff barriers and railways and urban transport roadmaps does not materialise within one year from the start of the negotiations.
- There is a safeguard clause to protect sensitive European sectors.
Japan is the EU’s second biggest trading partner in Asia, after China. In 2011 EU exports had reached a value of €49 billion, mainly in the sectors of machinery and transport equipment, chemical products and agricultural products. In 2011 EU imports from Japan accounted for €67.5 billion. In 2010, EU imports and exports of commercial services from and to Japan were €12.7 and €17.2 billion.
A remedy for declining EU-Japan trade
In its July 2012 assessment[1] of an EU-Japan FTA, the Commission noted that trade between the two had been declining for several years, worsened by a combination of tariffs and non-tariff measures that negatively affected both sides.
Both the EU and Japan have low tariffs on goods, the report said. However, Japan's tariffs remain high in the agricultural and processed food sectors and for beverages, in all of which sectors the EU is a major global exporter. Average Japanese tariffs applied to other important EU exports are generally low.
EU tariffs on the main Japanese exports are higher. Japanese exports to the EU largely fall in a small number of manufacturing sectors, e.g. motor vehicles, electronics and machinery.
Public consultation and studies stress that non-tariff measures are major barriers to EU exports to Japan. Parts of the Japanese market, e.g. some agricultural products and some transport equipment and aeronautical products, are almost totally closed to EU exports. Seven business sectors that cover the bulk of EU exports to Japan are those most affected by existing NTMs: chemicals (including pharmaceuticals), automotive, medical devices, processed foods, transport equipment, telecommunication and financial services.
The lack of transparency in public procurement, and problems relating to IPR, have also been identified as important non-tariff barriers that make the Japanese market effectively inaccessible for EU companies.
"Quality of life" demands attention of China’s new leaders (Originally published 12/03/13)
Quality of growth, not just numbersHowever, the next decade is going to be about the quality of growth, not just numbers. Responding to pressure from the public, China’s new leaders have vowed to fight corruption, narrow the urban-rural income divide, improve the lives of China’s “urban billion” and tackle environmental problems.They will also focus on meeting the aspirations of China’s growing middle class, which wants quality-of-life improvements such as a cleaner environment, higher food-safety standards, water security, and social protection."We should unwaveringly combat corruption, strengthen political integrity, establish institutions to end the excessive concentration of power and lack of checks on power and ensure that officials are honest, government is clean and political affairs are handled with integrity," said outgoing premier Wen Jiabao at his farewell speech to the National People’s Congress.Wen enumerated major domestic challenges that have caused public discontent in recent years - air pollution, toxic factories, tainted food and abuses of power - and pledged more resources to environmental protection and public welfare.His speech was a tacit admission that quality of life had been sidelined by a focus on breakneck economic growth. The question facing President Xi and Premier Li will be to ensure high rates of growth while also addressing environmental concerns.Clean governmentAs Qin Xiaoying of the China Foundation for International and Strategic Studies (CFISS) wrote recently in China Daily, “while people struggled to get sufficient food and clothing during the Deng Xiaoping era…people today probably want rule of law and a democratic living space more ardently than people have at any time before in the country's history.”He adds that the people “want a clean government that is more self-disciplined and responsible, and more efficient in social administration. In addition, they wish for greater safety secured through legislation and law enforcement; greater happiness through completion of the social insurance system; greater dignity gained through the relentless punishment of corrupt officials and the promotion of equality and justice; and greater identity with the international community, established through rational broadening of governmental, nongovernmental, economic, trade, military and diplomatic channels.”In order to deliver on these and other public demands, China’s leaders must try and rebalance the economy by shifting from exports and labour-intensive manufacturing to growth based on domestic demand and innovation.Middle Income TrapThe Asian Development Bank (ADB) has warned that China risks being caught in the middle-income trap, an economic situation where a developing country attains a certain income but remains stuck at that level, usually because of rising wages and falling cost competitiveness.The ADB advises investing in technology, promoting innovation by the private sector and loosening the state’s control over the financial sector. In addition, it says, China should expand its service sector, speed up urbanisation, and try to reduce income inequality so that ordinary people benefit more from economic growth.Clearly while China used to focus on constructing factories, roads and bridges; it must now devote as much time, money and attention on improving its education system and encouraging innovation.Urbanisation is a key driver of China’s modernisation – and is also expected to spur growth. More than 50% of China’s total population now lives in cities, compared to less than 20% in 1980.The urban economy will continue to be a “huge engine” of China’s economic growth, spurring domestic consumption and generating over 90% of China’s GDP by 2025, says Li Keqiang who is known as a “champion” of urbanisation.“Urban billion”“Urbanisation is not about simply increasing the number of urban residents or expanding the area of cities,” Li said in a recent article in People’s Daily. “More importantly, it’s about a complete change from rural to urban style in terms of industry structure, employment, living environment and social security.”However, China’s “urban billion” pose a number of urgent challenges to the new leaders who must take action to integrate migrant workers into urban life, ensure sufficient public funding for social services, work for a pollution-free environment and improve water and waste management. Regulation of the real estate sector is also urgently needed.A key – and divisive - challenge facing the new leaders is to give rural migrants and their families the same opportunities in cities as other urban inhabitants. Changes in the Hukou system under which rural migrants have limited access to local social services enjoyed by urban residents will not come easy. The new leaders have, however, suggested the introduction of a system of national resident permits.Seeking to counter public anger over corruption, Xi Jinping has declared a ban on official extravagance and banished some of the usual pomp from this year's gathering of the National People's Congress.It will be much tougher, however, to pass laws forcing government officials and their family members to declare their assets and financial activities. Action is needed however: The lavish lifestyles of some officials - who often drive luxury cars, own multiple villas and send their children to elite foreign universities – are much hated by the public and have become a source of strong public discontent.Ageing before becoming richAs a result of advances in healthcare and nutrition, combined with the one child policy and very low fertility rates, China is one of a small number of countries in which the population has aged before it has become rich. An estimated 14% of the Chinese population is aged 60 or above and the country is expected to count some 400 million people (or about one-third of the population) over 60 year by 2050.Foreign policy poses another headache: China's new leaders will have to contend with an increasingly fraught relationship with the US and their Asian neighbours. The recent announcement of a 10.7% increase in defence budget to 115.7 billion dollars has increased regional concerns about Beijing’s military spending, especially in view of tensions in the East and South China Seas.Beijing is also under pressure to take on “international responsibilities” by joining the Western consensus on tougher action against North Korea, Iran and Syria.Both the new president and premier are experienced party officials who can be expected to navigate the sometimes-choppy waters ahead with skill and creativity. Given the scale of the tasks ahead, China's new leaders will also have to be especially nimble and fleet-footed to adapt to emergencies relating to public discontent on quality of life issues, including the environment.
EU views on China's urbanisation drive (Originally published 30/01/13)
Europeans are watching with a mix of admiration and anxiety as China’s cities become big, bigger, biggest.Reasons for the admiration are clear: the dizzying pace and scale of China’s urbanization and transformation from a largely rural to an urban nation is unprecedented in human history. There is also recognition that cities have been the major drivers of China’s impressive economic growth and as such there is EU support for Chinese Vice Premier Li Keqiang as he champions the cause for further Chinese urbanisation.As the world urges China to rebalance its economy, there are hopes that increased domestic consumption due to urbanisation will overtake exports to become the main driver of the economy.As European Commission Vice President Joaquin Almunia said in May last year at the launch of the EU-China partnership on sustainable urbanisation, “city dwellers and migrants are the lifeblood of China’s economic development and need to supported in their search for social and economic opportunities.”Cities in both China and Europe are focal points of economic growth, innovation and paid employment. On average, urban residents have better access to education and health care as well as other basic services such as clean water, sanitation and transportation than rural populations. If well managed, urbanisation can continue to offer important opportunities for economic and social development.But urbanisation is not as simple as relocating rural people to cities or turning them overnight into city-dwellers. It is also about the quality of urban living, being able to provide urbanites with social security, housing, health, education and recreational facilities.As such, there is concern in Europe – as in many parts of the world – that China may not be able to cope with the demands of its increasingly assertive “urban billion”. China’s urban expansion poses a huge challenge for local and national leaders who must find sufficient public funding to provide social services and deal with pressure on energy resources, land, water and the environment. It is also clear that integrating rural migrants into city life will not be easy, given the current system of local residence permits (hukou).Clearly, the hukou system has helped to control the influx of rural migrants to the cities, maintained social stability and, at least partly, avoided slums-like outskirts next to China's bigger cities. But can the hukou system meet the challenges of urban living in the 21st Century? The fear is that in the long run, it may impede growth by lowering labour mobility and preventing some urbanites from becoming real consumers.Europeans do not just want to watch China’s urbanization from the side lines. The European Union believes firmly that potential for EU-China cooperation in creating energy-efficient and “eco-cities” is immense. The EU-China sustainable urbanization partnership launched amid much fanfare last year is a very visible symbol of the two sides’ hopes of working together on what many in Brussels view as a global challenge, not just a Chinese one.European businesses, meanwhile are hoping to help China meet its urbanization challenge – and make money in the process. And there is no dearth of experts, academics and scholars who are already giving their advice on how best to improve China’s cities of today and build China’s cities of tomorrow.The task facing China is immense. At recent meetings on the subject organised in Brussels, Chinese and European experts have underlined their concerns regarding the impact of the mega-cities on China’s already massive problem of environmental pollution, water and waste management, property prices and transport bottle necks. Providing health and education facilities to the rising number of urban dwellers will be difficult.However, there is also confidence that Chinese architects, urban planners and other urbanization experts will be able to create and build cities which are adapted to the needs of 21st Century citizens. Ideally, European technology and China’s organizational and implementation skills can be combined to produce the best results.Faced also with energy constraints, increased citizen mobility and dwindling natural resources, Europe is making great strides in greening its cities. But as illustrated by a series of EU projects, including the EU “smart cities and communities” initiative, the quest to develop integrated sustained solutions that offer clean, secure and affordable energy to citizens is far from over.Since cities account for 70 per cent of Europe’s overall energy consumption, EU plans to ensure 20 per cent energy saving by 2020 and to develop a low-carbon economy by 2050 hinge on how quickly and successfully European cities can become more resource-efficient.Europe can share its experience with China in areas such as providing pensions, health care and education for migrant workers as well as in managing rural communities. EU policymakers also insist on the need to involve civil society representatives in the dialogue on sustainable urbanisation.As such, over the coming years, European and Chinese mayors, architects, urban planners and industry leaders will have many opportunities to meet, identify and find solutions for common problems and priorities. The EU’s own Covenant of Mayors, set up in 2008, has more than 3,800 towns and cities as members who discuss issues like climate change, water, waste and mobility but also over-consumption and ageing.Given the right balance, in China, Europe and elsewhere, cities can be wonderlands of creativity, abundance and talent. But achieving that equilibrium will require out-of-the-box solutions and visionary global partnerships.
Democracy in Pakistan: Tough Lessons (Originally published 22/01/13)
There are two views on recent events in Pakistan. For some, Pakistan has shown its true colours as a chaotic and disorderly failed state. There were border skirmishes with India, more deadly extremist sectarian violence in an already deeply troubled province, rumours of a “soft” military coup as an unknown “Sufi cleric” and his followers demanded an end to corruption and —not to forget — another judicial demand that the prime minister be arrested on charges of graft.For others — admittedly in a minority — these and other equally strange developments were signs of a “maturing” and thriving democracy, of a people waking up to their rights as citizens and a vivid illustration of the strong independence of the judiciary.Finally a “people’s revolution”, Pakistan’s version of Egypt’s “Tahrir Square” in the streets of Islamabad, exulted some commentators. Hush, it’s another army conspiracy to derail democracy, said others.Both narratives have been expounded with equal force. They leave observers hungry for more information and less glib explanations, more facts and less fiction. However, now that the turmoil of the last few days appears to be over — at least temporarily — it’s wise to reflect on lessons learned.First, the rapid sequence of tragedy in Balochistan and farce in Islamabad hasn’t helped Pakistan’s already battered reputation.This is not just important for reasons of PR but also because Pakistan desperately needs foreign investment. No one is going to put money in a country seen to be always a mere heartbeat away from a suicide bombing, a terrorist attack or a deadly explosion.Le Monde, the influential and much-respected French newspaper, recently described Pakistan as “the sick child of South Asia,” noting in a scathing article that “there is something desperate about Pakistan”. As soon as the country shows signs of improvement, things go badly wrong, the article underlined, adding: “frankly we would love to be able to give some positive news about Pakistan … but the task is impossible.”Le Monde is not alone. Despite admirable attempts by Pakistani diplomats and others to put a positive gloss on recent developments in the country, it really is not easy to be upbeat about Pakistan.Secondly, yes, it is certainly good news that the current democratically elected civilian government looks set to complete a full five-year term. But 66 years after independence, should that be a reason for serious reflection or a cause for celebration?Third, can democracy really be reduced to the organisation and winning of elections? Yes, true, free and fair polls are crucial but shouldn’t the focus also be on what happens after the ballots are counted and the new — or old — leaders speed off in their limousines and move into their luxury houses?There is no doubt that citizens want to vote. But after the elections, they also expect good governance. They want a government that can deliver food, water and electricity. They want a roof over their heads. They want access to proper schools and hospitals and they want to work.Pakistan’s beleaguered politicians have failed the governance exams for decades and the generals who swagger in periodically have not done much better. It is important to fight corruption but equally crucial to insist on good governance and the delivery of basic services.Fourth, justice and politics do not mix. It’s heartening to see that Pakistan’s top judge has emerged as a modern-day Robin Hood. But the public probably wants justice in Pakistan to be about more than the issuing of regular arrest warrants to serving prime ministers.Fifth, the tragedy in Balochistan provides more damning proof that Pakistan must get its priorities right: the real danger comes from extremist groups which regularly foment sectarian violence and have very effectively used terrorism to destabilise Pakistan and Afghanistan. A government must provide protection for all religious groups on its territory. The inability to stop attacks on Shias, Ahmadis, Christians, Hindus — and women — represents an unacceptable failure of governance.Six, it makes no sense to start another vicious circle of Pakistan-India tensions over Kashmir or any other piece of land. Both countries have too much at stake to engage in another round of accusations and counter-accusations. The corrosive language of confrontation must be replaced by cooperation.This is important not just for Pakistan and India but also for South Asia as a whole. The region lags behind in meeting most of the anti-poverty Millennium Development Goals, its children are undernourished, women discriminated against and disease and illiteracy are rampant.Trade within the region is a mere fraction of what it should be. As Southeast Asia has illustrated, the future belongs to countries that can stop fighting and start cooperating to meet region-wide challenges. The 21st century is about building effective regional blocs, not sustaining regional animosities.Finally, as shown by the flurry of tragedies, dramas and mini dramas over the last week, the run-up to the elections is going to be a tumultuous time. There will probably be further storms in more teacups, more violence and all kinds of evil attempts to derail democracy in Pakistan.Seen from the outside, Pakistan does seem to be trapped in an unfortunate cycle of mishaps, misplaced hopes and unhappy accidents. There is general consensus that the country’s resilient, hard-working and long-suffering people deserve better than what they have ever received from soldiers or politicians. For many, the only true and uplifting narrative about Pakistan is one that speaks of the strength and fortitude of its people.
A new agenda for EU-Asia relations (Originally published 14/01/13)
Perhaps it was the US “pivot” to Asia, perhaps the Eurozone crisis or possibly a much-belated recognition of the need for stronger Asia-Europe engagement? Whatever the reason – or mix of reasons - European leaders have been spending some much-needed time and energy on improving their Asian connections.Leading European officials EU Council President Herman Van Rompuy, European Commission President Jose Manuel Barroso and Catherine Ashton, the EU high representative for foreign and security policy attended key Asian gatherings in 2012. The EU also signed up to the Treaty of Amity and Cooperation, Southeast Asia’s peace blueprint.The efforts are paying off. There is heightened awareness of European-Asian economic interdependence; trade and investments are booming despite the Eurozone crisis and the global economic slowdown; after years of watching from the sidelines, the EU is becoming involved in Asia’s security discussions; there is recognition that tackling 21st Century challenges requires more forceful Asia-Europe cooperation.Following progress in EU-Asia relations made in 2012, the time is ripe to take relations to a higher level. This requires that both sides switch from a focus on visits, meetings and issuing statements and communiques to a more substantive and meaningful strategy for stronger mutual engagement.The time for photo-opportunities is over. Official visits - however welcome and needed – must be backed up by a fresh vision for a stronger, more sustainable EU-Asia strategic partnership which underlines areas where the two regions can work together to meet the challenge of living together in a rapidly changing and very complex world.The new blueprint need not be long or all-comprehensive. Asia is much too diverse and the challenges it faces are much too complex to lend itself to such an approach. Europe too is changing fast.In the end, it’s simple: 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, moving beyond the Eurozone crisis 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.Here are a few suggestions for engineering a truly qualitative step forward in EU-Asia relations:
- Move from an event-focused relationship to a partnership based on common concerns and tackling shared challenges. This shift can be made within the Asia Europe Meetings (ASEM), in relations with ASEAN and on a bilateral level. The agenda set for such meetings is often an endless laundry list of areas of cooperation. These should be narrowed down to a smaller list of core issues which require joint reflection and action. This should include (a) new global challenges such as climate change and urbanisation, (b) trade and economic questions, (c) politics and security, (d) regional integration initiatives and (e) people-to-people contacts.
- Use the ASEM network of 51 nations and organisations to advance discussions on the list of issues above and foster stronger personal contacts between European and Asian leaders and policymakers. The fact that the next ASEM summit will be held in Brussels in autumn 2014 under Lisbon rules (ie the EU Council and the European External Action Service will set the agenda rather than an individual European government) provides a welcome opportunity for discussions to focus on EU-wide interests rather than narrower national priorities.
- Continue to enhance ties with ASEAN (Association of Southeast Asian Nations). The ambitious plan of action agreed at the EU-ASEAN ministerial meeting in 2013 is a good step forward in relations but needs to be accompanied by three important steps: the organisation of an EU-ASEAN summit, reflection on recognising ASEAN as a key strategic partner and the appointment of a special EU envoy to ASEAN. Such moves will not only give EU-ASEAN relations a stronger foundation but also signal the EU’s recognition of ASEAN’s “centrality” gin ensuring peace and stability in the Asia Pacific and leading regional integration initiatives.
- Leverage economic and trade ties to forge an integrated strategy for EU-Asia relations. Economics has long been the backbone of EU-Asia links and the EU has been pro-active in negotiating free trade agreements and investment treaties with leading Asian nations, including South Korea, Singapore, Vietnam, India and Japan. Business summits are also often held with many Asian countries, including with ASEAN. These trade initiatives need to be made part of the EU’s overall Asia strategy. This is especially important given that Asian nations are involved in an array of regional trade networks, including their own Regional Comprehensive Economic Partnership (RCEP) initiative and the US-led Trans Pacific Partnership (TPP).
- Engage in security discussions. As it seeks to gain entry to the East Asia Summit, the EU should make sure that leading European policymakers participate in Asian security fora such as the ASEAN Regional Forum (ARF) but also the informal Shangrila Dialogue held every year in Singapore and ASEAN-linked security discussions. Although there is no European military presence in Asia, the EU can make constructive contributions to the region’s security discussions in areas such as preventive diplomacy, conflict resolution and disaster management.
- Move away from confrontational narratives. EU-Asia relations have been complicated for far too long by a narrative of competition which paints a picture of the EU as reluctant to adapt to a rapidly changing world and uncertain and uneasy Europe in the face of a self-confident and assertive Asia. The discussion has been useful in focusing Asian and European minds’ on the changing world order and spotlighting the need for stronger Asia-Europe understanding and engagement. But it is time to move on. Asia-Europe relations in this new era must be based on partnership to deal with complex 21st Century challenges. Europe in particular needs to change the tone and style of its inter-action with Asia.
In addition to seeking a stronger regional influence, the EU should of course continue apace with its diplomatic, trade and economic ties with individual Asian countries. Stagnant South Asian regional integration in particular needs to be given a new lease of life.EU policymakers like to say that 2012 was a “pivotal” year for relations with Asia. One year is not enough, however. The effort has to be sustained over the long-term.
EU-China relations after the leadership change (Originally published 16/11/12)
EU leaders bade a fond farewell to Chinese Premier Wen Jiabao at the EU-China summit in Brussels on September 20. The outgoing Chinese leader, who invested much time and effort in building strong ties with Europe, certainly deserved the effusive send-off. Will China’s new leaders be equally keen on the EU?The good news is that Wen’s successor Li Keqiang is no stranger to Europe. In meetings and speeches during a tour of European capitals in May this year, Li repeatedly underlined his interest in Europe as “a strategic partner that deserves our confidence”.“China firmly supports Europe both in words and in deeds in its efforts to overcome the current crisis,” Li wrote in an article in the Financial Times newspaper. “When “designed in Europe” is combined with “made in China” and when European technologies are applied to the Chinese market, there will be amazing results,” Li insisted.The words may be encouraging but for China’s new leaders, building stronger relations with Europe may have to wait. Domestic priorities will dominate the immediate agenda of both Li and Xi Jinping who replaces President Hu Jintao.China today is the second largest economy in the world. Over the last three decades, China’s rise, its success in delivering growth and development to millions of poor people and its increased confidence in global affairs has mesmerised a watching world.The future is more uncertain, however. Given the immense challenges facing them, China’s new leaders arelikely to spend their time, energy and money on addressing internalchallenges and meeting public expectations.Questions likely to dominate their agenda include meeting the aspirations of China’s growing middle class, responding to public pressure as regards quality-of-life improvements such as a cleaner environment, higher food-safety standards, water security, and social protection. China will need outside help is in meeting the diverse demands of the country’s “urban billion”.China also faces the problems of rising inequality between the rich and poor, corruption at all levels of society and anger over a lack of services like health care.To meet the aspirations of its people – and especially its growing middle class – China needs continued growth. The World Bank says without change, annual growth could sink to 5 percent by 2015 — dangerously low by Chinese standards. China's economy grew at a 7.4 percent annual rate in the third quarter—the slowest since the first quarter of 2009.The world will be watching carefully to see how committed the new leaders are to rebalancing China’s economy so that there is a much-needed shift from exports and labour-intensive manufacturing to growth based on domestic demand and innovation.However, China's new leadership will also have to contend with an increasingly fraught relationship with the US and its Asian neighbours.The Obama Administration has been bringing more cases against China through the WTO, charging China with unfair trade practices.In Asia, there's a growing level of concern about China's rise and its increased assertiveness in defending territorial claims in the South and East China Seas.In comparison, relations with Europe are much less problematic. Trade and investment ties are growing. As both the Eurozone and the Chinese economies slow down, both sides are more aware than ever of their economic interdependence.China looks to the EU for markets, investments and technology. Chinese companies are also increasingly eying the Europe as an investment destination.Chinese annual FDI flows to Europe tripled from €2.3 billion in 2009 and 2010 to almost €7.4 billion in 2011. However, the absolute FDI values remain very small compared to Europe’s total inward FDI and to China’s total outward FDI stock.During his visit to Europe, Li pointed out that China has aided the Eurozone economies over the past two years by importing more goods, investing and buying bonds.Launching an EU-China urbanisation partnership, Li underlined that urbanisation had the most potential to expand China's domestic consumption, a major goal of China's 12th Five-Year Plan (2011-2015).Discussions on energy were also started, illustrating both sides’ readiness to start working together on practical questions.The challenge for both sides is to make this new, positive trend in relations sustainable. EU-China ties are not always easy. Long-standing irritants include the EU’s resistance to ending an arms embargo against Beijing and failure to give the country market-economy status.Europe meanwhile wants better access to China’s markets, improved protection of intellectual property rights and an end to investment barriers.The launch by the EU of an investigation into alleged state subsidies for Chinese solar panel manufacturers risks intensifying the conflict over the multi-billion dollar solar power equipment market that is straining trade ties.The EU Commission is already investigating allegations of Chinese manufacturers "dumping" solar panels in overseas markets. This follows a US decision to impose duties on Chinese solar power products.The Chinese government meanwhile has lodged a complaint with the World Trade Organisation accusingItaly and Greece of illegally favouring domestic solar panel producers in promoting new solar power installations and warning it could put tariffs on EU exports of the raw material polysilicon.Such trade friction does not necessarily have to sour the overall EU-China relationship provided both sides can reinforce their ties in other areas of common interest and concern.In addition to the urbanisation partnership, China and Europe face common challenges in sectors such as environment, food, water and energy security and promoting economic growth.Like the rest of the world, however, Europe will also be watching to see if a country that has helped millions to climb out of poverty is now ready to open the doors to political reform and transformation.
Cool heads needed as EU launches China solar panel probe (Originally published 07/09/12)
The European Commission’s decision on September 6 to start investigating suspected dumping of Chinese-made solar panels has sparked fears of a damaging Brussels-Beijing trade war. It should not: the EU-China relationship is much too important to be jeopardized by anti-dumping inquiries which – however sensational – represent a minor percentage of EU-China trade.The solar panel case has been on the EU drawing board for several months, prompting repeated warnings from China that any EU action would hurt the global clean energy sector and lead to damaging tit-for-tat measures.The group of European solar companies, led by Germany's SolarWorld, and including Italian and other European firms, says Chinese solar firms have been selling panels below market value in Europe. Chinese producers in the firing line include Yingli Green Energy, Suntech Power Holdings Co Ltd, Trina Solar Ltd and Canadian Solar Inc.The inquiry is not unexpected. Under EU law, the Commission is bound to open an anti-dumping inquiry if the complaint satisfies certain basic requirements. Officials say this is the case.The timing of the investigation is unfortunate, however: it comes just days before the EU and China hold summit talks in Brussels. The meeting on September 20 will be the last formal encounter between Premier Wen Jiabao – who has invested much time and effort in developing China’s EU connection - and senior EU policymakers before he hands over the baton to his successor (widely expected to be Vice Premier Li Keqiang).The EU action follows close on the heels of German Chancellor Angela Merkel’s much-publicised visit to Beijing last week. Ms Merkel has said she wants the dispute over solar panels to be resolved through dialogue, not an anti-dumping investigation. She has also sought to reassure her worried Chinese hosts on the “absolute political will” of Eurozone countries to stabilize their currency.Merkel’s visit coincided with a Chinese announcement that it was purchasing 50 Airbus planes worth over $4 billion, the first significant order since a dispute between Beijing and Europe over emissions trading.Wen’s farewell meeting with the EU should certainly not be soured by the anti-dumping case. There should be no repeat of the acrimony generated at the EU-China summit in 2010 over EU criticism of China’s currency policy.Both sides have mended fences over the last two years. Discussions continue over human rights, market access and investments. But the Eurozone crisis and China’s increased economic clout has led to a change in the EU’s view of China. As such, European Commission President Jose Manuel Barroso and EU Council President Herman Van Rompuy are likely to focus on the many areas where the EU and China have succeeded in building a stronger partnership rather than on trade and other irritants.There are initial encouraging signs that Beijing is toning down its earlier rhetoric. In contrast to earlier statements, China's immediate response to the anti-dumping inquiry been measured, with no mention of any retaliatory steps.“China expresses deep regret” about the decision, Ministry of Commerce spokesman Shen Danyang said in a statement on the ministry's website (www.mofcom.gov.cn).“Restricting China's solar panel products will not only hurt the interests of both Chinese and European industry, it will also wreck the healthy development of the global solar and clean energy sector,”said Shen.He urged the EU to “seriously consider China's position and proposals, and to resolve friction over solar panel trade through consultations and cooperation”.China sold about 21 billion euros in solar panels and components to the EU in 2011 - about 60 percent of all Chinese exports of the product.Total EU imports from China were valued at 292 billion euros last year. Imports of Chinese products subject to trade defense duties total less than one percent of that amount. The US also imposed duties on solar panel imports from China in May after a similar initiative led by SolarWorld there.Europe’s solar companies are divided over the dumping case. Some such as those that install panels say Europe should welcome Chinese imports because they make solar power more affordable and are essential for the 27-member bloc to achieve its goal of having 20 percent of energy from renewables by 2020. EU companies that have sold machinery to China to produce photovoltaic cells have also expressed misgivings.EU governments are unlikely to see eye to eye on the investigation. Berlin is wary of annoying a country with which it has forged a trade-based “special relationship” and which remains an important ally in efforts to stabilize the Eurozone.Others may also hesitate. The EU-China relationship has been gaining momentum in recent months. At their last summit in Beijing in February, the EU and China launched a high level people-to-people dialogue on a par with their discussions on strategic issues and on economic questions.An urbanization partnership is now in full swing with mayors’ from Europe and China set to meet in Brussels on September 19 for two days of discussions.In addition, EU and Chinese business leaders will meet for their own summit on September 20 to discuss investments and innovation.The upcoming EU-China summit is not expected to result in any headline-grabbing new initiatives but practical new cooperation tracks will emerge. Leaders are expected to launch discussions on water security, a rural development partnership and talk about cyber security.The focus on practical engagement and cooperation in areas of mutual interest should define the EU-China relationship in the coming years. China and Europe are increasingly interdependent, a fact that Merkel understands and underlines.As such, instead of fearing Germany’s determination to build ever-stronger relations with China, Berlin’s partners should encourage such moves. The German-China “special relationship” adds to the EU’s clout and influence when talking to Beijing.Talk of competition between the EU and Germany in dealing with China should be jettisoned. Instead, the EU should take a leaf from Berlin’s book of practical diplomacy and engagement with Beijing. What’s good for German-Chinese relations will boost, not undermine, EU-China relations.
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.
EU-China: The challenge of “soft diplomacy” (Originally published 17/04/12)
The European Union’s expanding relationship with China now includes a much-needed “soft power” pillar: on April 18, both sides formally launch a “high level people-to-people dialogue” aimed at ensuring the EU-China conversation in more than just trade, business and global politics, questions already covered by existing EU-China high-level contacts.Bringing people – students, academics, artists, journalists and especially young people – into the EU-China discussion is a good move. Officials, diplomats and business leaders have a prime role to play in promoting ties between nations. However, building real trust and confidence – an essential element in forging strong and stable ties – requires regular contacts and exchanges between non-state actors.Given the “trust deficit” in EU-China ties, the need for more communication among people is essential. Differences in their political systems, values and interests mean that people in China and Europe are unlikely to see eye to eye on many questions. But this diversity need not stop people from seeking to better understand each other.Europeans are clearly impressed by China’s rise but opinion polls across Europe also show continuing public unease about the country’s political system, human rights, increased military spending and trade practices.Europe’s economic troubles are also impacting on perceptions of China, with public opinion torn between a view of cash-rich China as a potential “saviour” for ailing European economies and fear that Beijing is planning to “buy up” European assets and use its expanding economic power to influence European policy.Ingrid d’Hooge of the Netherlands Institute of International Relations (Clingendael) points out in her study “The Limits of China’s Soft Power in Europe,”that European views of China were favourable in the early years of the 21st Century, when people were optimistic about political reform in China and confident about economic opportunities. Since late 2006, however, Europeans have been disappointed at lack of political reform in the country and worried about China’s international intentions.Interestingly, however, Europeans differentiate between China as a country – in fact China’s government – and the Chinese people. “When asked how they view the Chinese people, the figures are far more favourable than those for China as a country,” d’Hooge says.Chinese perceptions of Europe appear to be slightly more positive. The EU has a “huge reservoir of goodwill” in China to tap into according to research conducted by the China Policy Institute of the University of Nottingham. But over 70 per cent of Chinese officials said their knowledge of the EU was insufficient.A 2007 study by Chatham House points out that for many Chinese, “Europe simply does not exist as a political centre of power, especially compared with the US.” Recently, Chinese media have been critical of expectations that emerging economies would come to the help of embattled Eurozone nations.China’s former ambassador to the EU Song Zhe has criticised European media for failing to give a complete picture of Chinese realities, saying this creates “misunderstandings or even biased views on China”. The key problem, he added, is that “Europeans just don’t know China well”.Changing perceptions is not going to be easy. Both the EU and China, however, possess the soft power tools – culture, education and diplomacy - needed to make friends and influence people.China is trying very hard. Widely recognized by Chinese leaders as an important indicator of a country’s international status and influence, the cultivation of Chinese soft power is at the top of the state agenda. China also has a huge cultural industry and since 2005, President Hu Jintao has promoted a “soft power initiative” aimed at increasing China’s global influence through cultural and language programmes.Not surprising given its global popularity, China’s traditional culture is viewed by many Chinese policymakers as the most important resource for building soft power. The recent expansion of Confucius Institutes in Europe and elsewhere builds on this worldwide interest in China’s cultural traditions and language.Beijing has also extended its media outreach through China Central Television (CCTV), the English-language versions of China Daily Weekly published in London and the Global Times.European culture – traditional and modern – has a similar attraction worldwide. Unlike Chinese policymakers, however, the EU has yet to hammer out a complete strategic vision on the role of culture in EU-China relations or indeed, more generally, on the role of cultural cooperation and cultural diplomacy in EU foreign policy.EU states will – and should - continue to focus on promoting their national cultural traditions. Yet, a joint EU strategy to promote European cultural interests would go a long way in boosting Europe’s soft power in China.The questions the EU has to deal with are sensitive and complex. As EU Commissioner for Culture Androulla Vassiliou pointed out earlier this year, Europeans have to work out how to promote their creative and cultural industries at international level while safeguarding and fostering cultural diversity.“How can we create synergies between diverse and strong cultural identities at EU level when engaging in cultural relations with third countries?” asked Vassiliou.Cultural discussions with China should help the EU to find answers to some of these questions. A number of activities – film festivals, exhibitions and cultural performances, book fairs – set out as part of the current EU-China Year of Intercultural Dialogue should help create a stronger perception of European culture.In addition to creating better understanding between the EU and China, the high-level people-to-people dialogue is also likely to contribute to a greater EU awareness of the potential for joint European cultural outreach.
Enhancing EU-ASEAN ties (Originally published 26/03/12)
Finally, there’s hope for some much-needed progress in Europe’s 35-year old relationship with Southeast Asia.In the coming weeks, top officials from the EU and the ten-member Association of Southeast Asian Nations (ASEAN) will be meeting for the second ASEAN-EU Business Summit in Phnom Penh, Cambodia, to explore mutually interesting business and investment opportunities.An ambitious new action plan for ASEAN-EU relations is being negotiated and is expected to be unveiled when foreign ministers from both regions meet in Brunei in late-April.Also after years of playing hard to get, the EU’s top officials are beginning to take relations with ASEAN much more seriously.European Trade Commissioner Karel De Gucht will be attending the Business Summit in Cambodia. At last count, 17 EU foreign ministers (or their deputies) had signed up to meet their ASEAN counterparts in Brunei on April 27. EU foreign and security policy chief Catherine Ashton is also expected to participate.Showing up for ASEAN meetings is a good first step in building closer ties with the region. ASEAN policymakers have long complained about European ministers’ failure to turn up at EU-ASEAN gatherings.However, injecting real oomph into EU-ASEAN ties will require more than clocking up frequent flyer miles, vigorous handshakes and turning up for photo opportunities.Here are four urgent steps that both sides could take to enhance ties in the short-term.
- Restart talks on a region-to-region EU-ASEAN free trade agreement.
- Include a strong commitment to building a strategic relationship as part of the new EU-ASEAN action plan.
- Celebrate the 35th anniversary of EU-ASEAN ties at a summit.
- Appoint a special EU envoy responsible solely for relations with ASEAN.
Rapid changes in ASEAN, which turns 45 this year, are prompting the EU to take a fresh look at ties with the region.Significantly, the political reform under way in Myanmar has given a new luster to ASEAN. Military-ruled Myanmar’s entry into the organization in 1997 alienated the US and the EU as well as many other Western countries. However, now that Myanmar is opening up, the global race is on to forge stronger relations with both the country - and with ASEAN.Second, America’s much-publicised warm embrace of the Asia Pacific region – which includes plans for a Trans-Pacific Partnership on trade liberalization - has been a wake-up call to the EU.In the last few months, US officials have increased pressure on European governments to engage more strongly with ASEAN instead of focusing all their energy and efforts on China – and to a lesser degree on India.Specifically, Americans have been insisting that the EU must become an active participant of the ASEAN Regional Forum which is the prime platform for discussions on pan-Asian security issues.Third, as it struggles to overcome the economic crisis, the EU has come to rely heavily on exports to the ASEAN market of over 500 million people. ASEAN’s trade with the EU, in return, is helping to keep the region’s economy on track.The point is likely to be highlighted at the ASEAN-EU Business Summit in early April. The meeting, the second of its kind between economic policymakers and business leaders from the two regions, will focus on promoting trade and investment flows by reducing barriers and minimising constraints in trade and investment.
| ASEAN TRADE WITH EU AND THE WORLD | |||
| EU27 with ASEAN | |||
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| ASEAN with the world | |||
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| % OF THE WORLD (excluding Intra-EU Trade) | 2008 | 2009 | 2010 |
| Imports | 7.5% | 7.5% | 7.9% |
| Exports | 8.3% | 8.9% | 9.2% |
| % OF TOTAL EXTRA-EU27 | 2009 | 2010 | 2011 |
| Imports | 5.6% | 5.8% | 5.5% |
| Exports | 4.6% | 4.5% | 4.5% |
In addition, a revival of negotiations on an EU-ASEAN free trade agreement, suspended in 2009 largely because of discord over Myanmar, would send a positive signal of EU interest and commitment to ASEAN.The EU is currently negotiating bilateral trade deals with Singapore, Malaysia and Vietnam but has always maintained that these are “building blocks” in the search for an ASEAN-wide agreement.The new EU-ASEAN action plan for future cooperation, set to be released in Brunei at the end of April, represents an important step forward in expanding the content and scope of the two sides’ conversation so far.Key questions in the new plan include EU support for ASEAN’s efforts to upgrade connectivity across the region, help in implementing the ASEAN economic blueprint as well as cooperation on questions such as maritime security, cyber crime and counter-terrorism.However, the document could do with the injection of a stronger strategic element to make it more relevant to the changing nature of both Europe and ASEAN. The focus should be on improving the quality of the two sides’ inter-action rather than the quantity and volume of subjects discussed.Transforming EU-ASEAN relations into a strategic rather than purely trade and economic relationship would have the added advantage of giving a boost to Europe’s long struggle to become a member of the East Asia Summit. In addition to leading Asian nations, the EAS now also includes all of the EU’s current “strategic partners” including the US and Russia.An EU-ASEAN summit will probably not be easy to organise given leaders’ hectic schedules and conflicting agendas. The Asia Europe Meeting (ASEM) set to be held in Laos in early November, however, offers an opportunity for convening a separate EU-ASEAN summit on the sidelines.The appointment of a special EU envoy for ASEAN would give a fillip to relations. By doing so, the EU would be following in the footsteps of Washington which sent David Lee Carden to Jakarta last year as the first resident US ambassador to ASEAN and Tokyo whose ambassador to ASEAN, Takio Yamada was appointed in 2010. The Australian, Chinese and South Korean “special” envoys for ASEAN operate out of their national capitals.The upcoming agenda of EU-ASEAN contacts and meetings is an encouraging sign of increased mutual interest. The momentum must be maintained, however, through rapid, visible-and-often-symbolic moves which signal the start of a new era of stronger EU-ASEAN engagement.