EU, Asian ministers meet against economic backdrop<\/p>\n
By Andrew McCathie<\/p>\n
BERLIN (DPA): European Union and Asian economic ministers are
\nmeeting in Berlin next week against the backdrop of an improved
\neconomic outlook for both regions.<\/p>\n
Two years after a financial firestorm swept through Asia
\neconomic growth in both the EU and the Asian-Pacific region is
\nbeginning to pick up speed with Asia's brighter economic
\nprospects helping to drive rising European exports.<\/p>\n
As further evidence of the economic turnaround taking hold in
\nJapan, exports to Japan from Europe's largest economy, Germany
\nhave been growing this year at about five percent, after
\nplummeting last year by 15 percent.<\/p>\n
This week's Asia Europe Meeting could also represent something
\nof a curtain raiser to a renewed European interest in the Asian
\nregion with German Chancellor Gerhard Schroeder due to lead a big
\nGerman business delegation to both Japan and China in November.<\/p>\n
German officials say that trade issues are likely to dominate
\nthe two-day meeting in Berlin, which will include ministers from
\nthe EU's 15 member states as well as from 10 Asian nations --
\nJapan, China, South Korea, Brunei, Indonesia, Malaysia,
\nPhilippines, Singapore, Thailand and Vietnam.<\/p>\n
More specifically, the ministers are expected to discuss means
\nof boosting regional trade and investment as well as the upcoming
\nSeattle round of trade liberalization talks and other World Trade
\nOrganization (WTO) questions.<\/p>\n
Also on the agenda are initiatives aimed at improving
\ncooperation both between Asian and European companies and in
\nparticular in developing infrastructure.<\/p>\n
As well, in the light of the improving fortunes of the global
\neconomy, a review of the economic situation in both regions.<\/p>\n
Nevertheless, and despite the growing economic optimism about
\nAsia, the mood in the European business towards Asia remains
\ncautious ahead of the meeting with the upturn in the Asian
\neconomy seen as being helped along by the resilience of the U.S.
\neconomy.<\/p>\n
While economic growth in the new EuroZone economy built around
\nEurope's common currency, is expected to come in at a modest 2.1
\npercent this year, the economic rebound in parts of Asia means
\nthat growth in nations like South Korea could hit about six
\npercent.<\/p>\n
But signs of an economic upswing in Asia also come after
\nalmost two years of negative growth in several key Asian states.<\/p>\n
And as a reminder of the fragile state of the Asian economy,
\ndata released this week by Germany's statistical office showed
\nGerman exports to South Asia sinking by 19.2 percent during the
\nfirst half of the year.<\/p>\n
As the world's second largest exporter, Germany was especially
\nhard hit by Asia's sudden economic slump with exports going into
\nreverse towards the end of last year after chalking a growth rate
\nof about 11 percent at the height of Asia's economic boom.<\/p>\n
The eurozone economy's export exposure to Southeast Asia
\nroughly stands at only about 10 percent, but as the last two
\nyears have shown, economic events in Asia still have the
\npotential to depress European economic growth.<\/p>\n
Moreover, after racing to carve out new business empires in
\nwhat was once the booming Asian economy, the financial crisis
\nthat moved through Asia and on to Latin America and Russia during
\nthe last two years has forced western business leaders to
\nredefine their approach to emerging markets. And in particular to
\nweigh up the business potential of each market individually
\nrather than on a regional basis.<\/p>\n
This has been further underscored by the continuing economic
\nand political turmoil ravaging Indonesia and which was once seen
\nby European business as a prime example of Asia's market
\npotential.<\/p>",
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