Europe sidelined by newly rich Asia<\/p>\n
By Pierre-Antoine Donnet<\/p>\n
MANILA (AFP): Europe is in danger of being left out in the
\ncold as the main club of Asia-Pacific nations gets richer by the
\nday and moves towards creating the world's most dynamic free
\ntrade zone.<\/p>\n
Asian nations were worried when the European community set up
\nits single market in 1993. But now European governments are in
\nturn concerned at the lost opportunities as they see the progress
\nbeing made on the other side of the world, analysts say.<\/p>\n
"Asia is going to generate half the world's growth, outside
\nNorth America, in the next 10 years," said Kenneth Courtis, chief
\neconomist for Deutsche Bank Asia. "It is not very nice being
\nexcluded from a part of the world with such growth."<\/p>\n
The accumulated gross domestic product (GDP) of the 18
\ncountries in the Asia-Pacific Economic Cooperation (APEC) forum
\nnow comes to US$13,400 billion, 54 percent of world GDP.
\nAPEC countries' trade is worth $3,400 billion and most of the
\nmember nations have the fastest growing economies in the world.<\/p>\n
APEC leaders who hold their fourth summit at the former U.S.
\nmilitary base at Subic Bay in the Philippines this weekend are to
\nset the seal on an 'Action Plan' to deregulate trade and
\ninvestment in the zone by 2020.<\/p>\n
Their ultimate aim is to abolish tariffs, pull down non-tariff
\nbarriers and harmonize policy on competition and intellectual
\nproperty rights.<\/p>\n
Asia already has massive capital reserves, with six of the 10
\nlargest capital exporters in the world rankings. "Not having a
\nprivileged access to this enormous reserve does not help life,
\nespecially when you have unemployment rates of 13 to 14 percent,"
\nsaid Courtis.<\/p>\n
Many of the world's major infrastructure projects in coming
\nyears will be in Asia, and European companies are desperate to
\nget at them.<\/p>\n
According to Courtis, "a big European enterprise that does not
\nget between 30 and 35 percent of its turnover in Asia over the
\nnext decade may remain a big enterprise, but only on a regional
\nscale, and it will have no future."<\/p>\n
APEC summits are also a major opportunity for bilateral
\npolitical talks that give leaders the chance to close ranks on
\nsensitive topics.<\/p>\n
"Even on a political level, we are going to see Asia counting
\nfor a lot. In Europe we are a bit sleepy. We wake up all of a
\nsudden and to be woken with a cold shower is not nice," said the
\nDeutsche Bank analyst.<\/p>\n
Not all experts take such a pessimistic view about Europe's
\nchances however.<\/p>\n
There was a lot of alarm among European leaders after APEC's
\ncreation in the late 1980s, according to one European diplomat,
\nwho is an expert on the group. But anxiety has gradually fallen
\nover the years, he added.<\/p>\n
The first Asia-Europe Meeting (ASEM) brought together heads of
\nstates from the 15 European Union states and 10 Asian nations in
\nBangkok in March. They will convene again in London in 1998.<\/p>\n
APEC should also soon agree to let European experts take part
\nin working groups on norms and standards, a crucial aspect for
\naccess to markets. Official approval is expected at Subic Bay.<\/p>\n
The Asia-Pacific club has also promised other countries there
\nwill be no discriminatory practices, which would be against World
\nTrade Organization rules anyway. Japan is particularly keen on
\nnot seeing the world trade cart upset.<\/p>\n
But analysts say that even if APEC does not fall into
\ndeliberate discrimination, regional integration will undoubtedly
\ncreate unseen complicity and commercial habits.<\/p>\n
These will only bring benefit to the group's members:
\nAustralia, Brunei, Canada, Chile, China, Hong Kong, Indonesia,
\nJapan, Malaysia, Mexico, New Zealand, the Philippines, Papua New
\nGuinea, Singapore, South Korea, Taiwan, Thailand and the United
\nStates.<\/p>",
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