ASEAN, EU urged to reinvigorate economic ties

ASEAN, EU urged to reinvigorate economic ties

By Meidyatama Suryodiningrat

SINGAPORE (JP): A group eminent Southeast Asians and Europeans
warned of sagging business ties yesterday and said a business
forum should be established and other policy measures implemented
to boost economic relations between the two regions.

The Eminent Persons Group (EPG), in a report titled Strategy
for a New Partnership, said it was important the government and
private sector took measures to reinvigorate relations.

"Business relations between the European Union and ASEAN are
in danger of falling behind those between ASEAN and North
America," EPG member Helmut Haussmann, a former German minister
of economy, said in his presentation to ASEAN and EU foreign
ministers here yesterday.

"Europe simply cannot afford to turn its back on the strongest
economic growth region in the world," Haussmann said.

Singapore's Lee Tsao Yuan, also an EPG member, stressed the
importance of immediate remedial action.

"ASEAN and the EU are at a critical point in their
relationship ... They have the opportunity to decide whether to
cooperate on a whole range of issues, or whether they do not,"
Lee said.

The EPG members made their presentation on the opening day of
the 12th ASEAN-EU ministerial dialog.

The 16-member ad hoc committee was created after the 11th
ASEAN-EU dialog meeting in Karlsruhe, Germany, in 1994, to
analyze relations and develop an approach for ASEAN-EU relations
toward 2000.

Members include former British Under-Secretary of State Lord
Gilmore of Thamesfield, former Netherlands Minister of Finance
Jonkheer Emile van Lennep and Indonesia's former permanent
Ambassador to the EU, Atmono Suryo.

In their 56-page report EPG made two sets of recommendations:
one for governments and one for the private sector.

The EPG said continued liberalization of markets was an
important step which governments had to continue to take. It said
it was essential for the EU and ASEAN to commit to the World
Trade Organization's (WTO) Built-In Agenda as quickly as
possible.

Governments should also adopt business confidence building
measures to stimulate trade and joint investment, it said.

The promotion of a business-friendly legal and regulatory
framework was vital, it said.

The EPG said EU and ASEAN governments should adopt, within the
WTO, agreements on trade related investment measures and
investment protection agreements and double taxation agreements
at a bilateral level.

The EPG strongly urged regular dialog meetings between
economic ministers.

On the private sector side, the EPG recommended the
establishment of a business organization at the ASEAN and EU
levels.

Helmut Haussmann said there were still few EU business
associations in ASEAN countries and vice versa.

He suggested an ASEAN-Europe Business Council (ABEC) be
established to focus on small and medium enterprises and to
provide feedback to governments.

It should be comprised of no more than 50 committed business
executives with each ASEAN and EU member nominating two people.

Areas ABEC should concentrate on were agro-business and food
manufacturing, infrastructure development, financial services and
promotion of foreign direct investment.

Indonesia's Atmono Suryo said the first step was for
individual ASEAN countries to establish a local business council
with the EU.

He said Indonesia had business forums only for individual
European countries. He said plans to establish an Indonesian-
Europe Business Council were in the works and could be realized
later this year.