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.