Asia worries about decline in European trade

Asia worries about decline in European trade

TOKYO (AFP): Asian participants at next month's landmark meeting with the European Union hope the conference will help redress declining exports and shrinking investment, according to a Japanese survey released yesterday.

The Japan External Trade Organization (Jetro) said in a statement it had surveyed government officials, businessmen and academics through its 22 offices in the region ahead of the Asia- Europe Meeting (ASEM) in Bangkok starting March 1.

It found that while the 10 Asian countries taking part in ASEM had become an important export market for the European Union, the EU share of exports from the Asian countries had declined.

The Asian side was also worried about shrinking European investment.

Asian participants at the ASEM are the seven members of the Association of Southeast Asian Nations (ASEAN) -- Brunei, Indonesia, Malaysia, the Philippines, Singapore Thailand and Vietnam -- as well as China, Japan and South Korea.

Jetro said that global exports by the 15 EU countries grew an annual average of just 1.8 percent between 1990 and 1994.

Exports to the United States grew 3.9 percent, but exports to the 10 Asian countries jumped 9.6 percent, "the highest figure for any regional market for EU exports."

"As a result, the 10 countries have become an important export market for the EU," it said, adding that in 1990, the countries accounted for 4.6 percent of total EU exports, growing to 6.2 percent in 1994.

"In the future, the Asian market holds one of the keys to helping the EU overcome its economic difficulties, including trade," Jetro said.

But the situation for the Asian side was different, the survey found.

Global exports by the 10 ASEM participants from Asia increased 11.6 percent between 1990 and 1994. Regional exports between those countries grew 16.8 percent, exports to the US rose 10.3 percent and exports to the EU increased 6.6 percent.

But the EUs share of exports from the Asian countries fell from 17.4 percent in 1990 to 14.5 percent in 1994.

"Accordingly, the Asian side's biggest hope for the ASEM conference is that it will help pave the way for a recovery in exports to the EU," Jetro said.

"Specifically, the Asian side would like to encourage their EU counterparts to realize market-opening measures that are at least on the level of those being pursued by members of the Asia- Pacific Economic Cooperation (APEC) forum.

Jetro said that Asian attitudes about investment "were much the same."

Nine of the Asian countries, excluding Brunei, attracted approved foreign investment worth a total US$82.1 billion in 1994.

The EU accounted for $8.8 billion worth, or 10.8 percent, down from 13.3 percent in 1990.

Jetro said its survey "confirmed that the Asian side is looking to stimulate further EU investment through the upcoming meeting in Bangkok."