EU to inject new life into relations with ASEAN, possible free trade

EU to inject new life into relations with ASEAN, possible free trade

Agence France-Presse, Brussels

The European Commission on Wednesday presented a strategy that aims to breathe new life into muted relations between the European Union and Association of Southeast Asian Nations (ASEAN), possibly leading to a free trade agreement (FTA).

After strong growth by Southeast Asia's economic tigers followed by several years of economic crisis, the relations between the EU and the region "has fallen below its potential," an EU official said.

In a document addressed to EU states entitled "A new partnership with Southeast Asia", the Commission said: "The EU and ASEAN have a strong interest in reinforcing their economic ties."

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Only 4.3 percent of EU exports go to ASEAN countries while imports from Southeast Asia amount to 6.4 percent of goods entering the 15-member European body.

Through the new action plan, named TREATI for Trans-regional EU-ASEAN trade initiative, the two bodies would introduce measures to boost trade and financial flows that would ease access to and investment in each other's markets.

"TREATI will thus permit serious consideration to be given to entering into a free trade agreement following a successful outcome of the current round of (WTO-led) multilateral trade negotiations," the EU's executive arm said.

The partnership could also lead to new measures to fight terrorism and other forms of crimes.

"The EU is prepared to assist countries in taking measures against international terrorism without prejudice to the respect by the countries concerned of basic human rights principles and peaceful political opposition.

"Issues of migration, trafficking in human beings, money laundering, piracy, organized crime and drugs need to be incorporated systematically into our regional and bilateral dialogues with Southeast Asia," the Commission said.

The body added that it remained deeply concerned about the political situation in Myanmar and the continued detention of opposition leader Aung San Suu Kyi.

"Myanmar is not part of the European Commission-ASEAN Cooperation Agreement and the Commission cannot agree to include Myanmar in this agreement before a solution to the political situation has been found," the Commission warned.