Europe-Asia ties to be closer than ever

Although formal cooperation between the European Union (EU) and Asia only began to take shape in the 1970s, when the EU sought to strengthen its links with the Association of Southeast Asian Nations (ASEAN), the two regions have been closely connected for many centuries through various flows of migration, of culture, of philosophy, of religion and particularly, of commerce.

Indeed, economic relations remain a cornerstone of ties between Europe and Asia. In 1996, exports from the EU to Asia totaled US$204 billion. More than U.S. exports to the region. At the same time, the EU's 15 member states imported $238 billion worth of Asian goods.

The EU is the largest trading economy in the world, accounting for one-third of world trade, 30 percent of the world stock of foreign direct investment and 35 percent of the total GDP of Organization for Economic Cooperation and Development countries. Europe is now poised for a period of steady growth, which should be about 2.5 percent a year over the next five years. The introduction of the Euro on Jan. 1, 1999, will add further dynamism to the EU.

The Asia-Pacific region has, until recently, been the most dynamic economy in the world. It still has enormous potential for further growth and -- like Europe -- depends on trade and investment to prosper.

One of the points agreed by the 26 leaders meeting at the Asia-Europe Meeting (ASEM) II in London on April 2 and April 3 was a commitment to keep markets open in order to encourage commerce between the regions. This commitment will certainly be encouraged by two ASEM initiatives: the Investment Promotion Action Plan and the Trade Facilitation Action Plan.

ASEM leaders also welcomed the proposal to create a European network of experts which would work in conjunction with Asian counterparts to provide technical advice for the reform of the financial sector. Technical support for financial restructuring will also be offered by an ASEM Trust Fund, to be run under the auspices of the World Bank.

The Trust Fund will also address social problems arising from the crisis, and the EU will review existing cooperation programs to see where additional funds can be allocated to Southeast Asia for projects to help communities suffering the effects of the crisis.

Europe also takes a full role in global efforts to facilitate restructuring of Asian economies. EU member states contribute nearly 30 percent of the capital of the International Monetary Fund and the World Bank, compared with the U.S., 18 percent, and Japan, 6 percent. This clearly shows the key part that Europe has played within the international community in responding to the crisis and demonstrates the strong commitment which Europe has toward its Asian partners.

However, the Asia-Europe relationship is not solely based on economics. Both sides appreciate the need to strengthen broader political and cultural contacts. This can be pursued through dialogs on global issues such as the environment, international crime, drugs and fundamental rights, and through various actions such as people-to-people exchanges and educational and scientific cooperation.

The Asia-Europe Foundation is working to build ties between EU-ASEAN civil societies in the ASEM process. Within EU-ASEAN relations several projects have been developed, such as European Studies Centers and the Junior EU-ASEAN Managers Exchange Program to encourage mutual understanding in a broadly based and balanced relationship.

The ASEM Summit sent a signal of confidence that with a combination of sound fundamentals and policies, the crisis will be overcome. Europe will certainly continue its efforts at regional, ASEM, ASEAN and bilateral levels to ensure that the next time ASEM leaders meet, in Seoul in 2000, present hurdles will be overcome and the relationship between Europe and Asia will be closer than ever.