EU-ASEAN

ECONOMIC AND
TRADE RELATIONS

學生：克里安多 (KRISTIANTO BUDINUGROHO)

南華大學歐洲研究所
ASEAN Overview
 The Association of South East Asian Nations (ASEAN)
was establish in 8 August 1967, in Bangkok, Thailand, by
five founding members: Indonesia, Malaysia, Singapore,
Thailand and Philippines.
 Currently, the ASEAN comprises 10 Members: the five
founding members and Brunei Darussalam, Vietnam,
Cambodia, Myanmar and Laos.
 As of 2006, the ASEAN region has a population of about
560 million, a total area of 4.5 million sq km, a combined
GDP of almost US$ 1,100 billion, and a total trade of
about US$ 1,400 billion.
 ASEAN objectives: to promote peace, stability and
prosperity in the region.
EU-ASEAN Cooperation Initiatives
Timeline Cooperation Initiatives
2007 Sixteenth AEMM in Nuremberg, Germany; adoption the Nuremberg Declaration on Enhanced Partnership.
European Council authorized the Commission to commence negotiations for an FTA with ASEAN.
2006 APRIS Phase I is concluded
APRIS Phase II starts
2005 Vision Group ASEAN-EU Economic Partnership, which was to look into the feasibility of a possible ASEAN-
EU FTA and other new initiatives for enhancing economic cooperation and ties between ASEAN and the EU.
2003 TREATI (Trans-Regional EU-ASEAN Trade Initiative)
AEMM (ASEAN-EU Ministerial Meeting)
APRIS (ASEAN-EC Project on Regional Integration Support)
European Commission-ASEAN Transfer for Energy Cogeneration Programme on Standards Quality and
Conformity Assessment.
2002 COGEN Phase III (Technology Transfer for Energy Cogeneration from Biomass in ASEAN Countries)
EC-ASEAN Energy Facility Programme
2001 ASEAN Economic Ministers-EU Trade Commissioner Consultations II
1998 ASEM II: Asia-Europe Cooperation Framework and Asia-EU Vision Group
1994 EPG (ad hoc Eminent Persons Group)
1980 EC-ASEAN Cooperation Agreement
JCC (Joint Cooperation Committee)
1977 ASEAN stregthen ties with COREPER (Council of Ministers of the EEC and the Committee of Permanent
Representatives)
1975 JSG (Joint Study Group)
1972 Dialogue to establish informal relations
Background
 The European Economic Community (EEC) was
the first dialogue partner to establish informal
relations with ASEAN in 1972 through the
Special Coordinating Committee of ASEAN
(SCCAN).
 1975  creation of the EEC-ASEAN Joint Study
Group (JSG), to formalize and strengthen
relations between EEC and ASEAN.
 1994  EU launched its New Asia Strategy,
recognizing that Asia “is dramatically changing
the world balance of economic power.”
 1996  the first Asia-Europe Meeting (ASEM),
which was held in 1996 in Bangkok.
Bilateral Trade Relations

 ASEAN represents a potential market of more than 540

million consumers, compared with 454 million for the EU.
 The EU is a 2nd largest trading partner for the ASEAN,
accounting for 11,7 % of total ASEAN trade, with the
value of trade is 133.207 million Euro. Significantly, 13 %
of ASEAN exports are destined for the EU.
 On the other hand, ASEAN is 5th major trading partner
for the EU, accounting to around 126.612 million Euro,
its give 5 % of total EU trade, just ahead of Norway and
almost equivalent to Japan.
Value and Percentage Share of EU’s Major Trade Partners to EU
Total Trade, 2006
Rank Trading Partner Value of Trade in Million % Share to Total Trade
Euro
World 2.516.604 100,0

1 USA 444.410 17,7

2 China 255.130 10,1
3 Russia 208.966 8,3
4 Switzerland 157.651 6,3
5 Japan 121.139 4,8
6 Norway 117.232 4,7
7 Turkey 84.995 3,4
8 Korea 61.114 2,4
9 India 46.422 1,8
10 Canada 46.085 1,8
11 Romania 44.935 1,8
12 Brazil 43.963 1,7
13 Saudi Arabia 40.945 1,6
14 Taiwan 39.307 1,6
15 Singapore 38.857 1,5
ASEAN 126.612 5,0
Value and Percentage Share of ASEAN’s Major Trade Partners to
EU Total Trade, 2006
Ranks Trading Partner Value of Trade in Million % Share to Total Trade
Euro
World 1.141.405 100,0

1 USA 142.116 12,5

2 EU 133.207 11,7
3 Japan 133.207 11,7
4 China 126.922 11,1
5 Singapore 91.261 8,0
6 Malaysia 79.254 6,9
7 Hongkong 51.952 4,6
8 Korea 50.238 4,4
9 Indonesia 47.874 4,2
10 Thailand 45.631 4,0
11 Australia 34.043 3,0
12 India 23.443 2,1
13 Saudi Arabia 20.137 1,8
14 Philippines 18.936 1,7
15 United Arab Emirates 16.986 1,5
TREATI
 The most significant steps in closer EU-ASEAN trade
and economic cooperation and integration have been set
in recent years with the establishment of Trans-Regional
EU-ASEAN Trade Initiatives (TREATI) and the Vision
Group on EU-ASEAN Economic Partnership.
 TREATI launched in July 2003 provided the initial
framework for increased cooperation and dialogue
between the two blocs on matters related to trade and
investment.
 TREATI served as a precursor to the EU-ASEAN Free
Trade Agreement (FTA).
EU-ASEAN FTA

 In April 2007 the European Commission was

given a mandate by European Member States to
negotiate an FTA with countries of ASEAN, as
part of the Commission’s Global Europe
strategy. These negotiations were launched in
Brunei Darussalam, May 7, 2007.
 Minister from EU and ASEAN created a Vision Group
with the mandate to look into the possibility of an
ASEAN-EU Free Trade Agreement, and to determine
what areas should be covered by a future trade pact.
EU-ASEAN FTA Benefit
 EU-ASEAN FTA expected to gain a mutual beneficial in
economic and trade relation between the two regions.
Following is a number gain that enables in EU-ASEAN
FTA:
> stimulating economic growth;
> increasing trading capacity and market access
between EU and ASEAN;
> Enhancing competitiveness in the global stage, e.g.
stimulating knowledge transfer;
> Providing consumers more alternatives in goods and
services.
Conclusion
Economic relations between the EU and the ASEAN have a
long history since the beginning. EU is an important dialogue partner of
ASEAN. Beside that, EU is also one of ASEAN largest trading partner.
On the other hand, ASEAN is also become a key player for the EU, that
has an important role in Asia Pacific region. EU and ASEAN are
determined to pursue their respective goals of greater regional
economic development.
The ASEAN represents a potential market of more than 540
million consumers, compared with 454 million for the EU. Nevertheless,
the two regions differ greatly in terms of economic size, with ASEAN
GDP equivalent to only 6.5 per cent of EU GDP. Among ASEAN
members, EU charted the biggest trade with Singapore at 38.85 million
Euro, which is equivalent to 1.5% of EU overall trade with the world.
Base on that thing, we can see that there is available trade imbalance
amongs the EU and the ASEAN Member States.
 The most significant steps in closer EU-ASEAN
trade and economic cooperation and integration have been
set in recent years with the establishment of TREATI and
the Vision Group on EU-ASEAN Economic Partnership.
TREATI served as a precursor to the EU-ASEAN Free
Trade Agreement.
EU-ASEAN FTA expected to gain a mutual
beneficial in economic and trade relation between the two
regions. Nonetheless, there is still a lot of circle that gets
negative assumption to the performing of EU-ASEAN FTA.
The EU and ASEAN viewed as a “not equal partner” in
trade.
 However, with high potential in terms of
economic growth and performance and its growing
prominence in the world economy, ASEAN can
potentially play a role as a bridge for Europe to the
wider Asia-Pasific region. With renewed economic
growth in the region, ASEAN can potentially
become a key trade and investment partner of the
EU. Further, expected that ASEAN can have an
active role and speak more in the world, especially
on economy and trade area