EU-ASEAN Relations MAPPING - Gauri Khandekar
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MAPPING
EU-ASEAN Relations
Gauri Khandekar
Mapping EU-ASEAN Relations
Contents
Preface 3
EU-ASEAN relations: Time for a strategic partnership 4
Brunei 20
Cambodia 24
Indonesia 28
Lao PDR 32
Malaysia 36
Myanmar 40
Philippines 44
Singapore 48
Thailand 52
Vietnam 56
Table 1: Comparative indicators 60
Table 2: Top trade partners of ASEAN member states 64
EU-ASEAN dialogues 66
List of abbreviations 68
2
About the Author
Gauri Khandekar is researcher and head of the Agora Asia-Europe programme at FRIDE.
About FRIDE
FRIDE is an independent think-tank based in Madrid and Brussels. Our mission is to inform policy and practice in order to ensure that the EU plays a
more effective role in supporting multilateralism, democratic values, security and sustainable development.
About AGORA ASIA-EUROPE
Agora Asia-Europe is a knowledge hub on EU-Asia relations, which connects think-tanks, analysts, policy-makers, opinion leaders and other experts
from both regions to discuss ways to add input and guide the EU’s approach towards Asia.
Mapping EU-ASEAN Relations
Preface
7KLV SXEOLFDWLRQ WKH ¿UVW VWXG\ RI LWV NLQG SURYLGHV DQ LQ The study relies on a number of interviews carried out between
depth review of the European Union’s (EU) relationship with -DQXDU\ DQG 2FWREHU ZLWK (8 DQG $6($1 RI¿FLDOV LQ
the Association of Southeast Asian Nations (ASEAN) and Brussels and visiting experts from Asia. Data have been drawn
each of the 10 ASEAN member countries. Individual country from a variety of authoritative sources, including the United
briefs assess the state-of-play of the EU’s bilateral relations Nations, the World Bank, the International Monetary Fund,
with ASEAN states and outline their strengths and weaknesses, the International Energy Agency, the US Energy Information
priorities and outlook. The publication draws on an extensive Administration, the Asian Development Bank as well as the
collection of statistical data and other indicators across a variety EU and ASEAN. Non-governmental sources include the World 3
of policy areas, and calls for a strategic partnership between the Economic Forum, INSEAD Business School, Transparency
two regional organisations. International, as well as think tanks such as the Stockholm
International Peace Research Institute (SIPRI). The author
The purpose of this exercise is not to provide comprehensive wishes to thank Shada Islam, Director of Policy at Friends of
coverage of all relevant statistical information or a conclusive Europe, for reviewing the publication, the many EU and Asian
analysis of the politics and perspectives of each bilateral RI¿FLDOV ZKR VKDUHG WKHLU YLHZV DV ZHOO DV )LOLS &LRUWX] DQG
relationship. ‘Mapping EU-ASEAN relations’ seeks, rather, to &KDUOLQH4XLOOHURXIRUUHODWHGUHVHDUFKDVVLVWDQFH
capture some of the salient features of each partnership and of the
respective partners. This publication aims to help foster debate
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– an important dimension of the Union’s presence and role in a
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EU-ASEAN relations:
Time for a strategic partnership
Introduction ASEAN
The European Union (EU) and the Association of Southeast Asian
in the regional context
Nations (ASEAN) have much in common. For one, they are both
regional organisations directed to manage interdependence and POLITICS AND ECONOMICS
deal with security challenges. While their historical background and
degree of integration may differ, they correlate as natural partners, The ASEAN integration process and the bloc’s role have
4 as well as regional power centres. Since the establishment of formal developed into key features of Asian geopolitics in recent
WLHVLQ ELODWHUDOUHODWLRQVKDYHSURJUHVVHGVLJQL¿FDQWO\DQG years, especially as the global economic centre of gravity shifts
the partnership has weathered numerous tribulations along the towards the continent. ASEAN’s strategic location, straddling
road. The EU has been instrumental in mentoring the ASEAN HPHUJLQJJLDQWV,QGLDDQG&KLQDWKH,QGLDQDQG3DFL¿F2FHDQV
integration process. Today, EU-ASEAN bilateral ties are and the Asian and Australian continents, places it at the core of
thoroughly multi-layered and comprehensive, and cover a wide the region’s political topography. Three crucial international
array of issues, ranging from development to economics, trade maritime chokepoints (the Straits of Malacca, Sunda, and
and investment, aid, and political and cultural affairs. Since 2012, Lombak-Makassar) lie in ASEAN’s territorial waters. As a
there has been an increase in high-level bilateral visits and the grouping of 10 rapidly developing economies, ASEAN has also
initiation and completion of various agreements between the EU integrated itself well into the region’s economic architecture,
and ASEAN member countries. The EU is ASEAN’s third-largest having signed Free Trade Agreements (FTAs) with every country
WUDGLQJSDUWQHUZKLOH$6($1LVWKH(8¶V¿IWKODUJHVW7KH(8 except for North Korea.
is also the largest source of foreign direct investment (FDI) and
critical development and humanitarian aid to the region. Yet, the The Asian theatre is changing dramatically with the rise
importance of the relationship and its potential are underrated. RI &KLQD WKH 8QLWHG 6WDWHV¶ 86 µUHEDODQFLQJ¶ WRZDUGV
Mapping EU-ASEAN Relations
Asia, and the economic growth of India (despite the current the United States. The ADMM+ is emerging as an important
slowdown) and of most Asian countries. Interconnectivity forum for defence diplomacy and cooperation and has a year-
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and investment) has reached unprecedented levels amidst the (:*V KXPDQLWDULDQDVVLVWDQFHDQGGLVDVWHUUHOLHI +$'5
continent’s evolving economic and security landscape. While maritime security, military medicine, counter-terrorism, and
territorial disputes are escalating in the region, a culture of peacekeeping operations. ASEAN’s tabletop exercises on
inclusivity and partnership diplomacy is also developing. disaster management too have been useful in building trust
ASEAN is playing an increasingly important role in regional amongst various participant nations and in identifying weak
geopolitics by leading efforts to create an architecture of points in their capabilities and level of inter-operability. 5
ASEAN-sponsored regional platforms. ASEAN also sponsors two key regional free trade initiatives,
namely the ASEAN Free Trade Area (AFTA) among its member
These include the ASEAN Regional Forum (ARF), ASEAN FRXQWULHVDQGWKH5HJLRQDO&RRSHUDWLRQ(FRQRPLF3DUWQHUVKLS
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and New Zealand), the East Asia Summit (EAS, including the India, New Zealand, South Korea, and Japan.
ASEAN Plus Six as well as Russia and the US), and the ASEAN
Defence Ministers Meeting Plus (ADMM+). The ARF brings At the same time, ASEAN aims to establish a deeper economic
together foreign ministers of important global actors, including FRPPXQLW\E\7KLVZRXOGEXLOGRQDWULSDUWLWHVWUXFWXUH
the EU, to discuss critical regional and international issues.
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India, Japan, New Zealand, Republic of Korea, Russia, and
a political-security community, an economic community, and ASEAN Chair in 2012, rebuffed its ASEAN neighbours on
a socio-cultural community. By 2015, the ASEAN Economic any mention of issues regarding Exclusive Economic Zones
Community is expected to resemble an EU-style common (EEZ) and the Scarborough Shoal – contentious topics in the
market, with free movement of goods and services, investment context of the South China Sea dispute. Nonetheless, after
and capital, as well as skilled labour. As of late 2013, over 80 intense shuttle diplomacy efforts by Indonesian Foreign
per cent of all action lines directed to building the ASEAN Minister Marty Natalegawa, a document entitled ‘ASEAN’s
Community had been completed or were being implemented. Six-Point Principles’ on the issue of the South China Sea
was adopted a week later.
RISING AMIDST CHALLENGES Despite growing political turbulence in East Asia, ASEAN’s
role in the region has been significantly expanding over the
6 ASEAN finds itself at the centre of important security past decade. Today, it helps facilitate dialogue among major
hotspots or international tensions, such as the South China powers (China, India, Japan, and the US) through a policy of
Sea dispute, which carry growing implications for global leveraged equidistance – all actors have an equal status at the
affairs. Despite the fact that there are some ASEAN member table, no one country drives the agenda, and no countries are
states involved in the aforementioned dispute, ASEAN as a singled out or excluded. Maritime security is a particularly
bloc has made remarkable efforts at peacefully managing serious challenge, not only in South-East Asia, but throughout
the issue, especially by seeking to establish a regional code the Asian continent too: from the Gulf of Aden to the East
of conduct. Such engagement, however, has sometimes China Sea. Building cooperative solutions that include all
come at the cost of ASEAN’s unity. China has been able actors is a key priority for the years to come. ASEAN’s
to curry favour in Cambodia, Myanmar, the Lao People’s Expanded Maritime Forum (AEMF), held for the first time
Democratic Republic (PDR) and at times even Indonesia. in 2012 amongst ASEAN members, plus Australia, China,
The failure for the first time in ASEAN’s 45-year history India, Japan, New Zealand, South Korea, Russia, and the US,
to issue a joint communiqué following a foreign ministers’ focused on the relevance of the United Nations Convention on
meeting in July 2012 in Phnom Penh brought to the fore the the Law of the Sea and new dispute settlement mechanisms.
existing differences among member states. Cambodia, as Noticeably, the EU was not involved.
Mapping EU-ASEAN Relations
ASEAN has sought to assume the role of the region’s peace- ¿QDQFLDO DVVLVWDQFH EXW DOVR E\ VKDULQJ EHVW SUDFWLVHV DQG
builder. As such, ASEAN could become an important gateway experiences, exchanges, and numerous concrete projects.
IRUWKH(8LQWR$VLD:LWKWKHJURZLQJLQÀXHQFHRI&KLQDLQ As a result, ASEAN today is arguably the most advanced
the Asian continent and the US rebalancing towards Asia, it is regional organisation in the world after the EU.
vital for the EU to step up its own engagement in the region.
An upgrade in EU-ASEAN bilateral relations is needed to In April 2012, the EU and ASEAN signed in Bandar Seri
underpin changing dynamics in a challenging geopolitical Bagawan (Brunei) a new 5-year Plan of Action, which provides
and economic environment. a political framework to strengthen dialogue. It builds on the
ASEAN-EU Plan of Action to Implement the Nuremberg
Declaration on an EU-ASEAN Enhanced Partnership (2007–
EU-ASEAN relations
12). The main gist of the new plan is engagement on a
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to collaborate more with ASEAN on political issues. It does
not, however, constitute a major leap into completely new
The EU-ASEAN relationship is an evolving one, which areas of collaboration, but is rather an effort at formalising
advances as the two organisations develop. This provides much cooperation by enumerating projects and programmes on
scope for innovation. The similarities in terms of identity and which both sides can work together in the politico-security
ambitions between the two parties, as organisations aimed at DQG VRFLRFXOWXUDO ¿HOGV LQ DGGLWLRQ WR HFRQRPLF DQG WUDGH
promoting regional cooperation, has been the foundation on issues. The partners have also provided for an annual review
which relations were built. Both intend to enhance security,
prosperity, and regional stability, although by following
different approaches to regional integration. Being more
advanced, the European project has been an inspiration for
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bastion of EU-ASEAN ties. The EU has played an important
role by mentoring and supporting ASEAN not only through
mechanism to be carried out through the ASEAN-EU Joint
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EU support to ASEAN
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Bagawan Plan of Action ushers in a new phase in the ASEAN-
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EU partnership by acknowledging important changes that are
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taking place on both sides, especially as concerns ASEAN’s
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and beyond. [daadlh[gdb6EG>H>> 6H:6C":JEgd\gVbbZ[dgGZ\^dcVa>ciZ\gVi^dc
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The EU supports the 3-pillar blueprint that ASEAN aims to
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establish by 2015. Apart from sharing expertise in several
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fields (see box 1), during 2007–13 the EU provided around
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€70 million to support the ASEAN integration process. Other
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international actors like the US, Australia, Japan or the Asian
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Development Bank (ADB) also provide crucial assistance.
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economic crisis, the EU is the only international actor who
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can share decades of experience in terms of confidence-
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building, resource-pooling, and shared decision-making,
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thereby helping foster regional cooperation within ASEAN.
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Working with ASEAN concurrently fulfils two of the EU’s
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supporting regional cooperation and multilateralism at large.
Mapping EU-ASEAN Relations
TRADE AND INVESTMENT
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]Zae higZc\i]Zc XddeZgVi^dc Vbdc\hi kVg^djh CVi^dcVa 7dgYZg BVcV\ZbZci 6\ZcX^Zh Economics is a key dimension of the EU-ASEAN partnership.
l^i]^c6H:6C!i]jh[VX^a^iVi^c\i]Z6H:6Ch^c\aZbVg`Zi# $FFRUGLQJWRWKH(XURSHDQ&RPPLVVLRQLQELODWHUDOWUDGH
I]Z:jgdeZVc>chigjbZci[dg9ZbdXgVXnVcY=jbVcG^\]ih :>9=G [jcYZYV`ZnhijYn in goods reached €181.36 billion. The EU is ASEAN’s third-
idjg^c'%&&idi]Z:J[dgi]Z6H:6C>ciZg"\dkZgcbZciVa8dbb^hh^dcdc=jbVcG^\]ih ODUJHVWWUDGLQJSDUWQHUDIWHU&KLQDDQG-DSDQDFFRXQWLQJIRU
6>8=G id\V^cÃghi"]VcY`cdlaZY\Zdci]Zegdbdi^dcVcYegdiZXi^dcd[]jbVcg^\]ihVi per cent of ASEAN’s total external trade. With a share of 5.2 per
i]ZgZ\^dcVaaZkZa#I]Zk^h^ilVhXdcYjXiZYl^i]Vk^ZlidegZeVg^c\i]Z6H:6C9ZXaVgV- cent of the EU’s total external trade, in 2012 ASEAN was the
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Singapore, Malaysia, Thailand, Indonesia, and Vietnam.
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Singapore accounts for more than 35 per cent of the EU’s
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total trade with ASEAN and is the only ASEAN member state
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with which the EU enjoys a trade surplus. Indonesia, which
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UHSUHVHQWV SHU FHQW RI $6($1 *'3 DFFRXQWV IRU RQO\
bZVhjgZh^c`ZnVgZVhhjX]VhY^hVhiZgg^h`gZYjXi^dc!hX^ZcXZVcYiZX]cdad\n!^c[dgbV-
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7.25 per cent of total EU-ASEAN trade in goods. In terms of
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services, Singapore is again the EU’s top trade partner within
GZ\^dc·V^bhid]Vgbdc^hZbjijVagZXd\c^i^dchnhiZbhVbdc\]^\]ZgZYjXVi^dc^chi^ij- ASEAN, followed by Malaysia, Thailand, Indonesia, and the
i^dchl^i]^c6H:6C# Philippines (2012). Only Thailand enjoys a surplus in services
)!%%%6H:6ChijYZcihigVkZaidi]Z:JZVX]nZVgdcVXVYZb^XhX]daVgh]^eh '*%jcYZg trade with the EU. From 2010 to 2013, trade in goods with
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^chi^iji^dcheVgi^X^eViZY^ci]Z:J¼hGZhZVgX];gVbZldg`Egd\gVbbZ, '%%,·&( #ASEAN increased by 39.5 per cent and trade in services by 27 per an increasingly prosperous ASEAN market, today the EU
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&RXQWULHV /'&V &DPERGLD/DR3'5DQGUHFHQWO\0\DQPDU the pursuit of bilateral FTAs has been challenging, it will be
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enjoying duty and quota-free access on all exports except arms levels of ambition. The most advanced of these agreements
and ammunition to the European single market. is the EU-Singapore FTA.
The EU is the top investor in ASEAN, with an annual €9.1 2QJRLQJ )7$ DQG 3&$ QHJRWLDWLRQV ZLWK $6($1 PHPEHUV
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In 2010, EU outward FDI stock to ASEAN was €192.7 billion and Singapore, while negotiations with Thailand and Malaysia
and EU inward FDI stock from ASEAN was €67.9 billion, of are ongoing. Meanwhile, the FTA with Singapore was completed
which Singapore was the largest source (over 95 per cent). in December 2012, although it has not yet entered into force.
FTA negotiations have been launched with Malaysia (in 2010),
Following the failure of initial efforts to construct a region- Vietnam (in 2012), and Thailand (in 2013), and scoping exercises
to-region FTA, initiated in 2007, in 2009 the EU decided to are ongoing with the Philippines, Brunei, and Indonesia.
pursue a strategy of ‘bilateral building bloc FTAs’ with a set
of ASEAN members. This has been criticised as detrimental
to ASEAN unity and EU ambitions to foster regional POLITICAL COOPERATION
integration. In addition, these negotiations were initially
WREHSUHFHGHGE\3DUWQHUVKLSDQG&RRSHUDWLRQ$JUHHPHQW Beyond sharing experiences and providing support to
3&$ WDONV ZKLFK WHQG WR ODVW IRU \HDUV DQG LQFOXGH ASEAN’s regional integration efforts, the EU has been an
cumbersome ratification processes by both sides. With a important development partner to the bloc. Over decades, EU
view to reducing the length of the process and tapping into GHYHORSPHQWDQGKXPDQLWDULDQDLGKDVKDGDVLJQL¿FDQWLPSDFWMapping EU-ASEAN Relations
on large sections of ASEAN society and in strategic areas like against the up until recently authoritarian regime in Myanmar,
poverty alleviation, elevating local standards of living, support which very much affected EU-ASEAN relations too. Not only
to farmers and small industries, health and education, law did the EU protest against Myanmar’s accession to ASEAN in
enforcement, government reform, mine action, and focused 1997 by suspending ministerial-level talks with the bloc, but it
support for vulnerable sections of society. From 2007–12, the also refused to attend the ASEM summit if Myanmar were to
EU extended around €2 billion to individual ASEAN member join. Leading the international estrangement of Myanmar, the EU
states and €70 million was offered to the ASEAN Secretariat, championed the cause of democracy and its advocates. The EU
in addition to sums granted by individual EU member already holds bilateral local human rights dialogues (at the level
states. EU emergency assistance and disaster relief aid too RIKHDGVRI(8PLVVLRQV ZLWK,QGRQHVLD&DPERGLD9LHWQDP
have been crucial, especially in a region that for the past 30 DQG /DR 3'5 *LYHQ LWV UHPDUNDEOH SROLWLFDO WUDQVIRUPDWLRQ
years has suffered most of the world’s fatalities arising from such a dialogue could be held with Myanmar in the near future.
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90 per cent of global natural disaster fatalities in the same WKH FRXQWULHV LQYROYHG WKH\ KDYH QRQHWKHOHVV EHQH¿WWHG FLYLO
period, according to the United Nations Economic and Social society in countries where civil society groups have been invited
&RPPLVVLRQ IRU$VLD DQG WKH 3DFL¿F ± 81(6&$3 :LWKLQ to participate.
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2I¿FH (&+2 KDVFKDQQHOOHGDURXQG¼ELOOLRQWRYLFWLPV The EU has actively sought to broaden the political dimension
RIFRQÀLFWDQGGLVDVWHUVJOREDOO\DVLJQL¿FDQWSHUFHQWDJHRI of its relations with ASEAN. Today, a number of initiatives,
which has been directed towards South-East Asia. especially in the security sector (both traditional and non-
traditional security), have helped up the ante on the EU’s
EU engagement has not eschewed involvement in domestic political engagement with the bloc. The partners cooperate
politics in ASEAN countries, seeking to support institution- and
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respect for human rights, and democracy have consistently been
mainstreamed into EU-ASEAN cooperation and dialogue. The
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reconciliation, migration and mobility, border protection, been instrumental.
maritime issues, climate change, energy, counter-terrorism,
preventive diplomacy, crisis management and response, In 2013 the EU contributed with €30 million to ethnic peace
DQG FRXQWHUWUDI¿FNLQJ ,Q D IHZ PRQWKV DIWHU WKH processes in Myanmar, in addition to €700,000 as start-up
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(8 DQG$6($1 VLJQHG D -RLQW 'HFODUDWLRQ RQ &RRSHUDWLRQ Yangon. The EU is also extending support to the South-
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operational cooperation remains limited, consultations have &%51 &HQWUHRI([FHOOHQFHHVWDEOLVKHGLQWKH3KLOLSSLQHV
increased. Together with Singapore, Norway, and contributing in 2013, as well as engaging on mediation consultation with
$6($1 PHPEHU VWDWHV WKH (8 DOVR GHSOR\HG D &RPPRQ the ASEAN Institute for Peace and Reconciliation.
12 6HFXULW\DQG'HIHQFH3ROLF\ &6'3 PRQLWRULQJPLVVLRQLQ
Aceh, Indonesia (Aceh Monitoring Mission), which lasted The EU participates in a series of ASEAN-sponsored and
from September 2005 to June 2012. other regional politico-security oriented fora. It has been a
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A new comprehensive ASEAN-EU Migration and Javier Solana, who maintained frequent contacts with Asian
%RUGHU 0DQDJHPHQW 3URJUDPPH ¼ PLOOLRQ ± governments. Following a lull in attendance to the region’s
KHOSV LQFUHDVH ERUGHU FRQWURO HI¿FLHQF\ LQ WKH $6($1 fora and in bilateral visits, the years 2012 and 2013 witnessed
region, as well as intra-regional connectivity. With Myanmar, D PDUNHG ULVH LQ YLVLWV E\ WRS (8 RI¿FLDOV 3UHVLGHQWV 9DQ
WKH(8LVFRFKDLULQJDQ$5)LQWHUVHVVLRQDOJURXS ,6* RQ 5RPSX\ DQG %DUURVR +LJK 5HSUHVHQWDWLYH $VKWRQ DQG
&RQ¿GHQFH %XLOGLQJ 0HDVXUHV DQG 3UHYHQWLYH 'LSORPDF\ several commissioners), as well as EU member states’ leaders
7KH¿UVWPHHWLQJZDVKHOGLQ'HFHPEHULQMapping EU-ASEAN Relations
empowering ASEAN, is a priority for the EU. To this extent, disaster relief, military medicine, or counter-terrorism is
the Union has voiced concerns over rising insecurity and backs WKH PRVW VLJQL¿FDQW IHDWXUH RI WKLV IRUXP ZKLFK ¿OOV DQ
$6($1¶VSURSRVDOIRUDFRGHRIFRQGXFWLQWKH6RXWK&KLQD important void in the region’s security architecture. The EU
Sea, as well as a peaceful resolution of the dispute. should endeavour to seek membership of the ADMM+, which
would allow it to show its commitment and further contribute
But the EU could do more to strengthen its political presence to regional stability while it awaits membership to the EAS.
in the region. Much cooperation on political issues such This could also provide the basis for future cooperation,
as maritime security, counter-terrorism, cyber-security, LQFOXGLQJWKURXJKWKH&6'3
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conferences and workshops, visits to EU institutions, Asia’s regional architecture is becoming increasingly special-
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could be expanded in some areas or started for example on region’s dialogue on maritime issues, the EU should also seek 13
the issue of maritime security. Enhancing the capability and to be included in the ASEAN Expanded Maritime Forum.
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information – could be a valid option. The United Kingdom,
WKH1HWKHUODQGVDQG'HQPDUNDUHPHPEHUVRI5H&$$3DQG The population of the EU and ASEAN combined surpasses 1.1
the EU should consider applying for membership. billion people. Both have an important stake in global affairs
and in building an organised multipolar world. Indonesia
The ADMM+ has emerged as an important security DQGWKH$6($1&KDLU DVREVHUYHU SDUWLFLSDWHLQLPSRUWDQW
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the course of the year and the region’s militaries have the
opportunity to cooperate in a multilateral setting. The conduct
of joint country military exercises involving 18 countries in
areas such as maritime security, humanitarian assistance,JOREDO SODWIRUPV OLNH WKH * 7KH (8 DQG $6($1 ¿QG a regional platform that aims to enhance inter-institutional
themselves on similar wavelengths on a number of critical FRRUGLQDWLRQRQFOLPDWHDFWLRQ7KH$6($1:RUNLQJ*URXS
international issues, where the EU often faces resistance from RQ&OLPDWH&KDQJH $:*&& ZDVVXEVHTXHQWO\HVWDEOLVKHG
some of its so-called strategic partners.1&OLPDWHFKDQJHDQG WRLPSOHPHQWERWKWKH$&&,DQGWKH$FWLRQ3ODQ
non-proliferation are two such examples.
ASEAN has also established a multi-sectoral framework on
While the EU has led international efforts for concerted FOLPDWHFKDQJHDQGIRRGVHFXULW\ $)&& WKDWIRFXVHVRQWKH
action to counter climate change, ASEAN as a group has use of natural resources, extreme events, energy, transport,
also sought to reach a comprehensive multilateral agreement. and sustainable cities. It represents a comprehensive
ASEAN countries are acutely vulnerable to climate change. approach to tackle the impact of climate change in three
A 2009 Asian Development Bank (ADB) report states that VHFWRUV DJULFXOWXUH ¿VKHULHV DQG IRUHVWU\7KH EOXHSULQW RI
14 South-East Asia ‘is likely to suffer more from climate change WKHHQYLVDJHG$6($1&RPPXQLW\E\VHWVWDUJHWVXQGHU
than the rest of the world, if no action is taken’. While the forestry sector to support global and regional initiatives to
ASEAN member states have distinct national positions, there reduce emissions from deforestation and forest degradation.
is a shared understanding at the regional level on this issue. Under its Vision 25/25 (the government’s energy strategy),
The 2011 statement of ASEAN leaders on climate change Indonesia, one of ASEAN’s largest economies, targets a 25
explicitly recognises the region’s acute vulnerability to per cent renewable share in its energy mix by 2025. Indonesia
climate change, and has been implemented through an ASEAN LVHVWLPDWHGWRKROGSHUFHQWRIWKHZRUOG¶VWRWDOJHRWKHUPDO
$FWLRQ 3ODQ RQ D -RLQW 5HVSRQVH WR &OLPDWH &KDQJH $$3 energy (sustainable energy generated and stored in the Earth)
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-5&&LVDOLYLQJGRFXPHQWWKDWLVIROGHGLQWRWKH5RDGPDS Yet, despite the similarities in aims and ambitions, the EU
IRUDQ$6($1&RPPXQLW\ ±DQGWKH$6($1&OLPDWH and ASEAN have so far failed to join forces at the global
&KDQJH,QLWLDWLYH $&&, (VWDEOLVKHGLQWKH$&&,LV climate change conferences. There is, however, budding
recognition of the scope for the two blocs to align positions
&
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Gjhh^V!Hdji]6[g^XV!Hdji]@dgZV!VcYi]ZJc^iZYHiViZh# (8'LDORJXHRQ&OLPDWH&KDQJHWRRNSODFHLQMapping EU-ASEAN Relations
&%51 LVVXHV DUH DQRWKHU DUHD ZKHUH LQWHUHVWV FRLQFLGH DQG shared commons, economic stability, and climate change
concrete bilateral cooperation can be developed, in particular action provide the fabric for stronger mutual engagement in
at the multilateral level. EU and ASEAN member states are reforming and supporting global governance.
signatories of both the Nuclear Non-Proliferation Treaty
137 DQG WKH &RPSUHKHQVLYH 7HVW %DQ 7UHDW\ &7%7
Prospects for the
and are strong proponents of non-proliferation. In addition,
ASEAN countries signed in 1995 the Bangkok Treaty,
ASEAN-EU partnership
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large regional blocs, the EU and ASEAN together can make
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81,&5, 7KHLQLWLDWLYHLQYROYHVPRUHWKDQFRXQWULHVDQG ASEAN may have a $10 trillion economy. Taken as a bloc, it
aims to facilitate cooperation and coordination of national would eclipse Japan’s economy and become one of the world’s
and regional efforts and to develop national response plans WRS¿YHHFRQRPLHV$FFRUGLQJWRWKHVHSURMHFWLRQVOHVVWKDQ
according to international standards. The EU-sponsored 1 per cent would live in extreme poverty, per capita income
6RXWK(DVW $VLDQ &%51 &HQWUH HVWDEOLVKHG LQ 0DQLOD LQ would be as high as $12,000 and 65 per cent of ASEAN’s
2013, could prove effective in developing and coordinating population would belong to the middle class (up from the
national response plans within ASEAN and enabling regional FXUUHQW SHU FHQW RU DQ LQFUHPHQW RI DERXW PLOOLRQ
coordination. +RPH WR D SRSXODWLRQ RI PLOOLRQ SHRSOH E\ ZLWK
On the international level, EU-ASEAN ties could reverberate
deep. Their shared interests on global security and peace, in
particular on counter-terrorism, rule of law, management offavourable demographics, ASEAN will be at the core of the IRUFH DQG VWUDWHJLF ORFDWLRQ EHWZHHQ &KLQD DQG ,QGLD 7KH
fastest growing region on the planet. Aside from Singapore, International Monetary Fund (IMF) has forecast Myanmar’s
the current tier of more prosperous ASEAN member states HFRQRPLF JURZWK DW SHU FHQW LQ ZKLOH WKH $VLDQ
including Indonesia, Vietnam, Philippines, Malaysia, and 'HYHORSPHQW%DQN $'% SUHGLFWVDSHUFHQW*'3JURZWK
Thailand represent a new generation of high-growth emerging annually for the next two decades if the country’s political
economies. and economic reforms continue. According to McKinsey
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Indonesia’s rise stands out. According to the National D IROG ULVH ZLWK PLOOLRQ PLGGOHFODVV FRQVXPHUV
,QWHOOLJHQFH &RXQFLO¶V *OREDO7UHQGV 5HSRUW E\ million today) and a threefold rise in consumer spending
Indonesia may become the seventh-largest economy in the from $35 billion to $100 billion.
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US. Its rise would be supported by its robust potential for infrastructure development of ASEAN countries are
growth, with a favourable age structure (70 per cent of its by VLJQL¿FDQW :KLOH HVWLPDWHV IRU WKH EORF DV D ZKROH KDYH
then 289 million strong population would be between 15–69 not been drawn, according to McKinsey just Myanmar
\HDUV RI DJH DQG SHU FHQW EHWZHHQ ± D FRQVXPHU would need around $650 billion in investments to achieve
FODVVRIPLOOLRQ XSIURPPLOOLRQWRGD\ DQGDUDSLG its growth potential by 2030. Released in 2011, Indonesia’s
urbanisation rate (71 per cent of the population living in cities infrastructure master plan for economic development through
DQGSURGXFLQJSHUFHQWRI*'3 2025 (called MP3EI) envisages eight infrastructure projects
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The less-developed ASEAN members, including Lao EULGJHVDQGQHZDLUSRUWV DQGDQLQYHVWPHQWUHTXLUHPHQW
3'5 &DPERGLD DQG 0\DQPDU KROG WKH PRVW SURPLVH LQ of nearly $500 billion, a third of which would come from
terms of expected growth rates and largest (in relation to the government, and the rest from the private sector. The
their population) increment of the middle class. Myanmar inadequacy of infrastructure in ASEAN member countries
in particular holds much potential for rapid growth and impedes the integration of the South-East Asian market
development given its rich natural resources, abundant labour and reduces the overall competitiveness of the bloc againstMapping EU-ASEAN Relations
PDMRUUHJLRQDOSDUWQHUV,QGLDDQG&KLQD*LYHQWKHSHFXOLDU QHZFRQ¿GHQFHDQGPDQ\PRUHFRXUWHUVWRR-DSDQKDVUHFHQWO\
geographical location of ASEAN, scattered over water bodies extended almost $20 billion in aid to ASEAN countries aimed
and international maritime bottlenecks, connectivity within at development and disaster preparedness, to be delivered in
the bloc will be critical in order to ensure growth as a regional WKHQH[W¿YH\HDUV:KLOHKDVEHHQGXEEHGWKHµ$VLDQ
organisation and an economic entity. 6HPHVWHU¶LQWHUPVRIWKHIUHTXHQF\RIWRS(8RI¿FLDOV¶YLVLWV
to the region, the EU needs to sustain the momentum. Unlike
Prospects for ASEAN growth up to 2030 represent major established global powers, the EU’s ever changing, complex,
opportunities for the EU to generate prosperity, growth, and sui generis structure means that it has constantly to engage
jobs back home. The EU is best placed to create a continental external partners in order to improve their understanding of
level platform for European companies investing in South- its functioning and objectives, including vis-à-vis ASEAN.
East Asia, for example in the infrastructure construction sector. While seeking an equal partnership with the EU beyond the
McKinsey notes that Indonesia’s path to modernisation and traditional donor-recipient angle, ASEAN should make pro- 17
urbanisation alone ‘could create a $1.8 trillion private-sector DFWLYH HIIRUWV WR GHYHORS D PXWXDOO\ EHQH¿FLDO UHODWLRQVKLS
business opportunity by 2030’. Urbanisation partnerships In this regard, facilitating the EU’s engagement in its own
with ASEAN countries can become a building-bloc of region and regional formats would be an effective option. By
forward-looking relations in a domain where the EU has much supporting the EU’s EAS bid, ASEAN stands to gain a like-
expertise, in particular as concerns connectivity. The recent minded partner and a deeper partnership.
normalisation of relations between the EU and Myanmar
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macro-economic policies, and enhance rule-making capacity
and transparency at a supranational level.
The EU-ASEAN relationship must now move to the next level
and both sides need to make efforts to underpin a changing
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The EU-ASEAN relationship contains many ingredients of a the highest-level meeting between the two sides is the
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capacity and a wealth of ideas and initiatives to develop. Both a very important political impetus to bilateral relations and, if
partners can do a lot to achieve respective strategic needs. carried out well, can present an opportunity to craft strategic
EU-ASEAN relations have grown in parallel to both regional SULRULWLHV 7KH FKDQJLQJ JHRSROLWLFV LQ WKH $VLD 3DFL¿F
blocs’ integration and future relations hold further potential. requires even closer coordination amongst partners. Summits
could also bring much-needed coverage to the relationship
18 By acknowledging each other as strategic partners, the EU and could help raise the visibility of the EU and ASEAN in
and ASEAN would send a strong signal to one another and the each other’s regions.
rest of the world regarding the importance they attach both to
bilateral relations and to the notion of regional integration. There is no individual EU Ambassador or Special
Such an upgrade in relations would also facilitate Europe’s Representative assigned to ASEAN, nor is there an ASEAN
engagement in the broader Asian theatre. While the EU has Ambassador to the EU. The EU Ambassador to Indonesia also
DFFHGHG WR WKH 7UHDW\ RI $PLW\ DQG &RRSHUDWLRQ 7$& LQ serves as an Ambassador to ASEAN (and Brunei Darussalam).
South-East Asia, its membership of the EAS remains pending ,Q DGGLWLRQ (8 PHPEHU VWDWHV KDYH DFFUHGLWHG WKHLU
until it can demonstrate a stronger commitment to the region ambassadors to ASEAN. The 10 Ambassadors of ASEAN
and Asian countries are persuaded of the added-value that the member countries to the EU engage on ASEAN-related
Union could bring. matters with the EU while representing their nations. The US
has assigned a separate Ambassador to ASEAN since 2011
The EU and ASEAN have a multi-layered relationship, but in recognition of the growing importance of the organisation,
there is no bilateral summit mechanism at the highest level of as well as the need to increase engagement with the bloc.
OHDGHUVKLSWRGLVFXVVWKHWRSLVVXHVRQWKHDJHQGD&XUUHQWO\ The creation of equivalent posts between the EU andMapping EU-ASEAN Relations ASEAN could enhance diplomatic relations by facilitating communication, increase the focus on the relationship, and send a signal regarding the strategic significance of the bilateral relationship for both sides. The 2012 Bandar Seri Bagawan Action Plan has set an important roadmap to strengthen cooperation and dialogue EHWZHHQ WKH (8 DQG $6($1 IRU WKH QH[W ¿YH \HDUV EXW relations need to be underpinned by a stronger political 19 endorsement that upgrades the 2007 EU-ASEAN Enhanced Partnership to a strategic partnership. Q
Brunei
EU-Brunei Darussalam relations were established through
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independence from the UK. A micro nation of around half a
million people on the island of Borneo, Brunei is the fifth-
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A Muslim Sultanate, Brunei’s economy grew by 56 per
cent between 1999–2008 (thanks to crude oil and natural
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nearly 95 per cent of exports), transforming the country into
a developed, industrialised nation. Brunei ranks second on
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after Singapore.
The last four years have seen an intensification of the
relatively limited bilateral relations between the EU
and Brunei. For a period of three years starting in July
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relations and in 2013 it held the ASEAN chairmanship. EU
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Brunei in the past two years. In April 2012, she attended
the EU-ASEAN Ministerial Meeting, where she also met
6XOWDQ +DVVDQDO %RONLDK DQG VHQLRU PLQLVWHUV7KH %DQGDUBrunei Seri Bagawan Action Plan to Strengthen the ASEAN-EU France, and Belgium. Overall, the EU is Brunei’s fifth- Enhanced Partnership (2013–17) was also signed at the largest trading partner after Japan, South Korea, Singapore, meeting. During the same visit, the EU and Brunei decided DQG&KLQD-DSDQ6RXWK.RUHDDQGRWKHU$6($1FRXQWULHV WR ODXQFK QHJRWLDWLRQV RQ D 3DUWQHUVKLS DQG &RRSHUDWLRQ are the key consumers of Brunei’s principal exports of $JUHHPHQW 3&$ WKDWLVQRWRQO\H[SHFWHGWRSDYHWKHZD\ natural gas, crude petroleum, and refined products. The EU towards a Free Trade Agreement (FTA) with the EU, but is also the largest investor in Brunei, with almost 70 per cent which will also allow both sides to strengthen cooperation of foreign direct investment (FDI) into the country, most of in areas like climate change, sustainable development, which comes from the UK and France. The UK in particular culture, and education. The fourth round of negotiations LVWKHVHFRQGODUJHVWLQYHVWRULQ%UXQHLDIWHU&KLQD 21 was completed in November 2013 and the next round is VFKHGXOHGIRUWKHILUVWKDOIRI*LYHQWKDW%UXQHLLVQR EU member states’ economic diplomacy has been strong in ORQJHUHOLJLEOHIRUWUDGHEHQHILWVXQGHUWKH(8¶V*HQHUDOLVHG Asia, including in Brunei. Other priorities of the relationship 6FKHPH RI 3UHIHUHQFHV *63 DV RI -DQXDU\ DQ )7$ include cooperation on natural disasters, the prolonged would also help the EU tap into the full economic potential WUDQVERXQGDU\ KD]H SUREOHP GXH WR VPRNH IURP ILUHV of the EU-Brunei relationship. burning across the border in Indonesia and affecting Brunei, Trade between the EU and Brunei is very small, with just ¼ELOOLRQLQ,WKDVKRZHYHUULVHQFRQVLGHUDEO\ since 2008 and more than doubled in one year, from €599 billion in 2011. Bilateral trade consists of mainly merchandise, motor vehicles, and chemicals. The UK is an important trade partner for Brunei, accounting for the PDMRULW\RI(8WUDGHIROORZHGE\*HUPDQ\WKH1HWKHUODQGV
Malaysia, Singapore, Indonesia, and Southern Thailand), opportunity, whereas the US provides security cooperation.
DQG HGXFDWLRQ UHIRUP +XPDQ ULJKWV LVVXHV LQFOXGLQJ Still, Brunei is interested in developing political relations
caning, lack of free media, freedom of peaceful assembly with the EU, especially in order to diversify its foreign
and association, political rights, religious freedom, and SDUWQHUV*UHDWHUSROLWLFDOHQJDJHPHQWEHWZHHQWKH(8DQG
/*%7 OHVELDQJD\ELVH[XDODQGWUDQVJHQGHU ULJKWVZLOO Brunei would fare well for the region, which welcomes the
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EU Ambassador to Jakarta and ASEAN oversees relations
with the country. Brunei officials note that the EU became a
more visible partner only after the 2011 announcement of the
US pivot to Asia, when bilateral and inter-regional relations
appeared to have shifted gear. The US has been increasing
its political investment in Brunei. Former Secretary of
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administration is seeking to enhance cooperation, especially
in the education sector. Brunei has also received a number
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trading partner, as well as disputant concerning the South
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reduction and rural development, with a political dimension
that emphasises democracy, human rights, fundamental
freedoms, rule of law, and good governance. The Paris Peace
Accords of 23 October 1991 opened the door to cooperation
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then the EU has been an integral partner in the country’s
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relationship, including human rights issues.
After a long history of repression, especially under the Khmer
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vibrant emerging Asia. Between 1991 and 2001, the EU
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in addition to approximately €600 million from various EU
member states through cooperation programmes. The EU
and its member states also played an important role in the
rehabilitation and reintegration of around 375,000 former
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contributed to this incremental progress. The EU has sent the case for greater EU engagement on democracy and good
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also contributed to various polling and training material in especially within ASEAN, trade has grown by almost 60 per
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building democratic institutions and practises, the emergence has played a positive role in the country through the creation
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