..:r EC-ASEAN Ministerial Conference to confirm close relations By Malcolm Subhan

There is no reason why the foreign ministers of the 10 Common fer. Both sides obviously share a Market countries should be flying out to Bangkok for a 2..day con.. common interest in the main­ ference with the foreign ministers of the fi.,ye ASEAN countries. tenance of world peace and the Their political preoccupations are very different while their econo.. promotion of stable, sustained mies barely touch each other. economic growth. Under 3% of the EC's foreign trade is with ASEAN (which is Each side in fact considers roughly half as much as its trade with Latin America). As for Com­ the other as a force for peace mon Market investments in ASEAN, they amount to no more than and stability in its own region. 15% of all foreign investments (half as much as Japanese invest­ Both sides also believe that re­ ments). gional groupings have an impor­ tant part to play on the world And yet the EC-ASEAN stration, therefore, of the stabili­ stage, as the necessary comple­ ministerial conference is set to ty of the EC-ASEAN relation­ ment to a world of individual open in Bangkok on March 24. ship. What is more, it is an event nation states. The fact that they As the participants will be fore­ almost without precedent in the are separated by geography, and ign ministers its political impor­ Community's relations with the belong to two different group­ tance is evident. For two days developing world. There is no ings - the OECD, on the one those who are responsible for the formal provision for it, as there is hand, and the Group of 77 on foreign policies of their coun­ for the ministerial conferences the other - are additional rea­ tries will be focussing their minds organized in the framework of sons for working together. on issues for which they probably the Lome Convention. have very little time otherwise. The EC-ASEAN relation­ The fact is that Asia is remote What is it that has drawn ship obviously gives the ASEAN from European preoccupations, · these two very different groups countries an extra channel of as remote, no doubt, as Europe · of countries together? Put the communication with the indus­ is from the immediate preoc­ question to Common Market and trialized countries. It reinforces cupations of ASEAN. But the ASEAN officials here and you the dialogue which their foreign EC-ASEAN relationship will pro­ will get very similar answers, ministers hold each year with the vide a focal point for their dis­ although the importance they at­ foreign ministers of the major in­ cussions. tach to any single factor will dif- dustrialized countries and their The Conference's economic importance should not be under­ estimated, however. The Euro­ pean foreign ministers together make up one of the key Com­ munity institutions, the Council of Ministers. At a time of vir­ tual economic stagnation and mounting unemployment the EC's relations with the less-deve­ loped countries have assumed much greater importance. Its foreign ministers will be atten­ tive, therefore, to the economic aspects of the EC-ASEAN rela· tionship and open to suggestions for expanding it on a mutually profitable basis. The Bangkok Conference is important also because it is nei­ ther the first - nor, almost cer­ tainly, the· last. It is the fourth in fact to be held in less than five years and the second to be held in an ASEAN capital. The Signing of the ASEAN-EC economic cooperation agreement in Kuala Conference is a striking demon- Lumpur, March 1980.

13 Europa March-April '83 South Pacific neighbours, Aus­ discuss with their ASEAN coun­ ments in their trade relationship tralia and New Zealand. But the terparts collaboration in three in­ each side will be seeking assuran: relationship is perhaps even more dustrial sectors: machine tools, ces from the other. important for the EC. agricultural machinery and Although the EC's exports As an ASEAN ambassador packaging machinery. The EC to ASEAN rose substantially in pointed out, it gives the Com­ obviously hopes that such co­ 1981, resulting in a surplus for munity access to the Pacific operation will not only speed the first time, there is concern basin, where four major powers up the pace of industrialization here at the decline in the Com­ are present. But ASEAN is im­ but also result in a larger flow of munity's share of the ASEAN portant also as a force for European industrial goods to market for imports. (Part of the moderation and a channel of ASEAN. turn-around in the trade balance communication in international The EC and ASEAN clearly could put down to lower com­ relations. Either one or two, or are complementary in more ways modity prices.) A senior Com­ even all five, ASEAN countries than one and their present rela­ munity official was only half are members of a variety of in­ tionship does not come any­ joking when he claimed ASEAN ternational organizations, includ­ where near exhausting their tends to buy in Japan and to sell ing the U.N., the Common­ potential for cooperation. The in the European Community. wealth, the non-aligned group, ministers will have this in mind Given Japan's proximity, the Group of 77, OPEC, the when they assemble in Bangkok. and the high level of Japanese Conference of Muslim states, etc. As in previous years their discus­ investment in ASEAN, one The more tangible links be­ sions will be in two parts, one would expect the latter to favour tween the EC and ASEAN are dealing with political issues, the Japanese products. Hence the im­ their economic links, of course. other with economic issues. portance of the Community's The Community ranks third As the EC-ASEAN relation­ efforts to promote joint ventures among ASEAN's trading part­ ship is singularly problem-free, and other forms of industrial ners, although it is some dis­ according to officials from both cooperation. But European ex­ tance behind Japan and the U.S. sides, the discussions should take porters may also be finding it Between 1973 and 1980 place in a cordial atmosphere. difficult to match Japanese ASEAN's exports to the EC rose The political discussions are ex­ prices, credit terms - and sales­ by 300% while the Community's pected to be wide-ranging, cover­ manship. While ASEAN govern­ exports rose by 230%. (However, ing East-West relations since the ments have often indicated their the Community's share in death of Leonid Brezhnev, the desire to reduce their depen­ ASEAN's imports is declining; likely changes in Japanese dence on Japan and the U .S. for between 1973 and 1979 it fell foreign policy under Mr Naka­ their technology imports, they from 16.5% to 13.7%.) sone and the part China is play­ are unwilling, presumably, to ing in the region and on the overlook economic factors Both sides obviously want world stage. entirely. to develop their trade as much as possible. To this end the But as before, political dis­ The ASEAN ministers may ASEAN countries are trying to cussions will focus on develop­ express their disappointment at diversify their exports, away ments in Kampuchea, on the one the absence of any significant from raw materials and towards hand, and Afghanistan on the rise in European investments. products with a higher added other. The two sides are in The fact that the ministerial con­ value. While the Community ac­ broad agreement on the two is­ ferences have become a regular cepts this as an economically sues, as is evident from the feature should be a signal to eco­ sound move, it nevertheless is declarations issued after the minis­ nomic operators that the EC­ concerned at the possibility of a terial conferences in Kuala Lum­ ASEAN relationship is a stable sudden rise in its imports of pur (1980) and London (1981). one and has political backing "sensitive" products. Their forthcoming declaration on both sides. can be expected, therefore, to This is one reason why the reflect their continued identity ASEAN's foreign ministers EC is promoting industrial co­ of views, despite a certain scep­ are certain to voice their concern operation with the ASEAN coun­ ticism among the Europeans as over some of the views which are tries. Some years ago it sponsor­ to the long-term viability of the being expressed in Common ed two EC-ASEAN Industrial Sihanouk-Sonn Sann-Khieu Sam­ Market countries, albeit under Conferences, which brought phan coalition. pressure of economic events. together several hundred indus­ They will probably argue that trialists and businessmen from The economic discussions the way to fight the continuing Europe and the ASEAN. This are bound to give rise to differen­ economic recession is through February it joined the ASEAN ces, especially when they turn to the 2-way expansion of trade governments in sponsoring a 3- trade between the ·Community rather than through protec­ day sectoral conference, when and ASEAN. Both sides have tionism. In their view there is over 100 Europeans, representing their grievances, and while the plenty of scope for developing small and medium-sized firms, ministerial declaration can be ex­ the Community's exports to flew out to Kuala Lumpur to pected to stress the positive ele- ASEAN, provided the latter is

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ble measure of success. ASEAN and Europe busi­ nessmen and industrialis s have been brought together in e fra­ mework of trade promoti n pro­ grammes, by means of in ustrial conferences and through the ex­ change of missions and 1delega­ tions. An EC-ASEAN Business Council has been set up: to en­ courage the private sector to work more closely together. A special feature of the EC­ ASEAN Cooperation Agreement of 1980 is the provision for deve­ lopment cooperation. Some 20% of the Community's total aid to developing countries in Asia and Latin America goes to ASEAN, to finance both regional and na­ tional projects. This aid has been earmarked by the Community for rural development; and as its beneficiaries are the poorer coun­ tries, it has been extended to only Indonesia, the Philippines and Thailand. However, the recent Memo­ randum by the Development Commissioner, Edgard Pisani, has given rise to fears that this aid may be withdrawn. Rightly or wrongly, some ASEAN countries Distribution of WFP food supplies to the Kampuchean retumees in believe that he wants Communi­ Battambang Province. EC also contributes to such aid programmes. ty 'aid to be given to only the poorest countries on humanita­ rian grounds. They maintain that given the opportunity to earn Protectionism in the Com­ the EC should make a distinc­ the foreign exchange needed to munity is directed mainly against tion between aid given for huma­ pay for imports. manufactured goods and certain nitarian ends and development agricultural products. But several aid. As regards the latter, it For the present ASEAN ASEAN countries are also in­ should be extended to all coun­ seems more concerned over the terested in safeguarding their tries which have a cooperation threat of protectionist action position as exporters of raw agreement with the Community. than by any measures actually materials. They would like the The ASEAN ministers may, taken by the Community. (The EC to help them secure effective therefore, ask their European situation would have been very action at the international level colleagues to confirm their sup­ different had the textile negotia­ - via the Common Fund and the port for development aid for tions broken down last year.) tin and rubber agreements, for ASEAN. However some ASEAN countries example. (However, their at­ feel directly threatened by the tempts to influence prices by As the links between the EC moves towards graduation, a con­ withholding supplies from the and ASEAN are already exten­ cept which the EC has already market have given rise to concern sive, the ministerial agenda is introduced in its system of in the EC.) bound to be long. But a great generalized preferences. They Despite their differences, deal remains to be done to take feel there is little point in the ministers are certain to advantage of the opportunities developing new industries if ex­ favour measures which promote their relationship offers both EC ports can be restricted because cooperation, whether in trade, and ASEAN. While ministers can­ they are "too competitive." industry, the transfer of techno­ not be expected to go into the ASEAN is also concerned that it logy or science. They are unli­ details of the activities to be un­ may be the hapless victim of kely to waste time in mutual dertaken in the framework of the protectionist measures aimed at recriminations. The fact is that Cooperation Agreement, they the major trading nations of the the EC has funded activities in can supply that vital corn odity, industrialized world. all these areas, with a considera- political support.

15 Europa March-A ri1 '83