ASEAN–European Union relations

• ASEAN-Japan Centre (AJC) issued the 7th paper of the Non-Equity Modes of Trade in ASEAN: Promoting new forms of trade between Japan and ASEAN series focusing on Indonesia in March 2021.
• The findings of the paper were presented in the Webinar on Non-Equity Modes of Indonesia by AJC held on May 27, 2021.
• The findings of the paper were presented in the Webinar on Non-Equity Modes of Indonesia held on May 27 2021.
• Non-Equity Modes of Trade in ASEAN: Promoting new forms of trade between Japan and ASEAN: Paper 3 Indonesia is available for download on AJCs website as below.

• Recognising the unique experience of connectivity and regional integration of ASEAN and the EU, we reaffirmed our commitment to promote connectivity within and between ASEAN and the EU.
• In this regard, we looked forward to strengthening further practical cooperation between ASEAN and the EU in this area, including through exploring a possible connectivity partnership, with due consideration to the EU Strategy Connecting Europe and Asia and the Master Plan on ASEAN Connectivity (MPAC) 2025.
• We wish to continue to translate these into concrete connectivity action.
• To this end, we will continue to implement the EU-ASEAN Trade and Investment Work Programme for 2020-2021.
• We noted the far-reaching impact of the transboundary nature of the COVID-19 pandemic on connectivity, in particular on people-to-people linkages and global supply chains, underscoring the interconnectedness of Europe and Asia.
• We welcomed the development of quality infrastructure investment and its contribution towards affordable, reliable and sustainable connectivity, with due consideration to the G20 Principles for Quality Infrastructure Investment.
• We also recognise the need for new financing tools to support strategic investment in connectivity also to crowd-in private sector investment, while accelerating research and technology innovation.
• We acknowledged the importance of due recognition of data protection and cybersecurity, consistent with applicable international and domestic laws, at the core of digital connectivity.
• We acknowledged the importance of people-to-people connectivity as key to mutual understanding and achieving socio-economic resilience, including by enabling and promoting people mobility through education and cultural exchanges, sustainable travel and tourism, economic cooperation, joint research schemes and quality-jobs creation.

• With its ten member states, this association, founded in 1967, now has a population of 650 million inhabitants, more than the 450 million of the European Union.
• In 2018, the combined GDP of the ASEAN has been $3 trillion, compared with $16 trillion for the European Union.

A very rapid economic growth

The ASEAN countries have benefited in particular from the growing desire of many economic actors, whether Chinese or Western, to find places outside China, but in its vicinity, to set up production facilities or to find subcontractors in sectors such as textiles, electronics or automobile equipment.  

Less integration than in the European Union

The degree of integration of ASEAN is, however, hardly comparable for the moment with that of the European Union: unanimity remains the basic rule in all domains for decision making and the means available to the organisation's central bodies are still very limited. However, this could change under the impact of both the current crisis and the growing strategic rivalry between the United States and China.  

“The shock of the COVID-19 crisis remains very strong in the ASEAN region. Especially since the social protection systems are still limited in those countries.”

• The health crisis as such has been quite well managed by the ASEAN countries.
• However, the current economic crisis is expected to lead this year to a recession estimated at 2.6% of GDP in the region and unemployment is rising rapidly.
• Especially since the social protection systems are still limited in those countries.
• 11 million people are at risk of falling into poverty this year in the ASEAN.

“Europe has mobilised over €800 million through the Team Europe initiative to help the ASEAN region to cope with the COVID-19 crisis, more than any other partner of the region."

• The European Union has not remained inactive to help the region to face that crisis.
• In ASEAN alone, we mobilised over 800 million through the Team Europe initiative, more than any other partner of the region.
• In August, China inked a deal with Indonesia for the supply of 40 million doses of vaccine from November 2020.
• Reboot the economy The second priority for ASEAN, as for Europe, is of course to reboot the economy.
• Meanwhile the disruptions of the global value chain heavily hit manufacturing in ASEAN countries, forcing them to reflect on their positioning.
• Japan effectively encourages this trend, heavily subsidising domestic manufacturers to transfer their overseas production bases from China to Southeast Asia.

“Having been the number one source of Foreign direct investment (FDI) in ASEAN over many years, the EU is committed to stepping up our economic partnership to speed up recovery.”

• Having been the number one source of Foreign direct investment (FDI) in ASEAN over many years, the EU is committed to stepping up our economic partnership.
• The EU is negotiating agreements with other ASEAN countries and we should pursue these with renewed urgency.

Building up on our numerous EU-ASEAN programmes

• In parallel, we will build on our numerous EU-ASEAN programmes to facilitate trade and integration to speed up economic recovery.
• The launching of the EU-supported ASEAN Customs Transit System later this year is one example.
• We look also forward to finalise an Air Transport Agreement with ASEAN as soon as possible.
• The agreement would be the first of its kind, creating the world's biggest aviation market for over one billion people.
• An immediate common objective should be to establish an EU-ASEAN energy dialogue to tap into the potential of sustainable connectivity and the green recovery.

“Around 40% of the EU’s foreign trade goes through the South China Sea. The EU cannot allow countries to undermine international law and maritime security in that area.”

• The EU cannot allow countries to unilaterally undermine international law and maritime security in the South China Sea.
• Any disruption or instability affects trade flows for everyone: around 40% of the EUs foreign trade goes through the South China Sea.
• The EU looks forward to the conclusion of the talks on a substantive and legally binding Code of Conduct in the South China Sea between ASEAN and his neighbours.

Asian security is closely linked to European security

• Asian security is closely linked to European security.
• Thats why, for example, we are working with our ASEAN partners to deploy counterterrorism advisors in several of our European Union Delegations across Asia.
• Last year, the EU signed also an agreement on Vietnams participation in our European military and civilian missions, which are deployed from the Indian Ocean to Africa.
• I hope it will be the first of many with our friends in ASEAN, because our missions do not only serve European interests.
• They serve the interest of peace and security in some of the most troubled parts of the world.

The significance of the Regional Comprehensive Economic Partnership Agreement (RCEP)

• In this context, the planned signature of the Regional Comprehensive Economic Partnership Agreement (RCEP), negotiated since 2012 with China, Japan, Korea, Australia and New Zealand at the ASEAN Summit next November has much gained in significance.
• Despite India dropping out the agreement, the signing of RCEP will be for ASEAN a major statement in favour of its own centrality and of an open multilateral trade system.
• And neither ASEAN nor the EU are ready to become part of any sphere of influence.

“ASEAN will always find in the EU a trustworthy, reliable and predictable partner. We have only a clear and public agenda: to defend the rules-based international system. ”

• Therefore I gave to my counterparts and to the public in the region the strong message that they will always find in the European Union a trustworthy, reliable and predictable partner.
• We have no hidden agenda, only a clear and public one: to defend the rules-based international system.
• And we share with ASEAN the special responsibility to uphold the global, multilateral order.