Belgium, (Brussels Morning Newspaper) Heads of state and government from the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) are meeting in Brussels today for the first official summit between the two blocs, the very first after 45 years of partnership.
The two blocs discussed areas of future cooperation, including trade, green and digital transitions, and health. In October, EU-ASEAN have already signed a deal to allow their airlines to have direct flights between the two regions.
An EU official told reporters prior to the summit that the occasion presents an opportunity for the EU and ASEAN to commit to their strategic partnership and shared commitment of following the rules-based international order amid current geopolitical tensions.
“ASEAN and EU are natural partners as they are the two most important regional groupings that have exemplified how multilateralism still remains the best solution to regional and global issues affecting all of us,” said Cambodian Prime Minister Hun Sen.
Diversifying trade options
With the supply chain disruption caused by a series of world events, from Covid-19 to the war in Ukraine, rising energy prices and galloping inflation, the EU is looking at ASEAN as a reliable partner to conduct business in several areas.
Critics have, however, accused the EU of turning a blind eye for some ASEAN nations not particularly aligned with human rights. A crowd of Cambodian citizens was protesting in Brussels, in front of the building hosting ASEAN leaders, holding banners saying “stop the dictatorship” and “Hun Sen dictator”.
Nonetheless, under the EU Global Gateway, European Commission President Ursula von der Leyen is set to commit 10 billion euros of public funds to 2027 for investment in projects in ASEAN, such as in renewable energy and sustainable agriculture.
Von der Leyen is also expected to present an EU investment package to develop renewable energy, transportation, the digital sector and infrastructure with ASEAN countries, according to the EU official.
On the economic cooperation front, both sides remain important trading partners, with the EU being ASEAN’s third-largest trading partner in 2021, and the second-largest source of foreign direct investment (FDI) among ASEAN’s partners.
Recently, Singapore and Vietnam concluded trade deals with the EU, and other countries such as the Philippines, Thailand and Malaysia hope to follow suit.
Business and investment
During the 10th ASEAN-EU Business Summit, yesterday, one day before the official summit, European Council President Charles Michel expressed confidence in the private sector to play a key role in balancing growth and sustainability between the EU and ASEAN.
EU-ASEAN Secretary-General Dato’ Lim Jock Hoi advocated for the promotion of “trade facilitation” and a “more liberalized trade” in order to strengthen the resilience of supply chains that have been deeply affected by a sequence of world events.
“Certainly, our country Indonesia wants to increase the trade between Indonesia and EU, and investment from EU to Indonesia continue to increase,” said President Joko Widodo.
High representatives from the 10 ASEAN nations shared words of “cooperation”, “multilateralism” and “international solidarity” and expressed willingness in boosting trade deals that can meet the ambitious of both sides.
“We need to stand together and aim for a sustainable future,” said the Prime Minister of Vietnam, Pham Minh Chinh, pushing for better and closer cooperation between the EU and ASEAN.
“There’s definitely a need to further advance and foster closer relationships between European businesses and the ASEAN region,” said Martin Hayes, Chairman, EU-ASEAN Business Council.
Since 1977, the ASEAN-EU relationship has experienced continued growth and it was elevated to a Strategic Partnership in 2020. One year later, the EU demonstrated its recognition of ASEAN’s centrality by putting the region at the heart of its Indo-Pacific Strategy.
