Overview
In 2019, the EU was ASEAN’s third largest trading partner after China and the United States, with US$ 280.6 billion of total trade, accounting for 10% of ASEAN’s total trade. Since 1998, ASEAN has always registered a trade surplus with the EU, peaking at US$ 54.6 billion in 2017. The EU was also the third largest provider of Foreign Direct Investment (FDI) in ASEAN in 2019 with US$ 16.2 billion FDI inflows from the EU, accounting for 10.1% of ASEAN’s total FDI.
In July 2007, negotiations for an ASEAN-EU FTA was launched. However, in March 2009, after seven negotiating rounds, both sides agreed to pause negotiations. At the 15th AEM-EU Trade Commissioner Consultations on 10 March 2017, the AEM and EU Trade Commissioner agreed to launch formal region-to-region talks to develop a framework setting out the parameters of a future ASEAN-EU FTA. Following this mandate, the senior economic officials established a Joint Working Group (JWG) to develop the framework and milestones to
Priority Areas of Cooperation
- ASEAN-EU Trade and Investment Work Programme
To enhance economic cooperation in addressing emerging challenges and opportunities for trade and investment between ASEAN and the EU, the AEM and the EU Trade Commissioner adopted the ASEAN-EU Trade and Investment Programme. At the 15th AEM-EU Trade Commissioner Consultations in March 2017, AEM and the EU Trade Commissioner endorsed the ASEAN-EU Trade and Investment Work Programme for 2017–2018, which built upon the successful initiatives under the 2015–2016 Work Programme. Five areas were covered in the Work Programme for 2017–2018: 1) high level policy dialogue; 2) consultation at the Senior Economic Officials level; 3) enhancing dialogue with business; 4) experts’ dialogues; and 5) cooperation activities that includes various projects. In July 2020, the 28th SEOM-EU Consultations finalised the ASEAN-EU Trade and Investment Work Programme for 2020-2021 which focuses on developing the framework and parameters of a future ASEAN-EU FTA. This includes organising experts’ dialogues to share best practices, experience and expertise on mutually agreed priority areas and to bridge existing gaps between both sides, as well as enhancing dialogue with business
- ASEAN Regional Integration Support from the EU Plus (ARISE Plus)
The ARISE Plus programme provides and funds capacity building for ASEAN over six years period (2017-2022). The Programme aims to support ASEAN economic integration through the implementation of the AEC Blueprint 2025 and strengthening institutional capacity. It is a follow-up from four previous programmes namely: ASEAN Regional Integration Support from the EU (ARISE – ended in 2016), Institutional Capacity Building for ASEAN Monitoring and Statistics (COMPASS – ongoing), ASEAN Project on the Protection of Intellectual Property Rights (ECAP III – completed in 2017), and ASEAN Air Transport Integration Project (AATIP – completed in 2016). ARISE-Plus is implemented at both regional and national levels. ARISE Plus covers five of the following components: i.) Trade ii.) ASEAN Intellectual Property Rights iii.) ASEAN Secretariat Capacity Building and iv.) ASEAN Economic Integration Monitoring and Statistics and v.) ASEAN Air Transport.
EU-ASEAN Capacity Building Project for Monitoring Integration Progress and Statistics (COMPASS)
The EU-ASEAN COMPASS Project aims to support ASEAN integration through availability and utilization of more timely, comparable and relevant information to facilitate monitoring and decision-making, notably by ASEAN Member States governments acting individually and at ASEAN level. It consists of two main components: (a) to support the development of the ASEAN Community Statistical System and (b) to build the capacity of AIMD. The project covered the duration of June 2014-December 2018 and has since wrapped up. Some of the activities under COMPASS will now continue under ARISE Plus.
- Enhanced-Regional EU-ASEAN Dialogue Instrument (E-READI Facility)
The Enhanced-Regional EU-ASEAN Dialogue Instrument (E-READI Facility) was developed based on the successful completion of the READI Facility which covered 10 areas namely: (i) ICT; (ii) Energy; (iii) Science & Technology; (iv) Disaster Management; (v) Education; (vi) Climate Change; (vii) Capacity Building; (viii) Maritime Cooperation, (ix) Election Observation; and (x) Human Rights. E-READI will now be expanded to support jointly developed projects and activities under all ASEAN pillars, i.e. economic, political security and socio-cultural pillar. The overall objective of E-READI is to support ASEAN integration and to reduce poverty through inclusive and sustainable growth. Drawing on European experiences and know-how, E-READI aims to support the implementation of the ASEAN Community blue prints, through sectoral policy dialogues.
- Private Sector Engagement
The first ASEAN-EU Business Summit (AEBS) was held on 5 May 2011 at the margin of the 10th ASEAN-EU Trade Commissioner Consultations and the 18th ASEAN Summit in Jakarta. The 2nd ASEAN-EU Business Summit was held on 1 April 2012, at the margin of the 11th AEM-EU Trade Commissioner Consultations in Phnom Penh, Cambodia. The 3rd ASEAN-EU Business Summit was held on 8–9 March 2013 at the margin of the 12th AEM-EU Trade Commissioner Consultations. The 4th AEBS was held on 23 August 2015 in Kuala Lumpur, Malaysia at the margin of the 47th ASEAN Economic Ministers Meeting. The 5th AEBS was held in March 2017 at the margins of the 15th AEM-EU Trade Commissioner Consultations, in Manila.
The Business Summits provided a platform for dialogues between the AEM-EU Trade Commissioner and private sector. So far, the AEBS focused its discussions in the sectors of infrastructure, agri-food, healthcare, automotive, manufacturing and services. Recommendations arising from the AEBS and sectoral discussions had been presented to the AEM-EU Trade Commissioner.
Major Sectoral Bodies/Committees
- AEM-EU Trade Commissioner Consultations comprise ASEAN Economic Ministers from ASEAN and EU Trade Commissioner. The Consultations are held annually to consider the progress of the overall economic relations, and to provide guidance and directions for future economic relations.
- SEOM-EU Consultations comprise senior economic officials from ASEAN and the EU. The Consultations are conducted regularly to support the Ministers in implementing various initiatives to support economic cooperation between ASEAN and the EU.
- Joint Working Group for the development of a Framework and parameters of a future ASEAN-EU Free Trade Agreement (JWG for AEUFTA): as its name suggests, the JWG was established with the specific task of discussing the development of the Framework.
Key Documents
- 16th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Singapore, 2 March 2018
- 15th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Manila, the Philippines, 10 March 2017
- 14th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Chiang Mai, Thailand, 3 March 2016
- 13th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Kuala Lumpur, Malaysia, 26 April 2015
- 12th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Ha Noi, Viet Nam, 8 March 2013
- 11th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Phnom Penh, Cambodia, 1 April 2012
- 10th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Jakarta, Indonesia, 6 May 2011
- 9th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Da Nang, Viet Nam, 27 August 2010
- 8th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Brunei Darussalam, 4 May 2007
- Joint Media Statement
- 7th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Makati City, Philippines, 16 May 2006
- 6th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Ha Long, Viet Nam, 27 April 2005
- 5th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Jakarta, Indonesia, 5 September 2004
- 4th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Yogyakarta, Indonesia, 20 January 2004
- 3rd ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Luang Prabang, Lao PDR, 4 April 2003
- 2nd Consultation between the ASEAN Economics Ministers and the EU Trade Commissioner, Ha Noi, Viet Nam, 12 September 2001
- The Consultations between the ASEAN Economic Ministers and the EU Trade Commissioner, Chiang Mai, Thailand, 6 October 2000