Introduction

If we look back to the 14 years which have elapsed since the conclusion in 1980 of our cooperation agreement, we see that the relations between the European Community (today the European Union) and ASEAN have developed in an impressive and unique way. They have deepened in substance and have become a relationship between equal partners, with common goals in the wider region and in the world.

Developments in the European Union

At the June European Summit in Corfu, the heads of state and government of Austria, Sweden, Finland and Norway participated for the first time. Referenda on the entry of the last three years of the four new members are due in the autumn. The EU is therefore poised on the verge of a new enlargement of its members to become a Union of 16 states. This will have far reaching repercussions in the Union. It will also certainly result in closer ties with Southeast Asia since several of the new members as you know are active trading and investment nations here of long standing.

Economic Outlook for the Europe Union

There have been significant improvements in recent months. Recession is over and the recovery process. appears to be firmly on the way. The Union's GDP is forecast to grow 1.6% in 1994 and 2.5% in 1995. External trade will initially be the engine of growth, followed by a recovery of investment. Improved economic performance should help stabilise the unemployment rate by 1995, but it will still be at an unacceptably high rate of 11.6%. Further improvements will depend on the continued implementation by member states of the policies agreed in the White Paper on Economic Growth, Competitiveness and Employment.

Bilateral Trade

The trend of rapid growth in EU-ASEAN trade has continued since the PMC last year. EU imports from ASEAN have been growing at a rate of 20% since 1986, with the EU also scoring considerable gains on ASEAN markets. Since 1985, ASEAN has continued to benefit from a growing trade surplus with the EU which last year amounted to 2.7 billion ECU.

The EU has contributed considerably to the growth and diversification of ASEAN exports to the EU, through the General System of Preferences (GSP) which applies to more than one third of ASEAN's exports to the EU. Indeed, ASEAN products imported into the EU under the GSP system represent one fourth of total imports of goods from developing countries to the EU receiving preferential treatment. The new European Commission Communication on the GSP for the period 1995 to 2004 contains proposals which concentrate the application of the GSP to encourage importers to source their supplies from those developing countries who have the greatest need and also contains a special incentive to encourage improved practices in the social and environmental fields. The new scheme will maintain the regional cumulative provisions, of which the ASEAN countries are one of the main beneficiaries.

The EU and ASEAN are working together to increase trade and investment between our two regions by sponsoring a much increased number of economic cooperation programmes. As an example, I can cite the opening this year of three new European Business Information Centres in the ASEAN capitals (Bangkok, Jakarta and Kuala Lumpur), in addition to an already existing business centre in Manila. These Centres will provide valuable information to businessmen on market conditions in Europe and ASEAN countries. The Centres will work together with and complement the activities of existing bilateral Chambers of Commerce and Industry.

For a number of years now, the EU has backed ASEAN in its efforts to integrate and further enlarge the ASEAN market to make it even more attractive for European trade and investment. In this connection, we are examining a number of technical assistance programmes with the ASEAN Secretariat.

The conclusion of the Uruguay Round is welcomed by both the EU and ASEAN since it provides for the elimination of a number of trade and investment barriers in our respective regions. However, the EU would strongly urge ASEAN countries to make further progress in the field of non-barriers in order to ensure a more satisfactory, and better balance in our mutual trade.

WTO

Both ASEAN and the EU agreed that it is essential that the WTO be launched on target by January 1 next year. For its part, the Union is ready to meet its commitments. But as I said yesterday at the 6+7 session, the Union cannot be multilateral on its own. We trust that other main participants to world trade, including the ASEAN countries, will be able to put the Round's results into effect on time. As you know we believe that once the WTO is set up, it will be essential to secure a result that is genuinely satisfactory in terms of opening up world markets for services.

Among the impressive list of new subjects put forward for consideration by WTO, the relationship between trade, finance and currency, as well as the link between trade and the protection of the environment clearly deserve serious consideration. That said, we have no intention of giving any legitimacy to disguised or "green" protectionism.

The WTO should not be overloaded with new issues. But it should be able to keep abreast of developments in world trade. The relationship between trade and the conditions, should also be given careful consideration. The Union has supported the idea of putting such issues on the agenda of WTO in order to ensure that free trade is also fair trade. But we are determined, and I repeat, that in doing so this should not be used as an excuse for introducing some form of disguised protectionism.

Investment Promotion

The EU is gradually becoming the second largest source of foreign direct investment into ASEAN. This will further improve from next year with the accession of new member countries to the EU. With further blossoming of AFTA, it is clear that ASEAN countries will surely feature as one of the most attractive locations for European investment.

The EU is fully supportive of European investment flows in ASEAN countries. More than 130 projects were approved by the Commission under the European Community Investment Partners (ECIP) programme. Many others are already under scrutiny. Furthermore, in 1993 the European Investment Bank (EIB) credit facilities were opened up to ASEAN countries. Forty million ECU has already been approved for a project in the energy sector. Additional project proposals will shortly be examined by the EIB.

IPR

Closely related to the encouragement of investment flows from the EU to ASEAN is the adequate protection of intellectual property rights. Let me use this opportunity to stress once again the importance that the EU attaches to this issue and the necessity for the early implementation of the TRIPS agreements by all ASEAN countries. In this respect, I would like to reiterate the Commission's proposal to convene an EU-ASEAN experts meeting on intellectual property rights with the objective of dealing with this question in greater detail.

Environment

The protection of the environment and the sustainable use of resources is a clear priority for both our regions. Thus, an important number of EU-ASEAN environmental programmes both rural and urban have been jointly set up. Among these, forestry protection programmes have featured prominently.

The EU is carefully evaluating the initial achievements of the newly established Regional Institute for Environmental Technology (RIET) in Singapore which was inaugurated last year. In our view RIET is achieving its task by gradually becoming the focal point where ASEAN countries can promote their own research projects, exchange information amongst themselves and also their own scientists and technical personnel On the other hand, we hope that RIET will become a window for European environmental technology which will, in time, be open to all Southeast Asian countries. We are closely following how RIET achieves its various goals because we believe that such technology centres could also be set up in other fields to our mutual benefit.

Drugs

The EU remains committed to the fight against drugs and has to this end recently published a Global Action Plan which inter-alia calls for intensified international co-operation. We therefore wish to intensify our co-operation with ASEAN in this field with a view to increasing the efficiency of policies and measures to counter the supply and illicit traffic of narcotics and psychotropic substances, the laundering of financial proceeds from such activities and the diversion of trade in the precursor chemicals, as well as taking appropriate measures to prevent and reduce drug abuse. We trust that the EU-ASEAN Sub-Committee on Narcotics can soon take up this work. We also look forward to continuation of discussions on the finalisation of an EU-ASEAN Agreement on drug precursors.

Upgrading the EU Profile in ASEAN

The EU is committed to improve its image in ASEAN. The findings of an all-media study which will be available soon will help the EU to focus on how best to pursue and appropriate EU public information policy in ASEAN.

Tri-lateral Co-operation

I would like to renew the invitation extended to ASEAN to combine our efforts to alleviate poverty and to assist ongoing transitions to market economies in the neighbouring countries of ASEAN: Vietnam, Cambodia, Laos, and when the political conditions permit, Burma.

Together we can facilitate a smooth transition to market oriented economies for these countries and consequently assist in their progressive integration into a larger Southeast Asian region.

Human Rights

The development and consolidation of democracy and the rule of law and respect for human rights and fundamental freedoms together form a major objective of the external policy of the European Union in its relations with all its partners world-wide. Regarding human rights, the general approach of the EU is endorsement of existing international standards as set down in the relevant international instruments. The European Union pursues this objective, inter-alia, through dialogue, guided by the Vienna Declaration and Programme of Action of the 1993 UN World Conference on Human Rights, to the success of which both the Union and the ASEAN countries have actively contributed.