Despite being the most dynamic economic area in the world, the Asia-Pacific region remains the weak point of the EU’s still nascent foreign policy. The 27-member bloc, ambitious to become a global power, still struggles to be recognised as a serious player in a region that is expected to play a central role during the 21 century. Until recently, historic and geographic factors have led Europe to focus most of its attention on the US, its Southern and Eastern neighbours as well as its former colonies in Africa. In contrast, Asia-Pacific is a remote and fairly unknown region in the eyes of most of Europe’s policy makers and the public at large. “It is time for the EU to review its overall strategy towards Asia and make it more focused,” said Yeo Lay Hwee, director of the EU Centre in Singapore.

MODEST GROWTH

It was only in 1994 when the EU outlined its first comprehensive Asia strategy, at a time when the emerging ‘Asian tigers’ made it increasingly difficult for Europe to turn a blind eye on the economic and political prospects of the most populated continent. Fifteen years later, the EU is still in search of a comprehensive and effective strategy to assert itself in East Asia. In 1996, Europe and Asia launched the ASEM (Asia-Europe Meeting) process that has dramatically increased the level of intercontinental relations (see separate article), but the Far East remains peripheral. Only China has emerged as a top policy priority for experts of the region in Brussels.

The 1994 Asia strategy was updated in 2001 to take into account the political and economic developments, including the Asian economic crisis. But the European Commission acknowledged that only little progress had been achieved. “There has been a modest growth in our development and economic cooperation. But much remains to be done, for example in deepening and broadening our political dialogue, in enhancing our bilateral trade and investment relations and strengthening our cooperation in the WTO, and in ensuring that our aid programmes in Asia can achieve their full potential,” said a communication.

Against this backdrop, several European commissioners have tried to give more teeth to the Union’s Asia policies. Commissioner Chris Patten, in charge of external relations during the Prodi Commission (1999-2004), had first-hand experience of East Asia, in sharp contrast with most of the members of the college. The former British governor of Hong Kong naturally pushed for more European engagement in the region. “I believe that Asia always deserves to be high on Europe’s agenda,” argued Patten. In 2003, he presented the first strategy dedicated to South-East Asia and beefed up the network of EC delegations in the region, including the opening of an office in Singapore.

CHINA FACTOR

Under the leadership of President José Manuel Barroso, EU Trade Commissioner Peter Mandelson was the first to turn Asia into a top priority in the Commission. He argued that the EU’s trade policy should focus first on gaining new market access in fast growing Asian economies. Meanwhile, he promised his Asian partners to keep the EU market open by resisting protectionist tendencies. Suddenly, China topped the agenda of the commissioner, who paid regular visits to Beijing with the hope of striking a grand bargain that would benefit both Chinese and European firms and consumers. Meanwhile, the British commissioner launched three ambitious free trade negotiations with some of the most dynamic economies in Asia, namely, South Korea, the ASEAN and India. Today, only a deal with Seoul seems feasible in the foreseeable future. However, if the EU signs in the coming months, as expected, an agreement with South Korea, it could overtake the US, which is still struggling to ratify the free trade agreement it had concluded in 2007 with Asia’s fourth largest economy.

The emergence of China as a superpower has been increasingly influencing the EU’s approach to Asia over the last five years. The Commission and the member states have been eager to enhance their ‘strategic partnership’ with Beijing. But China’s new assertiveness, which comes on top of a growing number of economic frictions, presents a major challenge to the EU. To quote a recent report by the European Council for Foreign Relations (ECFR), the EU has lost the upper hand and is struggling to increase its leverage over China. Moreover, the ‘China obsession’ of many European policy makers prevents the EU from developing a comprehensive Asian strategy.

Recent efforts to strengthen relations with India, Pakistan or Indonesia could allow the EU to gain more influence in the region and thereby counterbalance the importance of China. Forging closer ties with the ASEAN states is also an essential element of the European strategy, since the EU sees the South-East Asian bloc as a sister organisation that fosters regional integration. However, the divergences over the ongoing trade negotiations or Burma (Myanmar) show the limitations of this relationship. During a trip in 2007, President Barroso has also rediscovered Japan as a key partner, sharing the same democratic and environmental values as the EU in a region that is increasingly unstable. However, the prospects for deepening bilateral economic ties with Tokyo are rather dim.

SECURITY GAP

The successful completion, in 2006, of the EU-led monitoring mission in Aceh, Indonesia, was a breakthrough, since for the first time the European bloc got involved in Asian security, a field traditionally dominated by the US. The EU’s participation in the ASEAN regional forum (ARF), which is the key annual rendez vous in the field of Asian security, is another sign of Europe’s determination to be involved, although many critics argue that it does not have the resources to match its ambitions. In 2010, the EU hopes to sign a treaty of amity and cooperation (TAC) with the bloc. Its ultimate goal is to participate in the East Asian summit, launched in 2005. The EU is banging on the door of this new forum, which gathers leaders from ASEAN countries, China, Japan, South Korea, India, Australia and New Zealand.