European Union-Asia Relations

Asia is an important partner for the EU economically, politically and culturally. Asia accounts for some 30% of EU trade and hosts about 15% of the EU's Foreign Direct Investment stock abroad.

Besides the vital commercial relationship with the region, there are several political issues of importance including security, as the region is the locus of various sources of tension - Kashmir, Sri Lanka, Afghanistan, Aceh, East-Timor, Myanmar, the Taiwan Straits, the South China Sea and the inter-Korean border.

Asia is also home to two-thirds of the world's poor, a challenge to many countries in the region. The EU plays a major part in helping Asian countries to address these issues, with combined aids of the European Commission and the Member States accounting for 30% of the world's total aid flows to developing Asia.

A first effort by the European Commission to take an integrated and balanced view of the relations between the EU and its Asian Partners was made in 1994. The first Asia Strategy paper was published under the name 'Towards a New Asia Strategy', and underlined Asia's importance for Europe. Since then, much has changed in both regions and the European Commission's political dialogue with Asia has evolved considerably.

In September 2001, the European Commission adopted a new strategic framework for relations with the region. Its core objective is to strengthen the EU's presence in Asia, raising it to a level commensurate with the growing global weight of an enlarged Union.

To that aim, the strategy focuses on six key objectives for:

Contributing to peace and security both in the region and globally;

Strengthening mutual trade and investment flows;

Promoting the development of the less prosperous Asian countries;

Contributing to the protection of Human Rights and to the spreading of democracy, good governance and the rule of law;

Building global partnerships and alliances with Asian countries; and

Helping to strengthen the awareness of Europe in Asia.

To read the full text from the Commission, 'A Strategic Framework for Enhanced Partnership' (217 KB-PDF), please click here.

Subsequently, in July 2003, the Commission launched its New Partnership with South East Asia (596 KB - PDF), which sets out a comprehensive strategy for the future EU relations with the sub-region. The Commission proposed bilateral agreements with countries in South East Asia to deepen co-operation on a modern agenda including not only trade but also Human Rights, good governance, justice, freedom and security issues, and the fight against terrorism. For more information on the EU relations with South East Asia, please click here.

Today, the Commission's current Regional Cooperation with Asia (2007-2013), based on the 2001 'Strategic Framework for Enhanced Partnership' in Asia, focuses on the following priority areas:

A. Support to regional integration:

For this goal, the key fora for the EU are the Asia-Europe Meeting (ASEM) and the ASEAN Regional Forum (ARF). Key partners are the Association of South-East Asia Nations (ASEAN), and the South Asian Association for Regional Co-operation (SAARC).

B. Policy and know-how based cooperation in:

C. Support to uprooted people

Cooperation in this area is intended to assist refugees, internally displaced persons, and returnees as well as demobilised former soldiers and other combatants, to return to and settle in their country of origin or in a third country.

Further to these three priority areas, cross-cutting issues such as the promotion of Human Rights and democracy, gender equality, good governance, the rights of children and indigenous peoples, environmental sustainability, and the combat against HIV/AIDS will be addressed in thematic programmes and instruments. To read more on regional cooperation with Asia for the period 2007-2013 please click here (76 KB - PDF).

The EU's Common Foreign and Security Policy (CSFP) has as its main objectives, and also for its relations with Asia to:

Safeguard the common values, fundamental interests, independence and integrity of the EU;

Conform with the principles of the United Nations (UN) Charter;

Strengthen the security of the EU in all ways, preserving peace and strengthening international security;

Promote international co-operation; and

Develop and consolidate democracy and the rule of law, and respect for human rights and fundamental freedoms.

In pursuit of these objectives, the EU has steadily intensified its political and security dialogue with the key countries of Asia:

At the Summit level, regular bilateral Summits are held with China, India and Japan (and soon with South Korea), while the biannual Asia-Europe Meeting (ASEM) brings together the heads of State and Government of 16 Asian countries with their counterparts from the 27 EU Member States and the EC President;

At the Ministerial level, regular meetings are held with ASEAN (including both the EU-ASEAN Ministerial Meeting and EU’s contacts in the ASEAN Regional Forum), and with Australia and New Zealand;

Joint Cooperation Committees take place regularly with most Asian partners, and include a discussion of political issues as appropriate;

Expert-level discussions also take place on a number of issues (including for example a human rights dialogue with China); and

At the multilateral level, frequent contacts with Asian partners take place in the UN bodies.

In addition, the EU as a whole has consistently made a significant contribution to peace-keeping efforts across Asia, and to the restoration or consolidation of democracy in countries such as Cambodia and East Timor. Certain Asian countries also take part in the discussion of European security issues. Japan and Malaysia, for example, have contributed to peace-keeping and reconstruction efforts in the Balkans, while Japan, Korea and Thailand have become in recent years cooperation partners of the Organisation for Security and Co-operation in Europe (OSCE).

With regard to Burma/ Myanmar the Council of the European Union strongly condemned the brutal crackdown on demonstrators. In view of the seriousness of the current situation and in solidarity with the people of Burma/Myanmar, the Council deemed it necessary to increase direct pressure on the regime through stronger measures as well as additional restrictive measures on exports, imports and investments in the sectors of logs and timber and mining of metals, minerals, precious and semi precious stones.

It will therefore adopt a package of measures that does not harm the general population but that targets those responsible for the violent crackdown and the overall political stalemate in the country. The EU stands ready to review, amend or reinforce these measures, in the light of developments on the ground and the results of the good offices mission of UN Special Envoy Gambari.

The Council requested relevant bodies to elaborate further restrictive measures, including a ban on new investments. The Council expressed its determination to assist the people of Burma/Myanmar further on their path to democracy, security and prosperity. Click here to access the list of sanctions already imposed (29 KB-PDF).

Economic relations between the EU and Asia take the form of bilateral trade ties, region-to-region partnerships, and multilateral co-operation within the framework of the World Trade Organization (WTO). Regular meetings on trade and trade related matters take place between the EU and Asian countries in various fora such as ASEM and other Ministerial meetings.

In recent years, trade and investment relations with Asia have expanded significantly, notwithstanding the substantial medium-term impact of the East Asian Crisis from 1997. In 2006, the overall trade with Asian partners accounted for about 30% of EU trade, ahead of North America (20.7%) and the European Free Trade Association (11.2%). Three Asian trading partners are in the top six of EU major trading partners; China (2nd), Asean (5th) and Japan (6th).

Asia is also the third-largest regional destination for outward investment from the EU, accounting for about 15% of the total EU outward Foreign Direct Investment stock in 2004 – coming after Northern America (40%) and close to Europe outside the EU (17%). Recognizing the strong economic relationship with Asia, and building on its new trade policy, the EU has recently embarked on trade negotiations with South Korea, India and the ASEAN.

The EC and its Member States account for 55% of the world's overseas assistance, making it the world’s largest donor. External assistance is considered a core activity of the EU. Its objectives are set by 'The Treaty Establishing the European Community' (Treaty of Rome), in particular the Article 181a that states: "Community policy in this area shall contribute to the general objective of developing and consolidating democracy and the rule of law, and to the objective of respecting human rights and fundamental freedoms." Another legal basis of EU external aid is set out by Article 177, stating that Community development assistance should foster:

The EU is actively supporting regional co-operation initiatives in Asia through dialogue and funding, as major development challenges, such as food security, health, and access to basic services, continue to confront lower-income countries in the Asian region.

EC co-operation programmes with developing countries in Asia have grown reasonably in recent years, averaging €607 million per year in the period from 2001-2005 (up from €410 million per year in 1996-2000 and €360 million per year in 1991-95).

Click here for the latest Annual Report on the European Community's Development Policy and the Implementation of External Assistance (2005) (5.63 MB-PDF).

The EC also provides substantial humanitarian assistance to Asia. Financial assistance can be provided to victims of conflicts or natural disasters in third world countries, solely on the basis of their humanitarian needs assessments.

Over the five years from 2002 to 2006, an average of €138 million per year was provided in humanitarian assistance following natural or man-made disasters in Asia. This accounts for 23% of EU humanitarian aid efforts worldwide.

Aid to Asia from the EC reached its highest level in 2005, as additional funding helped the victims of the December 2004 tsunami and the earthquake in Pakistan. Well over half of the funds disbursed in 2005 were dedicated to supporting social sector developments and poverty alleviation in the fields of health and basic education.

One of the major projects in 2005 was the opening of the ´Europe House´ in Banda Aceh, the provincial capital of Aceh in Indonesia. The ´Europe House´ has been established as a means of enhancing co-ordination and ensuring the efficient implementation of EC-funded rehabilitation and reconstruction projects in Aceh.

The EU has committed itself to rebuild and stabilise the province by not only providing humanitarian and reconstruction assistance but also by supporting the peace process in Aceh after years of armed conflict. The declared motto for Aceh is “build back better”. To date €871 million has been provided and committed by the EC and the EU Member States for relief efforts, reconstruction assistance and the peace process in Aceh.

To read the latest Annual Review on EC Humanitarian Assistance (2006) please click here (2.96 MB-PDF). To read more on the European Union in Aceh (2006) please click here (1.53 MB-PDF).