Obstacles to EU-Asean FTA

By Supalak Ganjanakhundee
The Nation
June 13, 2008

A free-trade agreement between the Association of Southeast Asian Nations and the European Union is unlikely to take shape soon because of the big discrepancies between Asean members and political problems in Burma, said visiting Belgian Foreign Minister Karel De Gucht.

The blocs announced their vision for a free-trade agreement in 2005 but negotiations could not be concluded easily, he said. The Asean ministerial meeting in Singapore next month, which the EU will join as a dialogue partner, would not reach any common ground, he added.

De Gucht said there were big discrepancies between the economies of the 10 Asean members. Burma, Cambodia, Laos and Vietnam lag behind more advanced economies such as Singapore, Thailand and Malaysia. "Therefore you cannot argue that there is a homogenous bloc of Asean countries, which means you need many rules and provisions adapted to meet various national conditions," he told a gathering of the business community in Bangkok on Wednesday.

Another major obstacle for the pact is political problems in military-ruled Burma, he added.

A political stalemate arose two decades ago in Burma due to suppression of democratic movements and human rights. The most recent suppression occurred last September when the junta launched a military crackdown on street protests led by Buddhist monks that left at least 31 dead.

The EU is foremost in imposing economic sanctions against the junta.

"There are many EU member states that doubt they can come to an agreement with Asean unless there are some signs of evolution in Burma and political change there," De Gucht said.

A report on Asean-EU economic relations by Britain's Glyn Ford, submitted to the European Parliament last month, suggested that the EU human rights in the partnership and cooperation agreement prior to the conclusion of a free-trade agreement. To that extent, Burma could not be included in any deal.