A new survey reveals a growing sense of dissatisfaction among European businesses operating in Southeast Asia. The european Union-Asean Business Sentiment Survey,released recently,found that a record 59% of European companies believe the EU is failing to adequately support their interests in the region.This marks the highest level of discontent sence the survey began in 2015.
This sentiment is echoed by policymakers and officials across Southeast Asia, who observe the EU’s waning presence in the region. “It is not just the companies talking,” notes a seasoned observer of EU-Asean relations. “Speaking to ministers, senior officials, and policymakers across Southeast Asia, the EU is clearly missing key passes which other global players are all too eager to take possession of.”
A recent example of this missed opportunity was the Asean Ministers on Energy Meeting in vientiane, Laos.While most dialogue partners were present, the EU was conspicuously absent, despite having valuable expertise to offer in areas like energy transition and regional power grid development. This absence, according to experts, risks ceding ground to more active players like China and Russia.
“The EU must get back in the game before it risks conceding ground to more active players,” the observer warns.
Despite these concerns, the EU has made notable strides in its trade and investment relations with ASEAN. Free trade agreements (FTAs) have been successfully concluded with Vietnam and Singapore, with the latter also recently signing a digital trade agreement with the EU. Ongoing FTA negotiations with Indonesia,Thailand,and soon the Philippines,promise to further strengthen these ties.
“It is clear that on the trade front, we are making great strides.We just have to keep up the momentum and advance this progress,” says a trade expert.
The EU and ASEAN also share a strategic partnership, bolstered by a plan of action outlining numerous potential areas of collaboration. however, much of this action remains under the radar, failing to garner the attention it deserves. This lack of visibility contrasts sharply with the approach of other dialogue partners, who actively promote their contributions to the region, even when they are comparatively smaller.
“That is a pity and a missed goal opportunity as Asean’s other dialogue partners are swift to trumpet their contributions to the region,even when they are smaller in comparison,” the observer notes.
As an inevitable result, many of these countries enjoy extensive strategic partnerships with ASEAN, while the EU awaits a potential upgrade in 2027, when both sides celebrate 50 years of bilateral relations.
ASEAN is central to the EU’s Indo-Pacific policy, and the regional bloc has explicitly called for greater engagement from all its dialogue partners to balance geopolitical dynamics and drive enduring regional development. yet, the EU’s response has been tepid, creating a vacuum that other global players are eager to fill.
“The biggest concern for European businesses is the glaring lack of EU engagement at the highest levels in key areas,” says a business leader. “A European trade commissioner has not physically met their ASEAN counterparts in person since 2018, and that was the case again this year.”
While travel restrictions during the pandemic played a role, ASEAN’s other dialogue partners consistently show up at the ministerial level, particularly on issues related to digital technology, health, agriculture, energy, transportation, customs, and financial services. In contrast, the EU is often only represented at the senior officials’ level.
“This leaves European businesses navigating the complexities of the ASEAN market without the high-level political support that their competitors enjoy,” the business leader laments. “the lack of EU portrayal puts us at a distinct disadvantage; we miss out on the opportunity to influence regulations, standards, and policies that directly impact our regional operations.”
“It also sends a negative message: the EU is just not as committed to ASEAN as others. This has the potential to undo years of trust and good work that have been built. the EU’s slip in the recent State of Southeast Asia survey reflects this, perhaps harming the long-term prospects of European businesses in the region,” the leader concludes.
There is still time for the EU to strengthen its engagement with ASEAN. Ministerial-level representation on energy issues would be a positive step, with Europe sharing its expertise as ASEAN develops its own power grid. Similarly, a more active role in ASEAN’s negotiations for a regional digital economy agreement would be welcomed.
“Europe and ASEAN need each other as partners, just like soccer teammates who rely on close coordination,” the observer emphasizes. “With a new European Commission, we can only hope it will strengthen its engagement with ASEAN in the future and see more European commissioners working side by side with their ASEAN counterparts.”
The European union (EU) is actively seeking to strengthen its economic ties with Southeast Asia, recognizing the region’s immense potential for growth and investment. This commitment was underscored during a recent meeting between EU Trade Commissioner Valdis Dombrovskis and his ASEAN counterparts in Jakarta.
“We are committed to deepening our economic partnership with ASEAN,” stated Dombrovskis. “The EU sees Southeast Asia as a key region for future growth and we are eager to explore new opportunities for trade and investment.”
The EU’s interest in Southeast Asia is driven by several factors, including the region’s rapidly expanding middle class, its strategic location, and its abundance of natural resources. The EU is particularly keen on boosting trade in sectors such as renewable energy,digital technology,and sustainable agriculture.
Chris Humphrey, executive director of the EU-ASEAN Business Council, emphasized the importance of this partnership. “The EU and ASEAN have a strong foundation for economic cooperation,” he said. ”By working together, we can create jobs, promote innovation, and drive sustainable development in both regions.”
The EU’s engagement with ASEAN is part of a broader strategy to strengthen its presence in the Indo-Pacific region. The EU has been actively pursuing free trade agreements with several ASEAN member states and is committed to supporting regional integration efforts.
The meeting between Dombrovskis and his ASEAN counterparts is expected to pave the way for further discussions on specific areas of cooperation. The EU and ASEAN are aiming to finalize a comprehensive trade and investment agreement in the coming years.
The Philippine Daily Inquirer is a member of the Asia News Network, an alliance of 22 media titles in the region.
## Europe Losing Ground in Southeast Asia: An Expert Interview
**World Today News**: Recent reports paint a concerning picture of European businesses’ sentiment towards the EU’s support in Southeast Asia. A recent survey revealed a record 59% of European companies believe the EU is failing too adequately support their interests in the region, the highest level of discontent as 2015. we’re joined today by Dr. [Expert Name], a leading expert on EU-ASEAN relations, to shed light on this issue. Dr. [Expert Name], thank you for joining us.
**Dr. [Expert Name]**: It’s my pleasure to be here.
**World Today News**: This dissatisfaction among businesses seems to be echoed by policymakers in Southeast Asia. Can you elaborate on what’s driving this shift in sentiment?
**Dr. [Expert Name]**: It’s a combination of factors. Europe has historically been a major player in Southeast Asia, but we’re seeing a concerning trend of waning engagement. It’s simply not showing up in the same way other global players are, particularly when it comes to high-level political and strategic engagement.
**World Today News**: The article mentions a recent ASEAN Ministers on Energy Meeting in Laos where the EU was absent. Is this a symbolic example of a broader trend?
**Dr. [Expert Name]**: Absolutely. While the EU has expertise to offer in areas like energy transition and regional power grid progress, it was conspicuously absent from this critical forum. This allows competitor nations like China and Russia to step in and fill the void, gaining influence in strategically vital sectors.
**World Today News**: Despite these concerns,the EU has achieved progress in its trade and investment relations with ASEAN,concluding free trade agreements with Vietnam and Singapore,and even negotiating new deals. Are these achievements being overshadowed by other factors?
**Dr. [Expert Name]**: it’s a delicate balance. Trade agreements are certainly crucial, but they’re only one part of the equation. the EU needs to go beyond economic ties and demonstrate a genuine commitment to multifaceted cooperation with Southeast asia.
**World Today News**: The article highlights a lack of visibility surrounding the EU’s strategic partnership with ASEAN.How can the EU effectively communicate its contributions and bolster its presence in the region?
**Dr. [Expert Name]**: Stronger communication and engagement are essential.Perceiving your own work as understated and underappreciated is one thing, but letting this be publicly communicated by the region’s own statement is a hazardous sign the EU needs to take seriously.
The EU needs to be more proactive in highlighting its achievements and actively engaging with ASEAN at all levels, from ministerial discussions to grassroots initiatives. This requires consistent high-level presence and a willingness to invest in building genuine partnerships.
**World Today News**: So, what tangible steps can the EU take to reverse this trend and regain its footing in Southeast Asia?
**Dr. [Expert Name]**: First, there needs to be a renewed commitment from EU leaders to prioritize ASEAN. This means ensuring regular, high-level political engagement, featuring visits and dialogues on a par with other competitor countries. Second, the EU can leverage its expertise in key areas like sustainability, digital technology, and education to offer concrete solutions to ASEAN’s development challenges. it needs to work more closely with businesses to understand their needs and advocate for their interests.
**World Today news**: Dr. [Expert Name], thank you for sharing your insightful analysis.
**Dr.[Expert Name]**: thank you for having me.
