economy and politics

Missed opportunity at the EU-ASEAN Summit

The EU and ASEAN need each other to counter the geopolitical rivalry between China and the United States. A strong partnership requires better communication from Brussels.

In 2020, the European Union and the Association of Southeast Asian Nations (ASEAN) elevated their longstanding relationship to the status of strategic partnership.

At the time, it was an unequivocal signal of the intention of both regions to reinforce their mutual commitment, in what constituted a premonitory measure on the part of the EU.

Premonitory because, in a few months, the EU was going to need partners and defenders outside the West to reaffirm its position in the world. From the Covid-19 pandemic and the coup in Myanmar to the Russian invasion of Ukraine, a series of external and internal shocks have forced both regions to focus on the great challenges of the moment and their relationship has once again been relegated to a background.

In fact, on the eve of what was supposed to be a very important EU-ASEAN Summit – originally rumored to be a leaders’ meeting to address the many crises and uncertainties unleashed in recent years – the event has been relegated to an opportunity to commemorate the forty-five years of diplomatic relations. Even the unofficial side events seem to address bigger issues than the official summit itself.

As for the result, if there is a joint statement, it will probably lack substance. There will be a reaffirmation of the mutual commitment of both regions, followed by support for the role of ASEAN and a nod to the need to respect the rules-based international order.

In principle, this should not be a problem. The relationship can weather the distractions. And there are certainly compelling reasons why the thorniest issues are best dealt with out of the spotlight.

The problem is that if not addressed at the highest level, these distractions become systemic and do not reflect the reality of current global circumstances. It gives the impression of indifference and does not do justice to the countless hours spent by EU and ASEAN officials, diplomats and civil society actors who have attempted to address these challenges – be they military, geopolitical or human rights – in other fora. . Simply going through the hoop, because it is more comfortable and less problematic, is not a solution and can lead to misunderstanding, even contempt.

Details matter. Appearances too.

History is littered with examples of how miscommunication can turn into conflict, even between longstanding allies. One need only look at the recent tumult caused by the Inflation Reduction Law of US President Joe Biden, which, having been miscommunicated to allies in Europe, Asia and elsewhere, caused no small amount of consternation.

The EU runs the risk of making a similar mistake, in the context of the EU-ASEAN relationship, with a little known (outside industry circles) but potentially explosive issue: the next EU directive on due diligence on corporate sustainability.

The directive, which will be submitted to the European Parliament and the Council for scrutiny in 2023, will impose to EU and non-EU companies The duty to check their supply chains for environmental and human rights issues and to respond to the results. At first sight, this may not seem problematic for ASEAN, since this directive is mainly directed at large multinationals, but even the European Commission itself acknowledges that SMEs will be indirectly affected. A reminder: In the ASEAN ecosystem, micro, small and medium-sized enterprises account for a whopping 97.2% of economic power.

The directive covers a number of difficult and sensitive issues. If the EU does not proactively contact ASEAN and consult with it on what the implications will be for a region whose economic foundations depend so much on its SMEs, the directive is unlikely to be welcomed.

The danger of unintended consequences may be amplified by the fact that the relationship between the EU and ASEAN is so subtle at the moment that it is difficult to know who will have the upper hand in potential negotiations. ASEAN is booming, with projected annual growth of 4-5% in the next decade in many of its member countries; Europe, for its part, has entered a period of critical vulnerability as it tries to diversify its energy dependency, cope with runaway inflation and deal with a dire security situation on its eastern flank. But ASEAN also needs the EU to act as a legitimate and viable counterweight to the US-China geopolitical rivalry in its own backyard.

That’s why appearances are so important from the start. The external perception of the relationship must be given the same importance that it has in reality.

The EU has never advertised itself well: it suffers from too long a list of priority areas, national distractions and technicalities. But there are things he is good at, from taking the lead on issues of global importance, such as the fight against climate change, to reining in inflexible industries by submitting them to the EU’s regulatory machinery.

If the lessons learned from these experiences are not applied to improve its own public relations, the EU risks losing the advocates and partners it most needs.

Article originally published in English in the Web from Carnegie Europe.

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