Civil society perspectives on EU–ASIA free trade agreements

This paper focuses on the positions taken by civil society organisations that actively campaign on trade policies. Trade campaigners oppose the neo-liberal approach to trade and development and advocate a much more gradual and prudent approach to trade liberalisation. They stress that trade liberalisation will only lead to sustainable development if it respects environmental and social concerns, including the gender dimension of trade; if trade liberalisation is properly owned, prepared and sequenced; adapted to the institutional and economic needs and capacities of the countries and people involved, and accompanied by all necessary flanking measures. Trade campaigners stress the need to maintain policy space and the necessary governance instruments to react to changing circumstances and address social and environmental concerns. They denounce the lack of information, consultation and participation provided by governments in trade policy formulation and negotiations and they campaign to raise awareness and create more room for debate and participation. This article builds on a paper presented on 19-20 June 2008 at an UNU-CRIS Work Shop in Bruges on “Deep Integration and North-South Free Trade Agreements. EU Strategy for a Global Economy”.

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Free trade agreements and vertical-specialisation in East Asia

Regional integration in East Asia has been described as ‘market-led’ integration driven by the activities of multinational corporations creating vertical specialisation. This paper investigates the effect of free trade agreements (FTAs) on vertical specialisation-based trade by employing a gravity estimation for a sample of nine East Asian countries plus the US. We find that FTAs promote international trade based on vertical specialisation and enhances deep integration between countries. The FTA effect on vertical specialisation-based trade increases with pre-agreement vertical linkage level, that is, the deeper the real integration between countries the larger the FTA impact. The results of this paper also suggest that deeper economic integrations, such as currency unions, will enhance trade based on vertical production by reducing the risk of exchange rate volatility.

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Future targets for Asian regional integration

The central framework of Asian integration is ASEAN+3 and, since its first Summit meeting in 1997, it has advanced regional integration in East Asia. Based on the direct experience of the author, this article presents a critical assessment of the progress made over the past ten years and argues that the ‘Singapore Declaration’ of 2007 is not ambitious enough for the future. An East Asian customs union (EACU) and common regional market should be the next targets for trade integration. In terms of monetary integration, Asia should aim for de-dollarisation and to achieve this it is crucially important to create a regional Asian monetary system (AMS).

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Myanmar in EU–ASEAN relations

The aim of this paper is to discuss and examine the regional projects of institutionalism in Europe and Southeast Asia. The main focus is on Myanmar, a regional ‘outcast’ whose membership in the Association of Southeast Asian Nations in 1997 has helped it to gain international legitimacy and be able to stand relatively strong against Western sanctions. The military regime is riding on the wave of ASEAN norms and a communitarian culture. The question remains as to how long the country can continue to do so. A rather skeptical view is emphasized on the ‘ASEAN Way’ in dealing with the military regime, and for the overall political dialogue with the European Union. Many ambitious objectives such as sovereign equality in institutionalism are widely questioned, and the European Union has gone against many of its treaties in order to keep its relationship with Southeast Asia. The paper puts prominence on the political and security relationship rather than on the economic aspect, which has been far more successful. The role of values and the human rights debate will be highlighted and described as the greatest obstacle for any future political cooperation.

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How is the EU-ASEAN FTA viewed by ASEAN stakeholders?

Since April 2007, the EU Commission has been entrusted to start negotiating a FTA with ASEAN countries. Being enshrined in the logic contained in its ‘Global Europe strategy’, the proposed EU-ASEAN FTA finds its economic rationale in the expected overall positive impact found by most econometric studies on the topic. This article argues that although beneficial, these studies are limited conceptually and methodologically. In particular, they are unable to tackle the issue of differentiated effects on several groups of stakeholders. By analysing, through a questionnaire, the opinion of a number of ASEAN stakeholders, this article brings complementary information on the perception of the planned EU-ASEAN FTA by these different stakeholders. Whilst offering many opportunities, the FTA presents also a number of risks, the most critical one being the costs of adjustment, particularly for poorer ASEAN member countries. This paper draws partly on research work conducted jointly with F. Nicolas as part of a research contract for the European Commission DG Trade

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The European Union, the Doha Round, and Asia

Agriculture has been the most contentious issue in the Doha Round of multilateral trade negotiations, and the European Union (EU) intervenes substantially in agricultural markets. This paper reviews these interventions in light of the EU’s participation in the Doha Round of multilateral trade negotiations with specific attention to Asia. It concludes that the offers made by the EU were designed precisely to avoid any real liberalization in its agricultural markets and have undermined the development aspirations of the round.

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Cooling the earth? The changing priorities of EU–Asia technology cooperation

External crises such as the Bird Flu epidemic, as well as severe environmental problems, are changing overall attitudes towards research in human health and the environment. At present, the EU is putting pressure on developing countries in Asia and elsewhere to increase their environmental capacities and put forward methods of environmental management that support innovation and competitiveness. They are also being encouraged to participate in the Kyoto protocol and Bali processes on climate change. This paper aims to address the current issues faced by the EU in promoting environmentally friendly technologies in Southeast Asia, as well as to examine the opportunities for technological cooperation between Europe and Asia. It will use Indonesia, Malaysia, Thailand, the Philippines and Vietnam—some of the EU’s chosen recipients of official development assistance in the region—as case studies, in order to examine how these countries implement policies that incorporate environmental technology strategies designed to promote sustainable development. It will also attempt to identify the type of actions that are being pursued by their respective governments, with the support of the EU and its member states. Finally, the paper will suggest which types of environmentally friendly technologies and best practice could be transferred from Europe to Southeast Asia, and to the wider Asian region. An earlier version of this paper was presented at the ‘EU–Asia Relations: A Critical Review’ conference at the Jean Monnet European Centre of Excellence at the University of Melbourne, 27–28 March 2008. I would like to express my gratitude to the conference participants for their comments and suggestions.

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APEC and emerging regionalism in North East Asia

This paper explores what kind of regional trade agreement is most likely to emerge in Northeast Asia by tracing the trajectories of APEC. Taking into account the underlying potential of realizing cumulative causation effects between market expansion and technology cooperation among China, Japan and Korea, it reaches the tentative conclusion that a Northeast Asia Regional Trade Agreement (RTA) might take shape in the near future despite the prevalence of polarized versions in the cultural heritage and the international relations between these three countries.

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Regional energy cooperation in North East Asia: Lessons from the European Experience

The three major oil importing countries of Northeast Asia—China, Japan and South Korea—are concerned about future security of energy supplies to fuel their dynamic economic activity. Currently all three countries are highly dependent on imports of oil from the Middle East, a region with inherent political instability. Russia’s rich reserves of oil and gas in Eastern Siberia and the Russian Far East offer an obvious alternative. Given the geographical proximity of Russia and its desire to increase its energy exports to Northeast Asia, there is huge potential for cooperation. So far there has been no real intra-regional cooperation and no common external policy towards Russia. Despite obvious differences between Europe and North East Asia, the European model of energy cooperation, developed over the past 50 years, offers some useful lessons.

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Transregional security cooperation after September 11, 2001

The aim of this article is to answer the question what kind of global security architecture emerged after September 11 and what functions Europe, East Asia and the United States assumed in this triadic structure. The empirical findings reveal that the transpacific security cooperation is the strengthening link in this global security structure, the transatlantic security cooperation the weakening one and the Asia–Europe Security Cooperation is to be seen as the emerging link. In order to explain these different institutional manifestations of transregional cooperation, different theories of International Relations are applied to the three cases. It comes as no surprise that neoinstitutionalism and constructivism offer the best insights into the formation and development of international institutions.

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EU FTA negotiations with India, ASEAN and Korea: the question of fair labour standards

The EU sets considerable store by the need for its Free Trade Agreements (FTAs) now under negotiation with Asian countries to contain a sustainable development chapter with clear references to respect for the core ILO labour standards. While they reject the sanctions-based approach demanded by the European trade unions, they accept that some real enforcement mechanisms will be needed. Among Asian countries, Korea is most likely to accept some form of a social clause, while India and certainly some ASEAN countries strongly oppose it. This article explores the prospects for mutual agreement on this thorny issue at the bilateral level which, to date, has failed at the multilateral level.

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The coordinate plane of global governance

The ‘coordinate plane of global governance’ developed in this paper describes the trade-off between static gains and dynamic losses associated with international policy harmonization. A simple model illustrates how potential gains result from producing positive international spill-overs, whereas potential losses come from restricted systems competition between national policy regimes. The solution to this model allows identifying the cut-off level between policies suitable for global harmonization and policies which should better not be centralized. An application of the concept to selected policy fields illustrates its relevance for decision-making on global governance.

Going nuclear in Northeast Asia: a global view

Northeast Asia (NEA) is on the international security agenda for a lot of reasons. The historical legacy, territorial disputes, the region’s growing importance as an economic actor and a trading partner accompanied by increasing defence expenditures and acquisition of high tech weaponry and the political isolation of a “rogue” North Korea have all contributed to fear that NEA could open a Pandora’s box of a nuclear arms race. In this paper, I analyse recent strategic trends in Asia and try to evaluate the main motivations and objectives of a country like North Korea behind Weapons of Mass Destruction proliferation and the impact of this “nuclear diplomacy” on the evolution of defence policy of major military power like Japan.

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Operational oceanography in Indonesia

In 2005 Indonesian and European institutes joined to start the first step for the implementation of an Ocean Operational System in the Indonesian archipelago. The system will support the decision making process for the sustainable use of marine resources, providing useful information and added value products as well as a service for an improved management of the sea with high business impact to targeted groups as public authorities and commercial operators (coastal managers, fishermen, shipping companies). In this paper the System is shortly described with its potential benefits and economic and social impacts.

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The implementation of IMF programs: A conceptual framework

IMF supported programs have conventionally been assessed by examining their effects on intermediate variables and final outcomes. More recently greater attention has been paid to their implementation, on the assumption that in order to work programs need to be implemented. Empirical studies have begun to include political economy variables in an attempt to explain implementation. They have used the concept of ‘ownership’ to provide a theoretical foundation. This paper provides an alternative and simple conceptual framework based on the marginal benefits and costs of implementation. It goes on to discuss policies that might be expected to improve implementation based on this framework.

Peace and community building in Northeast Asia

This topic involves some difficulties, one of which is about the concept of “Northeast Asia”. Broadly speaking, Northeast Asia should include China, Japan, Korean Peninsula, Russia’s Far East, and Mongolia. It is obviously not possible to address complex issues in such a broad region within several pages. Therefore, this paper shall focus on the main part of Northeast Asia, i.e., China, Japan, and Korea.

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Japanese “<Emphasis Type="Italic">Furītā</Emphasis>” and German “Generation Internship”: The “precarious post-materialist” as an extension to Inglehart‘s theory of value change

With a period of economic recession, rising numbers of unemployed and an increase in non-regular employment, the situation on the German and the Japanese labour market has undergone a change over the past two decades. At the beginning of the twenty-first century a generation of newcomers entered working life under changed conditions. In this paper, I will analyse whether the individual perception of worsening chances on the labour market will have an effect on the attitudes to and expectations of work prevalent amongst young entrants to the labour market drawing upon Ronald Inglehart’s theory of value change as a theoretical base. An analysis of qualitative interviews with Japanese Furītā and members of the German ‘Generation Internship’ will explore whether patterns of work values can be identified that call for an extension of Inglehart’s value concept of “materialist” versus “post-materialist”, namely suggesting the existence of a ‘precarious post-materialist’. The discussion concludes with a short analysis of quantitative data, to see whether this new value type might also be identified in a broader context.

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Explaining the European Parliament’s gains in the EU Constitution

The Constitutional Treaty, like each set of reforms since the Single European Act, would constitute another incremental increase in the European Parliament’s powers. But the Parliament did not get everything it wanted. What we do in this paper is investigate why the European Parliament tends to ‘win’ in some areas but not in others. We consider five possible explanations and test these theories by looking at the issues the Parliament promoted in the constitutional negotiations and the factors that determined whether the Parliament was successful or not in a particular area. We find that the Parliament gains power in areas where the governments delegate new powers to the EU and are uncertain about the consequences of this delegation. We also find that public support for the Parliament played a role in the extension of the Parliament’s powers in the Constitution.

Building a strong nation, how does China perform in science and technology

A common perception is that China has relied on the expansion of labour-intensive industries and flooded the world market with cheap but low to medium level technology products. Although it has become the third largest exporting nation, China has failed to create a large number of big businesses that can compete with the world’s leading multinational companies (Nolan (2004)). The Chinese government has long been aware of the weakness of its development strategy and has been trying to improve its own technological capacity through investments in basic research, innovations and the application of new technologies, utility models and designs. China’s strategy on science and technology can be best described by the so-called ‘walking with two legs’ principle. The first leg is based on building up domestic research and innovative capacity. This is through investments in research institutes, universities and LMEs. China’s second leg has been to build up its technology capacity through its open policy and attracting FDI and technology. China has made significant advances in the following areas regarding science and technology.

The EU/China relationship: not seeing eye to eye?

I consider the endeavours exerted by the EU to develop the relationship with China which it formalised in its 1995 document ‘A Long Term Policy for China-Europe Relations’ (COM(1995) 279 final). I then examine China’s responses which culminated in 2003 when China produced its first ever ‘China’s EU Policy Paper.’ The reasons for this long gap between initiation and response are then explored. Since, obviously, the EU has been driving the relationship, the rationale for this is then looked into and detailed data is provided to support it. Finally, the nature of China’s reciprocation is entertained before the paper concludes that the relationship appears to mean more to the EU because China perceives the EU as only having a limited role within China’s overall global aspirations, of becoming a world power in economic terms, resulting from its impressive rate of economic growth, increasing R&D expenditure, and continually enhancing sophistication of its technology, and politically with its developing links and military prowess.

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