The 10 members of the Association of South-East Asian Nations (ASEAN) remain vulnerable to problems in rich countries, and must work with the European Union to bolster their economies, the group's Secretary General Surin Pitsuwan said Sunday.
Addressing delegates at the ASEAN-EU Business Summit, Surin said global links meant it was "difficult to avoid spillover effects" from other parts of the world. The EU is ASEAN's biggest trading partner after China, and the bloc's most valuable export market. The 27-member EU is also ASEAN's largest source of investment.
Surin garnered applause from delegates when comparing the Asian crisis of 1997 with the recent global slump, which has hit a number of European countries hard. "In 1997 Europe told us to put our house in order," he said. "This time we appeal to Europe to put your house in order."
As ASEAN chair, Cambodia is hosting a series of key meetings that are scheduled to conclude Wednesday. On Saturday the EU and Vietnam announced they would start talks on a free-trade agreement. EU trade commissioner Karel de Gucht said Sunday similar negotiations with Singapore were "close to conclusion," while those with Malaysia were progressing well. De Gucht said trade and investment were central to the EU's efforts to economic recovery. "The EU is committed to increasing its engagement with dynamic Asian emerging markets to boost trade and growth," he said.
On Friday finance ministers announced that a regional emergency fund would double to 240 billion dollars. The purpose of the fund, which was set up by ASEAN, China, Japan and South Korea, is to provide short-term liquidity to cash-strapped nations. The ASEAN members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
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