REPORT on trade and economic relations with the Association of South East Asian Nations (ASEAN)

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

EXPLANATORY STATEMENT

OPINION of the Committee on Foreign Affairs (3.3.2008)

OPINION of the Committee on Industry, Research and Energy (28.3.2008)

RESULT OF FINAL VOTE IN COMMITTEE

14.4.2008 - (2007/2265(INI))

Committee on International Trade
Rapporteur: Glyn Ford

Procedure : 2007/2265(INI)

Document stages in plenary

Document selected :

A6-0151/2008

Texts tabled :

A6-0151/2008

Debates :

PV 07/05/2008 - 17
CRE 07/05/2008 - 17

Votes :

PV 08/05/2008 - 5.9
CRE 08/05/2008 - 5.9
Explanations of votes
Explanations of votes

Texts adopted :

P6_TA(2008)0195

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
EXPLANATORY STATEMENT
OPINION of the Committee on Foreign Affairs
OPINION of the Committee on Industry, Research and Energy
RESULT OF FINAL VOTE IN COMMITTEE

on trade and economic relations with the Association of South East Asian Nations (ASEAN)

(2007/2265(INI))

The European Parliament,

– having regard to its resolutions on bilateral trade negotiations and, in particular, that of 13 December 2007 on 'Trade and economic relations with Korea'[1],

– having regard to the ASEAN charter, signed on 20 November 2007 at the 13^th ASEAN summit in Singapore,

– having regard to its resolutions on Burma, most recently those of 6 and 27 September 2007[2],

– having regard to its resolution of 15 January 2008 on CARS 21: A Competitive Automotive Regulatory Framework[3],

– having regard to its resolution of 12 July 2007 on 'The TRIPS Agreement and access to medicines'[4],

– having regard to its resolution of 23 May 2007 on 'The EU's Aid for Trade'[5],

– having regard to its resolution of 23 May 2007 on 'Promoting decent work for all'[6],

– having regard to its resolution of 3 June 2003 on regional free trade areas and trade strategy in the European Union[7],

– having regard to the proposal for a Council regulation establishing a Community system to prevent, deter and eliminate illegal, unreported and unregulated fishing (COM(2007)0602),

– having regard to the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions entitled ‘Global Europe: Competing in the World. A contribution to the EU’s Growth and Jobs Strategy’ (COM(2006)0567),

– having regard to the study entitled 'Economic Impact of a Potential Free Trade Agreement (FTA) Between the European Union and ASEAN' by CEPII-CERIM of 3 May 2006,

– having regard to the Ministerial Declaration of the Fourth WTO Ministerial Conference, adopted on 14 November 2001 in Doha and in particular its paragraph 44 on Special and Differential Treatment (SDT),

– having regard to Rule 45 of its Rules of Procedure,

– having regard to the report of the Committee on International Trade and the opinions of the Committee on Foreign Affairs and the Committee on Industry, Research and Energy (A6‑0151/2008),

A. whereas the European Union should continue to give priority to a rule-based multilateral trading system, established through the World Trade Organisation (WTO), which offers the best prospects for fair and equitable international trade by establishing appropriate rules and ensuring compliance with them,

B. whereas a successful, balanced conclusion of the Doha Development Agenda (DDA) offers the greatest hope of aiding developing countries' integration into the international trading system,

C. whereas inter-regional trade agreements can complement the multilateral system by promoting integration and addressing topics for which it is currently difficult to find multilateral agreement,

D. whereas, considered as a whole, ASEAN would be the EU's fifth largest trading partner and the EU would be ASEAN's second largest trading partner and the leading investor in the region,

E. whereas ASEAN is an extremely diverse region, with three of its members being "Least Developed Countries" (LDCs) while others have a higher income per head than many EU Member States,

F. whereas the ASEAN countries have different economic profiles and those disparities will play an important role in finalising the EU-ASEAN FTA,

G. whereas studies show that an EU-ASEAN agreement ("the agreement") could produce substantial economic advantages for both parties but that additional measures may be required to promote an equitable division of such gains,

H. whereas a Partnership and Cooperation Agreement (PCA), containing enforceable human rights clauses, is a prerequisite for the Union to conclude an FTA with any country,

I. whereas adequate and reciprocal access to EU-ASEAN markets, fully respecting the differing economic positions of ASEAN members and in particular the poorest LDCs, will increase the flow of goods and services and will enhance innovation and boost economic growth on both sides,

J. whereas account should be duly taken of the effective protection of Intellectual Property Rights (IPRs), including geographical indications and appellations of origin,

1. Believes that an ambitious agreement will greatly benefit both sides and, even though a high quality agreement is more important than a rapid timetable, is nonetheless concerned about the slow pace of negotiations; emphasises the importance of achieving concrete results for EU businesses by improving market access;

2. Considers that a successful DDA remains the Union's trade priority and wishes negotiations with ASEAN to be complementary to it; considers that the proposed FTA has to fully respect WTO rules;

3. Believes that inter-regional agreements can usefully supplement the multilateral system, provided they are wide-ranging and ambitious, going well beyond tariff reductions in order to open markets, together with the implementation of technical, social and environmental standards;

4. Emphasises that future industrial growth in the Union is dependent upon openness to foreign trade and investment, governed by fair rules;

5. Regrets that, at the EU-ASEAN Summit held in Singapore in November 2007, certain provisions relating to business practices and conduct were not treated in depth, thus inhibiting EU investment in ASEAN countries;

6. Stresses the importance of strengthening regional economic integration between the ASEAN countries; calls on the Commission to provide technical assistance and further possible support to facilitate such a reinforcement;

7. Believes that, if certain countries in ASEAN prove to be reticent about signing an FTA, then those countries that wish to participate should be offered the choice of signing bilateral FTAs;

8. Urges the parties to progressively reduce or dismantle all barriers to trade in goods and services, while fully respecting the differing economic positions within the ASEAN region;

9. Urges the Commission, in the EU-ASEAN framework agreement, to ensure transparency and effective rules for public procurement, competition and investment, IPRs, state aid and other subsidies; stresses the importance of services in EU-ASEAN trade relations;

10. Stresses that a trade and investment agreement with ASEAN should ensure:

(i) the improvement and simplification of rules of origin,

(ii) the harmonisation of standards, including product safety, child protection and animal welfare standards,

(iii) regulatory transparency and simplified bureaucratic procedures,

(iv) the elimination of discriminatory taxes;

Sectoral Issues

11. Regards non-tariff barriers as of no less importance than tariff reductions and is particularly concerned about restrictions on business services, where a reduction in unjustified constraints could lead to ASEAN firms having access to lower cost, more efficient banking, insurance and legal services;

12. Stresses the importance of IPRs and calls for their effective enforcement to be given priority, particularly for design, sound recordings and other cultural goods as well as geographical indications and appellations of origin; asks the Commission to tackle barriers notwithstanding the right of countries to regulate sectors - such as audiovisual - that play a key role in preserving cultural diversity;

13. Attaches particular importance to the fight against counterfeit pharmaceuticals which represent unfair competition and a danger to consumers; at the same time, points out that nothing in the agreement should create legal or practical obstacles to the maximum use of flexibilities set out in the declaration on the TRIPS agreement and access to medicines and calls on the Commission negotiators to take full account of the points set out in its above mentioned resolution of 12 July 2007 on this topic;

14. Believes that aspects of the agreement affecting public procurement should recognise the varying level of development of ASEAN members and respect the right of all participants to regulate public services, particularly those relating to basic needs;

15. Considers that the agreement should seek to promote increased transparency and accountability with regard to investments made by sovereign wealth funds;

16. Considers it necessary to focus in detail on the fishing industry, and in particular on the tuna sector, given the strong socio-economic impact that the full and immediate liberalisation of tariffs would have on this sensitive sector, as recognised by the Commission in its study on the sector drawn up at Parliament's request;

17. Stresses the importance of compliance with hygiene and health rules in the fishing industry as a means of achieving improved and increased development of the industry in these countries, as well as fair competition with the EU fishing industry;

18. Urges that inter-regional economic cooperation be extended to the field of macro-economics, including cooperation in matters of taxation and statistics, the adoption of international auditing and accounting standards and measures to combat corruption and money laundering;

19. Calls on the Union and ASEAN to enhance cooperation in combating human trafficking, sex-tourism and counterfeiting; welcomes ASEAN members’ commitments against drugs while calling on them to uphold the UN death penalty moratorium; commends the Philippines for abolishing the death penalty;

20. Calls on the Union and ASEAN to enhance cooperation in the field of public health and in particular in combating diseases such as AIDS, SARS and avian flu, and in tackling climate change, as well as by promoting food safety;

21. Believes that the competitiveness of the Union with ASEAN countries is dependent upon improved education, training and research in the Union and the creation of innovative products and services;

22. Believes that trade, investment and scientific and research agreements should address sector-specific issues, such as:

(i) low energy light bulbs,

(ii) the prevention of and recovery following natural disasters;

(iii) the tourism sector, with special reference to small and medium sized enterprises,

(iv) the free movement of researchers, business people and tourists,

(v) cooperation between research centres in the Union and in ASEAN countries and the exchange of scientific research findings,

(vi) aerosol dispensers;

23. Recommends that the Union's energy policy, with respect to ASEAN countries, concentrates on:

(i) non-discriminatory licensing and trade conditions relating to energy products,

(ii) improvements in energy production and export capacity,

(iii) the development of transport infrastructure for energy products,

(iv) the diversification of energy sources,

(v) the elimination of border taxes on energy products,

(vi) mutual agreements on energy saving, mitigating climate change and reducing greenhouse gas emissions, including potential reciprocal emissions trading arrangements, so as to avoid damage to industries in the Union;

24. Would welcome the development of joint research projects conducted by research establishments in the Union and in ASEAN countries and urges the Commission to take steps to facilitate such arrangements;

25. Recalls the need to protect industry in the Union against dumping by ASEAN exporters and to pre-empt such dumping by early intervention on the part of the Union's trade negotiators;

Country Specific Issues

26. Underlines that any schedule of tariff reductions should take full account of the differing economic positions of ASEAN members;

27. Considers that poorer non-LDC members of ASEAN should benefit from flexibilities that are broadly equivalent to those offered by the Economic Partnership Agreements to countries with comparable income levels;

28. Calls on the Commission, at an appropriate point during the negotiations, to invite Cambodia and Laos to indicate whether they would wish to be included in the agreement and, were the reply to be positive, to seek a revised negotiating mandate from the Council that would make this possible;

29. Believes that the current situation in Burma makes it impossible for that country to be included in the agreement;

30. Considers a resolution to the problem of banking secrecy in Singapore, which is blocking the conclusion of a PCA, to be essential if there is to be a real prospect of a region-to-region FTA;

Sustainable Development

31. Considers an ambitious sustainable development chapter to be an essential part of any agreement and emphasises that the enforcement of those agreed standards is essential;

32. Calls for any agreement to incorporate binding social and environmental clauses, committing the parties to ratifying the core International Labour Organization (ILO) conventions and ensuring their effective implementation, particularly as regards child and forced labour, the eradication of which is a crucial challenge for the ILO, as it pointed out in its report entitled 'End of Child Labour: Within Reach';

33. Invites the Commission to consider ways of providing incentives to countries that improve labour standards, so as to ensure that the spread of FTAs does not undermine the attractiveness of qualifying for GSP+ status, whilst also studying the possibility of introducing a clause involving ratification of the basic United Nations and ILO conventions on human and labour rights, particularly those relating to child and forced labour;

34. Stresses that, once the EU-ASEAN FTA is in force, measures should be adopted to avoid undermining the advantages enjoyed by the LDCs regarding access for their products to the Union;

35. Believes that a Trade and Sustainable Development Forum, made up of workers' and employers' organisations and civil society representatives, could play a valuable role in ensuring that greater market opening is accompanied by rising environmental and social standards;

36. Proposes that a mechanism be established whereby recognised workers’ and employers’ organisations should be able to submit requests for action, which would be treated within a specified time period, and which could result in ongoing follow-up and review provisions, in order to maintain pressure against violations of workers' rights;

37. Looks forward to the early publication of a Sustainability Impact Assessment (SIA) which must be available in time to allow full public consultation so that its results can influence the outcome of the negotiations, particularly with regard to measures which may be required to mitigate the negative impact on certain groups or sectors;

38. Considers that the SIA should pay particular attention to the impact of trade liberalisation on gender equality, particularly in sectors such as agriculture, textiles and export processing;

39. Calls on the Commission and the representatives of ASEAN countries to pay particular attention to the consequences of the agreement on the small-scale farmers of the region and ensure that family and sustainable agriculture will be reinforced and not weakened;

40. Regards measures to combat deforestation and to protect and enhance tropical forests to be of great importance in the fight against climate change as well as contributing to the preservation of biological diversity; considers therefore that a PCA should only encourage trade in environmentally sustainable biofuels and that ASEAN countries should be assisted in their efforts to tackle illegal logging;

41. Calls on the negotiating partners to make sure that an agreement includes mechanisms to safeguard the traditional and customary rights of indigenous and local communities to use their forests when implementing forest management and licensing schemes, and to enhance the capacity of national parliaments and civil society, including local communities and indigenous people, to participate in decision-making regarding the conservation, use and management of natural resources, and to demarcate and defend their land rights;

42. Considers that both environmentally-friendly products and "fair trade" goods should have their tariffs reduced more quickly than other goods and be given early access to the EU market; requests that the Commission considers updating the customs nomenclature in order to take account of these specific products;

Political considerations

43. Recognises ASEAN’s growing role as a force for regional stability and prosperity; welcomes the re-launching of EU-ASEAN relations in 2007 with the Singapore Summit; believes that the Union and ASEAN, which both have a commitment to regional integration, have great potential for cooperation;

44. Notes that measures to step up economic and trade relations between the Union and ASEAN will help to consolidate overall relations between the two regions and encourage further progress regarding political cooperation and security, the advancement of democracy and human rights, further progress in the field of energy/climate change and the environment, in the socio-cultural field and in the area of cooperation and development;

45. Welcomes progress on ASEAN integration and the signing of the ASEAN Charter in the hope that its provisions will enter into force as soon as possible;

46. Recalls that human rights and democracy are core EU values and demands that they form an integral part of the negotiations with ASEAN, especially in the PCAs; reiterates the importance that the Parliament attaches to political and civil rights reforms, and welcomes the establishment of the Human Rights Body in ASEAN's Charter and its explicit commitment to the strengthening of democracy, the enhancement of good governance and the rule of law, as well as the promotion and protection of human rights and fundamental freedoms; expects, therefore, that ASEAN can contribute constructively to the promotion of these values in the region;

47. Welcomes elections in Thailand; calls for a credible process of democratisation and national reconciliation in Burma, that must involve the full participation of the opposition and ethnic groups, and demands the immediate release of Aung San Suu Kyi and all political prisoners as well as the normalisation of activity of the political parties; supports the work of the UN and EU Special Representatives; asks the Council to maintain the restrictive measures against the Government of Burma, to follow the situation closely and, if developments in the country so require, to review those measures; asks ASEAN members, as well as China and India, to put pressure on Burma;

48. Stresses the importance of ongoing cooperation on counter-terrorism and crisis/disaster management, and welcomes recent cooperation on the Aceh Monitoring Mission;

EP role

49. Expects the Lisbon Treaty to enter into force before the conclusion of the negotiations, which will remove any doubt about the need for Parliamentary assent for this type of agreement; calls on the Commission to make the negotiating mandate more widely available to Parliament and to consult Parliament regularly during the course of the negotiations to ensure that the outcome commands broad support;

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50. Instructs its President to forward this resolution to the Council and the Commission, the governments and parliaments of the Member States and of the ASEAN countries and to the ASEAN Secretary-General.

[1] Texts adopted, P6_TA(2007)0629.
[2] Texts adopted, P6_TA(2007)0384 and 0420.
[3] Texts adopted, P6_TA(2008)0007.
[4] Texts adopted, P6_TA(2007)0353.
[5] Texts adopted, P6_TA(2007)0203.
[6] Texts adopted, P6_TA(2007)0206.
[7] OJ C68 E, 18.3.2004, p. 126.

Introduction

The proposed agreement with ASEAN forms part of a wider strategy of bilateral and inter-regional negotiations with trading partners, set out in the Commission’s Communication "Global Europe: Competing in the World". Negotiations are also underway with India and Korea although the ASEAN case raises particular issues in view of the multiplicity and diversity of the negotiating partners.

Considered as a single entity, ASEAN would be the EU’s 5^th trading partner, ranking ahead of Japan. Its population is similar to that of the EU but there is a wide variation in income per head, ranging from Singapore, with a GDP per head comparable to that of France or the UK, to three Least Developed Countries (LDCs), namely Burma, Cambodia and Laos. ASEAN has signed an FTA with Korea and is in negotiations with regional partners including Australia, China, India, Japan and New Zealand, while individual countries have concluded or are negotiating such agreements with other leading trading nations.

This report supports the concept of an FTA with ASEAN provided that the agreement meets certain key conditions. In line with the standard position of the Parliament, a Partnership and Cooperation Agreement (PCA) should be a precondition for concluding a trade agreement with any country. And it should be possible to suspend preferential tariffs granted under the FTA were there to be persistent breaches of core elements of the PCA and, in particular, the human rights clauses.

The role of inter-regional trade agreements

Negotiating an agreement with a region made up of ten independent countries is more complicated and time-consuming than an agreement with a single country. Yet, at the same time, interregional agreements offer major, non-zero sum gains including from the promotion of regional integration, which strengthens partner countries' economies and reduces the variety of regulations with which EU companies have to comply.

The ASEAN leaders' decision, in Singapore on 20 November 2007, to sign the ASEAN Charter, which will give the organisation legal personality and a structure allowing improved coordination and more rapid implementation of decisions, is welcome. As the Charter will not come into effect until after ratification by all member states, prompt ratification is desirable.

However, in the light of reports of recent negotiating rounds, the prospects for an early and ambitious agreement with ASEAN may be undermined by a lack of negotiating capacity, difficulties in developing a common position that reflects the collective interests of the region and a lack of political will. Vietnam, as coordinator on the ASEAN side, should be encouraged to play an active role in developing such positions, while the EU could offer help with capacity building.

The promise, at November's ASEAN-EU leaders' meeting, to speed up negotiations towards a 2009 deadline is to be welcomed if it means a real change in pace for the negotiations. Otherwise there will be inevitable pressure to move to cherry-pick bilateral FTAs with ASEAN's most advanced members.

Coordination difficulties are not unique to ASEAN. However, in this case, the situation is made more difficult by the membership of Burma, a subject of EU sanctions.

The pressure from other ASEAN member states on the Burmese regime to improve its appalling human rights record and to find a settlement with the imprisoned Aung Sang Suu Kyi that restores democracy is welcome. It is inconceivable that, under the current military regime, the EU could conclude a PCA with Burma. This being a precondition for a trade agreement, those who seek to require unanimous support for every aspect of the potential EU-ASEAN agreement(s) are dooming the exercise to failure.

It is also significant that ASEAN has previously signed FTAs that did not cover all its members, specifically the 2006 ASEAN-Korea FTA which left out Thailand.

If the political prerequisites can be satisfied, the trade negotiations should aim for a high level of ambition with the quality of the agreement not being sacrificed to in search of a quick deal. Nor should the quest for an agreement be at the expense of efforts to conclude the DDA, which remains the priority and offers the greatest hope of a balanced outcome enhancing the rules-based multilateral trading system. In addition, the objective of a WTO+ agreement with ASEAN should be understood as going beyond WTO rules not only in terms of market access but also for implementing social and environmental standards.

To this end, and to ensure the public acceptability of the agreement, it will be important to recognise that, while independent studies indicate a 'win-win' scenario if an FTA is concluded, free trade remains a controversial topic in a number of ASEAN countries. The maximum possible involvement of local civil society throughout the negotiating process is required so as to ensure that the final agreement has broad popular support and that steps are taken to minimise the short-term impact on those sectors that will inevitably lose out.

Sustainable Development

The agreement should commit the parties to ratify the core ILO standards and to ensure to their effective implementation. At present, only Cambodia, Indonesia and the Philippines have ratified all 8 core ILO conventions. There should also be an undertaking not to lower labour standards in order to attract foreign investment which must cover the entire territory of the parties including export processing zones.

The impact of an FTA on labour standards, and the need for measures to mitigate any adverse affects, is one of the issues that should be given priority when the Sustainability Impact Assessment (SIA) is undertaken. It is important that this study is produced early in the negotiating process so that negotiators, parliamentarians and civil society can take the results into account.

The SIA should give particular attention to the impact of trade liberalisation on gender equality in view of concerns that agricultural liberalisation, export processing zones and the end of textiles quotas can have a disproportionately negative impact on female workers.

For the environmental section of the agreement, one of the most important issues is the need to combat deforestation which is making a major contribution to climate change. In line with the Commission's proposals on biofuels, trade agreements should contain measures to promote goods that have been produced using environmentally-sustainable processes so final consumers can be confident that they are buying a "green" product. At the same time, incentives should be provided to encourage ASEAN countries to combat illegal logging and to maintain and enhance their tropical forests.

While a clear, ambitious sustainable development chapter is important, what ultimately matters is effective implementation and enforcement of the agreed standards. This could be promoted by establishing a Trade and Sustainable Development Forum made up of workers’ & employers’ organisations and NGOs.

Effective enforcement also requires that the Sustainable Development chapter is subject to the same dispute settlement treatment as other chapters. The US Administration and Congress having agreed that "all of our FTA environmental obligations will be enforced on the same basis as the commercial provisions of our agreements – same remedies, procedures, and sanctions", it is hard to see why Europe, which treats social and environmental protection and sustainability much more seriously, should settle for less.

Sectoral Issues

In general ASEAN applied tariffs for non-agricultural products are relatively low although some countries have tariff peaks in sectors such as transport equipment. Non-tariff barriers, and in particular restrictions such as import licensing, are more significant. Services also remain heavily restricted in most of the region. In addition, banking secrecy represents a serious obstacle to the conclusion of a PCA with Singapore which, as previously noted, is a necessary condition for an FTA.

In general, the enforcement of IPR presents problems and should be a priority for the negotiations. Protection of Intellectual Property in the form of design, sound recordings and other cultural goods should be enhanced, whilst ensuring that nothing in the agreement limits the right of all participating countries to regulate services which play a prominent role in cultural diversity, such as the audiovisual sector.

Counterfeit pharmaceuticals not only compete unfairly against those made by firms who have funded the product's research and development but are also dangerous for consumers. At the same time, nothing in the EU-ASEAN agreement should create any legal or practical obstacles to firms using the flexibilities set out in the Declaration on the TRIPS agreement and public health, adopted by the Doha WTO Ministerial Conference.

Measures to simplify, standardise and modernise customs procedures and other formalities could make a substantial contribution to ensuring that EU-ASEAN trade is not impeded by unnecessary barriers. However care should be taken to ensure that “Trade Facilitation” is not used as cover to undermine consumer or environmental protection. Clearly, for the less affluent countries, such an agreement would need to be underpinned by adequate Aid for Trade.

The section of the agreement dealing with public procurement must take account of the varying level of development of the ASEAN members and must respect the right of each participant freely to regulate its public services, particularly those linked to basic needs such as health, education and drinking water.

Country Specific Issues

It will be important that any schedule for tariff reductions takes full account of the widely varying economic circumstances of ASEAN's Members. In accordance with normal WTO practice of "Special and Differential Treatment", and taking note of the definition of "substantially all trade" used in the Economic Partnership Agreement with the Caribbean, the EU should be ready to allow low and low middle income countries (Indonesia, Philippines, Thailand, Vietnam) longer transition periods and less extensive coverage than the schedules adopted by high income countries. Vietnam's request for market economy status for the purpose of trade defence instruments will also from part of the wider context within which this negotiation is situated.

The mandate adopted by the Council does not authorise the Commission to negotiate with the three LDCs. Whilst it is clear that trade negotiations with Burma are unacceptable in the current circumstances, the situation with regard to Cambodia and Laos is more balanced. On the one hand, as beneficiaries of the "Everything But Arms" scheme, the two countries already have tariff-free access to the EU market. At the same time, it should be noted that the Commission has encouraged LDCs to join Economic Partnership Agreements. It should seek, at a later stage, views from Cambodia and Laos as to whether and when they would wish to be included in any Agreement.

While the political situation in Thailand also currently presents a serious obstacle to the conclusion of a trade agreement, in view of the potential length of the negotiations and the commitment of the military regime to swiftly restore democracy, it seems hopeful that the situation will be remedied before any final Agreement.

EP role

When the Lisbon Treaty enters into force, the Commission will have a formal obligation to report regularly to the Parliament on the progress of negotiations and the Parliament's assent will be required before trade agreements are concluded. Given the slow pace of negotiations, it seems unlikely that an agreement with ASEAN will be concluded in advance of the new Treaty. All Institutions should therefore act on the assumption that the final agreement will need parliamentary approval. In turn, this requires that Parliament be consulted throughout the course of the negotiations, rather than being faced with a yes/no choice at the end.

The Commission has already shown a welcome readiness to provide information to the Parliament’s responsible Committee including in camera briefings and documents subject to restricted circulation. It is important that this continues throughout the negotiations and that the maximum possible information is made publicly available so that European citizens can be aware of the negotiations taking place on their behalf.

for the Committee on International Trade

on Trade and Economic Relations with the Association of South East Asian Nations (ASEAN)
(2007/2265(INI))

Draftsman: Francisco José Millán Mon

SUGGESTIONS

The Committee on Foreign Affairs calls on the Committee on International Trade, as the committee responsible, to incorporate the following suggestions in its motion for a resolution:

1. Recognises ASEAN’s growing role as a force for regional stability and prosperity; welcomes the re-launching of EU-ASEAN relations in 2007 with the Singapore Summit; believes that the EU and ASEAN, which both have a commitment to regional integration, have great potential for cooperation;

2. Notes that measures to step up economic and trade relations between the EU and ASEAN will help to consolidate overall relations between the two regions and encourage further progress regarding political cooperation and security, the advancement of democracy and human rights, further progress in the field of energy/climate change and the environment, in the socio-cultural field and in the area of cooperation and development;

3. Urges that transregional economic cooperation be extended to the field of macro-economics, including cooperation in matters of taxation and statistics, the adoption of international auditing and accounting standards and measures to combat corruption and money laundering;

4. Notes ASEAN’s economic growth and dynamism as well as the many free-trade initiatives relating to ASEAN; supports ASEAN-EU free-trade agreement negotiations, which must be accompanied by Partnership and Cooperation Agreements currently being negotiated between the EU and several ASEAN States; given the special political and economic circumstances of certain ASEAN countries, supports the view that, for the moment, those countries should not be parties to the Free Trade Agreement; underlines in particular the case of Burma/Myanmar, which is subject to restrictive measures adopted by the Council;

5. Notes that the priority objective for both regions is the conclusion of an ambitious, comprehensive and balanced Doha Round;

6. Stresses that the negotiation of a free-trade agreement between the EU and ASEAN should be carried out in the interests of, and add value for, both regions, paving the way for deliberations regarding trade-related issues not encompassed in the WTO multilateral negotiations currently under way; in particular, stresses the need to broach matters relating to social and environmental standards and the principles of good governance;

7. Stresses that, once the EU-ASEAN free-trade agreement is in force, it should not undermine the advantages enjoyed by the least-developed countries regarding access for their products to the EU;

8. Welcomes progress on ASEAN integration and the signing of the ASEAN Charter in the hope that its provisions will enter into force as soon as possible;

9. Recalls that human rights and democracy are core EU values and demands that they form an integral part of the negotiations with ASEAN, especially in the Partnership and Cooperation Agreements; reiterates the importance that the European Parliament attaches to political and civil rights reforms, and welcomes the establishment of the Human Rights Body in ASEAN's Charter and its explicit commitment to the strengthening of democracy, the enhancement of good governance and the rule of law, as well as the promotion and protection of human rights and fundamental freedoms; expects, therefore, that ASEAN can contribute constructively to the promotion of these values in the region of South East Asia;

10. Welcomes elections in Thailand; calls for a credible process of democratisation and national reconciliation in Burma/Myanmar, that must involve the full participation of the opposition and ethnic groups, and demands the immediate release of Aung San Suu Kyi and all political prisoners as well as the normalisation of activity of the political parties; supports the work of the UN and EU Special Representatives; asks the Council to maintain the restrictive measures against the Government of Burma/Myanmar, to follow the situation closely and, if developments in the country so require, to review those measures; asks ASEAN members, as well as China and India, to put pressure on Burma/Myanmar;

11. Stresses the importance of ongoing cooperation on counter-terrorism and crisis/disaster management, and welcomes recent cooperation on the Aceh Monitoring Mission;

12. Calls on the EU and ASEAN to enhance cooperation in combating human trafficking, sex-tourism and counterfeiting; welcomes ASEAN members’ commitments against drugs while calling on them to uphold the UN death penalty moratorium; commends the Philippines for abolishing the death penalty;

13. Calls on the EU and ASEAN to enhance cooperation in the field of public health and in particular in combating diseases such as AIDS, SARS and avian flu, and in tackling climate change, as well as on food safety;

14. Stresses the importance of involving civil society to ensure that account is taken of its opinion in the negotiating process, enabling it to contribute to the achievement of a fully satisfactory outcome forging closer transregional relations;

15. Calls on the Commission to keep Parliament regularly and promptly informed of developments regarding the negotiations currently under way.

RESULT OF FINAL VOTE IN COMMITTEE

for the Committee on International Trade

on trade and economic relations with the Association of South East Asian Nations (ASEAN)
(2007/2265(INI))

Draftsman: John Purvis

SUGGESTIONS

The Committee on Industry, Research and Energy calls on the Committee on International Trade, as the committee responsible, to incorporate the following suggestions in its motion for a resolution:

1. Emphasises that future industrial growth in the Union is dependent upon openness to foreign trade and investment, governed by fair rules;

2. Believes that the competitiveness of the Union with ASEAN countries is dependent upon improved education, training and research in the Union and the creation of innovative products and services;

3. Considers that all trade and investment agreements with ASEAN countries should be consistent with the Doha Development Round of negotiations and should take account of the four so-called Singapore issues (investment, competition, public procurement and trade facilitation);

4. Recommends that scientific and technical cooperation and the protection of intellectual property be made essential elements of all such agreements; stresses in particular the need to combat counterfeiting by incorporating into trade and investment agreements binding anti-counterfeiting instruments; points out that genuine cooperation among all involved will make it possible to combat counterfeiting effectively, including in particular the counterfeiting of consumer, industrial, pharmaceutical and other products;

5. Stresses that a trade and investment agreement with ASEAN should ensure:

(i) the improvement and simplification of rules of origin,

(ii) the harmonisation of standards, including product safety, child protection and animal welfare standards,

(iii) regulatory transparency and simplified bureaucratic procedures,

(iv) the transparency of national support mechanisms and the dismantling of non-tariff barriers,

(v) the elimination of discriminatory taxes;

6. Believes that trade, investment and scientific and research agreements should address sector-specific issues, such as:

(i) the environmental effects of palm oil extraction and deforestation,

(ii) low energy light bulbs,

(iii) the prevention of natural disasters and recovery,

(iv) combating HIV/AIDS and protecting public health,

(v) the tourism sector, with special reference to small and medium sized enterprises (SMEs),

(vi) the free movement of researchers, business people and tourists,

(vii) cooperation between research centres in the Union and in ASEAN countries and the exchange of scientific research findings,

(viii) aerosol dispensers;

7. Recalls the need to protect industry in the Union against dumping by ASEAN exporters and to pre-empt such dumping by early intervention on the part of trade negotiators from the Union;

8. Stresses that opening markets abroad is now primarily a question of eliminating non-tariff barriers to the movement of goods, services and investment capital;

9. Supports an active trade policy with an emphasis on areas of importance to business in the Union, services, investment safeguards, public procurement and fair competition;

10. Regrets that, at the EU-ASEAN Summit held in Singapore in November 2007, certain provisions relating to business practices and conduct were not treated in depth, thus inhibiting Union investment in ASEAN countries;

11. Recommends that the Union's energy policy, with respect to ASEAN countries, concentrate on:

(i) non-discriminatory licensing and trade conditions relating to energy products,

(ii) improvements in energy production and export capacities,

(iii) the development of transport infrastructure for energy products,

(iv) the diversification of energy sources,

(v) the elimination of border taxes on energy products,

12. Would welcome the development of joint research projects conducted by research establishments in the Union and in ASEAN countries and urges the Commission to take steps to facilitate such arrangements.

RESULT OF FINAL VOTE IN COMMITTEE

Date adopted

Result of final vote

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–:

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Members present for the final vote

Monika Beňová, Elmar Brok, Colm Burke, Véronique De Keyser, Hanna Foltyn-Kubicka, Michael Gahler, Bronisław Geremek, Maciej Marian Giertych, Alfred Gomolka, Klaus Hänsch, Richard Howitt, Jana Hybášková, Anna Ibrisagic, Metin Kazak, Helmut Kuhne, Joost Lagendijk, Vytautas Landsbergis, Johannes Lebech, Emilio Menéndez del Valle, Francisco José Millán Mon, Philippe Morillon, Pasqualina Napoletano, Vural Öger, Justas Vincas Paleckis, Ioan Mircea Paşcu, Alojz Peterle, Samuli Pohjamo, Michel Rocard, Libor Rouček, Jacek Saryusz-Wolski, György Schöpflin, Hannes Swoboda, Charles Tannock, Ari Vatanen, Kristian Vigenin, Zbigniew Zaleski, Josef Zieleniec

Substitute(s) present for the final vote

Mariela Velichkova Baeva, Cristian Silviu Buşoi, Giulietto Chiesa, Andrew Duff, Árpád Duka-Zólyomi, David Hammerstein, Jaromír Kohlíček, Erik Meijer, Borut Pahor, Józef Pinior, Antolín Sánchez Presedo, Inger Segelström, Marcello Vernola

Substitute(s) under Rule 178(2) present for the final vote

Renate Weber

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