ASEAN
European Union Continues to Develop Close Trade Ties with ASEAN
The European Union has been a dialogue partner of ASEAN ever since four decades ago in 1977. Historically, both blocs have maintained good ties and partnerships.
Ostensibly, the European Union and ASEAN are important trading partners of each other. The European Union is ASEAN’s second biggest trading partner. On the other hand, ASEAN is the European Union’s third biggest trading partner.
Amongst all the dialogue partners of ASEAN, the European Union contributes the most funds to ASEAN development projects, with more than EUR 200 million.
In the midst of the COVID-19 pandemic, the European Union Ambassador to ASEAN believes that the EU and ASEAN can collaborate further, in order to solve global problems together. During the pandemic, the EU has provided ASEAN with more than EUR 800 million funding to tackle the pandemic as well as improving health, sanitation and water facilities.
The Vice President of the European Commission Josep Borrell believes that both blocs can collaborate on vaccine security, to ensure that there is enough supply of vaccines for citizens.
Mr Josep Borrell also emphasises that in order to make a speedy economic recovery in the midst of the pandemic, both blocs have to foster deeper economic ties and integration.
Close trading ties with ASEAN Countries
The EU-ASEAN Business Council conducted a survey titled 2020 EU-ASEAN Business Sentiment Survey where 56% of EU firms intend to venture into Southeast Asia. 53% of survey respondents view Southeast Asia as having the best economic prospects.
The Executive Director of the EU-ASEAN Business Council believes that European businesses want the EU to expedite engagement and negotiations with ASEAN, and also sign Free Trade Agreements (FTAs). A1 Similarly, the EU ambassador to ASEAN has emphasized the importance of fostering close trading ties between the two blocs.
Presently, the EU has successfully signed FTAs with Vietnam and Singapore. The European Union looks to sign more FTAs with other ASEAN nations, with greater urgency. There are currently ongoing negotiations with Indonesia, the Philippines and Thailand.
Eventually, the European Union hopes to promote more trade between the 2 blocs, and attain free trade in the entire Southeast Asia region one day.
According to the European Commission, the EU-Vietnam FTA is the most comprehensive FTA that the European Union has ever signed with a developing nation. It is forecasted that by 2030, the EU-Vietnam FTA will increase Vietnamese exports to the European Union by approximately 44.37%.
The EU-Vietnam FTA has allowed 99% of goods traded between the 2 blocs to enjoy duty-free rates.
EU Trade with Vietnam
European Union firms will be able to access the Vietnam market, find it easier to conduct business and bid for government contracts. Eventually, this would create more business opportunities for EU firms, leading to more job opportunities for EU citizens.
Amongst the ASEAN nations, Vietnam is the European Union’s second biggest trading partner. On the other hand, the European Union is Vietnam’s second biggest importer of goods and services. Trade in goods between Vietnam and the EU totaled €45.5 billion last year.
In 2018, the European Union has made foreign direct investments worth €7.4 billion into Vietnam.
As for Myanmar, in October 2020, the Southeast Asian nation signed a MoU with the European Chamber of commerce. This MoU will draw more investment funds from EU nations, while forging a sustainable and green business climate.
Last year, the EU had invested approximately US$7 billion into Myanmar.
Other than trade, the EU and ASEAN collaborate in environment, research, development cooperation, connectivity and security aspects.
Green Energy in the Philippines
Recently, Charge d’Affaires Thomas Wiersing, the EU Delegation to the Philippines conveyed in a webinar the EU’s willingness to collaborate with the Philippines on green and sustainable initiatives.
Philippines’s Finance Secretary Carlos Dominguez mentioned that the EU has and will continue to work with the Philippines on sustainable and green energy generation, and water conservation.
The EU will provide a 5 million Euro grant to Laos, to protect biodiversity in Laos. This initiative will ensure proper management of 3 biodiversity-rich places in Laos, establish biodiversity protection organisations and also ensure green and sustainable infrastructure initiatives.
The EU and ASEAN have constantly engaged one another in research, even before the pandemic.
The EU Mission to ASEAN recently announced that the EU will support 19 Southeast Asian research organisations with new research grants. The new grants encourage and facilitate the sharing of research findings and ideas, as well as research staff, facilitates partnership across business sectors, and promotes innovative projects.
Currently, the EU has already provided ASEAN with EUR 250 million for development cooperation projects from 2014 to 2020.
ASEAN’s Catalytic Green Finance Facility
In August 2020, the EU Ambassador to ASEAN disclosed that the European Union will embark on 3 new development cooperation initiatives with ASEAN, worth EUR 13 million.
One of the benefits of the new initiatives would be to promote green and sustainable growth, by leveraging on technology and digitization.
There is also €50 million funding from the EU, for ASEAN’s Catalytic Green Finance Facility, which will help to directly and indirectly finance green and sustainable infrastructure in Southeast Asia.
Connectivity wise, the EU hopes to connect and integrate more with ASEAN, digitally and physically. The EU-supported ASEAN Customs Transit System will be implemented in late 2020.
Air connectivity looks to be enhanced as the ASEAN-EU Comprehensive Air Transport Agreement looks to be concluding soon, leading to the world’s largest aviation market.
ASEAN Countries engage in military exchanges
In security aspects, the EU looks to strengthen security partnership and collaboration with ASEAN, as part of the EU-ASEAN strategic partnership. Previously, there have been successful dialogues between the 2 blocs, such as the 4 EU-ASEAN High Level Dialogues pertaining to Maritime Security Cooperation.
Additionally, the European Union is looking to employ counter terrorism experts in their EU Delegations across Asia, which includes Jakarta. Currently, the European Union has security ties with Vietnam, EU’s 19th security partner.
The EU and Vietnam signed the Framework Participation Agreement in October 2019, which allows the Southeast Asian nation to take part in EU crisis management exercises, and engage in military exchanges. There would also be regular discussions and exchanges of information regarding defence and security aspects between the 2 parties.
Indonesia and the EU had engaged in the 5th Security Policy Dialogue on 21 October 2020.
During the dialogue, both parties expressed their commitment to enhance security and defence cooperation. They also shared their experiences and practices, and agreed to collaborate in training and defence education in the future.
Building a common understanding
The EU representative to ASEAN realizes that ASEAN has over the years and decades, developed themselves into an important presence and influence internationally, where many nations and blocs would highly prioritize ASEAN. The EU representative reiterates that the EU will put ASEAN at the heart of their political framework and strategy, and aims to make a difference in Southeast Asia in the long run.
Moving forward, both blocs can further build common understanding and increase engagement with one another. Understanding can be forged by having frequent dialogues and consultation. This will allow both parties to understand each other perspectives on issues, to embrace differences and pursue projects where there are common positions or agendas.
Irrefutably, the European Union and ASEAN are amongst the world’s most successful blocs, proving that an open and rules-based multilateral system works.
ASEAN and the European Union can collaborate together to take advantage of new opportunities in today’s fast-changing, and increasingly digitized global economy.
By Ong Bo Yang
Ong Bo Yang is a University of London graduate, majoring in Banking and Finance and have written Op-Eds for 5 ASEAN newspapers, namely Thailand’s Bangkok Post & Chiang Rai Times, Cambodia’s The Phnom Penh Post, Vietnam’s VnExpress, and Myanmar’s The Myanmar Times.
ASEAN
Thailand Touts Peace Plan With ASEAN Partners for Myanmar
Thailand has urged that three or more ASEAN member countries collaborate to engage with Myanmar’s military regime in order to alleviate the crisis and bring peace to the conflict-torn country, while keeping steadfast in its commitment to humanitarian aid and peace promotion.
Foreign Affairs Ministry spokesman Nikorndej Balankura said on Wednesday that Thailand had coordinated with Laos, the current Asean chair, to arrange what it terms Asean “Troika” and “Troika plus” talks to restore peace in Myanmar.
The Asean Troika is a community of foreign ministers from the bloc’s previous, current, and prospective chair countries [Indonesia, Laos, and Malaysia]. The term “plus” refers to other Asean members who are interested in promoting peace or concerned about the problem.
Mr Nikorndej stated that the proposed meetings are most likely to take place in Thailand and restated the country’s willingness to mediate negotiations between Myanmar’s junta and resistance organizations.
He stated that the ongoing violence is not between Thailand and Myanmar, and that the Thai government will provide humanitarian assistance to all groups affected by the fighting in accordance with national security, international relations, and human rights standards.
He emphasized that the crisis impacts all countries, including Thailand, which shares a border with Myanmar.
“Thailand is a peace advocate, thus we must stress our role as an active promoter of peace. This is evident in our willingness to mediate negotiations between Myanmar’s conflicting parties. “If they agree, we’re ready,” he stated.
Border Trade Resumes
According to Mr Nikorndej, because the majority of the refugees have returned to Myanmar, the situation is not considered severe, and the consequences on Thailand are limited, affecting border trade only temporarily.
The government committee overseeing the situation along the Thai-Myanmar border, chaired by Deputy Prime Minister and Foreign Minister Parnpree Bahiddha-Nukara, is considering forming sub-committees with the National Security Council (NSC) to make the selections.
He highlighted that the situation along the Thai-Myanmar border has improved over the last 48 hours, with no reports of firing from locals. However, the committee will keep an eye on the situation, which is fluid.
During Mr Parnpree’s visit to Tak’s Mae Sot area on Tuesday afternoon, he stated that there has been no fighting at the 2nd Thailand-Myanmar Friendship Bridge since Sunday, and the majority of the refugees who left the fighting over the weekend have since returned.
He stated that the most important thing is that Thai residents be reassured that the government is taking steps to alleviate the effects of the Myanmar conflict on their livelihoods.
“Our agencies have response plans and people can rest assured that we are giving top priority to their safety,” he went on to say. When asked when the Mae Sot checks will reopen, he said they are expected to do so soon because both sides in Myanmar understand the importance of the 2nd Thai-Myanmar Friendship Bridge as a crucial border commerce route.
Residents Return to Myanmar
Meanwhile, the final group of 658 Myanmar refugees who sought safety in Mae Sot on Wednesday voluntarily chose to return once the situation in Myawaddy eased, according to local officials.
They were provided needs, such as medicines, before crossing the Moei River back to Myawaddy. Local officials and charity workers escorted them away.
According to the most recent reports, the checkpoint at the 1st Thai-Myanmar Friendship Bridge reopened on Wednesday, and junta troops who had fled to the 2nd Thai-Myanmar Friendship Bridge had returned to their barracks at the 275th Infantry Battalion.
On Wednesday, Reuters reported that a Myanmar rebel force has evacuated from Myawaddy following a military counteroffensive.
According to a spokesman for the Karen National Union (KNU), the “temporary retreat” from the town of Myawaddy occurred after junta soldiers returned to the crucial strategic location, which serves as a conduit for more than $1 billion in yearly foreign trade.
ASEAN’s Influence Over Myanmar
ASEAN, or the Association of Southeast Asian Nations, is a regional intergovernmental organization made up of ten Southeast Asian countries. Founded in 1967, its mission is to foster economic, political, and social cooperation among its members. These countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
ASEAN plays an important influence in the area. It promotes economic integration through initiatives such as the ASEAN Economic Community, which improve trade and investment flows. The group also addresses security, climate change, and human rights. It has tried to create a single market, promote sustainable growth, and deepen ties with its international partners.
Despite obstacles such as managing divergent interests, ASEAN remains influential. Its combined market of approximately 650 million people, as well as its strategic location between India and China, lend it economic weight. The group’s goal is to maintain regional stability while furthering its members’ common interests on the global stage.
ASEAN
Thailand Touts Peace Plan With ASEAN Partners for Myanmar
Thailand has urged that three or more ASEAN member countries collaborate to engage with Myanmar’s military regime in order to alleviate the crisis and bring peace to the conflict-torn country, while keeping steadfast in its commitment to humanitarian aid and peace promotion.
Foreign Affairs Ministry spokesman Nikorndej Balankura said on Wednesday that Thailand had coordinated with Laos, the current Asean chair, to arrange what it terms Asean “Troika” and “Troika plus” talks to restore peace in Myanmar.
The Asean Troika is a community of foreign ministers from the bloc’s previous, current, and prospective chair countries [Indonesia, Laos, and Malaysia]. The term “plus” refers to other Asean members who are interested in promoting peace or concerned about the problem.
Mr Nikorndej stated that the proposed meetings are most likely to take place in Thailand and restated the country’s willingness to mediate negotiations between Myanmar’s junta and resistance organizations.
He stated that the ongoing violence is not between Thailand and Myanmar, and that the Thai government will provide humanitarian assistance to all groups affected by the fighting in accordance with national security, international relations, and human rights standards.
He emphasized that the crisis impacts all countries, including Thailand, which shares a border with Myanmar.
“Thailand is a peace advocate, thus we must stress our role as an active promoter of peace. This is evident in our willingness to mediate negotiations between Myanmar’s conflicting parties. “If they agree, we’re ready,” he stated.
Border Trade Resumes
According to Mr Nikorndej, because the majority of the refugees have returned to Myanmar, the situation is not considered severe, and the consequences on Thailand are limited, affecting border trade only temporarily.
The government committee overseeing the situation along the Thai-Myanmar border, chaired by Deputy Prime Minister and Foreign Minister Parnpree Bahiddha-Nukara, is considering forming sub-committees with the National Security Council (NSC) to make the selections.
He highlighted that the situation along the Thai-Myanmar border has improved over the last 48 hours, with no reports of firing from locals. However, the committee will keep an eye on the situation, which is fluid.
During Mr Parnpree’s visit to Tak’s Mae Sot area on Tuesday afternoon, he stated that there has been no fighting at the 2nd Thailand-Myanmar Friendship Bridge since Sunday, and the majority of the refugees who left the fighting over the weekend have since returned.
He stated that the most important thing is that Thai residents be reassured that the government is taking steps to alleviate the effects of the Myanmar conflict on their livelihoods.
“Our agencies have response plans and people can rest assured that we are giving top priority to their safety,” he went on to say. When asked when the Mae Sot checks will reopen, he said they are expected to do so soon because both sides in Myanmar understand the importance of the 2nd Thai-Myanmar Friendship Bridge as a crucial border commerce route.
Residents Return to Myanmar
Meanwhile, the final group of 658 Myanmar refugees who sought safety in Mae Sot on Wednesday voluntarily chose to return once the situation in Myawaddy eased, according to local officials.
They were provided needs, such as medicines, before crossing the Moei River back to Myawaddy. Local officials and charity workers escorted them away.
According to the most recent reports, the checkpoint at the 1st Thai-Myanmar Friendship Bridge reopened on Wednesday, and junta troops who had fled to the 2nd Thai-Myanmar Friendship Bridge had returned to their barracks at the 275th Infantry Battalion.
On Wednesday, Reuters reported that a Myanmar rebel force has evacuated from Myawaddy following a military counteroffensive.
According to a spokesman for the Karen National Union (KNU), the “temporary retreat” from the town of Myawaddy occurred after junta soldiers returned to the crucial strategic location, which serves as a conduit for more than $1 billion in yearly foreign trade.
ASEAN’s Influence Over Myanmar
ASEAN, or the Association of Southeast Asian Nations, is a regional intergovernmental organization made up of ten Southeast Asian countries. Founded in 1967, its mission is to foster economic, political, and social cooperation among its members. These countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
ASEAN plays an important influence in the area. It promotes economic integration through initiatives such as the ASEAN Economic Community, which improve trade and investment flows. The group also addresses security, climate change, and human rights. It has tried to create a single market, promote sustainable growth, and deepen ties with its international partners.
Despite obstacles such as managing divergent interests, ASEAN remains influential. Its combined market of approximately 650 million people, as well as its strategic location between India and China, lend it economic weight. The group’s goal is to maintain regional stability while furthering its members’ common interests on the global stage.
ASEAN
7 key things Changed for Indian Stock market Overnight – Gift Nifty, tech stocks rally to oil prices
(CTN News) – Indian stock market: The domestic equity market is projected to open lower on Tuesday, mirroring mixed global market cues ahead of global central banks’ monetary policy meetings.
Asian markets fell as US stock indices closed higher overnight, boosted by mega-cap growth stocks.
For additional interest rate clues, market investors will look to the Bank of Japan’s monetary policy choices later today and the US Federal Reserve’s policy this week. On Monday, the Indian stock market indices finished the turbulent day higher, powered by key metals and auto giants.
The Sensex rose 104.99 points, or 0.14%, to close at 72,748.42, while the Nifty 50 advanced 32.35 points, or 0.15%, to 22,055.70. “We expect the markets to consolidate in the coming days, while the broader market may remain subdued,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.
Here are significant worldwide market indications for the Sensex today:
Asian marketplaces
Asian markets fell on Tuesday ahead of the Bank of Japan’s monetary policy decision. After 17 years of negative interest rate policy, the Bank of Japan will likely cease it.
Japan’s Nikkei 225 lost 0.5% at the outset, while the Topix remained steady. South Korea’s Kospi fell 0.8%, while the Kosdaq dropped 0.4%. Hong Kong’s Hang Seng index futures showed a dismal start.
Gift Nifty Today
Today, the Gift Nifty was trading at 22,060, a markdown of nearly 70 points from the previous close of the Nifty futures. This indicates a gap-down start for Indian stock market indices.
US stock market indices closed higher on Monday, powered by mega cap growth stocks, as investors awaited the Federal Reserve’s policy meeting this week.
The Dow Jones Industrial Average rose 75.66 points, or 0.20%, to 38,790.43, while the S&P 500 increased 32.33 points, or 0.63%, to 5,149.42. The Nasdaq Composite closed 130.27 points, or 0.82% higher, at 16,103.45.
Tesla shares rose 6.3%, while Nvidia shares rose 0.7%. Xpeng’s US-listed shares rose 1.9%, Boeing’s stock price fell 1.5% and Super Micro Computer’s stock dropped 6.4%.
On Monday, technology megacap stocks in the US soared, with the Nasdaq 100 gaining about 1% and the ‘Magnificent Seven’ tech megacaps rising twice as much.
Google’s parent Alphabet shares rose 4.4% after Bloomberg News reported that Apple Inc. is discussing incorporating Google’s Gemini artificial intelligence engine inside the iPhone. Apple shares rose 0.6%.
Nvidia’s stock price jumped 0.7% after CEO Jensen Huang unveiled new chips to extend the company’s supremacy in AI computing. Tesla shares rose 6.3% after the electric carmaker announced that it would shortly raise the price of its Model Y EVs in areas of Europe.
Indian stock market Oil Prices:
Crude oil prices rose further following Ukrainian drone assaults on Russian refineries and OPEC supply cutbacks. Brent crude, the global standard, rose 0.06% to $86.94 per barrel after rallying 1.8% on Monday to its highest closing since late October. West Texas Intermediate was trading 0.06% higher at $82.77.
Bank of Japan
The Bank of Japan is anticipated to abandon its eight-year negative interest rate policy on Tuesday and raise interest rates for the first time in 17 years. If the nine-member board deems the conditions are right, the BOJ will set the overnight call rate as its new objective and guide it in a range of 0-0.1% by paying 0.1% interest on excess reserves held by financial institutions at the central bank, according to Reuters.
Japan’s 10-year government bond rate increased by one basis point (bp) to 0.765%, while the two-year yield increased by one bp to 0.19%.
US Treasury Yields
The benchmark US 10-year Treasury yields rose to three-week highs on Monday, ahead of the Federal Reserve’s meeting this week. The yield on 10-year notes reached 4.348%, up nearly 5 basis points on the day and the highest since February 23. According to Reuters, two-year yields rose to 4.751%, the highest level since February 23. The yield curve inversion between two-year and ten-year notes narrowed by 2 basis points to minus 40.
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