Trading Freely with East Asia: Challenges and Opportunities for EU FTAs in the Region

Summary:

As the fastest growing region in the world, East Asia is an important partner for the European Union, particularly at a time of economic difficulty. Asian countries have weathered the recent financial and economic crisis much better than Europe and much better than initially anticipated, with China and several members of the Association of Southeast Asian Nations (ASEAN) recording relatively impressive growth rates.

As a result, self confidence has been growing in Asia while European economies feel increasingly challenged. At the same time East Asia is now also seen as an important potential contributor to Europe's growth. But East Asian economies will not be in a position to maintain their impressive growth rates in the absence of economic recovery in Europe. As a result, there is a growing awareness of the two regions' interdependence, and in particular a deepening understanding in Europe of the importance of the Europe-Asia partnership, with preferential trading agreements (PTAs1) as major means of enhancing the bilateral relationship.

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