Is ASEM still relevant?

• Author: Ramsay, Randolph

When the Asia-Europe Meeting (ASEM) was first formed in 1996, many Australian commentators were aghast that Australia had missed out on becoming a member.

The new group looked to be an important new link in Asia's global relationships--a "third arm" to complement the internally focused Association of South-East Asia Pacific Economic Cooperation (APEC), which included the world's largest economy, the US, as a member. With the European Union (EU) sown up with ASEM, Asia now had high level with all of the world's economic superblocs.

Australia's soreness at not being included was apparent. Federal Foreign Minister Alexander Downer, speaking in 1996, said that ASEM was a "historic attempt to strengthen the third side of a triangle connecting Europe, North America and East Asia".

"Australia is keen to join the ASEM process both because we recognise its importance as a new link between two economically powerful regions, and because Australia is already closely integrated with East Asia," he said. A Federal Government white paper (titled In the National Interest) released a year later continued to push the issue, saying that: "As a country closely integrated with East Asia in economic and security terms, Australia warrants inclusion in ASEM. This is already recognised by most Asian participants in ASEM, and the Government will continue to work at building further support for our inclusion in an expanded ASEM membership."

But six years on, questions are rising about the effectiveness of ASEM as a group. While ASEAN and APEC continue to make slow but steady progress towards their own large economic partnerships, ASEM's momentum seems to have stalled. Interest from its members nations run hot and cold--witness the fifth meeting of ASEM Finance Ministers held in Bali in early July 2003, where only a few of the 15 European Union Ministers attended. The others were represented by their deputies.

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