Brussels / Copenhagen, 24/09/2002 (Agence Europe) - The results of "open and frank" discussion between European and Asian leaders, largely devoted to problems raised by globalisation and terrorism, "directly and concretely concerned our fellow citizens", Danish Prime Minister Anders Fogh Rasmussen, was pleased to state at the close of the IVth Asem Summit, which gathered the EU Fifteen in Copenhagen on Monday and Tuesday, as well as their ten Asian partners (ASEAN, Japan, China and Korea).
After having collectively confirmed their commitment to combat terrorism and to make an active contribution to the reconciliation process between the two Koreas, the 25 discussion partners decided to create a Task Force to study the-possibility of strengthening their cooperation on trade, investment and finance, including the possible issue of Eurobonds and promotion of the euro's international role. On the subject of Iraq, the partners could only show their "differences of opinion" but, as European Commission President Romano Prodi pointed out, they did agree about the fact that Saddam Hussein must allow a United Nations weapons inspection mission into the country as soon as possible and without conditions.
On the economic chapter of discussions, tackled on Tuesday, Europeans and Asians once again demonstrated the fact that they have a great deal to gain by working together to take advantage of growing integration within the world economic system, said Mr Rasmussen. He hoped they would be able to greatly improve trade relations, open their markets and dismantle trade barriers with the clear objective of creating a free trade area between Europe and Asia. Five European experts and five Asian experts will make up the new Task Force entrusted with exploring the possibilities for strengthening the partnership and improving their knowledge of economic developments between the two regions, including the creation of an Eurobond market in Asia and the use of the euro as an international currency, the participants stress in a joint declaration. The exercise, on which they will give a report at the Asem summit in Hanoi in 2004, will cover trade (promoting the flow of trade and reducing trade obstacles), investment (increasing inter-regional flows and enlarging access of small and medium-sized enterprises to respective markets) and finance (strengthening cooperation, including the full use of the euro for transactions and reserves, the diffusion of Eurobonds in Asia and assessment of the impact that European single currency will have on the financial markets). There is no doubt that the euro will manage to play a growing role as an international currency, said Mr Rasmussen, who felt that Asem cooperation is a good framework for more closely examining the possibilities of European single currency. He was also convinced that the growing weight of the euro would in turn stimulate the economic links and trade. President Prodi is, for his part, delighted that the Asem Summit had endorsed the idea that he had put forward with the Prime Minister of Singapore for promoting the role of the euro on the international scene. He drew attention to the euro's growing share of foreign currency reserves in countries such as Japan, China and Singapore. He was pleased to state that they are becoming increasingly interdependent. The Prime Minister of Malaysia, Mahathir Mohamad, nonetheless slightly toned down the confidence shown by the Europeans by saying that they would probably increase their reserves in euros given that it is very important to have an alternative to the US dollar in trade but that they are not yet convinced the euro has acquired the stature of the US currency.
In their joint declaration, the European and Asian leaders stress, moreover, that they remain committed to developing a strong, open and transparent system in the context of the Development Round of the World Trade Organisation (WTO) which opened last year and which provides a unique opportunity for promoting economic growth. The partners will consult each other regularly to contribute to the success of negotiations at the 2004 deadline, by agreeing to do so before the multilateral ministerial meeting in Cancun in September 2003, especially in Paris where they will meet again early next year at the invitation of the French authorities.
After the Asem Summit, the first summit between the Union and South Korea was held (see yesterday's EUROPE), which allowed an indepth discussion on the reconciliation process with North Korea and allowed for an agreement to be reached on extending economic cooperation and trade. This provided an opportunity for President Kim Dae-Jung, Prime Minister Anders Fogh Rasmussen and President Prodi to discuss in all openness how the ground must be prepared for further development of Euro-Korean relations, stresses a joint declaration, without giving further details and without mentioning the subjects that would give rise to annoyance (the imminent negotiating session on aid to shipyards, described as the "last chance meeting" before the 30 September deadline the Union had set itself for going to Geneva).