Myanmar set to dominate EU-ASEAN summit Reuters / November 22, 2007
European Union officials on Thursday are set to remind Southeast Asian leaders seeking a trade pact with Europe that they need to address issues ranging from reforms in Myanmar to bank secrecy laws to achieve a deal.
Talks over a free trade agreement between the member states of the Association of Southeast Asian Nations (ASEAN) and the EU, ASEAN's second-biggest trading partner after the United States, were kicked off in May but have made little progress since then.
While EU officials and diplomats welcomed the new ASEAN charter -- which enshrines principles of democracy and human rights, economic integration and environmental protection -- they criticised the organisation's handling of military-ruled Myanmar.
Speaking to Reuters in an interview on the eve of the talks, Benita Ferrero-Waldner, the EU's external relations commissioner, advocated a "carrot and stick" approach to bring about democratic reforms.
"There has to be a balanced approach towards Myanmar. On the one hand, there are our sanctions, on the other hand there is the possibility of cooperation," she said.
The EU this week adopted sanctions against 1,207 firms in Myanmar and expanded visa bans and asset freezes on the country's military rulers in response to their bloody crackdown on the biggest pro-democracy protests in nearly 20 years in September.
The United States expanded its sanctions against Myanmar's rulers in October and the U.S. Senate has voted to urge ASEAN to suspend Myanmar until the regime shows respect for human rights.
But ASEAN leaders say that sanctions reduce the chances of leading the military regime on a democratic path.
Acknowledging the potentially harmful effects of sanctions on the broader population, Ferrero-Waldner said that once the EU was satisfied with the progress of reforms in Myanmar, it could do more to help fight poverty in the Southeast Asian country.
EU Commission President Jose Manuel Barroso, European trade chief Peter Mandelson and Ferrero-Waldner arrived in Singapore on Wednesday for a round of talks with ASEAN ministers.
Earlier this week, U.S. Trade Representative Susan Schwab said that a free trade deal between the U.S. and ASEAN is unlikely because of "the political situation in the region".
Diplomats say the new ASEAN charter, which gives the group a legal identity, means that the current option of excluding Myanmar from trade deals will end.
The charter, signed on Monday, needs to be ratified by the 10 ASEAN member states within 12 months for it to take effect.
But President Gloria Macapagal Arroyo of the Philippines has said that the Philippine might not ratify the charter unless Myanmar releases detained opposition leader Aung San Suu Kyi.