Critical Technologies Hold Key to EU–ASEAN Ties

As the European Union and ASEAN prepare to mark 50 years of dialogue relations in 2027, cooperation in critical technologies is expected to provide a new avenue for bolstering the partnership, an Asian affairs expert says.

Critical technologies  are becoming increasingly important to economic development, national security and strategic autonomy. 

Speaking during a policy forum on “The Next 50 Years: EU–ASEAN Cooperation in Critical Technologies,” hosted by Future Forum on August 27, Matej Simalcik, executive director of the Central European Institute of Asian Studies (CEIAS), said the EU and ASEAN should focus on turning their relationship into more strategically relevant cooperation.

He said areas of focus should particularly include digital trade, artificial intelligence (AI) and semiconductors amid global fragmentation and competition, as well as domestic development.

He said the next phase of the partnership should focus on turning goodwill into tangible cooperation.

According to the April edition of the State of Southeast Asia survey, an annual poll conducted by the ISEAS-Yusof Ishak Institute, perceptions of Europe among Southeast Asians have generally improved over time.

“The latest edition claimed that 56 percent of respondents identified the EU as a trustworthy partner for ASEAN,” Simalcik said.

He added that Europe also serves as a valuable partner and a favored third-party hedge amid US-China rivalry.

“However, the data shows goodwill, but not yet strategic relevance,” he added.

When respondents were asked to rank major powers according to their strategic relevance to ASEAN, the EU ranked fourth, behind the United States, China and Japan. Only three percent of respondents identified the EU as their top choice.

This highlights a key challenge for the relationship: translating positive perceptions into more concrete cooperation that delivers practical benefits to both regions.

Digital trade is one area where the EU and ASEAN could strengthen cooperation, particularly as ASEAN moves toward deeper regional digital integration, he said.

In late May, ASEAN concluded negotiations on the Digital Economy Framework Agreement (DEFA), which aims to help expand the region’s digital economy to $2 trillion by 2030.

Signing  the deal at the 49th ASEAN Summit in November would represent an important milestone, Simalcik said its success would ultimately depend on how effectively ASEAN member states implement and enforce the agreement.

“It will be only as good as individual ASEAN members are putting it into practice,” he said.

He said the EU could support ASEAN member states in translating DEFA commitments into national regulations by sharing its regulatory experience.

EU expertise could be particularly useful in areas including digital trade, e-commerce, data governance, privacy, electronic payments, cybersecurity and AI, he said.

The EU has developed mechanisms for regulatory cooperation and dialogue among its member states, which could provide useful lessons for ASEAN as it seeks to strengthen regional digital integration.

Simalcik said the EU and ASEAN should also focus on creating more opportunities for trade and investment in the digital economy.

Source: Cambodianess