Transcript
Page 1: GLOBALIZATION OF TRADE AND TRANSPORTATION s3. · PDF fileSource: WTO, International trade statistics, 2005. Trends towards globalization, international logistics, and supply chain

INTRODUCTION

The world is gradually smaller andglobal marketplace is to become bigger.Trans-continent co-operation andbusiness has become the major issuesin globalization process. With recenthigh and dynamic economic growthrates, the ASEAN + 3 countries hasrealized incredible successes andattracted attention worldwide. The EUwith ten new member countries andseveral candidate members has hadstable and permanent relations with theASEAN + 3 countries in co-operation,assistance, development, and especiallyin trade. The increasing trade boombetween two these regions will also

require the necessity of transportationand effective transport network.

1. NEW TRENDS IN GLOBALTRADE AND TRANSPORTATION

1.1. Overview of global trade andtransportation

Globalization with new trends inglobal business (network economy,global market, global business andglobal supply chain) has orientedtransportation activities according tonew requirements as follows:

– reduction of costs and increase ofeffectiveness: high frequency ofdelivery, flexible capacity of transport,just-in-time, lower insurance premiums;

ROMANIAN JOURNAL OF EUROPEAN AFFAIRS VOL. 6, NO. 2, 2006

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1 From December 1998 to September 2003, the author, MSc. Eng. Ho Thi Thu Hoa was an assistantlecturer at Hochiminh city University of Transport in Vietnam, specialization in Sea Transport Economics.She was also scholarship-holder of the Netherlands Fellowship Programmes at International MartitimeTransport Academy in 2002. Currently, she is a PhD student, specialization in World Economy -International Transportation and Logistics (scholarship-holder of Slovak Republic Ministry of Education)at Department of International Business, University of Economics in Bratislava, Slovakia. Her topic ofPhD dissertation: “Development of intermodal transportation on the shipping routes for trade between theASEAN + 3 countries and the EU.” She is also member of two scientific research projects financed bySlovak Ministry of Education VEGA No.1/3761/06 and VEGA No.1/2640/05 (No.114)[email protected]. Address: Department of International Business, University of Economics,Dolnozemská 1, 852 35 Bratislava, Slovakia.2 Assoc. Prof. Dr. Ing. Heda Hansenová is the lecturer at Department of International Business,University of Economics in Bratislava in Slovakia, specialization in International Transportation andLogistics. Currently, she is the chief of research project VEGA No.1/3761/06. [email protected].

GLOBALIZATION OF TRADE AND TRANSPORTATION BETWEENTHE ASEAN + 3 COUNTRIES AND THE EUROPEAN UNION

HO THI THU HOA1, HEDA HANSENOVÁ2

Abstract: The paper discusses the globalization process of trade and transportationbetween the ASEAN + 3 countries (ASEAN plus three - APT) and the EU (the EuropeanUnion). An East Asian 10+3 (ASEAN plus three) cooperative framework joined byASEAN, China, Japan and South Korea, is proceeding towards institutional directionwhich will play a very important role in the regional and international economicdevelopment. The paper will intensively not only focus on recent trade boom; and thenecessity of transportation in order to meet objective requirements of increasing traderelations between the ASEAN + 3 and the EU but also forecast new potentials inrelations of transportation and trade of the ASEAN + 3 with EU candidate membercountries .

Key words: the EU, ASEAN + 3, globalization, trade, transportation, trade boom.

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– uniform legislation, uniform systemwith one responsible operator.

The establishment of regionalmarkets such as the ASEAN in the FarEast, the Canada-US Free TradeAgreement, and the economicunification of EU nations are creatingnew opportunities for enhancinginternational business. Such pan-continental regionalization of the worldeconomy offers better opportunities tothe global business, implementseffective distribution strategies and tosatisfy demand and supply ofeconomies.

In 2004 the world economy grew at4 percent, the strongest annual growthrate in more than a decade, providinga solid basis for the acceleration inworld trade growth. World merchandisetrade rose by 9 percent in real termsin 2004, the best annual performancesince 2000, and more than twice asfast as world output (GDP measured atmarket rates) in 2004. Trade growth in2004 also significantly exceededaverage trade growth recorded over thelast decade (Figure 1).

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3 WTO: International trade statistics, 2005.

Figure 1: Growth in the volume of world merchandise trade and GDP in theyears 1994 – 2004 (Annual percentage change)

2

The establishment of regional markets such as the ASEAN in the Far East, the Canada-US Free Trade Agreement, and the economic unification of EU nations are creating new opportunities for enhancing international business. Such pan-continental regionalization of the world economy offers better opportunities to the global business, implements effective distribution strategies and to satisfy demand and supply of economies.

In 2004 the world economy grew at 4 percent, the strongest annual growth rate in more than a decade, providing a solid basis for the acceleration in world trade growth. World merchandise trade rose by 9 percent in real terms in 2004, the best annual performance since 2000, and more than twice as fast as world output (GDP measured at market rates) in 2004. Trade growth in 2004 also significantly exceeded average trade growth recorded over the last decade (Figure 1).

Figure 1: Growth in the volume of world merchandise trade and GDP in the years 1994 – 2004 (Annual percentage change)

Source: Annual report in 2005, WTO. Global trade growth in manufacturing was expanded by 10 percent in 2004, the highest

performance since 2000; manufacturing sector which is largely responsible for the excess of merchandise trade growth over merchandise output (Figure 2). Asia’s real exports of manufactures have expanded by 15 percent and amount to 30 percent of world trade. Between the years 2000 and 2004, the export volume of manufactures from Asia has increased by 40 percent, from Europe by 13 percent3.

Figure 2: Volume growth of world merchandise trade and output by sector in 2004 (Percentage change)

Source: WTO, International trade statistics, 2005. Trends towards globalization, international logistics, and supply chain management are all

reshaping the world’s trading patterns and physical cargo flows (Demkes et al., 1999). Such

3 WTO: International trade statistics, 2005.

Source: Annual report in 2005, WTO.

Global trade growth in manufacturingwas expanded by 10 percent in 2004,the highest performance since 2000;manufacturing sector which is largelyresponsible for the excess ofmerchandise trade growth overmerchandise output (Figure 2). Asia’s

real exports of manufactures haveexpanded by 15 percent and amount to30 percent of world trade. Between theyears 2000 and 2004, the exportvolume of manufactures from Asia hasincreased by 40 percent, from Europeby 13 percent3.

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Figure 2: Volume growth of world merchandise trade and output by sector in2004 (Percentage change)

GLOBALIZATION OF TRADE AND TRANSPORTATION BETWEEN THE ASEAN + 3 COUNTRIES AND THE EUROPEAN UNION

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4 Goh MKH: Internationalisation of business, globalisation of logistics networks and their implications forshipping and ports. Kualalumpur: 1999.

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The establishment of regional markets such as the ASEAN in the Far East, the Canada-US Free Trade Agreement, and the economic unification of EU nations are creating new opportunities for enhancing international business. Such pan-continental regionalization of the world economy offers better opportunities to the global business, implements effective distribution strategies and to satisfy demand and supply of economies.

In 2004 the world economy grew at 4 percent, the strongest annual growth rate in more than a decade, providing a solid basis for the acceleration in world trade growth. World merchandise trade rose by 9 percent in real terms in 2004, the best annual performance since 2000, and more than twice as fast as world output (GDP measured at market rates) in 2004. Trade growth in 2004 also significantly exceeded average trade growth recorded over the last decade (Figure 1).

Figure 1: Growth in the volume of world merchandise trade and GDP in the years 1994 – 2004 (Annual percentage change)

Source: Annual report in 2005, WTO. Global trade growth in manufacturing was expanded by 10 percent in 2004, the highest

performance since 2000; manufacturing sector which is largely responsible for the excess of merchandise trade growth over merchandise output (Figure 2). Asia’s real exports of manufactures have expanded by 15 percent and amount to 30 percent of world trade. Between the years 2000 and 2004, the export volume of manufactures from Asia has increased by 40 percent, from Europe by 13 percent3.

Figure 2: Volume growth of world merchandise trade and output by sector in 2004 (Percentage change)

Source: WTO, International trade statistics, 2005. Trends towards globalization, international logistics, and supply chain management are all

reshaping the world’s trading patterns and physical cargo flows (Demkes et al., 1999). Such

3 WTO: International trade statistics, 2005.

Trends towards globalization,international logistics, and supply chainmanagement are all reshaping theworld’s trading patterns and physicalcargo flows (Demkes et al., 1999). Such

restructuring is generally leading toeconomic growth, better allocation ofresources and above all greaterfreedom of choice for the consumers(Goh, 1999)4.

Source: WTO, International trade statistics, 2005.

1.2. New trends in global trade and transportation

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restructuring is generally leading to economic growth, better allocation of resources and above all greater freedom of choice for the consumers (Goh, 1999)4.

1.2. New trends in global trade and transportation The globalization of trade is accompanied by the globalization of logistics. The distance

between suppliers and manufacturers as well as between manufacturers and their final customers are increasing; therefore, logistics flows are increasing in distance, volume, number, and complexity between raw material supply and final consumption. Table 1 indicates main trends and aspects of transport logistics:

Table 1: Trends in transport logistics and their aspects

Trends Aspects

x Globalisation and international outsourcing originally due to cheaper labour, now due to more competitive labour

x Need for borderless transport management. x International standardisation of documentation and Informatics

Technology (IT) systems. x Regional transport networks may have great difficulty in

responding to the growth in demand caused by sudden access to changes in the geographical patterns of flows.

x A more diversified spectrum of consumer demand, combined with a shift from production to stock to production to order

x Just in Time delivery systems, resulting in the demand for faster, more frequent services and an increase in vehicle movement per unit of output. x Synchronisation of the activities of multiple organisations in the supply chain. x Need for real-time cargo monitoring and information systems.

x Development of sophisticated IT systems

x Generation of large amount of information, which can be used to develop more intelligent transportation systems if ways can be found for processing and analysing it.

x Increasing concern about the environment

x A possible move away from today’s highly concentrated hub-and-spoke systems and towards more direct deliveries and movement through smaller terminals. This trend is supported by traffic growth, which is generating the critical mass needed for direct deliveries on more and more routes. x Political pressure for infrastructure pricing policies, which internalise environmental costs. These will have a major impact on the future level and structure of transport demand.

x Increased importance of the role of logistics and transport in lowering manufacturing costs

x More government attention to the improvement of transport infrastructure.

Source: Adapted from OECD (1996) and Ruth Banomyong. Liberalization of the international trading and financial environment has created the

necessary conditions for the globalization of transportation. The trade liberalization has promoted globalization of transportation systems in two ways:

a) by accelerating the growth in international flow of goods, they have created the demand for transportation services, and intensified the need for capital investment, transfer of knowledge and harmonization of regulations and procedures on transport systems;

4 Goh MKH: Internationalisation of business, globalisation of logistics networks and their implications for shipping and ports. Kualalumpur: 1999.

The globalization of trade isaccompanied by the globalization oflogistics. The distance betweensuppliers and manufacturers as well asbetween manufacturers and their finalcustomers are increasing; therefore,

logistics flows are increasing indistance, volume, number, andcomplexity between raw material supplyand final consumption. Table 1indicates main trends and aspects oftransport logistics:

Table 1: Trends in transport logistics and their aspects

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Liberalization of the internationaltrading and financial environment hascreated the necessary conditions for theglobalization of transportation. The tradeliberalization has promoted globalizationof transportation systems in two ways:

a) by accelerating the growth ininternational flow of goods, they havecreated the demand for transportationservices, and intensified the need forcapital investment, transfer ofknowledge and harmonization ofregulations and procedures on transportsystems;

b) by directly reducing barriers tothe trade in transport services, theyhave facilitated foreign direct investment(FDI) in transport infrastructure and theparticipation of trans-nationalorganisations in the provision oftransportation services.

The globalization phenomenon hasreached a point where its effects arefelt in majority of all parts of the world,

including the developing countries ofAsia. Globalization involves theincreasing integration of economies,markets and production chains aroundthe world (global manufacturing). InAsia, its single greatest impact hasbeen in terms of the integration of localproduction and supply chains withothers in Asia or indeed with those inother regions of the world. Thisintegration is manifested in the sharingof production among manufacturingplaces in two or more countries, inorder to realise fully the comparativetechnical and cost advantages offeredby individual countries for themanufacture of specific components.The automobile industry has been oneof the leaders in the globalization ofproduction. Figure 3 illustrates asimplified representation of the Asiancross-border supply for one majorproducer - KIA.

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restructuring is generally leading to economic growth, better allocation of resources and above all greater freedom of choice for the consumers (Goh, 1999)4.

1.2. New trends in global trade and transportation The globalization of trade is accompanied by the globalization of logistics. The distance

between suppliers and manufacturers as well as between manufacturers and their final customers are increasing; therefore, logistics flows are increasing in distance, volume, number, and complexity between raw material supply and final consumption. Table 1 indicates main trends and aspects of transport logistics:

Table 1: Trends in transport logistics and their aspects

Trends Aspects

x Globalisation and international outsourcing originally due to cheaper labour, now due to more competitive labour

x Need for borderless transport management. x International standardisation of documentation and Informatics

Technology (IT) systems. x Regional transport networks may have great difficulty in

responding to the growth in demand caused by sudden access to changes in the geographical patterns of flows.

x A more diversified spectrum of consumer demand, combined with a shift from production to stock to production to order

x Just in Time delivery systems, resulting in the demand for faster, more frequent services and an increase in vehicle movement per unit of output. x Synchronisation of the activities of multiple organisations in the supply chain. x Need for real-time cargo monitoring and information systems.

x Development of sophisticated IT systems

x Generation of large amount of information, which can be used to develop more intelligent transportation systems if ways can be found for processing and analysing it.

x Increasing concern about the environment

x A possible move away from today’s highly concentrated hub-and-spoke systems and towards more direct deliveries and movement through smaller terminals. This trend is supported by traffic growth, which is generating the critical mass needed for direct deliveries on more and more routes. x Political pressure for infrastructure pricing policies, which internalise environmental costs. These will have a major impact on the future level and structure of transport demand.

x Increased importance of the role of logistics and transport in lowering manufacturing costs

x More government attention to the improvement of transport infrastructure.

Source: Adapted from OECD (1996) and Ruth Banomyong. Liberalization of the international trading and financial environment has created the

necessary conditions for the globalization of transportation. The trade liberalization has promoted globalization of transportation systems in two ways:

a) by accelerating the growth in international flow of goods, they have created the demand for transportation services, and intensified the need for capital investment, transfer of knowledge and harmonization of regulations and procedures on transport systems;

4 Goh MKH: Internationalisation of business, globalisation of logistics networks and their implications for shipping and ports. Kualalumpur: 1999.

3

restructuring is generally leading to economic growth, better allocation of resources and above all greater freedom of choice for the consumers (Goh, 1999)4.

1.2. New trends in global trade and transportation The globalization of trade is accompanied by the globalization of logistics. The distance

between suppliers and manufacturers as well as between manufacturers and their final customers are increasing; therefore, logistics flows are increasing in distance, volume, number, and complexity between raw material supply and final consumption. Table 1 indicates main trends and aspects of transport logistics:

Table 1: Trends in transport logistics and their aspects

Trends Aspects

x Globalisation and international outsourcing originally due to cheaper labour, now due to more competitive labour

x Need for borderless transport management. x International standardisation of documentation and Informatics

Technology (IT) systems. x Regional transport networks may have great difficulty in

responding to the growth in demand caused by sudden access to changes in the geographical patterns of flows.

x A more diversified spectrum of consumer demand, combined with a shift from production to stock to production to order

x Just in Time delivery systems, resulting in the demand for faster, more frequent services and an increase in vehicle movement per unit of output. x Synchronisation of the activities of multiple organisations in the supply chain. x Need for real-time cargo monitoring and information systems.

x Development of sophisticated IT systems

x Generation of large amount of information, which can be used to develop more intelligent transportation systems if ways can be found for processing and analysing it.

x Increasing concern about the environment

x A possible move away from today’s highly concentrated hub-and-spoke systems and towards more direct deliveries and movement through smaller terminals. This trend is supported by traffic growth, which is generating the critical mass needed for direct deliveries on more and more routes. x Political pressure for infrastructure pricing policies, which internalise environmental costs. These will have a major impact on the future level and structure of transport demand.

x Increased importance of the role of logistics and transport in lowering manufacturing costs

x More government attention to the improvement of transport infrastructure.

Source: Adapted from OECD (1996) and Ruth Banomyong. Liberalization of the international trading and financial environment has created the

necessary conditions for the globalization of transportation. The trade liberalization has promoted globalization of transportation systems in two ways:

a) by accelerating the growth in international flow of goods, they have created the demand for transportation services, and intensified the need for capital investment, transfer of knowledge and harmonization of regulations and procedures on transport systems;

4 Goh MKH: Internationalisation of business, globalisation of logistics networks and their implications for shipping and ports. Kualalumpur: 1999.

Source: Adapted from OECD (1996) and Ruth Banomyong.

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From this example, it is clearly thattransportation has played a major rolein trade-driven expansion; becausewithout transportation, there is no trade.Transportation brings commerce tocommunities5.

Efficient transportation plays a vitalrole in fostering international trade. Theremoval of barriers to trade in thetransport sector is therefore doublyimportant. Firstly, the transport sector isin itself an important area of economicactivity, and liberalization in transportwill therefore make an important

contribution to the liberalization of tradein services. Secondly, by enhancingefficiency and reducing the costs oftrade in goods, removal of barriers inthe transport sector will in turn lead tofreer and more open markets in thetrading of physical goods. Safety andsustainability are just the minimumrequirements for transportation in the21st century; therefore, thetransportation system of the future mustbe: international in reach, connectingmarkets and destinations around theworld.

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5 Rodney E.Slater: A New Transportation Policy Architecture for a New Century, U.S. SecretaryDepartment of transportation. Washington D.C.: 2000.

Figure 3: Flows of the auto components in company KIA

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b) by directly reducing barriers to the trade in transport services, they have facilitated foreign direct investment (FDI) in transport infrastructure and the participation of trans-national organisations in the provision of transportation services.

The globalization phenomenon has reached a point where its effects are felt in majority of all parts of the world, including the developing countries of Asia. Globalization involves the increasing integration of economies, markets and production chains around the world (global manufacturing). In Asia, its single greatest impact has been in terms of the integration of local production and supply chains with others in Asia or indeed with those in other regions of the world. This integration is manifested in the sharing of production among manufacturing places in two or more countries, in order to realise fully the comparative technical and cost advantages offered by individual countries for the manufacture of specific components. The automobile industry has beenone of the leaders in the globalization of production. Figure 3 illustrates a simplified representation of the Asian cross-border supply for one major producer - KIA.

Figure 3: Flows of the auto components in company KIA

1.Panasonic Automotive sources optical-pick up units, which read the CDs, in China. They are shipped to Thailand.

2.The mechanical structure and electronic components are added in Thailand, and then the units are shipped to a Matsushita Communication Industrial plant in Reynosa, Mexico.

3.The units are trucked to a Delco Electronics plant in Matamoros, Mexico, where they are assembled into an audio.

4.The audio systems are trucked to California, and shipped to South Korea. 5.The players are fitted into the Sorento in Hwaseong, South Korea. 6.The Sorentos are shipped to the USA.

Source: www.uky.edu/AS/Courses/GEO545/PPT_F2005. From this example, it is clearly that transportation has played a major role in trade-driven

expansion; because without transportation, there is no trade. Transportation brings commerce to communities5.

Efficient transportation plays a vital role in fostering international trade. The removal of barriers to trade in the transport sector is therefore doubly important. Firstly, the transport sector is in itself an important area of economic activity, and liberalization in transport will therefore make an important contribution to the liberalization of trade in services. Secondly, by enhancing efficiency and reducing the costs of trade in goods, removal of barriers in the transport sector will in turn lead to freer and more open markets in the trading of physical goods. Safety and sustainability are just the minimum requirements for transportation in the 21st century; therefore, the

5 Rodney E.Slater: A New Transportation Policy Architecture for a New Century, U.S. Secretary Department of transportation. Washington D.C.: 2000.

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1

5

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1. Panasonic Automotive sources optical-pick up units, which read the CDs,in China. They are shipped to Thailand.

2. The mechanical structure and electronic components are added inThailand, and then the units are shipped to a Matsushita CommunicationIndustrial plant in Reynosa, Mexico.

3. The units are trucked to a Delco Electronics plant in Matamoros, Mexico,where they are assembled into an audio.

4. The audio systems are trucked to California, and shipped to SouthKorea.

5. The players are fitted into the Sorento in Hwaseong, South Korea.6. The Sorentos are shipped to the USA.

Source: www.uky.edu/AS/Courses/GEO545/PPT_F2005.

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2. INTERNATIONAL RELATIONS BETWEEN THE ASEAN + 36 COUNTRIES ANDTHE EUROPEAN UNION

2.1. The Association of South East Asian Nations (ASEAN)The five founding member countries, namely, Indonesia, Malaysia, the

Philippines, Singapore, and Thailand, established the Association of South EastAsian Nations or ASEAN on the 8th of August 1967 in Bangkok, Thailand. BruneiDarussalam joined on the 8th of January 1984, Vietnam on the 28th of July 1995,Laos PDR and Myanmar on the 23rd of July 1997, and Cambodia on the 30thof April 1999.

Figure 4: Map of the ASEAN + 3

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6 ASEAN + 3 (APT) includes 10 Asia South East Nations (Brunei, Cambodia, Myanmar, Laos,Singapore, Thailand, Vietnam, Malaysia, Philippines, Indonesia) and South Korea, Japan, China.

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transportation system of the future must be: international in reach, connecting markets and destinations around the world.

2. International relations between the ASEAN + 36 countries and the European Union 2.1. The Association of South East Asian Nations (ASEAN)

The five founding member countries, namely, Indonesia, Malaysia, the Philippines, Singapore, and Thailand, established the Association of South East Asian Nations or ASEAN on the 8th of August 1967 in Bangkok, Thailand. Brunei Darussalam joined on the 8th of January 1984, Vietnam on the 28th of July 1995, Laos PDR and Myanmar on the 23rd of July 1997, and Cambodia on the 30th of April 1999.

Figure 4: Map of the ASEAN + 3

Source: www.worldatlas.com. In January 1992, at the summit meeting of the Association of Southeast Asian Nations

(ASEAN), the establishment of an ASEAN Free Trade Area (AFTA) was decided with the participation of all six member countries (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand). Since the mid-1990s, four more countries joined ASEAN: Vietnam, Myanmar, Laos PDR and Cambodia; they are also participating in AFTA. The ASEAN-China FTA is part of a larger China initiative, following the 1997 Asian crisis, to create a pan-Asian free trade area (EAFTA) that would include the ASEAN + 3 (APT) countries (China, Japan and South Korea). The Table 2 represents several main economic indicators of the APT.

Table 2: The main economic indicators of East Asia countries in 2004

Country Population Total

Gross Domestic Product (PPP)

Merchandise Exports

Merchandise Imports

(in thousands) (millions of US Dollars) (millions of US Dollars) (millions of US Dollars)

Brunei 365 6,500 3,439 1,630 Cambodia 13,363 22,760 1,616 2,124 Indonesia 238,452 758,100 63,890 40,220 Lao, PDR 6,068 10,340 332 492 Malaysia 23,522 207,200 98,400 74,400 Myanmar 42,720 78,800 2,434 2,071

6 ASEAN + 3 (APT) includes 10 Asia South East Nations (Brunei, Cambodia, Myanmar, Laos, Singapore, Thailand, Vietnam, Malaysia, Philippines, Indonesia) and South Korea, Japan, China.

Source: www.worldatlas.com.

In January 1992, at the summitmeeting of the Association of SoutheastAsian Nations (ASEAN), theestablishment of an ASEAN Free TradeArea (AFTA) was decided with theparticipation of all six member countries(Brunei, Indonesia, Malaysia, thePhilippines, Singapore and Thailand).Since the mid-1990s, four morecountries joined ASEAN: Vietnam,

Myanmar, Laos PDR and Cambodia;they are also participating in AFTA. TheASEAN-China FTA is part of a largerChina initiative, following the 1997Asian crisis, to create a pan-Asian freetrade area (EAFTA) that would includethe ASEAN + 3 (APT) countries (China,Japan and South Korea). The Table 2represents several main economicindicators of the APT.

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2.2. Relations between the ASEAN +3 countries and the EU

An informal dialogue forum workingon the basis of consensus between theAPT and the EU is ASEM (the Asia –Europe Meeting). ASEM was foundedby 25 members out of which tencountries from Asia (seven members ofASEAN and three Northeast Asiannations (namely Brunei, China,Indonesia, Japan, South Korea,Malaysia, the Philippines, Singapore,Thailand, and Vietnam) and fifteen EUMember States, (namely Austria,Belgium, Denmark, Finland, France,Germany, Greece, Ireland, Italy,Luxembourg, the Netherlands, Portugal,Spain, Sweden, and the UnitedKingdom).

About 2.3 billion people live in ASEMcountries accounting for 37% of theworld population. Their aggregate GDPin 2002 was $14,849 billion equal to

46% of the world GDP. Their combinedvalue of goods trade was $2,718 billionor 43% of the world trade.

There are 3 main areas or threepillars of ASEM cooperation, namelypolitical dialogue, economic-financialcooperation, and cooperation in otherfields. Eight years after theestablishment of forum, ASEM hasundertaken over 250 activities andproposed various initiatives in all thesethree areas.

On 8-9 October 2004, the ASEM 5Summit Meeting ended in Hanoimarked a new advance in cooperationprogress between the two continents.ASEM 5 was the meeting between 25members (including Slovakia) of the EUand 13 Asian countries. During eightyears since the establishment of theforum, thirteen new members havebeen admitted at the Fifth Asia-EuropeMeeting (ASEM 5) namely Cambodia,Cyprus, the Czech Republic, Slovakia,

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Table 2: The main economic indicators of East Asia countries in 2004

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transportation system of the future must be: international in reach, connecting markets and destinations around the world.

2. International relations between the ASEAN + 36 countries and the European Union 2.1. The Association of South East Asian Nations (ASEAN)

The five founding member countries, namely, Indonesia, Malaysia, the Philippines, Singapore, and Thailand, established the Association of South East Asian Nations or ASEAN on the 8th of August 1967 in Bangkok, Thailand. Brunei Darussalam joined on the 8th of January 1984, Vietnam on the 28th of July 1995, Laos PDR and Myanmar on the 23rd of July 1997, and Cambodia on the 30th of April 1999.

Figure 4: Map of the ASEAN + 3

Source: www.worldatlas.com. In January 1992, at the summit meeting of the Association of Southeast Asian Nations

(ASEAN), the establishment of an ASEAN Free Trade Area (AFTA) was decided with the participation of all six member countries (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand). Since the mid-1990s, four more countries joined ASEAN: Vietnam, Myanmar, Laos PDR and Cambodia; they are also participating in AFTA. The ASEAN-China FTA is part of a larger China initiative, following the 1997 Asian crisis, to create a pan-Asian free trade area (EAFTA) that would include the ASEAN + 3 (APT) countries (China, Japan and South Korea). The Table 2 represents several main economic indicators of the APT.

Table 2: The main economic indicators of East Asia countries in 2004

Country Population Total

Gross Domestic Product (PPP)

Merchandise Exports

Merchandise Imports

(in thousands) (millions of US Dollars) (millions of US Dollars) (millions of US Dollars)

Brunei 365 6,500 3,439 1,630 Cambodia 13,363 22,760 1,616 2,124 Indonesia 238,452 758,100 63,890 40,220 Lao, PDR 6,068 10,340 332 492 Malaysia 23,522 207,200 98,400 74,400 Myanmar 42,720 78,800 2,434 2,071

6 ASEAN + 3 (APT) includes 10 Asia South East Nations (Brunei, Cambodia, Myanmar, Laos, Singapore, Thailand, Vietnam, Malaysia, Philippines, Indonesia) and South Korea, Japan, China.

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The Philippines 86,241 390,700 34,560 35,970 Singapore 4,353 109,100 142,400 121,600 Thailand 64,865 475,700 75,990 74,214 Viet Nam 81,855 203,900 26,010 31,600

ASEAN 561,804 2,263,100 449,071 384,321

China 1,298,847 6,449,000 438,370 412,840 Japan 127,333 3,567,000 471,934 382,958 South Korea 48,598 855,300 201,300 178,784

Source: World Development Indicators Database of World Bank, 2004. 2.2. Relations between the ASEAN + 3 countries and the EU

An informal dialogue forum working on the basis of consensus between the APT and the EU is ASEM (the Asia – Europe Meeting). ASEM was founded by 25 members out of which ten countries from Asia (seven members of ASEAN and three Northeast Asian nations (namely Brunei, China, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) and fifteen EU Member States, (namely Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom).

About 2.3 billion people live in ASEM countries accounting for 37% of the world population. Their aggregate GDP in 2002 was $14,849 billion equal to 46% of the world GDP. Their combined value of goods trade was $2,718 billion or 43% of the world trade.

There are 3 main areas or three pillars of ASEM cooperation, namely political dialogue, economic-financial cooperation, and cooperation in other fields. Eight years after the establishment of forum, ASEM has undertaken over 250 activities and proposed various initiatives in all these three areas.

On 8-9 October 2004, the ASEM 5 Summit Meeting ended in Hanoi marked a new advance in cooperation progress between the two continents. ASEM 5 was the meeting between 25 members (including Slovakia) of the EU and 13 Asian countries. During eight years since the establishment of the forum, thirteen new members have been admitted at the Fifth Asia-Europe Meeting (ASEM 5) namely Cambodia, Cyprus, the Czech Republic, Slovakia, Estonia, Hungary, Laos PDR, Latvia, Lithuania, Malta, Myanmar, Poland, and Slovenia.

There have been five Summits: ASEM 1 in Bangkok, Thailand in 1996; ASEM 2 in London, United Kingdom, in 1998; ASEM 3 in Seoul, South Korea, in 2000; ASEM 4 in Copenhagen, Denmark, in 2002; ASEM 5 in Hanoi, Vietnam, in 2004 and ASEM 6 will be organized by Finland in September 2006.

3. Bilateral trade 3.1. Merchandise trade between the ASEAN + 3 countries and the EU

Trends of trade globalization and liberalization require that trade relations between EU and APT countries will be evaluated on aspects concerning not only between member countries but also between two large partners, two large economic regions - two free trade areas.

In fact, East Asian countries mainly South Korea, Malaysia, the Philippines, Singapore, and China, have become major suppliers both of components and finished products to the world's high-tech markets and accounted for nearly half of the world’s high-tech exports in 2000. East Asian countries also accounted for two-fifths of the world's exports of textile and clothing7.

7 ALLAN, Z.: Is an Asian trading bloc feasible? London: PricewaterhouseCoopers' China Business Centre, June 2002.

Source: World Development Indicators Database of World Bank, 2004.

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Estonia, Hungary, Laos PDR, Latvia,Lithuania, Malta, Myanmar, Poland, andSlovenia.

There have been five Summits:ASEM 1 in Bangkok, Thailand in 1996;ASEM 2 in London, United Kingdom, in1998; ASEM 3 in Seoul, South Korea,in 2000; ASEM 4 in Copenhagen,Denmark, in 2002; ASEM 5 in Hanoi,Vietnam, in 2004 and ASEM 6 will beorganized by Finland in September2006.

3. BILATERAL TRADE

3.1. Merchandise trade between theASEAN + 3 countries and the EU

Trends of trade globalizationand liberalization require that traderelations between EU and APTcountries will be evaluated on aspectsconcerning not only between membercountries but also between two largepartners, two large economic regions -two free trade areas.

In fact, East Asian countries mainly

South Korea, Malaysia, the Philippines,Singapore, and China, have becomemajor suppliers both of components andfinished products to the world’s high-tech markets and accounted for nearlyhalf of the world’s high-tech exports in2000. East Asian countries alsoaccounted for two-fifths of the world’sexports of textile and clothing7.

With China leading the region’s fasteconomic growth and with politicalcollaboration within the regionintensifying, East Asian cooperation hasmajor economic, political and securityimplications for the world, generatingboth opportunities and challenges forthe EU8.

Europe’s interests in the APT are tobenefit from the economic opportunities,to respond to the economic challengesin the region which contains the world’sfast growing countries; and to integrateinto the opening market-based worldtrading system, some APT countriessuch as China or Vietnam are movingfrom state controls to market-orientedeconomies9.

HO THI THU HOA, HEDA HANSENOVÁ

54

7 ALLAN, Z.: Is an Asian trading bloc feasible? London: PricewaterhouseCoopers’ China Business Centre,June 2002.8 EU - Asia Research Project: Economics and Politics of East Asian Co-operation and China’s Role in theProcess. Belgium: European Institute for Asian studies, 28 January 2005.9 www.bpb.de: Economic growth in Asia, 2003.

Table 3: Merchandise trade between the APT countries and the EU (2001-2004, EUR billion)

7

With China leading the region’s fast economic growth and with political collaboration within the region intensifying, East Asian cooperation has major economic, political and security implications for the world, generating both opportunities and challenges for the EU8.

Europe's interests in the APT are to benefit from the economic opportunities, to respond to the economic challenges in the region which contains the world's fast growing countries; and to integrate into the opening market-based world trading system, some APT countries such as China orVietnam are moving from state controls to market-oriented economies9.

Table 3: Merchandise trade between the APT countries and the EU (2001-2004, EUR billion)

2001 2002 2003 2004

EU imports

EU exports

EU imports

EU exports

EU imports

EU exports

EU imports

EU exports

ASEAN 70.8 43.8 67.7 40.5 65.8 39.2 68.8 42.7

China 81.6 30.5 89.6 34.9 105.4 41.2 126.7 48.1

Japan 80.9 45.5 73.3 43.4 72.1 40.9 73.5 43.1

South Korea 23.1 15.8 24.2 15.6 25.7 16.4 30.1 17.8

Total 256.4 135.6 254.8 134.4 269 137.7 299.1 151.7

Source: EUROSTAT, 2004. The trade statistics from 2001 to 2004 between the APT countries and the EU is shown in

Table 3. In 2004, total value of merchandise trade the APT - EU achieved EUR 450.8 billion, out of which EU trade with China ranked the first with 38.9%, 24.8% with ASEAN, 25.8% with Japan and 10.6% with South Korea, which is clearly presented in Figure 5.

Figure 5: APT trade with the EU in 2004

APT trade with EU in 2004

ASEANChinaJapanSouth Korea

Source: EUROSTAT, 2004. In the comparison of trade volume between the ASEAN and USA, the EU, Japan,

Hongkong, South Korea presented in Table 4, we can recognize that the EU has become the second biggest trade partner of ASEAN. Dynamic development of trade relations - the trade boom between

8 EU - Asia Research Project: Economics and Politics of East Asian Co-operation and China's Role in the Process.Belgium: European Institute for Asian studies, 28 January 2005. 9 www.bpb.de: Economic growth in Asia, 2003.

Source: EUROSTAT, 2004.

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The trade statistics from 2001 to2004 between the APT countries andthe EU is shown in Table 3. In 2004,total value of merchandise trade theAPT - EU achieved EUR 450.8 billion,

out of which EU trade with Chinaranked the first with 38.9%, 24.8% withASEAN, 25.8% with Japan and 10.6%with South Korea, which is clearlypresented in Figure 5.

GLOBALIZATION OF TRADE AND TRANSPORTATION BETWEEN THE ASEAN + 3 COUNTRIES AND THE EUROPEAN UNION

55

Figure 5: APT trade with the EU in 2004

7

With China leading the region’s fast economic growth and with political collaboration within the region intensifying, East Asian cooperation has major economic, political and security implications for the world, generating both opportunities and challenges for the EU8.

Europe's interests in the APT are to benefit from the economic opportunities, to respond to the economic challenges in the region which contains the world's fast growing countries; and to integrate into the opening market-based world trading system, some APT countries such as China orVietnam are moving from state controls to market-oriented economies9.

Table 3: Merchandise trade between the APT countries and the EU (2001-2004, EUR billion)

2001 2002 2003 2004

EU imports

EU exports

EU imports

EU exports

EU imports

EU exports

EU imports

EU exports

ASEAN 70.8 43.8 67.7 40.5 65.8 39.2 68.8 42.7

China 81.6 30.5 89.6 34.9 105.4 41.2 126.7 48.1

Japan 80.9 45.5 73.3 43.4 72.1 40.9 73.5 43.1

South Korea 23.1 15.8 24.2 15.6 25.7 16.4 30.1 17.8

Total 256.4 135.6 254.8 134.4 269 137.7 299.1 151.7

Source: EUROSTAT, 2004. The trade statistics from 2001 to 2004 between the APT countries and the EU is shown in

Table 3. In 2004, total value of merchandise trade the APT - EU achieved EUR 450.8 billion, out of which EU trade with China ranked the first with 38.9%, 24.8% with ASEAN, 25.8% with Japan and 10.6% with South Korea, which is clearly presented in Figure 5.

Figure 5: APT trade with the EU in 2004

APT trade with EU in 2004

ASEANChinaJapanSouth Korea

Source: EUROSTAT, 2004. In the comparison of trade volume between the ASEAN and USA, the EU, Japan,

Hongkong, South Korea presented in Table 4, we can recognize that the EU has become the second biggest trade partner of ASEAN. Dynamic development of trade relations - the trade boom between

8 EU - Asia Research Project: Economics and Politics of East Asian Co-operation and China's Role in the Process.Belgium: European Institute for Asian studies, 28 January 2005. 9 www.bpb.de: Economic growth in Asia, 2003.

Source: EUROSTAT, 2004.

In the comparison of trade volumebetween the ASEAN and USA, the EU,Japan, Hongkong, South Koreapresented in Table 4, we can recognizethat the EU has become the secondbiggest trade partner of ASEAN.Dynamic development of trade relations -

the trade boom between the ASEAN,the APT and the EU will create newbusiness potentials for both regions andthe APT with 13 members and the EUwith 25 countries will co-operate andbenefit more effectively.

Table 4: Breakdown of ASEAN merchandise trade by major partners in 2003 & 2004

8

the ASEAN, the APT and the EU will create new business potentials for both regions and the APT with 13 members and the EU with 25 countries will co-operate and benefit more effectively.

Table 4: Breakdown of ASEAN merchandise trade by major partners in 2003 & 2004

Export by millions Euro (%) Import by millions Euro (%)

2003 2004 2003 2004

USA 66,949

(17.3%)

USA 70,844 (16.2%)

Japan 55,732 (17%)

Japan 65,945 (17.2%)

EU 58,412 (15.1%)

EU 65,924 (15.1%)

USA 44,054 (13.4%)

EU 46,772 (12.2%)

Japan 49,970 (12.9%)

Japan 54,388 (12.4%)

EU 39,118 (11.9%)

USA 44,438 (11.6%)

China 26,878 (6.9%)

China 36,046 (8.2%)

China 30,221 (9.2%)

China 39,947 (10%)

Hong Kong 26,666 (6.9%)

Hong Kong 28,977 (6.6%)

South Korea 17,272 (5.3%)

South Korea 18,811 (4.9%)

Source: IMF Dots and EUROSTAT, 2005. Currently, the APT is one of the most dynamic integrated economic regions, which includes

China and Vietnam – two economies with the highest growth rate of GDP in the world. Almost countries in APT have export – oriented economic policies, especially such as export value ratio to GDP of Vietnam achieved 57.4%, of China reached 34.5%. Therefore, enlarged EU – 25 with new ten potential markets will bring opportunities and advantages for foreign trade activities of the APT countries.

3.2. Merchandise trade between selected countries In recent years, there has been dynamic and significant growth of merchandise trade between

the ASEAN + 3 countries and the EU. Figures 6 & 7 represent statistics of merchandise trade between Slovakia – the ASEAN + 3 countries and Vietnam – EU member countries. Figure 6: Merchandise trade between Slovakia and the APT countries (2001 – 2004, USD thousand)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Value

2001 2002 2003 2004

Years

Import from APTExport to APT

Source: EUSTAT, 2004. Figure 7: Merchandise trade between Vietnam and EU member countries in 2004 (EUR million)

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Currently, the APT is one of themost dynamic integrated economicregions, which includes China andVietnam – two economies with thehighest growth rate of GDP in theworld. Almost countries in APT haveexport – oriented economic policies,especially such as export value ratio toGDP of Vietnam achieved 57.4%, ofChina reached 34.5%. Therefore,enlarged EU – 25 with new tenpotential markets will bring opportunities

and advantages for foreign tradeactivities of the APT countries.

3.2. Merchandise trade betweenselected countries

In recent years, there has beendynamic and significant growth ofmerchandise trade between the ASEAN + 3countries and the EU. Figures 6 & 7represent statistics of merchandisetrade between Slovakia – the ASEAN +3 countries and Vietnam – EU membercountries.

HO THI THU HOA, HEDA HANSENOVÁ

56

8

the ASEAN, the APT and the EU will create new business potentials for both regions and the APT with 13 members and the EU with 25 countries will co-operate and benefit more effectively.

Table 4: Breakdown of ASEAN merchandise trade by major partners in 2003 & 2004

Export by millions Euro (%) Import by millions Euro (%)

2003 2004 2003 2004

USA 66,949

(17.3%)

USA 70,844 (16.2%)

Japan 55,732 (17%)

Japan 65,945 (17.2%)

EU 58,412 (15.1%)

EU 65,924 (15.1%)

USA 44,054 (13.4%)

EU 46,772 (12.2%)

Japan 49,970 (12.9%)

Japan 54,388 (12.4%)

EU 39,118 (11.9%)

USA 44,438 (11.6%)

China 26,878 (6.9%)

China 36,046 (8.2%)

China 30,221 (9.2%)

China 39,947 (10%)

Hong Kong 26,666 (6.9%)

Hong Kong 28,977 (6.6%)

South Korea 17,272 (5.3%)

South Korea 18,811 (4.9%)

Source: IMF Dots and EUROSTAT, 2005. Currently, the APT is one of the most dynamic integrated economic regions, which includes

China and Vietnam – two economies with the highest growth rate of GDP in the world. Almost countries in APT have export – oriented economic policies, especially such as export value ratio to GDP of Vietnam achieved 57.4%, of China reached 34.5%. Therefore, enlarged EU – 25 with new ten potential markets will bring opportunities and advantages for foreign trade activities of the APT countries.

3.2. Merchandise trade between selected countries In recent years, there has been dynamic and significant growth of merchandise trade between

the ASEAN + 3 countries and the EU. Figures 6 & 7 represent statistics of merchandise trade between Slovakia – the ASEAN + 3 countries and Vietnam – EU member countries. Figure 6: Merchandise trade between Slovakia and the APT countries (2001 – 2004, USD thousand)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Value

2001 2002 2003 2004

Years

Import from APTExport to APT

Source: EUSTAT, 2004. Figure 7: Merchandise trade between Vietnam and EU member countries in 2004 (EUR million)

8

the ASEAN, the APT and the EU will create new business potentials for both regions and the APT with 13 members and the EU with 25 countries will co-operate and benefit more effectively.

Table 4: Breakdown of ASEAN merchandise trade by major partners in 2003 & 2004

Export by millions Euro (%) Import by millions Euro (%)

2003 2004 2003 2004

USA 66,949

(17.3%)

USA 70,844 (16.2%)

Japan 55,732 (17%)

Japan 65,945 (17.2%)

EU 58,412 (15.1%)

EU 65,924 (15.1%)

USA 44,054 (13.4%)

EU 46,772 (12.2%)

Japan 49,970 (12.9%)

Japan 54,388 (12.4%)

EU 39,118 (11.9%)

USA 44,438 (11.6%)

China 26,878 (6.9%)

China 36,046 (8.2%)

China 30,221 (9.2%)

China 39,947 (10%)

Hong Kong 26,666 (6.9%)

Hong Kong 28,977 (6.6%)

South Korea 17,272 (5.3%)

South Korea 18,811 (4.9%)

Source: IMF Dots and EUROSTAT, 2005. Currently, the APT is one of the most dynamic integrated economic regions, which includes

China and Vietnam – two economies with the highest growth rate of GDP in the world. Almost countries in APT have export – oriented economic policies, especially such as export value ratio to GDP of Vietnam achieved 57.4%, of China reached 34.5%. Therefore, enlarged EU – 25 with new ten potential markets will bring opportunities and advantages for foreign trade activities of the APT countries.

3.2. Merchandise trade between selected countries In recent years, there has been dynamic and significant growth of merchandise trade between

the ASEAN + 3 countries and the EU. Figures 6 & 7 represent statistics of merchandise trade between Slovakia – the ASEAN + 3 countries and Vietnam – EU member countries. Figure 6: Merchandise trade between Slovakia and the APT countries (2001 – 2004, USD thousand)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Value

2001 2002 2003 2004

Years

Import from APTExport to APT

Source: EUSTAT, 2004. Figure 7: Merchandise trade between Vietnam and EU member countries in 2004 (EUR million)

Source: IMF Dots and EUROSTAT, 2005.

Figure 6: Merchandise trade between Slovakia and the APT countries (2001 – 2004, USD thousand)

8

the ASEAN, the APT and the EU will create new business potentials for both regions and the APT with 13 members and the EU with 25 countries will co-operate and benefit more effectively.

Table 4: Breakdown of ASEAN merchandise trade by major partners in 2003 & 2004

Export by millions Euro (%) Import by millions Euro (%)

2003 2004 2003 2004

USA 66,949

(17.3%)

USA 70,844 (16.2%)

Japan 55,732 (17%)

Japan 65,945 (17.2%)

EU 58,412 (15.1%)

EU 65,924 (15.1%)

USA 44,054 (13.4%)

EU 46,772 (12.2%)

Japan 49,970 (12.9%)

Japan 54,388 (12.4%)

EU 39,118 (11.9%)

USA 44,438 (11.6%)

China 26,878 (6.9%)

China 36,046 (8.2%)

China 30,221 (9.2%)

China 39,947 (10%)

Hong Kong 26,666 (6.9%)

Hong Kong 28,977 (6.6%)

South Korea 17,272 (5.3%)

South Korea 18,811 (4.9%)

Source: IMF Dots and EUROSTAT, 2005. Currently, the APT is one of the most dynamic integrated economic regions, which includes

China and Vietnam – two economies with the highest growth rate of GDP in the world. Almost countries in APT have export – oriented economic policies, especially such as export value ratio to GDP of Vietnam achieved 57.4%, of China reached 34.5%. Therefore, enlarged EU – 25 with new ten potential markets will bring opportunities and advantages for foreign trade activities of the APT countries.

3.2. Merchandise trade between selected countries In recent years, there has been dynamic and significant growth of merchandise trade between

the ASEAN + 3 countries and the EU. Figures 6 & 7 represent statistics of merchandise trade between Slovakia – the ASEAN + 3 countries and Vietnam – EU member countries. Figure 6: Merchandise trade between Slovakia and the APT countries (2001 – 2004, USD thousand)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Value

2001 2002 2003 2004

Years

Import from APTExport to APT

Source: EUSTAT, 2004. Figure 7: Merchandise trade between Vietnam and EU member countries in 2004 (EUR million)

Source: EUSTAT, 2004.

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4. TRADE BOOM AND THE REQUIREMENTS OF EFFICIENTTRANSPORTATION BETWEEN THE ASEAN + 3 COUNTRIES AND THE EU

On transportation routes between EU countries and the APT (ASEAN + 3),demand of transportation is not only in cargoes movements but also in passengertransport and tourism (Figure 8). EU countries are discovering the natural materialresources, business opportunities in new dynamic markets and tropical landscapesas well as culture of Asia as well as APT countries.

Figure 8: Major market share by region of international visitor arrivals toASEAN countries (2004)

GLOBALIZATION OF TRADE AND TRANSPORTATION BETWEEN THE ASEAN + 3 COUNTRIES AND THE EUROPEAN UNION

57

Figure 7: Merchandise trade between Vietnam and EU member countries in2004 (EUR million)

9

0

200

400

600

800

1,000

Val

ue (E

UR m

il.)

Products

EU imports from Vietnam 74 7 3 5 14 4 159 12 750

EU expo rts to Vietnam 176 4 8 4 5 378 33 8 74

Ag ricult .p ro d ucts

Energy Machine Transpo rtEquip .

Chemical Text ils &clo thing

Source: EUSTAT,2004. 4. Trade boom and the requirements of efficient transportation between the ASEAN + 3 countries and the EU

On transportation routes between EU countries and the APT (ASEAN + 3), demand of transportation is not only in cargoes movements but also in passenger transport and tourism (Figure 8). EU countries are discovering the natural material resources, business opportunities in new dynamic markets and tropical landscapes as well as culture of Asia as well as APT countries.

Figure 8: Major market share by region of international visitor arrivals to ASEAN countries (2004)

ASEAN49%

SIA (Excl.ASEAN)

29%

AMERICA5%

EUROPE12%

USTRALIA/PACIFIC

4%

MIDDLE EAST1%

AFRICA0%

Source: www.aseansec.org/tour_stat.

The coming cargoes from APT countries need sustainable transport system with cost-effective and efficient operation. The event of quota elimination in garment imports from China, Vietnam and other countries in ASEAN perfectly contributes in increasing cargo exports from the APT to EU member countries. Liberalization of world trade without quota barriers forecasts necessary demand on transportation and services. According to statistics analyses, the movement of export cargoes from the APT to the EU such as garments, shoes, electronic components, agricultural and aquatic products, furniture and flows of import cargoes of the APT from the EU as industrial equipment, chemical products, finished automotive products absolutely need the efficient solution for transportation of cargo between two areas10.

Currently, on the Europe – Asia trade routes, the transportation from Asia increased by 10 times in comparison with the opposite direction11; therefore, imbalance in merchandise trade (Figure 9) between the EU and the APT will create challenges for transport activities especially maritime transport and operational capacity of ports.

10 Review of Maritime 2004, see chapter 4. 11 Review of Maritime 2004.

Source: EUSTAT,2004.

9

0

200

400

600

800

1,000

Val

ue (E

UR m

il

Products

EU impo rts from Vietnam 74 7 3 5 14 4 159 12 750

EU expo rts to Vietnam 176 4 8 4 5 378 33 8 74

Agricult .p ro d ucts

Energ y Machine Transpo rtEquip .

Chemical Text ils &clo thing

Source: EUSTAT,2004. 4. Trade boom and the requirements of efficient transportation between the ASEAN + 3 countries and the EU

On transportation routes between EU countries and the APT (ASEAN + 3), demand of transportation is not only in cargoes movements but also in passenger transport and tourism (Figure 8). EU countries are discovering the natural material resources, business opportunities in new dynamic markets and tropical landscapes as well as culture of Asia as well as APT countries.

Figure 8: Major market share by region of international visitor arrivals to ASEAN countries (2004)

ASEAN49%

ASIA (Excl.ASEAN)

29%

AMERICA5%

EUROPE12%

AUSTRALIA/PACIFIC

4%

MIDDLE EAST1%

AFRICA0%

Source: www.aseansec.org/tour_stat.

The coming cargoes from APT countries need sustainable transport system with cost-effective and efficient operation. The event of quota elimination in garment imports from China, Vietnam and other countries in ASEAN perfectly contributes in increasing cargo exports from the APT to EU member countries. Liberalization of world trade without quota barriers forecasts necessary demand on transportation and services. According to statistics analyses, the movement of export cargoes from the APT to the EU such as garments, shoes, electronic components, agricultural and aquatic products, furniture and flows of import cargoes of the APT from the EU as industrial equipment, chemical products, finished automotive products absolutely need the efficient solution for transportation of cargo between two areas10.

Currently, on the Europe – Asia trade routes, the transportation from Asia increased by 10 times in comparison with the opposite direction11; therefore, imbalance in merchandise trade (Figure 9) between the EU and the APT will create challenges for transport activities especially maritime transport and operational capacity of ports.

10 Review of Maritime 2004, see chapter 4. 11 Review of Maritime 2004.

Source: www.aseansec.org/tour_stat.

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The coming cargoes from APTcountries need sustainable transportsystem with cost-effective and efficientoperation. The event of quotaelimination in garment imports fromChina, Vietnam and other countries inASEAN perfectly contributes inincreasing cargo exports from the APTto EU member countries. Liberalizationof world trade without quota barriersforecasts necessary demand ontransportation and services. Accordingto statistics analyses, the movement ofexport cargoes from the APT to the EUsuch as garments, shoes, electroniccomponents, agricultural and aquaticproducts, furniture and flows of import

cargoes of the APT from the EU asindustrial equipment, chemical products,finished automotive products absolutelyneed the efficient solution fortransportation of cargo between twoareas10.

Currently, on the Europe – Asiatrade routes, the transportation fromAsia increased by 10 times incomparison with the oppositedirection11; therefore, imbalance inmerchandise trade (Figure 9) betweenthe EU and the APT will createchallenges for transport activitiesespecially maritime transport andoperational capacity of ports.

HO THI THU HOA, HEDA HANSENOVÁ

58

0 Review of Maritime 2004, see chapter 4.11 Review of Maritime 2004.

Figure 9: Merchandise trade of EU - 25 with APT by products in 2004(EURmillion)

10

Figure 9: Merchandise trade of EU - 25 with APT by products in 2004(EUR million)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Val

ue in

Mio

eur

os

Products

EU imp orts fro m APT 10 ,127 2 ,256 13 9 ,6 0 3 3 6 ,224 15,748 23 ,974

EU exp orts to APT 9 ,0 58 70 0 56 ,817 2 0 ,6 54 2 1,79 2 3 ,521

Ag ricult .p ro d ucts

Energy Machine Transpo rtEquip .

Chemical Textils &clo thing

Source: EUROSTAT, 2004While considering statistics of cargo flows along major transport trade routes as follows:

Asia – USA, Asia – Europe and USA – Europe, we can recognize the fact that cargo flows on routes Asia – Europe and Asia – USA have two or three times larger than that on routes USA – Europe (Figure 10).

Figure 10: Cargo flows along major transport trade routes in 2003 & 2004 (millions of TEU)

12.7114.31

10.0711.06

4.094.14

02468

10121416

Mill

ions

of T

EU

Asia <->USA

Asia <->Europe

USA <->Europe

Routes

20032004

Source: Review of Maritime, 2004.

Parallel with economic cooperation, bilateral trade between the APT and the EU have become enormous. The more bilateral trade turnover has achieved the more demand for freight transport has increased. Therefore, the selection of efficient transport modes could play an important role in increasing the region’s trade competitiveness and create the foundation for further growth of foreign trade between these two regions – APT and the EU.

Increasing global trade also means opportunities for transportation are growing. Increasing business relations between two continents Europe and Asia (especially ASEAN plus 3) are obviously creating potential trends for transportation routes, networks and corridors.

5. Possibilities of freight transportation between the ASEAN + 3 countries and the EU The expansion in trade has benefited transport network on transportation routes connecting

between the ASEAN + 3 countries and the EU. The choice of transport corridors and combination of transport modalities will have the significance to intercontinental transportation for trade between the ASEAN + 3 countries - the EU.

Source: EUROSTAT, 2004

While considering statistics of cargoflows along major transport trade routesas follows: Asia – USA, Asia – Europeand USA – Europe, we can recognize

the fact that cargo flows on routes Asia– Europe and Asia – USA have two orthree times larger than that on routesUSA – Europe (Figure 10).

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Parallel with economic cooperation,bilateral trade between the APT and theEU have become enormous. The morebilateral trade turnover has achievedthe more demand for freight transporthas increased. Therefore, the selectionof efficient transport modes could playan important role in increasing theregion’s trade competitiveness andcreate the foundation for further growthof foreign trade between these tworegions – APT and the EU.

Increasing global trade also meansopportunities for transportation aregrowing. Increasing business relationsbetween two continents Europe andAsia (especially ASEAN plus 3) areobviously creating potential trends fortransportation routes, networks andcorridors.

5. POSSIBILITIES OF FREIGHTTRANSPORTATION BETWEEN THEASEAN + 3 COUNTRIES AND THE EU

The expansion in trade has benefitedtransport network on transportationroutes connecting between the ASEAN

+ 3 countries and the EU. The choiceof transport corridors and combination oftransport modalities will have thesignificance to intercontinentaltransportation for trade between theASEAN + 3 countries - the EU.

In 2004, at Kiev it was discussedabout use of rail transit capacities forintermodal freight transport for passagefrom China to Europe via Kazakhstan,Turkmenistan, Iran, Russian Federation,Belarus, the Caucasus States, Ukraineand Turkey.

The Trans-Siberian Railway is oneof the most attractive transport routes inthe world. This railway line running over10,000 kilometres, one of the world’slongest lines, leads from Russia’swestern border to its Pacific ports inEast Siberia. Built in the years 1895-1916, the line runs via Moscow,Ryazan, Samara, Chelabinsk, Omsk,Novosibirsk, Krasnoyarsk, Irkutsk, Chitaand Khabarovsk to Vladivostok. Itsbranch lines lead towards Kazakhstan,Uzbekistan, China and other countries.

Among different routes, the seatransport routes are more effective

GLOBALIZATION OF TRADE AND TRANSPORTATION BETWEEN THE ASEAN + 3 COUNTRIES AND THE EUROPEAN UNION

59

Figure 10: Cargo flows along major transport trade routes in 2003 & 2004(millions of TEU)

10

Figure 9: Merchandise trade of EU - 25 with APT by products in 2004(EUR million)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Val

ue in

Mio

eur

o

Products

EU imp orts fro m APT 10 ,127 2 ,256 139 ,6 03 36 ,224 15,748 23 ,974

EU exp orts to APT 9 ,0 58 70 0 56 ,817 2 0 ,6 54 2 1,79 2 3 ,521

Ag ricult .p ro d ucts

Energy Machine Transpo rtEquip .

Chemical Textils &clo thing

Source: EUROSTAT, 2004While considering statistics of cargo flows along major transport trade routes as follows:

Asia – USA, Asia – Europe and USA – Europe, we can recognize the fact that cargo flows on routes Asia – Europe and Asia – USA have two or three times larger than that on routes USA – Europe (Figure 10).

Figure 10: Cargo flows along major transport trade routes in 2003 & 2004 (millions of TEU)

12.7114.31

10.0711.06

4.094.14

02468

10121416

Mill

ions

of T

EU

Asia <->USA

Asia <->Europe

USA <->Europe

Routes

20032004

Source: Review of Maritime, 2004.

Parallel with economic cooperation, bilateral trade between the APT and the EU have become enormous. The more bilateral trade turnover has achieved the more demand for freight transport has increased. Therefore, the selection of efficient transport modes could play an important role in increasing the region’s trade competitiveness and create the foundation for further growth of foreign trade between these two regions – APT and the EU.

Increasing global trade also means opportunities for transportation are growing. Increasing business relations between two continents Europe and Asia (especially ASEAN plus 3) are obviously creating potential trends for transportation routes, networks and corridors.

5. Possibilities of freight transportation between the ASEAN + 3 countries and the EU The expansion in trade has benefited transport network on transportation routes connecting

between the ASEAN + 3 countries and the EU. The choice of transport corridors and combination of transport modalities will have the significance to intercontinental transportation for trade between the ASEAN + 3 countries - the EU.

Source: Review of Maritime, 2004.

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because they are very well established,accounting for two-thirds of allinternational movements12. There are alot of transport corridors Asia – Europewhere concentrate on shipping by sea.

From 2000, Russia, Iran and Indiasigned an agreement in St. Petersburglaying out a vision for a North-SouthTransport Corridor. The corridorstretches from ports in India across theArabian Sea to the southern Iranianport of Bandar Abbas, where goodsthen transit Iran and the Caspian Seato ports in Russia’s sector of theCaspian. From there, the routestretches along the Volga River viaMoscow to northern Europe. On the 13- 15th May 2004 Turkey, Russia andCentral Asia Transport, Maritime andRailway Ministers met at regionalCaspian Transport Summit in Istanbul.Ministers discussed a variety ofintermodal transportation and logisticsissues including the goods flows,capacity and direction of transportationof energy sources from the Caspianregion to Europe via the Black Sea aswell as the potential of maritimetransport between Central Europe andBlack Sea region via the Danube.

The world economy is provingrecord price of fuel (increasing pricefrom USD 40 until USD 71 per oilbarrel). The fluctuation of fuel price hasseriously impacted on transportationmarket and price of goods13. Therequirements of environmentpreservation and greenhouse gas

emissions have influenced on thepattern of choice modes of cargotransport14.

While road or rail transport hasflexible advantages in short – distanceroutes, maritime transport is maintransport mode which takes part in long– distance routes as well as satisfiesshipping of mass cargo quantity.Therefore, maritime transport hasbecome the major transport mode forcargo movement on routes the EU -ASEAN + 3 and has to be a linkconnecting to another transport mode toestablish integrated door-to-doorintermodal transport chain. Whentransport network is planned connectingmaritime transport and inland waterwaybetween Asia and the EU, it willcontribute in development of maritimeand river trade of EU member countries(i.e Slovakia).

Until now, over 70% of EU externaltrade and 43% of its internal trade aretransported by sea; each year 3 billiontonnes of freight are loaded andunloaded in EU ports15. Maritimecompanies belong to European Unionnationals control one third of the worldfleet, and some 40% of EU trade iscarried on vessels controlled by EUowners.

One of the most significant maritimetransport routes between the ASEAN + 3countries and the EU can be describedas follows:

The shipments from the APT -> Straitof Malacca via Port of Singapore ( the

HO THI THU HOA, HEDA HANSENOVÁ

60

12 Coyle, J.J. et al.: The Management of Business Logistics. USA: South Western Thomson, p.163.13 Adapted from ADEME-Agence française de l’environnement et de la maîtrise de l’énergie. (FrenchEnvironment and Energy Management Agency): In terms of energy efficiency and the weight of goods whichcan be moved one kilometre by one litre of fuel, the figure for road haulage is 50 tones, for rail haulage 97tones and for inland waterways 127 tones.14 A recent study by Grimaldi for the European Climate Change Programme, Working Group Transport,Topic Group 3, entitled “Reducing CO2 emissions in Europe through a door-to-door service based onshort-sea shipping” demonstrated that on any given link the intermodal option based on short-seashipping produced 2.5 times less pollution, in the form of CO2 emissions, than the road option.15 EC: Maritime policy – European Union legislation and objectives for sea transport. Luxemburg: 2002.

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second largest sea port in the world) ->Indian Ocean -> Red Sea via Suez canal-> Mediterranean Sea -> Black Sea -> seaports of Europe -> inland waterway intraEurope via Danube river.

The Strait of Malacca (Figure 11),linking the Indian Ocean and PacificOcean, has important role on shippingroutes between Asia - Europe. Morethan 50,000 vessels per year transitthrough the Strait of Malacca. Thisstrait also has more comparativeadvantages in capacity ability of vesselsthan Suez or Panama canals.

The Danube River, the secondlongest river in Europe16, has alwaysbeen an important route betweenWestern Europe and the Black Sea.

One reason for this is the fact that itis the only major European river to flowwest to east. The source of the riveris located in the Black Forest area ofGermany, from there it flows about1,770 miles (2,850 km) to the east.

There are many important cities thatthe Danube River flows through,including Passau, Vienna, Budapest,Bratislava, Belgrade. With the aid ofcanals, the Danube River is connectedto the Main, Oder, and Rhine rivers inGermany. This waterway connects theNorth with Black Seas and via NorthGermany canal and with Baltic Sea. Forcommercial transportation, the DanubeRiver is extremely valuable transportroad.

GLOBALIZATION OF TRADE AND TRANSPORTATION BETWEEN THE ASEAN + 3 COUNTRIES AND THE EUROPEAN UNION

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16 Along its way, the Danube flows through countries (Germany, Austria, Slovakia, Hungary, Croatia,Serbia and Montenegro, Bulgaria, Romania, Ukraine).

Figure 11: The Strait of Malacca

12

The shipments from the APT -> Strait of Malacca via Port of Singapore ( the second largest sea port in the world) ->Indian Ocean -> Red Sea via Suez canal -> Mediterranean Sea -> Black Sea -> sea ports of Europe -> inland waterway intra Europe via Danube river.

The Strait of Malacca (Figure 11), linking the Indian Ocean and Pacific Ocean, has important role on shipping routes between Asia - Europe. More than 50,000 vessels per year transit through the Strait of Malacca. This strait also has more comparative advantages in capacity ability of vessels than Suez or Panama canals.

The Danube River, the second longest river in Europe16, has always been an important route between Western Europe and the Black Sea. One reason for this is the fact that it is the only major European river to flow west to east. The source of the river is located in the Black Forest area of Germany, from there it flows about 1,770 miles (2,850 km) to the east.

There are many important cities that the Danube River flows through, including Passau, Vienna, Budapest, Bratislava, Belgrade. With the aid of canals, the Danube River is connected to the Main, Oder, and Rhine rivers in Germany. This waterway connects the North with Black Seas and via North Germany canal and with Baltic Sea. For commercial transportation, the Danube River is extremely valuable transport road.

Figure 11: The Strait of Malacca

0 200 400 600 800100Miles

The Strait of Malacca

IndonesiaIndonesia

Malaysia

Malay

sia

Thailand

Indian Ocean

Strait of Malacca

Gulf of ThailandIndian Ocean

Pacific Ocean

Singapore

Strait of Sunda

South China Sea

Source: www.hofstra.edu. Transport network between the ASEAN + 3 countries and EU member countries will

establish more effective transportation routes for cargoes from the APT to EU west countries through means of sea transport between Pacific and Indian Ocean as well as inland waterway en route intra EU via Danube river. This network will also contribute to development of maritime and river trade of EU countries such as Slovakia. Figure 12 represents one specific example of shipping routes between Asia and Europe operated by one of the biggest shipping lines companies worldwide - OOCL (Orient Overseas Container Line).

Figure 12: An example of shipping routes between Asia and Europe

16 Along its way, the Danube flows through countries (Germany, Austria, Slovakia, Hungary, Croatia, Serbia and Montenegro, Bulgaria, Romania, Ukraine).

Source: www.hofstra.edu.

Transport network between theASEAN + 3 countries and EU membercountries will establish more effectivetransportation routes for cargoes fromthe APT to EU west countries throughmeans of sea transport between Pacificand Indian Ocean as well as inlandwaterway en route intra EU via Danube

river. This network will also contribute todevelopment of maritime and river tradeof EU countries such as Slovakia. Figure12 represents one specific example ofshipping routes between Asia andEurope operated by one of the biggestshipping lines companies worldwide -OOCL (Orient Overseas Container Line).

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Currently, the EU has launched theintegration of transport routes in Trans-European Network (TEN) program. Thedevelopment of alternative transportcorridors including the North-Southcorridor from Russia and North EasternEurope to Iran has created corridorslinking to transport networks of thirdcountries, i.e. Asia. The architecture oftranscontinent and intercontinental

transport networks connecting Europeand Asia has been also discussed byinter-regional parties involved in theprojects including the EuropeanCommission, European Commission forEnergy and Transport (Trans-EuropeanNetworks), International RoadFederation, International Union ofRailways, United Nations and theOrganisation for Railway Co-operation.

V

62

Figure 12: An example of shipping routes between Asia and Europe

13

Source: www.oocl.com Currently, the EU has launched the integration of transport routes in Trans-European

Network (TEN) program. The development of alternative transport corridors including the North-South corridor from Russia and North Eastern Europe to Iran has created corridors linking to transport networks of third countries, i.e. Asia. The architecture of transcontinent and intercontinental transport networks connecting Europe and Asia has been also discussed by inter-regional parties involved in the projects including the European Commission, European Commission for Energy and Transport (Trans-European Networks), International Road Federation, International Union of Railways, United Nations and the Organisation for Railway Co-operation.

6. Opportunities and challenges for globalization of trade and transportation between the ASEAN + 3 and the EU 6.1. In trade

The growing trade boom between the APT and the EU presents prospects of trade relations between these two regions. However, there are some issues which should be discussed. The imbalance in bilateral trade may create obstacles to market stability. Annually, the APT has a surplus in trade with the EU more than EUR 120 billion (Figure 13) while the value of APT imports from the EU is approximately EUR 130 billion. The surplus trade of APT mainly focuses on products such as telecom and transport equipment, textiles and clothing, and agricultural products, while in 2004 the value of telecom and transport equipment was EUR 77 billion and that of textiles and clothing EUR 19 billion.

Figure 13

EU - APT trade balance (2001 - 2004)

135.6 134.4 137.7 151.7

254.8 269 299.1

-120.8 -120.4 -131.3 -147.4

256.4

-200

-100

0

100

200

300

400

2001 2002 2003 2004

Year

Val

ue (E

UR

bill

ions

EU exports EU imports Balance

Source: EUROSTAT, 2004. The high rate of imbalance will have negative impacts on domestic production of the EU

and will result in barriers in regulation and agreement for the APT. What are the barriers? EU policy-makers have to take measures to protect domestic products against the competition of

Source: www.oocl.com

6. OPPORTUNITIES AND CHALLENGES FOR GLOBALIZATION OF TRADE ANDTRANSPORTATION BETWEEN THE ASEAN + 3 AND THE EU

6.1. In tradeThe growing trade boom between

the APT and the EU presentsprospects of trade relations betweenthese two regions. However, thereare some issues which should bediscussed. The imbalance in bilateraltrade may create obstacles to marketstability. Annually, the APT has asurplus in trade with the EU morethan EUR 120 billion (Figure 13)

while the value of APT imports fromthe EU is approximately EUR 130billion. The surplus trade of APTmainly focuses on products such astelecom and transport equipment,textiles and clothing, and agriculturalproducts, while in 2004 the value oftelecom and transport equipment wasEUR 77 billion and that of textilesand clothing EUR 19 billion.

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The high rate of imbalance will havenegative impacts on domesticproduction of the EU and will result inbarriers in regulation and agreement forthe APT. What are the barriers? EUpolicy-makers have to take measures toprotect domestic products against thecompetition of product flows from APTby regulations such as anti-dumping,quotas, standards of quality, etc. Onthe other hand, APT exporters will faceobstacles from EU market, and theymay lose their opportunities in thispotential market. One example of thissituation is that of Vietnam’s exportersof fluorescent lamp products. With afast-growing export of Vietnamesefluorescent lamp products to the EU,the European Commission decided toinvestigate; finally new anti-dumpingtariff 66.1% has been applied to theseproducts.

After January 1st, 2005 when all theimport quotas on textiles products wereeliminated among WTO members,increasing textiles and clothing productsfrom APT (especially China) have had

negative influences on textile industry ofEU members. The problem appearswhether the EU can issue newmeasures against textiles products frommajor exporters of APT or not. Ifmeasures such as anti-dumping orquotas are applied again, they will haveunexpected impacts on trade relationsof two these FTAs. The best solution isthat APT and EU promote their priorityproducts. The EU could utilize itsstrengths in chemicals, iron and steelproducts, for which demand in APT isincreasing, and APT could use theiradvantages of labour, raw materials intextiles, agricultural, and furnitureproducts. It also is a trend ofglobalization and trade liberalization.While the APT is one of the EU´slargest trade partners, China becomesthe EU´s biggest trade partner in APTwith bilateral trade value of EUR 174billion (in 2004) and has the largestsurplus value of trade in APT with theEU - EUR 78.6 billion in 2004(Table 5).

GLOBALIZATION OF TRADE AND TRANSPORTATION BETWEEN THE ASEAN + 3 COUNTRIES AND THE EUROPEAN UNION

63

Figure 13

13

Source: www.oocl.com Currently, the EU has launched the integration of transport routes in Trans-European

Network (TEN) program. The development of alternative transport corridors including the North-South corridor from Russia and North Eastern Europe to Iran has created corridors linking to transport networks of third countries, i.e. Asia. The architecture of transcontinent and intercontinental transport networks connecting Europe and Asia has been also discussed by inter-regional parties involved in the projects including the European Commission, European Commission for Energy and Transport (Trans-European Networks), International Road Federation, International Union of Railways, United Nations and the Organisation for Railway Co-operation.

6. Opportunities and challenges for globalization of trade and transportation between the ASEAN + 3 and the EU 6.1. In trade

The growing trade boom between the APT and the EU presents prospects of trade relations between these two regions. However, there are some issues which should be discussed. The imbalance in bilateral trade may create obstacles to market stability. Annually, the APT has a surplus in trade with the EU more than EUR 120 billion (Figure 13) while the value of APT imports from the EU is approximately EUR 130 billion. The surplus trade of APT mainly focuses on products such as telecom and transport equipment, textiles and clothing, and agricultural products, while in 2004 the value of telecom and transport equipment was EUR 77 billion and that of textiles and clothing EUR 19 billion.

Figure 13

EU - APT trade balance (2001 - 2004)

135.6 134.4 137.7 151.7

254.8 269 299.1

-120.8 -120.4 -131.3 -147.4

256.4

-200

-100

0

100

200

300

400

2001 2002 2003 2004

Year

Val

ue (E

UR

bill

ions

)

EU exports EU imports Balance

Source: EUROSTAT, 2004. The high rate of imbalance will have negative impacts on domestic production of the EU

and will result in barriers in regulation and agreement for the APT. What are the barriers? EU policy-makers have to take measures to protect domestic products against the competition of

Source: EUROSTAT, 2004.

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The trade balance between the EUand China is very high in specific fields(Table 6). The biggest textile exporterto the EU is China. So China appearsnot only as the EU´s important tradepartner but also as the EU´s tradeproblem. Textiles and clothing trade isat the core of very important issues thataffect the international economicenvironment, such as development,conditions for fair trade, opening upaccess to markets, sustainability of

development, social conditions andlabour relations, as well as regionaldevelopment matters. As a result, onthe one hand, the EU eliminates textilequotas for China because of WTOnegotiations under the DohaDevelopment Agenda – offers anoccasion to foster more equitabletrading conditions all over the world. Onthe other hand, the EU must solvedifficulties in textile industry such aslabour, market competition, etc.

HO THI THU HOA, HEDA HANSENOVÁ

64

Table 5: EU – China trade balance (2001 – 2004) (EUR billions)

14

product flows from APT by regulations such as anti-dumping, quotas, standards of quality, etc. On the other hand, APT exporters will face obstacles from EU market, and they may lose their opportunities in this potential market. One example of this situation is that of Vietnam’s exporters of fluorescent lamp products. With a fast-growing export of Vietnamese fluorescent lamp products to the EU, the European Commission decided to investigate; finally new anti-dumping tariff 66.1% has been applied to these products.

After January 1st, 2005 when all the import quotas on textiles products were eliminated among WTO members, increasing textiles and clothing products from APT (especially China) have had negative influences on textile industry of EU members. The problem appears whether the EU can issue new measures against textiles products from major exporters of APT or not. If measures such as anti-dumping or quotas are applied again, they will have unexpected impacts on trade relations of two these FTAs. The best solution is that APT and EU promote their priority products.The EU could utilize its strengths in chemicals, iron and steel products, for which demand in APT is increasing, and APT could use their advantages of labour, raw materials in textiles, agricultural, and furniture products. It also is a trend of globalization and trade liberalization. While the APT is one of the EU´s largest trade partners, China becomes the EU´s biggest trade partner in APT with bilateral trade value of EUR 174 billion (in 2004) and has the largest surplus value of trade in APT with the EU - EUR 78.6 billion in 2004 (Table 5).

Table 5: EU – China trade balance (2001 – 2004) (EUR billions)

2001 2002 2003 2004 EU exports 30.5 34.9 41.2 48.1 EU imports 81.6 89.6 105.4 126.7 Balance -51.1 -54.7 -64.2 -78.6

Source: EUROSTAT, 2004. The trade balance between the EU and China is very high in specific fields (Table 6). The

biggest textile exporter to the EU is China. So China appears not only as the EU´s important trade partner but also as the EU´s trade problem. Textiles and clothing trade is at the core of very important issues that affect the international economic environment, such as development, conditions for fair trade, opening up access to markets, sustainability of development, social conditions and labour relations, as well as regional development matters. As a result, on the one hand, the EU eliminates textile quotas for China because of WTO negotiations under the Doha Development Agenda – offers an occasion to foster more equitable trading conditions all over the world. On the other hand, the EU must solve difficulties in textile industry such as labour, market competition, etc.

Table 6: Some major trade statistics between the EU and China in the year 2004 (EUR million)

Major Product Groups

EU imports

Share of total EU imports (%)

EU exports

Share of total EU exports (%) Balance

ricultural products 2,803 3.54 1,216 2.08 - 1,587 Ener 1,173 0.65 104 0.37 - 1,069 Machiner 58,073 22.98 22,978 8.32 - 35,095 Transport equipment 2,613 2.67 6,933 4.40 4,320

utomotive products 477 1.14 3,630 3.59 3,153 Chemicals 3,921 4.55 4,350 2.87 429 Textiles and clothing 15,996 22.99 514 1.51 - 15,482

Source: EUROSTAT, 2004.

Source: EUROSTAT, 2004.

Table 6: Some major trade statistics between the EU and China in the year2004 (EUR million)

14

product flows from APT by regulations such as anti-dumping, quotas, standards of quality, etc. On the other hand, APT exporters will face obstacles from EU market, and they may lose their opportunities in this potential market. One example of this situation is that of Vietnam’s exporters of fluorescent lamp products. With a fast-growing export of Vietnamese fluorescent lamp products to the EU, the European Commission decided to investigate; finally new anti-dumping tariff 66.1% has been applied to these products.

After January 1st, 2005 when all the import quotas on textiles products were eliminated among WTO members, increasing textiles and clothing products from APT (especially China) have had negative influences on textile industry of EU members. The problem appears whether the EU can issue new measures against textiles products from major exporters of APT or not. If measures such as anti-dumping or quotas are applied again, they will have unexpected impacts on trade relations of two these FTAs. The best solution is that APT and EU promote their priority products.The EU could utilize its strengths in chemicals, iron and steel products, for which demand in APT is increasing, and APT could use their advantages of labour, raw materials in textiles, agricultural, and furniture products. It also is a trend of globalization and trade liberalization. While the APT is one of the EU´s largest trade partners, China becomes the EU´s biggest trade partner in APT with bilateral trade value of EUR 174 billion (in 2004) and has the largest surplus value of trade in APT with the EU - EUR 78.6 billion in 2004 (Table 5).

Table 5: EU – China trade balance (2001 – 2004) (EUR billions)

2001 2002 2003 2004 EU exports 30.5 34.9 41.2 48.1 EU imports 81.6 89.6 105.4 126.7 Balance -51.1 -54.7 -64.2 -78.6

Source: EUROSTAT, 2004. The trade balance between the EU and China is very high in specific fields (Table 6). The

biggest textile exporter to the EU is China. So China appears not only as the EU´s important trade partner but also as the EU´s trade problem. Textiles and clothing trade is at the core of very important issues that affect the international economic environment, such as development, conditions for fair trade, opening up access to markets, sustainability of development, social conditions and labour relations, as well as regional development matters. As a result, on the one hand, the EU eliminates textile quotas for China because of WTO negotiations under the Doha Development Agenda – offers an occasion to foster more equitable trading conditions all over the world. On the other hand, the EU must solve difficulties in textile industry such as labour, market competition, etc.

Table 6: Some major trade statistics between the EU and China in the year 2004 (EUR million)

Major Product Groups

EU imports

Share of total EU imports (%)

EU exports

Share of total EU exports (%) Balance

Agricultural products 2,803 3.54 1,216 2.08 - 1,587 Energy 1,173 0.65 104 0.37 - 1,069 Machinery 58,073 22.98 22,978 8.32 - 35,095 Transport equipment 2,613 2.67 6,933 4.40 4,320 Automotive products 477 1.14 3,630 3.59 3,153 Chemicals 3,921 4.55 4,350 2.87 429 Textiles and clothing 15,996 22.99 514 1.51 - 15,482

Source: EUROSTAT, 2004. Source: EUROSTAT, 2004.

It is clear that trade relationsbetween APT-EAFTA and the EU haveto overcome challenges of regulations,structure of products and tradeimbalance. Nevertheless, the traderelations between APT - the world’smost dynamic economic region – and

the EU – one of the largest world’seconomic centres - promise definiteprospects and create economic force forboth regions. In the trend of tradeglobalisation, the economic co-operationof two of these FTAs will open a largersingle market, a simplified and enhanced

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access to the Member States’ markets,trade liberalisation and equitablecompetition, stronger position of eachmember and power balance comparedwith other FTAs all over the world.

In February 2006, the announcementof European Commission aboutprogressive antidumping duty for importleather shoes from China and Vietnamhas immediately received criticalrespond from shoes makers, exportersand government of both countries. Thetariff have started at 4% in April 2006and will increase to the highest levelsto 19.4% antidumping duties onChinese shoes and 16.8% onVietnamese footwear over six months;children’s shoes and high-tech sportsshoes are exempted.

EU investigation of dumping pointedout that during period 2001 – 2005,increase in Chinese leather shoeexports to EU 2001-2005 is +1000%;increase in Vietnamese leather shoe2001-2005 is +95%; fall in average unitprice for Chinese/Vietnamese leathershoes 2001-2005: China -32%; Vietnam-20%; average -28%. EC argued thatEU has conformed to principles in theDoha Round of WTO negotiations,however, the Chinese and Vietnamesefootwear industries are now massive,highly competitive industries with globalreach and moreover, they are entirelycapable of retaining their extraordinarycompetitiveness without exporting atdumped prices. EU production ofleather footwear has fallen by 30%since 2001, accompanied by a steadyfall in import prices and a tripling inimports for leather shoes from Chinaand Vietnam over the same period.Before 2001 European leather footwearproduction was falling at about 13% ayear. Profit margins in the Europeanfootwear industry since 2001 havefluctuated between 0-2%, and thisfigure represents the successfulcompanies: more than 40000 jobs have

been lost in the EU footwear sectorsince 2001 and more than 1000footwear companies have closed.

The antidumping has faced toobjection not only from China andVietnam but also from EU members.While Italy is leading European shoemanufactures in seeking greaterprotection, Denmark and Sweden haveexpressed concern. Sweden’s Ministerfor Industry and Trade Thomas Ostrossaid that “The problem is that it directlyaffects EU consumers through higherprices.” (i.e. if the burden of the duty isequally shared by all intermediaries inthe supply chain, the cost of a pair of35 euro shoes would rise by less thana Euro).

Of course, China and Vietnam havecritically objected to EU decision. Aspokesman of the Vietnamese Ministryof Commerce declared that the decisiontaken by the European Union regardingantidumping duties on footwear exportsfrom that Asian country will acceleratea crisis in the local leather footwearsector. The spokesman also said thatVietnam had never dumped leatherfootwear on to the EU market. TheMinistry of Commerce also informedthat Vietnam exported leather footwearworth US$582 million in the first twomonths of 2006, which means thatexports rose by 31% compared to thesame period last year. Leather footwearconstituted around 11% of total exportsfor the period. “Vietnamese leathershoe manufacturers are functioningaccording to the rules of the marketeconomy and they are enjoying freeand fair competition,” said ForeignMinistry spokesman Le Dung in Hanoi,and “The Vietnamese government doesnot intervene and does not subsidizebusiness activities of enterprises”.

Negative consequences have alsooccurred at the same time toVietnamese and Chinese workers inshoes industry. Some of them have lost

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their jobs and become unemployment(estimated 8,000 workers in Vietnam)and other workers have reduced salary.

The EC and Vietnam – China willhave the best solution for this situation,however, workers from these countriesand EU consumers are the first injuryobjects. They must themselves pay forimpacts of antidumping. And we wonderthat whether are the result of thisdecision better or not?

6.2. In transportationThe EU-25 from May 2004 expands

the single market’s reach, but the EUis still struggling with the problems ofoverstretched infrastructure. Transportinfrastructure could undermine gainsfrom EU expansion. Signs of thedeveloping crisis can be seen inEuropean ports struggling to cope witha surge in traffic driven by a boom intwo-way trade with China. Ship ownersare growing nervous about ability ofEuropean ports to handle double-digittraffic growth that will be boosted bythe new generation of 8,000 TEU ships.

EU manager of OOCL (Mr. TedWang, Orient Overseas ContainerLines) complained that Hamburg wasunable to fulfill for its big new ships. Headded that Le Harve is “not a majorcontainer port“ as it prepares to operatea dozen 8,000 TEU-ships in Europe by2007, OOCL are considering all options,including investment in its owndedicated terminals.

One of problems concerned EUtransport infrastructure: the overloadedcapacity of the large seaports such asRotterdam, Antwerp, Hamburg, LeHavre, Southampton, etc. Currently, thebiggest container ship in the worldbelongs to over 8,000 TEU vessels(forecasted in 2010 the biggestcontainer ship will be 12,000 TEU ship).However, the capacity of seaports inEurope can not meet this kind ofvessel. Besides, there are someproblems such as congestion in road

transport, interest of road transport ofcargo owner, pollution, etc. So thesolution for EU transport is to combineeffectively all modes of transport andusing the potential capacity of newmember countries; i.e. Slovakia withwaterway transport on Danube River,candidate countries such as Bulgaria,Romania with seaports near Black Sea.Which innovations should Europeperform to respond to new trends intransportation business? Where is theposition of Europe, Asia in the map ofinternational transportation business?

7. INFLUENCES OF EUSOUTHEASTWARDS EXPANSION ONASEAN + 3 TRADE AND TRANSPORTNETWORK

How are the influences on ASEAN + 3(APT) trade and transport network ofEuropean Union (EU) enlargementtowards southeast in the future? Whetherthis enlargement will promote newopportunities of ASEAN + 3 foreign tradeactivities and establish effective transportnetwork linking trade routes between twocontinents Asia and Europe.

7.1. Influence on trade opportunityGrowing trade boom between

ASEAN + 3 and the EU presentsperspectives of trade relations of tworegions. EU has become one of thelargest and the most important partnerof APT countries APT with 13 membersand EU with 25 countries will share co-operation and benefit more effective.

After enlargement in May-2004, EUwill continue its expansion towardsEurope southeast nations (Bulgaria,Romania, Croatia and Turkey). So whatissues will effect on APT businessopportunities in EU market?

The APT is one of the most dynamicintegrated economic regions whichinclude China and Vietnam – twoeconomies with the highest growth rateof GDP in the world (Table 7).

HO THI THU HOA, HEDA HANSENOVÁ

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Almost countries in APT haveexport – oriented economic policies,especially such as export value ratio toGDP of Vietnam achieved 57.4%, ofChina reached 34.5%. Therefore,enlargement to Europe southeast exportmarket will benefit foreign tradeactivities of APT. Recent statistics ofmerchandise trade (Figure 14) betweenASEAN-8 countries (Vietnam, Thailand,Indonesia, China, Japan, Korea,Singapore and Malaysia) and Bulgaria,Croatia, Romania and Turkey have

implied business opportunities in thesepotential markets. Export values of APTto these markets are graduallyincreasing year by year. Totalpopulation of EU 25 members isapproximately 453 millions and importvalues from ASEAN + 3 are 299 EURbillion (in 2004), however, 4 candidatecountries in southeast Europe havearound 106 million inhabitants ( 23% EUpopulation, Figure 15) but import valuesfrom APT are only more EUR 7 billion(2.3 % EU import from ASEAN + 3).

GLOBALIZATION OF TRADE AND TRANSPORTATION BETWEEN THE ASEAN + 3 COUNTRIES AND THE EUROPEAN UNION

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Table 7: Several economic indexes of ASEAN + 3

16

6.2. In transportation The EU-25 from May 2004 expands the single market’s reach, but the EU is still struggling

with the problems of overstretched infrastructure. Transport infrastructure could undermine gains from EU expansion. Signs of the developing crisis can be seen in European ports struggling to cope with a surge in traffic driven by a boom in two-way trade with China. Ship owners are growing nervous about ability of European ports to handle double-digit traffic growth that will be boosted by the new generation of 8,000 TEU ships.

EU manager of OOCL (Mr. Ted Wang, Orient Overseas Container Lines) complained that Hamburg was unable to fulfill for its big new ships. He added that Le Harve is„not a major container port“as it prepares to operate a dozen 8,000 TEU-ships in Europe by 2007, OOCL are considering all options, including investment in its own dedicated terminals.

One of problems concerned EU transport infrastructure: the overloaded capacity of the large seaports such as Rotterdam, Antwerp, Hamburg, Le Havre, Southampton, etc. Currently, the biggest container ship in the world belongs to over 8,000 TEU vessels (forecasted in 2010 the biggest container ship will be 12,000 TEU ship). However, the capacity of seaports in Europe can not meet this kind of vessel. Besides, there are some problems such as congestion in road transport, interest of road transport of cargo owner, pollution, etc. So the solution for EU transport is to combine effectively all modes of transport and using the potential capacity of new member countries; i.e. Slovakia with waterway transport on Danube River, candidate countries such as Bulgaria, Romania with seaports near Black Sea. Which innovations should Europe perform to respond to new trends in transportation business? Where is the position of Europe, Asia in the map of international transportation business?

7. Influences of EU Southeastwards expansion on ASEAN + 3 trade and transport network How are the influences on ASEAN + 3 (APT) trade and transport network of European

Union (EU) enlargement towards southeast in the future? Whether this enlargement will promote new opportunities of ASEAN + 3 foreign trade activities and establish effective transport network linking trade routes between two continents Asia and Europe.

7.1. Influence on trade opportunity Growing trade boom between ASEAN + 3 and the EU presents perspectives of trade

relations of two regions. EU has become one of the largest and the most important partner of APT countries APT with 13 members and EU with 25 countries will share co-operation and benefit more effective.

After enlargement in May-2004, EU will continue its expansion towards Europe southeast nations (Bulgaria, Romania, Croatia and Turkey). So what issues will effect on APT business opportunities in EU market?

The APT is one of the most dynamic integrated economic regions which include China and Vietnam – two economies with the highest growth rate of GDP in the world (Table 7).

Table 7: Several economic indexes of ASEAN + 3

% growth rate GDP Exports to GDP ratio (%) Regions

2003 2004 2003 2004

ASEAN 5.3 5.6 64.5 68.3

Japan 2.5 2.6 10.3 11.2

Korea 3.1 4.6 30.9 34.5

17

China 9.3 9.5 30.4 36.5

Vietnam 7.3 7.8 55.3 57.4

Source: EUROSTAT, 2003 & 2004. Almost countries in APT have export – oriented economic policies, especially such as export

value ratio to GDP of Vietnam achieved 57.4%, of China reached 34.5%. Therefore, enlargement to Europe southeast export market will benefit foreign trade activities of APT. Recent statistics of merchandise trade (Figure 14) between ASEAN-8 countries (Vietnam, Thailand, Indonesia, China, Japan, Korea, Singapore and Malaysia) and Bulgaria, Croatia, Romania and Turkey have implied business opportunities in these potential markets. Export values of APT to these markets are gradually increasing year by year. Total population of EU 25 members is approximately 453 millions and import values from ASEAN + 3 are 299 EUR billion (in 2004), however, 4 candidate countries in southeast Europe have around 106 million inhabitants ( 23% EU population, Figure 15) but import values from APT are only more EUR 7 billion (2.3 % EU import from ASEAN + 3).

Figure 14: Export value of ASEAN – 8 to 4-country group (USD million)

0.00

2,000.00

4,000.00

6,000.00

8,000.00

Countries

Val

ues i

n M

io U

S

200120022003

2001 282.00 196.00 452.00 2,881.00

2002 249.00 200.00 609.00 3,559.00

2003 386.00 270.00 853.00 5,815.00

Bulgaria Croatia Romania Turkey

Source: Direction of trade statistics Yearbook, IMF 2004. When these candidates become EU official member states, the adoption of EU regulations

on trade with APT will exactly promote and increase trade value between two regions. Export –based developing economies in APT can approach potential markets of export and import in thesecountries, while industrial economies such as Japan, South Korea will have investment opportunities in new markets, i.e. South Korea investment on automotive industry at Slovakia.

Figure 15: Population (Romania, Bulgaria, Croatia, Turkey) 1993 – 2004

90.0092.0094.0096.0098.00

100.00102.00104.00106.00108.00

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Year

Person

s

Source: International financial statistics, IMF 2005. 7.2. Influence in transport network between the APT and the EU

There are some changes or issues can appear after EU enlargement towards southeast in the field of transport network between two these continents.

Source: EUROSTAT, 2003 & 2004.

Figure 14: Export value of ASEAN – 8 to 4-country group (USD million)

17

China 9.3 9.5 30.4 36.5

Vietnam 7.3 7.8 55.3 57.4

Source: EUROSTAT, 2003 & 2004. Almost countries in APT have export – oriented economic policies, especially such as export

value ratio to GDP of Vietnam achieved 57.4%, of China reached 34.5%. Therefore, enlargement to Europe southeast export market will benefit foreign trade activities of APT. Recent statistics of merchandise trade (Figure 14) between ASEAN-8 countries (Vietnam, Thailand, Indonesia, China, Japan, Korea, Singapore and Malaysia) and Bulgaria, Croatia, Romania and Turkey have implied business opportunities in these potential markets. Export values of APT to these markets are gradually increasing year by year. Total population of EU 25 members is approximately 453 millions and import values from ASEAN + 3 are 299 EUR billion (in 2004), however, 4 candidate countries in southeast Europe have around 106 million inhabitants ( 23% EU population, Figure 15) but import values from APT are only more EUR 7 billion (2.3 % EU import from ASEAN + 3).

Figure 14: Export value of ASEAN – 8 to 4-country group (USD million)

0.00

2,000.00

4,000.00

6,000.00

8,000.00

Countries

Val

ues i

n M

io U

SD

200120022003

2001 282.00 196.00 452.00 2,881.00

2002 249.00 200.00 609.00 3,559.00

2003 386.00 270.00 853.00 5,815.00

Bulgaria Croatia Romania Turkey

Source: Direction of trade statistics Yearbook, IMF 2004. When these candidates become EU official member states, the adoption of EU regulations

on trade with APT will exactly promote and increase trade value between two regions. Export –based developing economies in APT can approach potential markets of export and import in thesecountries, while industrial economies such as Japan, South Korea will have investment opportunities in new markets, i.e. South Korea investment on automotive industry at Slovakia.

Figure 15: Population (Romania, Bulgaria, Croatia, Turkey) 1993 – 2004

90.0092.0094.0096.0098.00

100.00102.00104.00106.00108.00

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Year

Person

s

Source: International financial statistics, IMF 2005. 7.2. Influence in transport network between the APT and the EU

There are some changes or issues can appear after EU enlargement towards southeast in the field of transport network between two these continents.

Source: Direction of trade statistics Yearbook, IMF 2004.

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When these candidates become EUofficial member states, the adoption ofEU regulations on trade with APT willexactly promote and increase tradevalue between two regions. Export–based developing economies in APTcan approach potential markets of

export and import in these countries,while industrial economies such asJapan, South Korea will haveinvestment opportunities in newmarkets, i.e. South Korea investment onautomotive industry at Slovakia.

HO THI THU HOA, HEDA HANSENOVÁ

68

Figure 15: Population (Romania, Bulgaria, Croatia, Turkey) 1993 – 2004

17

China 9.3 9.5 30.4 36.5

Vietnam 7.3 7.8 55.3 57.4

Source: EUROSTAT, 2003 & 2004. Almost countries in APT have export – oriented economic policies, especially such as export

value ratio to GDP of Vietnam achieved 57.4%, of China reached 34.5%. Therefore, enlargement to Europe southeast export market will benefit foreign trade activities of APT. Recent statistics of merchandise trade (Figure 14) between ASEAN-8 countries (Vietnam, Thailand, Indonesia, China, Japan, Korea, Singapore and Malaysia) and Bulgaria, Croatia, Romania and Turkey have implied business opportunities in these potential markets. Export values of APT to these markets are gradually increasing year by year. Total population of EU 25 members is approximately 453 millions and import values from ASEAN + 3 are 299 EUR billion (in 2004), however, 4 candidate countries in southeast Europe have around 106 million inhabitants ( 23% EU population, Figure 15) but import values from APT are only more EUR 7 billion (2.3 % EU import from ASEAN + 3).

Figure 14: Export value of ASEAN – 8 to 4-country group (USD million)

0.00

2,000.00

4,000.00

6,000.00

8,000.00

Countries

Val

ues i

n M

io U

S

200120022003

2001 282.00 196.00 452.00 2,881.00

2002 249.00 200.00 609.00 3,559.00

2003 386.00 270.00 853.00 5,815.00

Bulgaria Croatia Romania Turkey

Source: Direction of trade statistics Yearbook, IMF 2004. When these candidates become EU official member states, the adoption of EU regulations

on trade with APT will exactly promote and increase trade value between two regions. Export –based developing economies in APT can approach potential markets of export and import in thesecountries, while industrial economies such as Japan, South Korea will have investment opportunities in new markets, i.e. South Korea investment on automotive industry at Slovakia.

Figure 15: Population (Romania, Bulgaria, Croatia, Turkey) 1993 – 2004

90.0092.0094.0096.0098.00

100.00102.00104.00106.00108.00

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Year

Person

s

Source: International financial statistics, IMF 2005. 7.2. Influence in transport network between the APT and the EU

There are some changes or issues can appear after EU enlargement towards southeast in the field of transport network between two these continents.

Source: International financial statistics, IMF 2005.

7.2. Influence in transport networkbetween the APT and the EU

There are some changes or issuescan appear after EU enlargementtowards southeast in the field oftransport network between two thesecontinents.

Bulgaria, Romania, Croatia andTurkey are the coastline nations. Turkeywith the potential position nearbyMediterranean Sea will become transitbridge for movement of cargoes fromAPT countries to EU and in oppositedirection. Bulgaria and Romania – thecoastline nations in the region of BlackSea combine perfectly and smoothlytrade routes from APT to Europesoutheast countries. Croatia, Bulgariaand Romania are also states along theDanube River. Transport networkbetween ASEAN + 3 and 4-EU

candidates will establish more effectivecorridors for shipping cargoes from APTto EU west countries by means of seatransport between Pacific and IndianOcean as well as inland waterway enroute intra EU via Danube river. It is nodoubt that these situations are creatingthe tips of cargoes movements betweentwo continents-especially development inshipping cargo, promoting for routes bysea transport between two continentsand inland waterway intra EU.

The expansion in trade hasbenefited transportation in routesconnecting between ASEAN + 3 andEU. When transport network is plannedconnecting sea transport and inlandwater way between Asia and EU, it willcontribute in development of maritimeand river trade of EU countries, suchas Slovakia.

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EU is one of the largest partners ineconomic co-operation and traderelations of the ASEAN + 3. The EUenlargement really benefits APTcountries in searching businessopportunities in new markets in centraland east Europe. The growth of tradevalue between two continents willrequire the sustainable transportnetwork and effective transportcorridors. Therefore, the expansion ofEU towards southeast will impact ontrade relations and transport network ofASEAN + 3 as well as enlarged EU.

The requirements of environmentpreservation and greenhouse effecthave influenced in the pattern of choicemodes of cargo transport. Maritimetransport among the importantmodalities of international transportation,therefore, will play a necessary role onfreight transportation routes betweentwo strategic trade partners the EU andthe ASEAN + 3.

One model of the particular maritimetransport route between the ASEAN +3 countries and the EU (throughRomania) can be described as follows:

The shipments from APT -> Strait ofMalacca via Port of Singapore ( thesecond largest sea port in the world) ->Indian Ocean -> Red Sea via Suez canal-> Mediterranean Sea - > Black Sea ->sea ports of Bulgaria or Romania -> inlandwaterway intra EU via Danube river.

CONCLUSION

Cooperation, assistance, respect,and share of benefits have becomecore trends of the globalized worldtrade. Globalization has presented thesignificant impacts on almost fieldsworldwide, especially on trade andtransportation. Transportation hasderived from the demand of cargo andpassenger movements. Currently, theglobal trade has been increasingquickly; therefore cargo flows areintensively moving to and from dynamiceconomies. The ASEAN + 3 and theEU have gradually become essentialtrade partners, economic cooperationand trade relations are also majorissues between these areas. However,increasing trade requires efficienttransport modalities for shipping cargosmoothly and cost-effective. The EUconsisting of 25 countries from May2004 has been the most importantpartner of the APT in trade andtransportation. The enlargement of EU-25 with the single market will obviouslybecome a potential marketplace forAPT merchandise trade; on the otherhand, new EU members will haveopportunities for approaching APTcountries in all fields of trade,transportation, investment, finance, etc.

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10. JOHNSON James C. et al.: Contemporary Logistics. USA: Prentice-Hall,1999, 7th edition, ISBN 0-13-798548-7, 586pp.

11. RODNEY E.Slater: A New Transportation Policy Architecture for a NewCentury, U.S. Secretary Department of transportation. Washington D.C.: 2000.

12. IMF Dots and EUROSTAT, 2005.13. Direction of trade statistics Yearbook, IMF 2004.14. International financial statistics, IMF 2005.15. Review of Maritime, 2004.16. WTO: International trade statistics, 2005.17. World Development Indicators Database of World Bank, 2004.

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www.worldatlas.com; www.oocl.com, www.cnn.com; www.vneconomy.com.vn;www.hofstra.edu.

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