EU, Asean clash on Burma sanctions, but both call for reforms

Asean and the EU are holding a half-day commemorative summit in Singapore, marking 30 years of relations that have long been tense on disagreements over how to deal with Asean member Burma.

While the two groups hailed the economic growth in their partnership, 10-nation Asean's refusal to impose even temporary sanctions on Burma after its violent crackdown in September on anti-government protests has whipped up the issue again.

Benita Ferrero-Waldner, EU external relations commissioner, said the 27-member EU was supporting a "carrot and stick" approach on Burma by supporting UN special envoy Ibrahim Gambari's mission while imposing "smart sanctions."

"These are sanctions that are going for the junta, for the regime, for those who are getting all the money, but the people are very poor," she told reporters.

Waldner rejected Singapore Prime Minister Lee Hsien Loong's assertion that sanctions would only hurt the poor people of Burma.

"On the contrary, we are working in favour of the population," she said. "We are helping them. We help them on housing, on education as well."

EU foreign ministers have imposed tougher sanctions on the Burma regime after the violent suppression of the protests that by government estimates killed 15 people in Yangon although diplomats and human rights groups said the toll was much higher.

The new restrictions include a longer list of Burma officials who are subject to a travel ban and an assets freeze.

An investment ban on state-owned enterprises has also been extended to include businesses owned or controlled by the regime or "by persons and entities associated with the regime," an EU statement said.

The recent crisis in Burma has dominated the Asean summits in Singapore since the weekend with leaders of 16 countries stressing the need for Rangoon's military junta to implement reforms but disagreeing on how to deal with the notorious country.

US Trade Representative Susan Schwab warned that an Asean-US free trade agreement was in jeopardy by the regional bloc's failure to take tougher action against Burma.

Waldner said the EU was not trying to link the Burma issue to negotiations for a free trade agreement, noting that such talks would take a long time.

"Let's wait and see," she said. "We will just carry on."

She stressed the need for both Asean and the EU to have the political will to proceed with the negotiations.

The Asean region is the fifth-largest export market for the EU and the fifth-largest trading partner of the 27-member organization while the EU is the second-largest trading partner for most countries in Asean after the United States.

Asean exports to the EU now account for about 13 per cent of its total exports while EU exports to Asean account for around 4 per cent of its total exports.

Deutsche Presse-Agentur