The Exporters' Club urges a more "decisive and sustained" policy with Southeast Asian countries

The Spanish Exporters and Investors Club has called on the Spanish Administration to undertake a "more determined and sustained" policy to boost economic relations with the ten Southeast Asian countries that make up ASEAN: Malaysia, Indonesia, Brunei, Vietnam, Cambodia, Laos, Myanmar, Singapore, Thailand and the Philippines. 

In a report promoted by the Exporters' Club, under the title 'Economic and business relations of the European Union with the ASEAN countries and their implications for Spain', authored by Ramón Gascón, it is stressed that Spanish foreign policy is still far from that adopted by other European Union powers, despite the fact that these 10 countries have become in recent years the most dynamic centre with the greatest economic potential in the world. 

The report itself, presented online today, highlights that if Spain were to take advantage of the economic opportunities presented by these countries, "it could facilitate the transformation of the Spanish production model towards segments with greater added value". However, taking advantage of this potential would require our Administration and our companies to "increase our presence, capacity for analysis and action in the area". 

In contrast to the position held by the European Union, currently the largest trading and investment partner in the Southeast Asian region, with a very significant presence of Germany, France and the Netherlands, trade and economic relations between Spain and ASEAN, although they are on an upward trend, "continue to be insufficient and, critically, very limited in relation to their enormous potential". 

Spain's exports of goods to ASEAN reached 3.8 billion euros in 2019, while imports of goods from the region reached 9.57 billion euros. Meanwhile, Spanish foreign direct investment barely reached 100 million.

The ten countries that make up ASEAN, which are destined to become a "South Pacific common market" in the future, have a total population of 661 million people, making it the third most populous territory in Asia after China and India. Moreover, the total population is expected to reach 800 million within 40 years. This is an aspect to be taken into account when assessing the future economic dynamism of the region, as other countries, such as China, are moderating their population growth, and Japan is even losing population.

ASEAN currently represents a combined GDP of around $3.8 trillion, which, if it were a country, would rank it ninth in the world in economic terms. Furthermore, the recent Regional Comprehensive Economic Partnership (RCEP) agreement signed between fifteen countries in Asia and Oceania (specifically ASEAN, Australia, China, South Korea, Japan and New Zealand) will allow this area to become the fourth largest economic bloc in the world by 2030.

In order for Spanish companies to take advantage of the growth potential and business opportunities in Southeast Asia, the Exporters' Club report includes a series of proposals and recommendations in the areas of international relations, financing, information and training, and economic intelligence. 

Specifically, in the field of institutional relations, it considers that an effort should be made to strengthen them, which would make it advisable to obtain the support of the Crown, increase the flow of official visits in both directions and promote a more fluid relationship between the Spanish Administration and the Administrations of ASEAN countries, through the holding of meetings and seminars and the establishment of official Spanish Chambers of Commerce.

Likewise, the Exporters' Club believes that greater coordination between Spanish public administrations is advisable, starting with the central administration itself. "There is a perception in the business community that, on occasions, the strategy followed by the Ministry of Foreign Affairs and the Secretary of State for Trade does not coincide", the report points out.

In terms of financing, although Spain has public instruments that are considered adequate by the sector, the report stresses that their management "could be significantly improved and their amount increased", given that they are considerably lower than in other EU member states. At the same time, it recommends "streamlining and simplifying the processing of financial instruments". In this respect, it gives the example of the procedure for processing the Fund for the Internationalisation of Enterprise (FIEM), which is "excessively long and complex, and its amount is proportionally much lower than that of similar instruments in France, England or Germany".

The Exporters' Club report also recommends that the Administration should make an effort in terms of information and training aimed at identifying the countries and sectors that offer the best opportunities, and explaining the European Union's actions in the area. 

It would also be of great interest to make companies aware of the existing aid organisations and instruments, including those offered by multilateral organisations operating in the region, and to promote the negotiation of new trade agreements or economic partnership agreements from the EU, in which "as far as possible, the issues of greatest relevance to their interests" are included. It is also considered very important for the Spanish government to promote Reciprocal Investment Protection Agreements.

Finally, under the heading of economic intelligence, the Exporters' Club proposes strengthening "the capacity and performance of embassies as agents for the production of economic intelligence on the countries in which they operate". This task should include identifying the sectors that offer the best opportunities for Spanish companies and monitoring the actions developed by other competing countries. The report also calls for greater cooperation between Spanish companies, so that, as far as possible, they avoid competing with each other and opt for partnership agreements instead. 

The Spanish Exporters and Investors Club is a multi-sectoral business association whose objective is to represent and defend the interests of Spanish companies with international activity. The worldwide turnover of the Club's members is equivalent to 20% of Spain's GDP. They have around 800,000 employees and their investments abroad represent 40% of Spanish investment stock abroad.