This paper presents the need of a European agenda for East Asia. The root of East Asian dynamism lies in an actively pursued export-oriented development strategy. The consequences embrace new opportunities as well as risks. Security issues have been replaced by economic development at the core of the international agenda, and the categorization of a first, a second and a third world has become outmoded.
East Asian dynamism spurs influences towards protectionism as well as liberalization. The United States is giving up its position as champion of free trade and there is a fear of growing non-tariff barriers and domestic trade barriers in developed countries. On the other hand, there has been a demonstration of super-gains from trade. Previously planned economies open up and seek a change of their systems, and there are strong tendencies towards regional integration, particularly in the EC.
The underexploited economic relationship between the EC and East Asia is very much at the core of which way the world economy is to go. The Japanese and other East Asians are now taking major steps to increase their activities in Europe, while the Europeans are preoccupied with their own restructuring. There is a great need of a European policy vis-à-vis East Asia which can serve as a pillar in a future liberal trade and investment regime worldwide, promoting the social welfare of all nations.
