KUALA LUMPUR, Oct 28 — The European Union (EU) is looking to deepen its strategic partnership with Asean by advancing free trade negotiations and strengthening supply chain cooperation for stronger economic ties that benefit both regions amid a changing global landscape.
European Council President António Costa said the union views its partnership with Asean as a vital pillar in addressing the current complex global landscape, encompassing political, economic, and people-to-people dimensions.
“On the economic front, we have developed a very important network of trade agreements, where free trade agreements (FTA) have been signed with Vietnam, Singapore and recently Indonesia.
“We are now negotiating with Malaysia, the Philippines, and Thailand,” he said as a guest on Bernama TV’s 'The Nation' programme today, in conjunction with the 47th Asean Summit and Related Summits.
As for Malaysia, FTA talks began in 2010 but stalled after seven rounds in 2012 due to Malaysia’s reservations over the EU’s palm oil procurement policies, subsidies, and sustainability clauses.
However, Prime Minister Datuk Seri Anwar Ibrahim and European Commission President Ursula von der Leyen announced that negotiations would resume during Anwar’s working visit to Brussels last year.
Costa believes that improved trade relations are the best way to enhance prosperity and, at the same time, to boost it in a shared way.
Elaborating on the FTA, he said the EU continues to explore the possibility of a region-to-region FTA with Asean and acknowledged the need for a pragmatic approach, given the varying levels of readiness among member states.
“If it is not possible to do a region-to-region agreement, then we negotiate bilateral agreements, as we have already done with three Asean member states.
“We are doing the same with Malaysia, Thailand, and the Philippines, and we hope to conclude these trade agreements as soon as possible,” Costa said.
He added that while an Asean-wide trade pact remains an aspiration, the EU would not allow challenges in regional consensus to stall progress.
“If it is possible, wonderful. If it is not, we need to continue working bilaterally.
"What we cannot afford is to slow down our trade development,” Costa said, noting that previous agreements had led to a 30 to 40 per cent increase in trade volumes.
He said the increase is a significant volume for EU and Asean countries, and that it is the best way to promote prosperity and shared growth.
Moreover, the EU-Asean economic relationship has significant room for expansion, particularly in emerging sectors such as technologies and critical raw materials.
According to Asean statistics, the total value of two-way merchandise trade between Asean and the EU reached US$292.57 billion (RM1.22 trillion) in 2024.
In addition, foreign direct investment (FDI) inflows from the EU to Asean amounted to US$20.40 billion (RM85.71 billion) in 2024, placing the EU as Asean’s third-largest trading partner and second-largest external source of FDI.
