Brussels, 17/09/2010 (Agence Europe) - After Council approval was granted on 10 September, the EU and Malaysia are expected to begin negotiations on a free trade agreement in October. The European Commission and the Malaysian government will probably launch talks officially on the sidelines of the ASEM summit in Brussels on 4-5 October. While Malaysia is the EU's second largest trade partner in South-East Asia (ASEAN), behind Singapore, bilateral trade in goods is not huge. In 2009, it was valued at €23 billion, with the EU exporting goods to the value of €9 billion and importing goods worth €14 billion. Trade in services is worth €4.5 billion. The Malaysians are hoping for gains through the elimination of duties on goods. The Europeans are hoping to see gains in the services sector and on non-tariff barriers. The most sensitive issue will probably be the opening up of Malaysian public contracts. Access to the EU market for Malaysian palm oil is also likely to make negotiators work hard for their money. (E.H./transl.rt)