On Friday 10 March, European Commissioner for Trade Cecilia Malmström and the economic affairs ministers of the 10 countries in the ASEAN area agreed in Manila, Philippines to take new measures to relaunch the talks for an EU-ASEAN free trade agreement.
Malmström and her Asian counterparts discussed the next steps for the resumption of these negotiations and tasked their administrations with developing "a framework encompassing the parameters of a future ASEAN-EU free trade agreement" by the next ministerial consultations.
Welcoming the improved global economic situation, the parties nevertheless expressed caution, "given the uncertain ramifications of growing protectionist and inward-looking policy stances", according to their joint statement.
In this context, the EU and ASEAN affirmed their commitment to a strong multilateral trading system governed by the WTO, and said they were ready to work towards a successful outcome at the ministerial conference in Buenos Aires, Argentina in December 2017. They highlighted the importance of e-commerce for development, and of wider access for SMEs to actively participate in global trade.
"There is still much to be done to unlock the full potential of the EU-ASEAN relationship, and the quickly changing international environment now makes us turn our eyes even more towards Asia", Malmström commented, pleased that both sides are starting preparations towards re-launching these negotiations for a bi-regional free trade agreement.
Launched in 2007, the free trade negotiations between the EU and the ASEAN countries (Brunei, Burma/Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam) were broken off in 2009 for political reasons (see EUROPE 11741).
Since then, the EU has concluded separate free trade agreements with Singapore (in 2012) and Vietnam (2015). Negotiations are also underway for similar agreements with Malaysia, Thailand, Indonesia and the Philippines (although those with Malaysia and Thailand are on hold), and talks are ongoing with Burma for an agreement on investment protection.
The ASEAN is the EU's third biggest trading partner (after the USA and China), with a bilateral trade volume in goods and services of over $208 billion in 2016. The EU is also the region's top investor, with €23.3 billion in foreign direct investments in the area in 2015. (Original version in French by Emmanuel Hagry)