Brussels, 23/04/2007 (Agence Europe) - Following several months of discussions between the EU27, the General Affairs/External Relations Council formally gave its approval on Monday, without debate, to the launch of negotiations for “new generation” bilateral free trade agreements (FTA) with ASEAN, South Korea and India (EUROPE 9278, 9279 and 9322). In a press release, the Commission welcomed the mandate it had been given to negotiate the reciprocal market opening with developing Asian countries. In this context, the Commission is underlining that according to the results of a new independent study carried out by CEPII and Copenhagen Economics, these FTA will increase Community exports by more than €40bn a year, provide new trade opportunities to each of the different parties and give a boost to overall trade, particularly services. According to this study, these FTA are expected to increase Community exports to ASEAN, South Korea and India by 24.2%, 47.8% and 56.8% respectively. These three deals combined could increase total EU exports by 3.23% (they reached 1300 trillion in 2005) and an increase in GDP of 0.13%. Services with ASEAN and South Korea would provide the biggest gains for the Union, while industrial products would make the most gains in relation to India. The study shows that Europe's vehicle exports to India are expected to increase by 700% (€1.8 billion). ASEAN, South Korea and India will see their exports grow by 18.5%, 36% and 18.7% respectively.
On Monday, the Council also gave the green light to the Commission to negotiate an FTA with Central America and the Andean Community, as part of the broader association agreements that include a political chapter (see other article). (eh)