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  1. Negotiations

EU-ASEAN

The European Union was planning on a bilateral trade agreement with the Association of South East Asian Nations (ASEAN) for many years. On 4 May 2007, the two sides agreed to start negotiations.

The EU-ASEAN FTA is supposed to be a comprehensive agreement. While ASEAN states are hoping to gain additional market access in the EU, the agreement is expected to have a much bigger impact in strengthening business opportunities for European TNCs in the region.

The talks have moved slowly and it’s not clear if the final deal will take the form of separate agreements between the EU and individual ASEAN members, something the EU seems to prefer. This would allow European governments to avoid taking on any commitments that support the regime in Burma but also to deal with the economic heterogeneity among ASEAN members.

EU procedures require that all ASEAN countries sign a Partnership Cooperation Agreement, containing a commitment to human rights, as a prerequisite to an FTA. Indonesia has already concluded its PCA with the EU, Singapore and Thailand are in advanced stages of negotiations, and Vietnam, Malaysia and Brunei are soon to begin. The Philippine government stated early on that it expects problems in negotiating a PCA, as the agreement apparently requires that the signatory state join the International Criminal Court.

Click here for the European Commission’s page on the EU-Indonesia FTA

last update: May 2012
photo: People’s Health Movement

Study sees modest gains for Indonesia after trade deal
26-Nov-2007
Indonesia, Southeast Asia’s largest economy, can expect relatively modest gains from a free trade agreement (FTA) between the European Union and the Association of Southeast Asian Nations, an independent study shows.
European Union Parliament opposes free trade agreement with ASEAN due to Myanmar issue
24-Nov-2007
The parliament of the European Union will oppose an EU-ASEAN free trade agreement as long as democracy is not restored in Myanmar.
Vietnam vows to work for ASEAN-EU partnership
23-Nov-2007
Vietnam will work hard for the development of the ASEAN-EU partnership, particularly their Free Trade Agreement that is now under negotiations, Deputy Prime Minister Pham Gia Khiem has promised.
EU trade chief impatient on Doha, Southeast Asia deal
23-Nov-2007
The European Union’s trade chief said on Thursday he was impatient with the lack of progress towards free trade deals in the global Doha round and between the EU and Southeast Asia. The Doha round of talks, launched six years ago, has been deadlocked as the United States and European Union call on developing nations to open up their markets for manufacturers in return for cuts by rich countries to trade-distorting subsidies.
EU lawmakers vow to block free-trade deal with ASEAN without reforms in Myanmar
23-Nov-2007
The European parliament will oppose any free-trade deal between Europe and Southeast Asia unless Myanmar makes democratic reforms, visiting parliamentarians warned Friday.
EU-ASEAN: The beginning of a beautiful friendship?
15-Nov-2007 Chatham House
At present, the economic relationship is asymmetrical, with the EU market much more important to ASEAN than the reverse. But in the long run, the size and growth of the ASEAN market will make it a key source of growth and profitability for EU firms.
Malaysia’s racial policies jeopardize trade deal, EU envoy says
14-Nov-2007 Bloomberg
Malaysia’s refusal to review its race-based policies is jeopardizing a proposed free-trade agreement between Southeast Asia and Europe, said the outgoing European envoy to Kuala Lumpur.
Malaysia: Keep Myanmar politics out of ASEAN-EU free trade talks
31-Oct-2007 IHT
Myanmar’s political crisis should not be used an excuse to hold up a proposed free trade pact between Europe and Southeast Asian nations, Malaysia’s trade minister has said.
Commerce ministry backs Asean-EU trade talks
31-Oct-2007 Bangkok Post
Thailand will be able to export more boiled chicken to EU, Siripol Yodmuangcharoen, permanent secretary for Commerce, said.
EU to recognise Vietnam having market economy if...
6-Oct-2007 VietNamNet Bridge
"I want to make clear that the EU-ASEAN Free Trade Agreement that we are building is with only seven member nations of ASEAN. Laos and Cambodia have their own trade deals with the EU while we plan to put an embargo on Myanmar," says a member of the European Parliament.