EU plans to start FTA talks in Asia
Bangkok Post
EU plans to start FTA talks in Asia
Post Reporters
2 May 2007
The European Commission has adopted negotiating mandates for new free trade agreements with trade partners in the 10-nation Asean bloc plus India and South Korea, according to a news release from Brussels.
Independent research released by the commission suggests that the new agreements could add more than 40 billion to the bloc’s exports annually and provide new trade opportunities for all sides. The commission, which will negotiate on behalf of the 25 EU member states, expects to launch negotiations in the months to come.
’’Combined with a successful conclusion to the Doha Round, these agreements will open new markets to EU businesses and give a valuable boost to global trade,’’ said EU trade commissioner Peter Mandelson.
The FTAs will complement the EU’s strong commitment to the multilateral trading system by focusing on areas not currently covered by the World Trade Organisation (WTO) such as investment, trade in certain services and the removal of non-tariff barriers.
The Doha round of multilateral trade talks under the 150-member WTO began in 2001 but is still far from a conclusion, with farm trading a major stumbling block.
According to the research, the agreements would boost EU exports to Asean by 24.2%, India by 56.8% and South Korea by 47.8%. The three deals combined could increase the bloc’s total exports by 3.23% from 1.3 trillion and gross domestic product by 0.13% from 2005’s levels.
Asean would see an increase of its exports to the market of 18.5%, Korea 36%, and India 18.7%.
By going beyond the WTO framework, particularly in such areas as services and investment, the three FTAs could add as much as 40% to the benefits of a successful Doha round for the EU.
The bloc has reached free trade deals with several countries in Europe, Central America and African countries.
