EU Aims to Complete Free Trade Agreements with Malaysia, Philippines, Thailand by 2024

The European Union has called for the completion of free trade agreements with Malaysia, the Philippines, and Thailand by next year. This initiative is part of a broader strategy to strengthen economic ties with the Association of Southeast Asian Nations (ASEAN) region ahead of the 50th anniversary of EU-ASEAN relations in 2027. The EU, already the second-largest foreign investor in the ASEAN region, aims to increase its trade presence, which currently accounts for only 10% of ASEAN's total trade volume. This move underscores the EU's commitment to fostering deeper economic integration and mutual growth with key ASEAN member states.

The push for these agreements is expected to enhance market access, reduce trade barriers, and promote investment flows between the EU and these Southeast Asian countries. The negotiations are likely to focus on areas such as tariff reductions, regulatory harmonization, and the facilitation of cross-border trade and investment. The successful conclusion of these agreements could significantly boost economic cooperation and create new opportunities for businesses on both sides.

In a meeting with the Malaysian Prime Minister, who was chairing the ASEAN Economic Ministers' Meeting, the EU Trade Commissioner emphasized the importance of next year in achieving this goal. The EU is determined to complete the approval process for these agreements and work closely with these three countries to reach the finish line by the end of next year. This effort is part of a broader strategy to reduce dependence on the United States, especially in light of the trade wars initiated by Donald Trump. The EU has also intensified negotiations with India and completed talks with the Southern Common Market in South America.

On Tuesday, the EU Trade Commissioner signed a trade agreement with Indonesia in Bali, eliminating most tariffs on goods traded between the EU and the largest economy in Southeast Asia. This agreement is expected to come into full effect by January 2027. The EU has also resumed free trade agreement negotiations with Malaysia this year, after talks were suspended in 2012 due to concerns over unfair treatment of Malaysian palm oil and other products. This renewed effort reflects the EU's commitment to strengthening its economic ties with the ASEAN region and promoting mutual growth and development.