Meeting in Brunei on 4 May, Trade Commissioner Peter Mandelson and the trade ministers of the ten-member Association of South East Asian Nations (ASEAN) agreed to launch negotiations on a wide-ranging pact that is expected to boost two-way trade and investment between the two regions by up to 20%, according to a study commissioned by the EU.
The idea of an EU-ASEAN free trade agreement (FTA) has been mulled for several years, but only really gathered momentum after World Trade Organization talks for a global trade pact were suspended in July 2006 (see our LinksDossier on the WTO Doha Round).
Prior to that, progress had been stalled due to the EU's refusal to negotiate with the military dictatorship in Myanmar - one of the ten ASEAN members, which is currently subject to EU sanctions because of its failure to allow democracy, address human right violations and release political prisoners.
Mandelson claimed: "Our stance on Myanmar, as you know, has not changed." But the EU appeared to have overcome its earlier unease in favour of a deepening relationship with the rapidly-growing Asian economies, which, since 2003, have been attempting to follow suit and turn their region into a European-style single market by 2015. Trade between the two blocs, which jointly encompass more than one billion people, currently stands at €116 billion.
"I think it has a huge potential not just to deepen economic ties between us but to grow international trade as a whole and make an important boost to the global economy," Mandelson said.
No timeframe has yet been determined for the negotiations, but Malaysian Trade Minister Rafidah Aziz told reporters that the two sides would establish a joint panel of senior trade officials to draft a schedule and programme for talks.
The final agreement is expected to take the form of separate deals with the individual members of the Asian organisation, so that the EU can avoid any link-up with Myanmar.
EU governments also agreed, last month, to launch similar talks with Korea and India (EurActiv 23/04/07).
