|Malaysia's Free Trade Agreements||
The ASEAN-EU Vision Group (AEVG) was established in 2005 by the ASEAN Economic Ministers (AEM) and the European Union (EU) Trade Commissioner to look into the feasibility of a possible ASEAN-EU Free Trade Agreement (AEUFTA) and other new initiatives for enhancing economic cooperation and ties between ASEAN and the EU.
Two external studies were undertaken, i.e., a Quantitative Study based on a general computable equilibrium model focusing mainly on the impact of liberalisation and a Qualitative Study examining in depth the non-tariff and regulatory issues related to trade in goods, services and investment.
The Vision Group's study was presented to AEM and the EU Trade Commissioner on 16 May 2006.
The AEM and the EU Trade Commissioner met in Brunei Darussalam on 4 May 2007 and agreed that the negotiations will be based on a region to region approach which recognises and takes into account the different levels of development and capacity of individual ASEAN Member States.
Throughout the negotiating process, measures will also be considered to support and strengthen the process of ASEAN economic integration including through capacity building activities under the Trans Regional EU-ASEAN Trade Initiative (TREATI).
A Joint Committee (JC) comprising senior officials from all the ASEAN Member States (AMS) and EU was established to develop the details of the modalities, work programme and time schedule for negotiating the ASEAN-EU FTA.
However, the JC has paused since 2009. Since then, the EU has embarked on bilateral FTAs with individual AMS.
STATUS / PROGRESS
The ASEAN Economic Ministers (AEM) and the European Union (EU) Trade Commissioner at the 15th AEM-EU Trade Commissioner Consultations in Manila, the Philippines on 10 March 2017 discussed the next steps towards the resumption of the ASEAN-EU Free Trade Agreement (FTA) negotiations.
In order to reinforce the momentum, the AEM and the EU Trade Commissioner tasked the Senior Economic Officials to develop a framework encompassing the parameters of a future ASEAN-EU FTA, and to report back to the next AEM-EU Trade Commissioner Consultations.
The European Union (EU) is ASEAN’s third largest trading partner. In 2015, total ASEAN-EU trade amounted to US$228.1 billion. ASEAN products worth US$127.9 billion are exported to the EU. ASEAN imports from the EU amounted to US$100.2 billion.
The EU's main exports to ASEAN are chemical products, machinery and transport equipment. EU’s imports from ASEAN are machinery and transport equipment, agricultural products as well as textiles and clothing.
In terms of FDI, EU is the largest source of FDI to ASEAN with US$19.6 billion in 2015 or 16.4% of ASEAN’s total FDI’s inflows followed by Japan at 14.5%, the United States at 10.2% and China at 6.8%. More than 75% of the FDI in the ASEAN last year was in services.
ASEAN-EU FTA will also strengthen and deepen the region-to-region economic integration and help build ASEAN's capacity through sharing of EU's experiences of regional economic integration.
For enquiries on policies and tariff lines, please contact the following officer:
Mr. Muhamad Jafni Muhamad Jusri
Ministry of Investment, Trade and Industry
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