cross-posted from: https://scribe.disroot.org/post/11646425
European businesses are calling for a region-to-region trade agreement with ASEAN following a breakthrough in the EU's deal with the Philippines last week, as Brussels seeks to diversify its trade and political ties.
The European Union is also expected to conclude a trade agreement with Thailand by the end of this year, with the 10th round of talks ongoing until Tuesday. To date, the EU has trade deals in the region with Singapore, Indonesia and Vietnam, and is in negotiations with Malaysia.
But businesses want the EU to go deeper and wider by seeking a deal with ASEAN as a bloc, in the face of competition from the two biggest economies -- China and the U.S.
"ASEAN would want the EU to become a more practical partner," [Joanne Lin, senior fellow at Singapore's ISEAS-Yusof Ishak Institute] said, citing areas for cooperation like in green transition, energy connectivity, digital trade, resilient supply chains and sustainable infrastructure.
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Geopolitical competition and tension have surged in the past few years, and the EU has felt squeezed by China and the U.S. at a time when major European economies are struggling to grow. In its own backyard, it is also fighting against Russian hybrid attacks while wrestling with weak defense budgets and political instability.
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The EU-Philippines deal would remove tariffs on 94% of goods traded, including agrifood, machinery and appliances. For the first time, the Philippine government procurement market will also be open to foreign players.
"The agreement delivers real opportunities for businesses of every size," said Sefocovic. "It also delivers a stronger, more diversified supply chain at a moment when resilience has become a strategic priority."
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The ASEAN - Association of Southeast Asian Nations - is an intergovernmental forum of all 11 states in Southeast Asia. Members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor-Leste, and Vietnam.
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