EU finally clinching trade deals with Southeast Asian states
After years of arduous negotiations, the EU is closing on a string of bilateral trade deals with countries in Southeast Asia. And yet, a bloc-to-bloc agreement between the EU and ASEAN remains a distant prospect.
The European Union and several Southeast Asian countries are closing in on bilateral trade agreements, with the bloc aiming to finalize deals with six out of 11 ASEAN states by mid-year. Singapore and Vietnam already have free trade agreements in place, while Indonesia's negotiations concluded, with the target signing in October and implementation early 2027.
Talks with Thailand and Malaysia, which resumed in 2023 and 2025 respectively, are expected to conclude by year-end or early 2027. The EU has seen a significant increase in its trade with ASEAN, reaching €274.9 billion last year, up 6% from the previous year and more than 50% from 2016. This strategic move comes as Southeast Asia becomes a pivotal hub for semiconductor production, electronics, electric vehicles, and renewable energy, attracting European investments.
The Association of Southeast Asian Nations (ASEAN) is now the EU's third-largest goods trading partner outside Europe, trailing only the United States and China. Both regions are bolstering their economic ties amid geopolitical tensions and a push to diversify supply chains away from China. While ASEAN governments seek to avoid excessive reliance on any single partner, the EU's approach to form a region-to-region economic framework remains a key objective for both sides.
Written by urgent.news from DW English (Top Stories)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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