Malaysia-EU trade deal 80pct done, palm oil and autos remain key hurdles
KUALA LUMPUR: Negotiations for a free trade agreement (FTA) between Malaysia and the European Union (EU) are nearly 80 per cent complete, with both sides targeting to conclude the deal by June 2027, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said.
Negotiations for the Malaysia-EU Free Trade Agreement are nearing completion, with both sides aiming to finalize the deal by June 2027, according to Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. The remaining 20 percent of the deal involves unresolved issues, primarily the palm oil sector and the automotive industry.
Johari expressed confidence in resolving the differences, paving the way for the MEUFTA to be signed by the end of June 2027. The EU Deforestation Regulation (EUDR) has caused significant costs and uncertainty for Malaysian palm oil exporters, as they have invested heavily in meeting the regulation's stringent requirements. Malaysian palm oil exports to the EU amounted to RM20.1 billion in 2025, representing 16 percent of the total.
Johari emphasized the importance of regulatory certainty and predictability in their shared commitment to sustainability. The EU Commissioner for International Partnerships, Jozef Síkela, expressed hope that the negotiations would be concluded by the end of 2027, highlighting the potential for increased trade and investment opportunities between the two sides.
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