Asean and Eu Free Trade Agreement
Sansern said Thailand supports issues that would benefit ASEAN, such as climate action, sustainable development, economic recovery from the impact of Covid-19, small business development, learning BRITISH expertise in digital innovation, financial services and education, and promoting trade and investment for a link in the ASEAN-UK supply chain. It began in 2007, when negotiations on a trade and investment agreement took place across regions. However, talks were halted in 2009 and only bilateral negotiations took place between the EU and some countries in the region. The two sides agreed to prepare negotiations for an ASEAN-EU free trade agreement and hold joint expert meetings to promote mutual understanding on new trade issues such as e-commerce, government procurement and sustainable trade and development. Relations between the European Union and ASEAN have always been positive. The EU has invested in many projects, e.B in the areas of climate change and environmental issues. But when it comes to free trade, bilateral agreements remain the best option for the EU at the moment. It is possible that an interregional economic partnership will take place, but ASEAN needs to raise its level in order to reach the EU level. In the case of Vietnam, it was more complex. The fact that the negotiation lasted 14 rounds of negotiations speaks for itself.
The negotiations covered not only trade and customs issues, but also human rights, intellectual property, labour rights and environmental issues. However, the free trade agreement with Vietnam entered into force on August 1, 2020. On the Vietnamese side, they have benefited from non-tariff exports of more than 71% over the next decade. The removal of tariffs will benefit major export industries, including the manufacture of smartphones and electronics, textiles, footwear and agricultural products such as coffee. On the other hand, the EU also receives 65% of non-tariff exports for the next seven years. According to the Ministry of Planning and Investment, the free trade agreement is expected to help increase Vietnam`s GDP by 4.6 percent by 2025 and its exports to the EU by 42.7 percent. On the positive side, some ASEAN countries have already concluded trade negotiations with the EU. But it was also a long blow for them: Singapore took nine years to negotiate, Vietnam needed seven years. Each negotiation took many rounds to cover all areas of trade. In the case of Singapore, there have been eleven rounds of negotiations since March 2010. Ultimately, the benefits that both sides will receive will lie in many areas such as tariff liberalization, removal of non-tariff barriers, and promotion of services and investment. The agreement offers EU businesses better access to public procurement opportunities.
For EU consumers, they can be sure that Singaporean products meet health and safety, social, consumer and environmental standards. This allows us to see that countries like Vietnam and Singapore, which have successfully concluded free trade negotiations, can increase not only their export rate, but also their GDP. These benefits could increase if more bilateral agreements are concluded between ASEAN members and the EU, which will lead to the interregional free trade agreement in the future. For the other ASEAN member states, however, the difficulties remain in sight. He said Thailand has stressed the importance of a free trade agreement between ASEAN and the EU, as it will create a favorable environment for trade and investment in the region. The European Union (EU) is ASEAN`s third largest trading partner. In 2015, total trade between ASEAN and the EU amounted to $228.1 billion. ASEAN products worth US$127.9 billion are exported to the EU. ASEAN imports from the EU amounted to $100.2 billion. In Washington, the election of President Joe Biden is expected to lead to a strengthening of RELATIONS between the United States and ASEAN, which strongly opposes Chinese expansion in the region. If this is the case, the EU has a vested interest in further strengthening cooperation with ASEAN and strengthening its economic and strategic partnership with the region, taking advantage of the favourable momentum of multilateralism and rules-based trade to effectively improve trade relations with ASEAN. In today`s era of globalization, economic stability has become one of the prerequisites for recognition as a world leader.
As the current trade war between the US and China leads to trade blockades, many regions are exploring new partnerships to open up alternative markets. The Association of Southeast Asian Nations (ASEAN) is one of the most popular travel destinations. With more than 647 million inhabitants, it is not surprising that many major players such as the United States, China and the European Union (EU) are interested in the region. According to Deputy Trade Minister Sansern Samalapa, who served as chief negotiator at the ASEAN Economic Ministers` Meeting (EMA) on September 8-9 with the EU, the UK, Switzerland and Russia via conference call, the European Trade Commission has agreed on a joint trade and investment programme. Trade has increased significantly in recent decades. EU exports to ASEAN were estimated at EUR 45.7 billion in 1997, compared with EUR 8.9 billion in 1987. EU imports from ASEAN amounted to EUR 10 billion in 1987 and had already reached EUR 46 billion in 1997. [4] The structure of trade between the EU and ASEAN has changed considerably. In the past, EU exports to ASEAN included a higher share of manufactured goods. As ASEAN moves from a resource-producing region to a supplier of industrial goods, there has been a radical shift in ASEAN exports to the EU from primary to manufactured goods.
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