ASEANEurasia FTA possible – Lopez

The Philippines, chair of ASEAN this year, has raised the possibility of entertaining suggestions for an ASEAN-Eurasia Economic Union free trade agreement (FTA).

Trade and Industry Secretary Ramon M. Lopez, who is chair of the ASEAN Economic Ministers Meeting, told reporters of this possibility since the preference now is towards regional cooperation instead of a bilateral FTA.

“I think that might be possible. An ASEAN-Eurasian FTA is more realistic,” he said adding that a proposal for bilateral PhilippinesRussia may not fly because the sentiment is for regional trade deals.

There is also an existing Philippines-Russia economic cooperation, he said.

“If we do this, we will go through the ASEAN level,” he added.

It could be recalled that one of the key outcomes of the ASEAN-Russia Summit in Sochi in May 2016 was on the broadening of economic relations as both regions showed a willingness to create an ASEAN-Eurasia free trade deal.

The concept was for an exclusive trade facilitation deal through tariff reduction of goods.

The Eurasian Economic Union trade block comprises of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan stretching 20 million square kilometers of territory. It has a combined population of around 170 million and a total GDP of about $2.2 trillion. This presents a huge market for the AEC.

ASEAN, which has a population of 600 million people, has existing free trade agreements with India, China, Japan, South Korea, Australia and New Zealand.

Besides Vietnam, the Eurasian Economic Union is looking at pacts with India and New Zealand, with a study group in place with the former for a potential agreement.