ASEAN resumes FTA talks with EU, explores trade deal with Russia

ASEAN has resumed talks for a free trade agreement deal with EU as well as explore region to region FTA with Russia via the Eurasian Economic Union.

In a statement at the conclusion of the ASEAN Leaders' Summit and Related Summits here, ASEAN Economic Ministers Chair Ramon M. Lopez said discussion for these planned region to region FTAs have started during the just concluded meetings.

“ASEAN and EU have resumed initial talks to discuss the proposal for a region-to-region FTA, which was stalled back in 2009. Lastly, an FTA with Russia is being explored as a region-to-region FTA between ASEAN and the Eurasian Economic Union (EAEU), with information-sharing and confidence building activities as stepping stones to possible more formal FTA talks,” said Lopez in a statement read by Philippines’ DTI Undersecretary Ceferino S. Rodolfo at the conclusion of the Leaders’ Summits in Manila.

Leaders from ASEAN Dialogue Partner Countries – US President Donald Trump, European Council President Donald Tusk and Russian Prime Minister Dmitry Medvedev – attended the 31ST ASEAN Summit and Related Summits, which also coincides with the 50th founding anniversary of ASEAN.

It could be recalled that the initial FTA talks were halted in 2009 largely due to human rights issues for many of ASEAN-member states. This issue had caused obstacle for the EU, which requires to consider human rights in its trade policies.

A trade deal with ASEAN would connect the EU to the world’s seventhlargest market, and one with strong consumer and middle-class expansion, particularly in Vietnam and the Philippines, which are among the world’s best-performing economies.

The ASEAN region has a combined 622 million people and economy of $2.6 trillion and is driven largely by consumption, exports and manufacturing, with Europe a key importer of goods.

The initial EU-ASEAN negotiations were halted in large part due to the complexities of setting common standards among 10 Southeast Asian countries with various political systems and stark differences in the size of their economies and populations.

Meanwhile, the ASEAN-Eurasian Economic Union (EAEU) planned FTA is seen to benefit a larger grouping. EAEU is a trade block comprising of Russian Federation, Belarus, Kazakhstan, Armenia and Kyrgyzstan.

Combined GDP of ASEAN and EAEU member states was estimated at $3.5 trillion and their combined population of 755 million people.