EU eyes M’sia trade talks
Reuters | 27 July 2010
EU eyes M’sia trade talks
BRUSSELS — THE European Union has started informal talks with Malaysia on a free trade pact that could open markets in spirits, cars and services to Europe and bring more investment to the South-east Asian country, diplomats said.
The move highlights the EU’s resolve to tap Asian consumer and financial markets. EU trade experts expressed their interest in securing a deal with Malaysia at a meeting in Brussels on Friday, diplomats said. One envoy said informal talks had also been held between EU and Malaysian officials in Kuala Lumpur several weeks ago.
’Initial talks are moving along rather quickly, and the question is whether Malaysia is ready to get involved in a very comprehensive agreement,’ said one source. Malaysian officials in Brussels confirmed that formal trade talks could start but gave no details. If they do start, Malaysia would be the third South-east Asian nation after Singapore and Vietnam to hold talks with the EU this year.
The EU had hoped to secure an agreement with the Association of South East Asian Nations (Asean), which comprises 10 countries including Malaysia, but talks with the group were frozen last year. This opened the way to talks with individual Asean states. The EU’s trade with the countries that make up Asean reached 175 billion euros (S$309.5 billion) in 2008. Only China and the United States are bigger trading partners for the EU.
EU diplomats say exporters want Malaysian trade barriers cut on wines, spirits, cars and financial services. They also want rules allowing EU business executives to work in Malaysia.
Malaysia has high duties protecting its wines and spirits sector. Its government vowed last year to retain excise duties to protect local car maker Proton but is also looking for foreign investors as the firm faces mounting competition. Asean groups Indonesia, Malaysia, Singapore, Philippines, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia.
