As home to the world’s largest populations and fastest-growing economies, Asia is a major trade partner of the EU, with China itself ranking third, after the US and UK in 2023. According to European Commission statistics, Asia accounted for 28% of the EU’s goods exports (€619.2 billion) and 40% of its imports (€801.4 billion) in 2019. In 2023, the trade in goods between ASEAN and the EU amounted to €252.5 billion. Bilateral trade in services amounted to €126.1 billion in 2022. The EU’s foreign direct investment into ASEAN reached €400.1 billion in 2022, €108.3 billion into India and €247.5 billion into China. ASEAN’s investment in Europe has been steadily increasing, a clear indicator of the burgeoning potential of the ASEAN market that the EU is keen to tap into. These economic relations generate jobs and economic growth, creating vested interests that reinforce the strategic linkages between the two regions.
Yet, as trade and investment ties become stronger and closer, differences become more apparent in trade and non-trade areas which constrain further advancement. These include differing trade policies, internal regulations and values due to inter alia, variations in governance types and cultural norms. For example, when negotiating free trade agreements (FTAs) with third countries, the EU aims to eliminate trade barriers and also advance environmental and labour protection commitments, often stricter than international standards such as the Paris Climate Agreement and ILO conventions. Some attribute this to the protracted FTA negotiations with the Philippines (since 2015), Malaysia (since 2010) and Indonesia (since 2016). There needs to be deeper engagement between the business communities and political leaders of Asia and the EU to better communicate and understand their respective priorities and constraints. Otherwise, we risk stagnation, even deterioration of the strategic economic relationship.
Sources:
ASEAN (2019), “ASEAN-EU Economic Relation” asean.org
European Parliament (2021) “Sustainability provisions in EU free trade agreements”
This new section is incredibly valuable, particularly for those who are eager to delve deeper into trade and investment between ASEAN and the EU. As someone from an ASEAN country, it is crucial to always stay informed about the latest developments and information concerning the two blocs.
We are glad you find the ‘new section’ valuable. The scope of our work encompasses political, economic and social exchanges between Asia and Europe (49 countries in Asia and Europe, the EU, the ASEAN Secretariat). Stay tuned for more interesting topics to come…
The ASEM InfoBoard’s decision to highlight trade and investment between ASEAN and the European Union is truly commendable! This feature underscores the significant economic ties that are essential for both regions’ growth and development. By showcasing this vital partnership, the InfoBoard not only educates the audience about the opportunities available but also fosters a deeper understanding of the mutual benefits that can arise from increased collaboration. It’s crucial to recognize how these connections can drive innovation, create jobs, and enhance global competitiveness. Great job on bringing this important topic to the forefront!
Thank you so much for highlighting the benefits of EU-ASEAN/Asia partnership. Indeed, ASEM, or Asia-Europe Meeting, has been promoting greater mutual understanding, fostering equal partnership, between the peoples in Asia and Europe (49 countries + EU + ASEAN Secretariat) since 1996. Keep an eye on this space… more interesting topics are on their way…
JACQUES PELKMANS
It is significant and welcome to witness the steady growth and diversification of ASEAN-EU trade and investment, especially after having been involved in EU-ASEAN relations as well as ASEAN and its internal development for nearly 40 years. On values the EU is and ought to remain a leader but they should be promoted via foreign policy and dialogue, not be part of trade policy beyond worldwide agreed standards, which risks to be counterproductive.
Thank you for your interest in our work! Your insight on the importance of separating trade policy from values is very well appreciated.
The information about trade and investment cooperation and initiatives is really great! Being a European student, I’ve been looking for this type of information and this really enhances my understanding of the subject matter which I really didn’t! Soo I’m soo glad that Is a valuable resource for my research! Thank you
As an international student I was really looking to find info about trade investment and I’m so glad I found this page! Literally gave me the information I needed!
Thank you
We are thrilled to hear that the page provided exactly what you needed.
We are glad this information has been helpful for your research.