Trade With Asia Offers Economic Lifeline For The EU

From Samantha Tan BRUSSELS, Dec 7 (Bernama) -- Strengthening the trade relationship with Asia offers an economic lifeline for the European Union (EU), as it is an important factor to tap into in respect of the continent's rapid growth, says the European Union Trade Commissioner, Karel De Gucht. He said Asia is an important market for the EU and 90 per cent of future economic growth will be generated outside of Europe by 2015. "It is important for us to be able to tap (Asia). For example in 2010, one third of our growth was due to international trade. So, it is an important factor," he added. He was speaking to Southeast Asian journalists, in conjunction with the trade seminar organised by the EU's Directorates-General for Trade here from Dec 5-7. Trade negotiations between the EU-Singapore and EU-Malaysia are still ongoing. It is hoped that the talks with Malaysia can be concluded by 2012. The EU is also looking at the possibility of initiating free trade agreement (FTA) negotiations with the Philippines, Indonesia, Thailand and Vietnam. At the same time, it also hopes to achieve an agreement within a regional framework, that will benefit the smaller countries like Cambodia and Laos. Touching on Malaysia, De Gucht said the FTA will be a deep and comprehensive agreement ranging from agriculture to goods, services, rules and if possible, the approximation of legislation, as it was important for trade as well as have easy entry into the European market. "We are engaged in a full-fledged negotiations with Malaysia and up to now, are making good progress," he added. He said it would be very good if the FTA negotiations could be completed in two years. Both the EU and Malaysia are committed to concluding the negotiations by next year after having launched the talks in September last year. On whether the 13th General Elections, possibly next year in Malaysia, could impact negotiations, De Gucht hopes it can proceed without interruption. "But this is a decision for the Malaysian government to make. "We are not saying that because of the elections (in Malaysia) we cannot negotiate. But it happens sometimes in trade negotiations, that you have a timeout. This solely depends on the Malaysian government and up till now, we have no indication of anything in that direction," he said. -- BERNAMA