[1203] Of ASEAN-EU FTA

After a stalled and disappointing Malaysia-US FTA negotiation, a better deal is coming our way. Today in Brunei, ASEAN and EU representatives met and agreed to start talking about a regional-wide FTA:

BANDAR SERI BEGAWAN, May 4 (Bernama) — The European Union (EU) today agreed to enter into free trade area (FTA) talks with the Association of South-East Asian Nations (Asean) despite its strong feeling on the absence of Myanmar’s democratic reforms.

Trade Commissioner, Peter Mandelson, told Bernama the 27-country EU’s stance on the junta-led Myanmar’s rights record has not changed although both blocs agreed that an FTA would provide for a comprehensive trade and investment liberalisation. [EU Puts Myanmar Aside, Proceeds FTA Talks With Asean. Bernama. May 4 2007]

While I am supportive of a bilateral FTA between Malaysia and the United States, multilateral FTAs such as the proposed ASEAN-EU are many times better than bilateral ones. A successful Doha Round would be best but pragmatism unfortunately forces us to choose less preferable paths toward greater prosperity and freedom.

I suspect that the EU would try to insert climate related issues into the proposed FTA. It would be interesting to see that.