EU Business Council pushes for Asean-wide trade framework

THE EU-Asean Business Council (EU-ABC) is urging Asean and the European Union to use their 50th anniversary next year as a launching point for a region-to-region economic framework that could even­tually lead to a full free trade agreement.

EU-ABC Chairman Jens Ruebbert made the pitch on Sept. 22, 2026, during a consultation with Asean economic ministers and EU trade officials held on the sidelines of the 58th Asean Economic Ministers’ Meeting in Manila.

Ruebbert said the two blocs have made rapid progress on country-to-country deals and should now build a broader structure to tie those gains together.

His call came on the same day European Commission President Ursula von der Leyen and Philippine President Ferdinand Marcos Jr. welcomed an agreement on the EU-Philippines free trade agreement in a phone call. Negotiations are set to conclude soon, with ratification expected in 2027.

The EU also finalized a similar deal with Indonesia in Bali in September last year. Agreements with Singapore and Viet Nam are already in force, while negotiations with Thailand and Malaysia are expected to finish by 2027.

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“Making such rapid progress on several bilateral agreements is no doubt an incredible achievement. It sends a strong signal on the growing strategic importance of Asean to the EU, and the shared political commitment to deepening that economic partnership,” Ruebbert said.

However, he added that these bilateral deals should not be the endpoint but the foundation for a more ambitious, longer-term goal to establish a region-to-region FTA.

“We strongly believe a regional deal would provide a competitive edge for European and Southeast Asian companies alike, bringing trade and investment to a level that reflects the scale and strategic importance of the Asean-EU relationship,” Ruebbert said.

Business sentiment points in the same direction. In the EU-ABC’s latest survey, 74 percent of European business respondents said an Asean-wide FTA would deliver more benefits than separate bilateral deals with individual Southeast Asian countries. About 49 percent said they want talks for a regional FTA to start next year to mark the 50th anniversary.

Instead of waiting for a comprehensive FTA to be negotiated at once, the council proposed an Asean-EU Economic Framework Agreement that takes a modular approach. The idea is to set baseline economic commitments first, then create mechanisms to review progress and expand coverage over time.

Under the proposal, the framework could be announced for the anniversary alongside the launch of negotiations for a region-to-region Digital Trade Agreement as a priority. An Investment Protection Agreement and other sectoral deals could follow.

“As trade becomes increasingly digital, it is critical to put in place mechanisms early on that enable trusted cross-border data flows and enhance digital integration across economies, while addressing emerging issues such as AI governance and cybersecurity. This region-to-region DTA is a key opportunity to build on Asean’s recently concluded Digital Economy Framework Agreement and further advance the region’s digital transition,” Ruebbert said.

He added: “The next priority is investment protection. Establishing predictable standards would increase investors’ confidence in making long-term commitments to the region and help Asean attract the significant private capital needed to support its economic development.”

Beyond trade, the council outlined two other headline outcomes for 2027.

One is a flagship partnership on the Asean Power Grid, where the EU would provide technical and financial support drawing on its experience building interconnected electricity systems and on funding programs such as Global Gateway.

The other is structured cooperation to advance Asean’s own economic integration. This would involve channeling Team Europe resources toward trade facilitation priorities such as implementing the upgraded Asean Trade in Goods Agreement, improving the Asean Customs Transit System and the Asean Single Window, and rolling out DEFA.

EU-ABC Executive Director Chris Humphrey said 105 million euros in grant funding has so far been allocated to Team Europe initiatives on sustainable connectivity and green transition. He said the goal is to consolidate that base and organize resources more clearly around concrete results for a more resilient and integrated Asean market.

Humphrey also called for stronger political engagement.

“Although there has been a slight uptick in recent years, Commissioner-level engagement with Asean counterparts remains limited. We urge the EU to considerably increase high-level presence at Asean forums and extend political engagement to a wider range of sectors, including digital, finance, energy and health, among others,” he said.

He said the 50th anniversary of Asean-EU relations should not be merely symbolic and that it must focus on delivering tangible outcomes in order to build a trusted, long-lasting partnership rooted in practical cooperation.

“This will not only bring commercial rewards but also economic benefits that can uplift communities across the region,” Humphrey said.

Source: Manila Times