The European Union is keen to cut deals with regional blocs like the Association of Southeast Asian Nations (ASEAN).
The Southeast Asian bloc is the EU’s third biggest trading partner – after China and the US. Around 227 billion euros worth of goods was traded between the two regions in 2017. The EU has also been investing heavily in links with the Southeast Asian region – the EU is the largest foreign direct investor in ASEAN.
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(1) The EU is currently now the biggest Economic Union in the World - with combined GDP US$21 trillion.
(2) EU beat the US GDP US$19 trillion and China GDP US$13 trillion.
(3) If ASEAN (GDP US$3.3 trillion) is able to forge an FTA with EU - it will form a cross continent supply chain of ASEAN to Europe Continent.
(4) This can cushion the trade war impact trigger by Trump-led tariff against the World.
(5) Now the show-stopper seems to be the palm oil - that hit Malaysia and Indonesia.
(6) EU was not planning an outright ban on palm oil - and should encourage sustainable planting - so that this can break the deadlock on palm oil - and help in concluding the ASEAN-EU FTA.
(7) The hurdle to conclude the ASEAN-EU FTA should not be as big or as difficult as RCEP (which has more members and more difficult issues).
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