Page 15 - EU_ASEN Relations: Perspectives From Malaysia

2015). Following in their footsteps, Vietnam also established its own bilateral

FTA with the EU in the subsequent year.

Awhile before the establishment of ASEM, the EU had been an ASEAN

dialogue partner since 1977, and the ASEAN-EU cooperation agreement was
formally signed three years later. Since then, many decisions on the economic

relationship between the EU and ASEAN are made at EU-ASEAN ministerial
meetings (ASEAN, 2017a). Furthermore, inter-regional cooperation between

ASEAN and EU was strengthened by the “Bandar Seri Begawan Plan of

Action (2013─2017)” which was adopted in 2012. Under this plan, ASEAN
and EU made significant progress in the area of security and political

cooperation as well as in economic and trade issues. In August 2017, the
Bandar Seri Begawan Plan was replaced by a new ASEAN-EU Plan of Action

(2018-2022). Under this new plan, the ASEAN and EU would pursue a

cooperation in conformity of international laws (ASEAN, 2017b).

In the case of Malaysia, it is considered one of EU’s important trade partners.
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Malaysia is the EU’s 22 largest partner in the world and the 3 largest trade
partner amongst ASEAN countries. The international trade between Malaysia

and EU is mainly comprised of manufacturing products. Malaysia exports
machinery, appliances, plastics, rubber, and animal and vegetable fats to the

EU. In return, Malaysia imports electrical equipment, machinery, and

mechanical products from the EU. The total amount of exported goods from
Malaysia to the EU amounted to €22 billion in 2016 whilst the total amount of

import of goods from the EU into Malaysia amounted to €13.2 billion in the
same year. The Malaysian government started a formal discussion to create the

FTA between Malaysia and the EU in September 2010. However, the EU-
Malaysia FTA negotiations were put on hold in April 2012 due to a formal

request from the Malaysian government (European Commission, 2017a).

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