BRUSSELS – The European Union and Malaysia announced Monday that they were restarting negotiations for a free trade deal, with the bloc looking to strengthen trade ties around the world as US President-elect Donald Trump assumes office.
Trump’s threats of high tariffs on imports have rattled EU leaders anxious about the economic fallout, while competition with China has also prompted a race to seek more trade with other partners.
“This excellent news comes at a critical time. Geopolitical tensions are escalating, and the risk of instability is growing,” EU chief Ursula von der Leyen said in a statement.
“While some turn inwards towards isolation and fragmentation, Europe and Malaysia are choosing a different path,” she said.
Brussels and Kuala Lumpur launched talks for a trade deal back in 2010, but negotiations were suspended in 2012.
Malaysia’s Prime Minister Anwar Ibrahim, who was wrapping up a two-day working visit to Brussels on Monday, called the renewed engagement “a significant milestone” in strengthening economic ties with the EU.
In a statement, Ibrahim said the hoped-for trade deal could “unlock immense benefits across multiple sectors of Malaysia’s economy while strengthening the global supply chain in critical sectors.”
He predicted it would boost Malaysian exports including of electrical and electronic products, scientific equipment and palm oil, while spurring investments from the EU in green energy and advanced manufacturing.
Von der Leyen said that “a free trade agreement between Europe and Malaysia would take our trade relationship to the next level”.
“With trade between us already worth €45 billion annually, we will unlock even greater benefits for businesses and consumers, especially for industrial products.”
EU officials say they are pushing to bolster economic ties across the globe in the face of Trump’s threats of punishing trade tariffs as part of his America-first agenda.
The EU announced Friday an agreement with Mexico to strengthen their trade relations ahead of Trump’s inauguration on Monday. –AFP