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View all search resultsEuropean businesses want ASEAN FTA despite bilateral trade progress
Indonesia was the second-most targeted ASEAN market for European business expansion, with 57 percent of respondents planning to expand operations there over the next five years, trailing behind Vietnam at 64 percent.
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ASEAN’s ability to act with clarity will be tested more than ever in 2026. (Image courtesy of Bernama)
E
uropean businesses are pushing the European Union to pursue a region-to-region free trade agreement (FTA) with ASEAN, saying a broader pact would deliver greater benefits than a patchwork of bilateral deals and help close a competitiveness gap with rivals, according to a new business survey.
Nearly three-quarters of respondents said an EU-ASEAN regional trade pact would offer greater advantages than bilateral agreements, while half wanted negotiations to start in 2027, when the two regions mark 50 years of diplomatic ties, the 2026 EU-ASEAN Business Sentiment Survey show.
“If Europe wants to remain competitive in one of the world’s fastest-growing regions, it needs a broader and more ambitious economic strategy toward ASEAN,” EU-ASEAN Business Council executive director Chris Humphrey said.
The survey, conducted from April 16 to July 3, drew responses from 148 senior European business representatives covering 800 reported market presences across the region.
Read also: Toyota tug-of-war exposes ASEAN’s investment dilemma
European companies saw themselves at a disadvantage against competitors from countries that already have trade agreements with ASEAN, with 88 percent of respondents citing the gap.
Only Singapore and Vietnam currently have FTAs in force with the EU, while Indonesia finalized negotiations on the Comprehensive Economic Partnership Agreement (CEPA) in 2025, with signing targeted for October this year.
