The European Union and Malaysia have revived negotiations for a free trade agreement (FTA) after more than a decade of stalled talks. The announcement was made during Malaysian Prime Minister Anwar Ibrahim’s two-day working visit to Brussels, marking a significant step in economic cooperation between the two parties.
The negotiations, initially launched in 2010 but suspended in 2012, aim to expand on existing trade, currently valued at €45 billion annually. The proposed deal would boost Malaysian exports—especially in electrical and electronic products, scientific equipment, and palm oil—while increasing EU investments in green energy and advanced manufacturing.
"This agreement represents an important milestone in fostering economic growth for both parties," said Prime Minister Anwar Ibrahim. European Commission President Ursula von der Leyen added that the deal would "take a new step in building partnerships amidst growing geopolitical tensions."
The relaunch comes as the EU seeks to diversify its trade partnerships amidst mounting challenges. Competition with China and renewed protectionist measures by the U.S., led by newly re-elected President Donald Trump, have added urgency to the EU's trade strategies. Trump has pledged steep tariffs on imports, ranging from 10% to 100%, targeting countries like China but affecting global trade dynamics.
"While others are turning inward and isolating themselves, Europe and Malaysia are choosing another path: building partnerships," von der Leyen emphasized.
French Foreign Trade Minister Laurent Saint-Martin echoed this sentiment, cautioning against undue anxiety over Trump's policies while advocating for a more proactive EU stance in global trade.
The EU-Malaysia talks follow the EU’s recent moves to finalize trade agreements with Mexico and the Mercosur bloc, comprising Argentina, Brazil, Paraguay, and Uruguay. These agreements aim to eliminate tariffs, simplify export procedures, and protect European product labels.
Despite these efforts, criticism persists. Environmentalists and labor rights groups argue that these deals prioritize free trade at the expense of social and environmental protections. Left-wing MEP Leïla Chaibi criticized the EU for "persisting in ever more free trade, environmental damage, and social dumping."
