Asean-Eu Free Trade Agreement (Fta)
The EU has expressed interest in a series of free trade agreements (FAs) in the region, not only with Thailand, but finally with Asean as a whole, said Donald Kanak, President of the EU-Asean Business Council. In addition to trade negotiations with the various ASEAN Member States, the EU works closely with the entire ASEAN region. Cooperation between the two regions is complemented by a semi-annual ASEAN-EU trade and investment programme, which is based on the following activities: The Vietnamese government estimates that exports to the EU will increase by 20% under the agreement, adding 3% to gross domestic product (GDP) by 2023. Negotiations are also under way with Myanmar (Burma) for an investment protection agreement. Ensure the participation of civil society groups in the political decision-making process leading to the full implementation of the Indonesian Free Trade Agreement (ASEAN). The resolution of these cases could take several years and may dampen the EU`s enthusiasm for duty-free trade with both countries. Based on the above results, this study argues that an agreement in favour of all parties will take into account the following considerations: a second trade agreement with Vietnam, signed in June, is expected to enter into force at the end of 2019. The European Union is considering a bilateral agreement with the Association of Southeast Asian Nations (ASEAN). On May 4, 2007, the two sides agreed to begin negotiations. Brexit will destabilize two dimensions of this equation. First, it will have an impact on the way the EU negotiates its bilateral free trade agreements with ASEAN Member States, many of which are still ongoing.
Secondly, it will look at how the UK, which will be outside the EU`s free trade agreements after Brexit, will be forced to seek its own free trade agreements with ASEAN countries, although no formal negotiations can be initiated until it officially leaves the EU. The EU is the largest investor in the ASEAN region, with almost a third of all foreign direct investment (FDI). It is also the bloc`s second-largest trading partner, with a total of $265 billion in 2018. A trade agreement between the regions would have a profound impact on FDI flows and the volume of ASEAN exports. The EU has also concluded free trade agreements with its two main ASEAN trading partners. While guaranteeing duty-free trade with Indonesia, Malaysia, Thailand and the Philippines would bring considerable economic benefits, the EU is very concerned about a free trade agreement with the ASEAN economic bloc. While most Indonesian stakeholders believe that economic and trade relations with the EU are important, there are also widespread fears that the proposed AEUFTA will have a significant negative impact on the country`s well-being in the short term. Due to the decrease in friction points, there is no doubt that the EU will insist on free trade agreements with other ASEAN countries. However, any bilateral trade agreement reduces the need for a regional agreement. As each nation is open to duty-free trade with the EU, the need for a cross-border regional free trade agreement is diminishing. In the end, the EU will effectively negotiate a multilateral agreement.
This study is an in-depth review of ASEAN and the EU`s plan for the creation of a free trade agreement. In particular, it seeks, using qualitative and quantitative methods, to assess the economic impact of this proposed free trade agreement on one of ASEAN`s developing countries, Indonesia. Both Indonesia and the EU have improved their bilateral economic relations by signing a Partnership and Cooperation Agreement (CPA) in 2009 covering various areas of cooperation, such as trade, investment, human rights and climate change.