Malaysia EU Trade Talks Revival Hopes
BRUSSELS: Prime Minister Datuk Seri Anwar Ibrahim’s two-day visit to Belgium is expected to revive negotiations for the long-stalled Malaysia-European Union Free Trade Agreement (MEUFTA), offering a fresh opportunity to strengthen trade ties.
Malaysian ambassador to Belgium, Luxembourg, and the European Union (EU), Datuk Mohd Khalid Abassi Abdul Razak said negotiations for the Free Trade Agreement (FTA) started in 2010, but stalled in 2012 following Malaysia’s reservations over the EU’s palm oil procurement policies, subsidies and sustainability clauses.
Discrimination over palm oil, particularly claims regarding open burning and labour practices, were among the reasons for the breakdown in negotiations. Malaysia has been working to clear a number of issues that stalled the FTA negotiations, including the introduction of Malaysian Sustainable Palm Oil (MSPO) standard.
The EU’s import of palm oil from Malaysia has been increasing recently. According to the Malaysian Palm Oil Council, the EU imported a total of 646,819 tonnes of palm oil from Malaysia in the first half of 2024, an increase of 22 per cent year-on-year from 530,051 tonnes in 2023.
Negotiating with 27 countries in the European grouping is not easy but Malaysia is making progress. Anwar breathed new life into the stalled MEUFTA talks after leading a successful trade and investment mission to Germany in March last year, when he agreed to rekindle discussions on the trade pact to strengthen bilateral relations and regional integration further.
The Prime Minister arrived in Brussels, the de facto capital of the EU, accompanied by Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz; Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir; and Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Anwar met Caretaker Prime Minister of Belgium, Alexander De Croo to discuss the Malaysia-Belgium bilateral relations and intensify cooperative endeavours, as well as to exchange views on regional and international issues of mutual interest. He will also meet with the European Council President to discuss ways to deepen Malaysia-EU ties and regional cooperation.
The EU is Malaysia’s fourth-largest trading partner, after China, Singapore, and the United States. From January to November 2024, Malaysia’s bilateral trade with the EU, including Belgium, amounted to RM200 billion.
To date, 1,345 manufacturing projects with EU participation have been implemented in Malaysia, attracting a total investment of RM239.9 billion and creating 155,933 jobs.