The UK, having left the European Union at the end of 2020, has highlighted a trade deal with ASEAN as ‘extremely high priority’. Currently, the EU has free trade agreements in place with Singapore and Vietnam, the execution of which was made easier by the two countries having an existing trade agreement with the EU.
In 2019, trade between the UK and ASEAN reached US$ 35 billion or 12.7% of the total trade between ASEAN and the EU, making UK ASEAN’s fourth biggest trading partner in Europe.
The UK views the question of palm oil, which has been a challenging issue for the EU and ASEAN to overcome in trade negotiations, as a point to work together on and find common ground. There is existing strong demand in the UK for palm oil and palm oil products, and the UK is taking the position that working with national governments, and supporting communities living and working in highly forested areas, is the way towards sustainability.
Britain is already conducting joint trade reviews with Thailand and Indonesia for potential deals, and is engaged with Malaysia through a joint committee on issues such as trade policy and market access. In June 2020, the UK applied to become an ASEAN dialogue partner, which is another way for nations to strengthen ties with ASEAN, through high level talks on regional and global issues. Successful or not, the UK is certain there is a lot for the UK and ASEAN to work on.
Source: Nikkei Asia
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February 02, 2021
