FACTBOX-Hopes and hurdles for EU-Asia trade accords

Published 10/05/2010, 11:40 AM
Updated 10/05/2010, 11:44 AM

Oct 5 (Reuters) - European businesses are eyeing free-trade deals with Asian countries to secure opportunities in highway construction, environmental technology, banking and cars.

Below are some plans and obstacles faced by the EU and South Korea, India, Malaysia, Japan, Singapore, Thailand and Vietnam as they try to close trade pacts and temper China's dominance.

WHAT'S AT STAKE

A deal between the EU's large and mature consumer market and rapidly growing Asian economies will account for more than 60 percent of world trade.

EU AND SOUTH KOREA

- Free-trade agreement to be sealed on Wednesday, approved by European lawmakers in November and launched on July 1, 2011.

- EU expects 19 billion euros ($26 billion) in additional trade for the European bloc; 12 billion euro increase in trade for South Korea.

- Continuing concerns over cars: EU fears South Korean clauses barring European gas-guzzlers; Seoul worries European regulation still being drafted will allow Europe to shut borders to South Korean cars.

EU AND INDIA

- Negotiators hope pact will be signed in December 2010.

- EU expects deal to boost EU exports to India by up to 18 billion euros, tripling Europe's share of India's car imports to more than 80 percent.

- India exports to EU to rise by 5 billion euros by 2020, of which 70 percent in textiles and leather.

- Problems remain: India worried by covert trade barriers to Europe's textile and food sector. India resisting EU calls for access to public works contracts and opposes anti-counterfeiting rules that could hurt Indian generic drugs makers. India may oppose EU moves to give trade aid to rival textiles exporter Pakistan after floods.

EU AND MALAYSIA

- Free-trade talks to launch officially on Tuesday between EU and its second biggest trade partner in Southeast Asia.

- Bilateral trade in goods and services worth about 25 billion euros in 2009.

- Malaysia wants revision of EU sustainability rules hindering European imports of Malaysian palm-oil-based biofuel.

- EU wants Malaysian tariffs cut on wine, spirits and cars. Wants easing of current rules that limit foreign ownership of Malaysian firms to 30 percent and banks to 20 percent.

EU AND SINGAPORE

- Trade talks launched in December 2009 between EU and its biggest trading partner in Southeast Asia.

- EU hopes to expand services and banking presence in the financial hub of the ASEAN (Association of Southeast Asian Nations) region and export EU banking, competition, sustainability and intellectual property regulation.

EU AND VIETNAM

- Talks to start soon, but no date set.

- Vietnam wants EU to recognise it as a free-market economy.

- Wants access to EU's Generalised System of Preferences for developing countries and end to EU duties on Vietnamese shoes and bicycles.

- EU seeks access to services markets and public works contracts in one of Southeast Asia's fastest-growing economies.

EU AND THAILAND

- Both sides interested in starting trade talks but no date set; Thai parliament still studying merit of trade deal.

- EU currently has import tariffs on 60 percent of Thai goods, with particularly high duties on farm goods.

- Dispute at the World Trade Organization over Thai taxes on EU alcoholic beverages overshadows relations.

EU AND JAPAN

- Japan wants talks with EU to launch by May 2011; the EU has not committed to deadline.

- Japan wants a deal to re-establish its position as one of EU's main trading partners in Asia and attract EU investment.

- Japan has slipped behind China in EU-Asian trade, fears the EU-South Korea deal will harm its car and electronics exporters.

- EU has extracted from Japan assurances that any deal would improve EU investment opportunities, access to drugs markets and public works contracts, particularly in health sector. (Reporting by Juliane von Reppert-Bismarck; Editing by Matthew Jones)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.