EU to strengthen trade, investment relations with South-East Asia

PHNOM PENH, March 28 (Xinhua) -- The European Union aims to open up new trade and business opportunities in this fast growing region and create strong partnerships which support ASEAN's economic integration.

In a statement released Wednesday by EU office in Cambodia, it said the European Union Trade Commissioner Karel De Gucht will head to Cambodia on Thursday to meet with ASEAN economic ministers and attend the second ASEAN-EU Business Summit on April 1.

"EU is increasing its economic ties with South-East Asia by opening negotiations for free trade agreements with Singapore and Malaysia in 2010 and remains open to start negotiating similar comprehensive free trade agreements with other partners in the region," the statement said.

These bilateral agreements are considered building blocks for a future free trade agreement with the whole region.

Commissioner De Gucht was quoted as saying in the statement that "The meeting with South-East Asia economic ministers and the second ASEAN-EU Business Summit this year, underline our dedication to engage ASEAN member states and the private sector in the region in order to strengthen our economic ties."

"Given the economic dynamism of the ASEAN region, I see considerable opportunities for working more closely together in the coming years." he said.

As planned, Commissioner De Gucht will meet with the economic and trade Ministers from the 10 ASEAN member states during the annual ASEAN Economic Ministers summit where he will discuss possibilities to enhance trade and investment relations between the EU and ASEAN.

He will also take part in individual meetings with his ASEAN colleagues to discuss bilateral trade issues.

In addition, the Business Summit will help promote dialogue between governments and the private sector as well as intensify business-to-business relations.

This year's events coincide with the 35th anniversary of the inception of official relations between the EU and ASEAN.

ASEAN represents the EU's 5th largest trading partner with 206 billion dollars of trade in goods and services.

The EU is ASEAN's 3rd largest trading partner after China and Japan, accounting for around 10.7 percent of ASEAN trade.

The EU is by far the largest investor in ASEAN countries, with EU companies accounting for an average of 20.6 percent FDI share during the period 2008-2010.

ASEAN consists of 10 member countries: Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.