BRUSSELS: Prime Minister Datuk Seri Anwar Ibrahim’s 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 Malaysia has been doing well in clearing a number of issues that have stalled the negotiations, including the introduction of Malaysian sustainable palm oil (MSPO) standard.
He 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.
“One of the reasons for the breakdown is discrimination over palm oil, particularly claims regarding open burning and labour practices,” he said, adding that 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% year-on-year from 530,051 tonnes in the first half of 2023.
Mohd Khalid Abassi acknowledged that it is not easy to negotiate with 27 countries in the European grouping, but things are looking up, Bernama reported.
During a trade and investment mission to Germany in March last year, Anwar said Malaysia had finally agreed to rekindle discussions on the trade pact to further strengthen bilateral relations and regional integration.The Prime Minister’s programme in Brussels, the de factor capital of the EU, include a meeting with caretaker Prime Minister Alexander De Croo today to discuss 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 European Council President Antonio Costa 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 last year, Malaysia’s bilateral trade with the EU, including Belgium, amounted to RM200bil.
To date, 1,345 manufacturing projects with EU participation have been implemented, attracting a total investment of RM239.9bil and creating 155,933 jobs.
