BRUGES: Malaysia and the European Union (EU) have not set any time frame to conclude their negotiations for the Malaysia-EU Free Trade Agreement (MEUFTA).
Prime Minister Datuk Seri Anwar Ibrahim, however, said both parties agreed to accelerate the negotiations.
Anwar, who is also the Finance Minister, said previous talks between Malaysia and EU could not be concluded due to a few factors.
"We were not ready to accept their unreasonable conditions,” he told the Malaysian media at the end of his two-day visit to Belgium. He left for Switzerland to attend the World Economic Forum (WEF) in Davos.
Negotiations for MEUFTA 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.
According to the prime minister, Malaysia is in a better position now to negotiate with EU due to its political stability and economic strength.
Furthermore, Anwar said Malaysia's forestation programme has enabled the country to preserve about 54.58 per cent or 18.05 million hectares of its forest.
On other developments, during the Prime Minister’s engagement with the President of the European Council, Antonio Costa, both sides agreed to expedite discussion on the European Investment Bank (EIB) Framework Agreement.
According to reports, the EU pledged €10bil (RM46.7bil) in connectivity investments to ASEAN.
In a statement from the Prime Minister’s Office (PMO) on Monday (Jan 20), the Prime Minister and the President of the European Commission Ursula von der Leyen announced the resumption of negotiations for the MEUFTA, marking a significant milestone in strengthening Malaysia’s economic ties with one of the world’s largest trading blocs.
The PMO said the resumption of talks also underscores Malaysia’s commitment to fostering deeper economic ties with the EU, a major trade and investment partner for Malaysia.
"This milestone also reflects the enduring strength of partnership between both parties and their shared commitment to fostering economic prosperity," it said.
According to the PMO, the MEUFTA is expected to unlock immense benefits across multiple sectors of Malaysia’s economy while strengthening the global supply chain in critical sectors.
"It is poised to bolster exports from sectors such as electrical and electronic products, palm oil and its derivatives, as well as optical and scientific equipment to the EU market, among others.
In 2023, the EU was Malaysia’s fourth largest trading partner, with trade reaching RM206.79bil.
For the period of January to November 2024, trade with the EU grew by 5.2% to RM200bil compared to the same period in 2023.
As of 2023, EU investments in Malaysia had generated over 153,000 jobs through 1,323 projects valued at RM227.9bil. - Bernama
