Overview
The European Union (EU) became ASEAN’s Dialogue Partner in 1977, marking the beginning of a long-standing and comprehensive partnership. This relationship was further institutionalised with the signing of the ASEAN–European Economic Community (EEC) Cooperation Agreement on 7 March 1980, which established the Joint Cooperation Committee (JCC) to promote and facilitate cooperation between the two regions in economic and other fields.
On 1 December 2020, the 23rd ASEAN–EU Ministerial Meeting (AEMM) agreed to elevate the partnership to a Strategic Partnership, underscoring the growing importance of ASEAN–EU cooperation across political, economic, and socio-cultural dimensions.
The EU remains one of ASEAN’s most important economic partners, serving as a key source of trade, investment, and technology. In 2024, two-way merchandise trade between ASEAN and the EU reached USD 292.8 billion, making the EU ASEAN’s third-largest trading partner. In the same year, the EU was also ASEAN’s third-largest source of Foreign Direct Investment (FDI), with inflows amounting to USD 20 billion.
ASEAN–EU cooperation in trade and economic matters has been grounded in a shared commitment to open, rules-based, and sustainable trade. At the 8th ASEAN Economic Ministers (AEM)–EU Trade Commissioner Consultation in May 2007, Ministers agreed to launch negotiations for an ASEAN–EU Free Trade Agreement (FTA). To facilitate this, both sides established a Joint Committee (JC) to develop detailed modalities, a work programme, and a negotiation schedule. Between 2007 and 2009, the ASEAN–EU JC convened seven times before both sides agreed to pause the region-to-region FTA negotiations.
In 2017, during the 15th AEM–EU Trade Commissioner Consultation, Ministers agreed to launch region-to-region discussions to develop a framework setting out the parameters for a future ASEAN–EU FTA. A Joint Working Group (JWG) was established to undertake this task and met four times between 2017 and 2020 to finalise the Draft Framework Setting Out the Parameters of a Future ASEAN–EU FTA (also referred to as the Parameters Paper).
However, at the 18th AEM–EU Trade Commissioner Consultation in 2022, Ministers acknowledged the challenges in concluding the Parameters Paper. They reaffirmed that a region-to-region FTA remains a long-term objective, while agreeing to intensify cooperation in specific sectors in the short to medium term. To this end, Ministers tasked the JWG to explore enhanced and concrete sectoral initiatives in areas that could build confidence and deepen the ASEAN–EU economic partnership, including (i) Digital Trade, (ii) Green technologies and green services, and (iii) Supply chain resilience.
Since 2023, the ASEAN–EU Joint Working Group has been meeting annually to advance discussions in these priority areas and explore pathways for deepening ASEAN–EU economic cooperation.
Priority Areas of Cooperation
- ASEAN-EU Trade and Investment Work Programme
- The ASEAN-EU Comprehensive Air Transport Agreement (CATA)
- Enhanced-Regional EU-ASEAN Dialogue Instrument (E-READI Facility)
- EU ASEAN Sustainable Connectivity Package-Trade (SCOPE Trade)
- EU ASEAN Sustainable Connectivity Package-Investment Facility (SCOPE IF)
- This project is designed to facilitate sustainable infrastructure investments in the ASEAN region (covering sectors such as transport, energy and digital) in line with ASEAN’s connectivity and economic community blueprints. Its key outputs include: recommendations to improve regulatory, institutional and planning frameworks for sustainable infrastructure; identification and development of sustainable infrastructure investment projects in ASEAN; and enhanced coordination of the EU “Team Europe Initiative” on sustainable connectivity.
- EU ASEAN Sustainable Connectivity Package-Intellectual Property Rights (SCOPE IPR)
- Technical Assistance Facility to the Green Team Europe Initiative (TAF GTEI)
- Private Sector Engagement
Following the adoption of the Bandar Seri Begawan Plan of Action to strengthen the ASEAN-EU Enhanced Partnership (2013-2017), the 12th AEM-EU Trade Commissioner Consultation in 2013 endorsed the ASEAN-EU Trade and Investment Work Programme (TIWP) for 2013-2014 to improve two-way trade relations and investment between ASEAN and the EU, as well as supporting broader integration within ASEAN, and between ASEAN and the EU. To date, there have been eight (8) ASEAN-EU TIWP, the latest being ASEAN-EU TIWP 2026-2027 that was endorsed by the 21st AEM-EU Trade Commissioner Consultation in 2025. The areas of cooperation covered in the ASEAN-EU TIWP 2026-2027 include (i) Consultation at the Economic Ministers level, (ii) Consultations at the Senior Economic Officials level, (iii) Dialogue with the private sectors, (iv) Capacity and technical assistance.
At the 28th ASEAN Transport Ministers’ Meeting, which was convened on 17 October 2022, ASEAN and the EU signed the Comprehensive Air Transport Agreement (CATA), the first bloc-to-bloc air transport agreement which will provide greater opportunities for airlines of ASEAN and the EU to operate passengers and cargo services between and beyond both regions. Under the ASEAN-EU CATA, airlines of ASEAN and the EU will be able to fly any number of services between both regions.
A cooperation project that facilitates policy dialogues and knowledge sharing between ASEAN and the EU across a broad range of sectoral areas, including trade and investment. E-READI also provides technical and logistical support to the ASEAN-EU JWG-TI to help both sides exchange best practices and advance initiatives in areas such as digital trade, green growth, and supply chain resilience.
A project under the EU-ASEAN Sustainable Connectivity Package which focuses on strengthening economic and trade connectivity between the EU and the Association of Southeast Asian Nations (ASEAN), and within ASEAN itself. It aims to improve: (i) the policy and regulatory environment for fair, sustainable trade and investment in ASEAN; (ii) digital connectivity capacities; and (iii) knowledge and capacities for sustainable value-chain management (environmental, economic & social) among ASEAN institutions and the private sector.
This project seeks to reinforce intellectual property (IP) protection and enforcement across ASEAN countries in line with EU standards and international agreements. Its core objectives are to: strengthen ASEAN member states’ legal and regulatory frameworks on IP; support development of a coordinated ASEAN IP policy framework/action plan; build the technical capacities of ASEAN IP offices and competent authorities; and raise awareness among the private sector and the public on creation, protection, utilisation and commercialisation of IP.
This project aims to enhance EU-ASEAN cooperation on climate change, sustainable management of natural resources, sustainable food systems and the clean energy transition. It provides capacity-building, technical assistance, peer-learning and dialogues to reduce environmental impacts and climate-related disaster risks in ASEAN.
The ASEAN-EU Business Summit serves as a platform for strategic dialogue between the public and private sectors of ASEAN and the EU. The first ASEAN-EU Business Summit (AEBS) was held on 5 May 2011 at the margin of the 10th ASEAN-EU Trade Commissioner Consultations and the 18th ASEAN Summit in Jakarta. The 2nd ASEAN-EU Business Summit was held on 1 April 2012, at the margin of the 11th AEM-EU Trade Commissioner Consultations in Phnom Penh, Cambodia. The 3rd ASEAN-EU Business Summit was held on 8–9 March 2013 at the margin of the 12th AEM-EU Trade Commissioner Consultations. The 4th AEBS was held on 23 August 2015 in Kuala Lumpur, Malaysia at the margin of the 47th ASEAN Economic Ministers Meeting. The 5th AEBS was held in March 2017 at the margins of the 15th AEM-EU Trade Commissioner Consultations, in Manila.
Thus far, the AEBS focused its discussions in the sectors of infrastructure, agri-food, healthcare, automotive, manufacturing and services. Recommendations arising from the AEBS and sectoral discussions had been presented to the AEM-EU Trade Commissioner.
Major Sectoral Bodies/Committees
AEM–EU Trade Commissioner Consultation
The ASEAN Economic Ministers (AEM)–EU Trade Commissioner Consultation comprises the ASEAN Economic Ministers and the European Union Trade Commissioner. This Consultation are held annually to review and assess the overall progress of ASEAN–EU economic relations, and to provide strategic guidance and policy directions for enhancing future economic cooperation between the two regions.
Senior Economic Officials Meeting (SEOM)–EU Consultation
Comprises senior economic officials from ASEAN Member States and the European Union. This Consultation are held regularly to support the AEM–EU Consultations by monitoring implementation progress and advancing initiatives aimed at strengthening trade, investment, and economic cooperation between ASEAN and the EU.
ASEAN–EU Joint Working Group on Trade and Investment (JWG-TI)
The ASEAN–EU Joint Working Group on Trade and Investment (JWG-TI) comprises senior officials from ASEAN Member States and the European Union. The JWG-TI meets annually to discuss cooperation in priority areas, namely (i) digital trade, (ii) green technologies and green services, and (iii) supply chain resilience. The Group also serves as a platform to explore practical pathways for deepening ASEAN–EU economic cooperation and supporting the long-term goal of a closer ASEAN–EU economic partnership.
Key Documents
- 16th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Singapore, 2 March 2018
- 15th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Manila, the Philippines, 10 March 2017
- 14th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Chiang Mai, Thailand, 3 March 2016
- 13th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Kuala Lumpur, Malaysia, 26 April 2015
- 12th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Ha Noi, Viet Nam, 8 March 2013
- 11th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Phnom Penh, Cambodia, 1 April 2012
- 10th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Jakarta, Indonesia, 6 May 2011
- 9th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Da Nang, Viet Nam, 27 August 2010
- 8th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Brunei Darussalam, 4 May 2007
- Joint Media Statement
- 7th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Makati City, Philippines, 16 May 2006
- 6th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Ha Long, Viet Nam, 27 April 2005
- 5th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Jakarta, Indonesia, 5 September 2004
- 4th ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Yogyakarta, Indonesia, 20 January 2004
- 3rd ASEAN Economics Ministers and the EU Trade Commissioner Consultations, Luang Prabang, Lao PDR, 4 April 2003
- 2nd Consultation between the ASEAN Economics Ministers and the EU Trade Commissioner, Ha Noi, Viet Nam, 12 September 2001
- The Consultations between the ASEAN Economic Ministers and the EU Trade Commissioner, Chiang Mai, Thailand, 6 October 2000
