BRUSSELS (Jan 20): European Commission President Ursula von der Leyen called the relaunching of negotiations for a Malaysia-European Union (EU) Free Trade Agreement (MEUFTA) an important step forward together.

“This excellent news comes at a critical time. Geopolitical tensions are escalating, and the risk of instability is growing,” she said.

In a statement on Monday, von der Leyen said that while some turn inwards towards isolation and fragmentation, Europe and Malaysia are choosing a different path: reaching out, building partnerships, and creating new opportunities for our people.

The announcement was made in conjunction with Prime Minister Datuk Seri Anwar’s working visit to Brussels, Belgium, from Sunday to Monday.

“I have full confidence in our teams to deliver an agreement we can all be proud of. Let’s get to work,” said Von der Leyen, adding that Europe and Malaysia share a commitment to a rules-based international order, economic openness, sustainable development, and regional stability.

Von der Leyen said Europe remains dedicated to advancing a free and open Indo-Pacific, where both sides share significant interests and responsibilities.

“As our third-largest trading partner in Asean and the current chair, Malaysia plays a central role in shaping the bloc’s direction,” she said.

Monday’s announcement reaffirms Europe’s commitment to strengthening ties with both Malaysia and Asean as a whole.

“A free trade agreement between Europe and Malaysia would take our trade relationship to the next level. With trade between us already worth €45 billion (RM208.04 billion) annually, we will unlock even greater benefits for businesses and consumers, especially for industrial products,” von der Leyen said.

The EU president said that open and smooth trade means better choices and prices.

“It also means less risk, as integrating and diversifying supply chains strengthens our economic security. Like all Europe’s free trade agreements, this is about more than economic exchanges.

“We will aim to build our partnership on robust commitments on labour rights and climate and environmental protection. Once concluded, this agreement will provide a platform of dialogue on issues the EU cares deeply about, including respect for human rights. We are showing that sustainability and free trade can and must go hand in hand,” she added.

In 2023, the EU was Malaysia’s fourth largest trading partner, with trade reaching RM206.79 billion.

For the period of January to November 2024, trade with the EU grew by 5.2% to RM200 billion 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 RM227.9 billion.