BRUSSELS: Prime Minister Datuk Seri Anwar Ibrahim’s two-day 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 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.
“We have been doing well in clearing a number of issues that have stalled the FTA negotiations, including the introduction of Malaysian Sustainable Palm Oil (MSPO) standard,” said Mohd Khalid Abassi to the Malaysian media covering the Prime Minister’s visit here today.
The ambassador said 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 (1H 2024), an increase of 22 per cent year-on-year from 530,051 tonnes in 1H 2023.
Mohd Khalid Abassi acknowledged that it is not easy to negotiate with 27 countries in the European grouping, but things are looking up.
Anwar breathed new life into the stalled MEUFTA talks after leading a successful trade and investment mission to Germany in March last year, when he said Malaysia had finally agreed to rekindle discussions on the trade pact to strengthen bilateral relations and regional integration further.
The Prime Minister is set to arrive in Brussels, the de facto capital of the EU, on Sunday, accompanied by Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz; Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir; and Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Anwar is scheduled to meet Caretaker Prime Minister of Belgium, Alexander De Croo on Monday to discuss the 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 the 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 2024, Malaysia’s bilateral trade with the EU, including Belgium, amounted to RM200 billion (US$43.71 billion).
To date, 1,345 manufacturing projects with EU participation have been implemented in Malaysia, attracting a total investment of RM239.9 billion (US$59.80 billion) and creating 155,933 jobs.
