The European Union is preparing to reassess the prospect of a region-to-region trade agreement with ASEAN after 2027, signalling a cautious but strategic recalibration of its economic engagement with Southeast Asia amid shifting global trade dynamics.
EU Ambassador to ASEAN Sujiro Seam said the two blocs had agreed to treat a comprehensive regional trade deal as a “long-term objective”, but acknowledged that negotiations were unlikely to begin before the end of the decade. In the interim, Brussels is prioritising bilateral trade agreements with individual ASEAN member states as incremental building blocks toward a broader framework.
The EU currently has free trade agreements in force with Singapore and Vietnam, while a third pact, the Comprehensive Economic Partnership Agreement (CEPA) with Indonesia, is awaiting legislative approval. Once ratified, the agreement is expected to enable tariff-free access for Indonesian exports to the EU as early as next year. Negotiations are also underway with Thailand, the Philippines and Malaysia, with EU Trade Commissioner Maroš Šefčovič pledging to conclude talks by 2027.
Seam suggested that the completion of these bilateral deals would create the political and legal conditions necessary for reconsidering a bloc-to-bloc agreement thereafter. “Implicitly, that means the question of a region-to-region free trade agreement could indeed be reviewed after 2027,” he said.
The EU’s outreach comes as ASEAN recalibrates its external partnerships in response to a more protectionist US trade posture. US President Donald Trump’s imposition of steep reciprocal tariffs on Southeast Asian economies, ranging from 10% to as high as 49% in April 2025, alongside cuts in American foreign aid, has altered the regional strategic balance.
According to Seam, ASEAN states are seeking to diversify their economic partnerships rather than over-rely on China or the United States. “ASEAN wanted to keep the balance among its external partners,” he said, adding that this shift has indirectly strengthened the EU’s position as an alternative economic partner.
Trade figures underscore the scale of the relationship. EU-ASEAN goods trade reached €258.8 billion in 2024, with Europe importing significantly more from the region than it exported. Services trade totalled €132.1 billion in 2023, reflecting deepening interdependence beyond manufacturing and commodities.