The EU-ASEAN Business Council (EU-ABC) has called on the European Union and ASEAN to establish a region-to-region economic framework in 2027, laying the groundwork for an eventual free trade agreement (FTA) between the two blocs.
The proposal comes as ASEAN and the EU prepare to mark 50 years of relations next year, with the business council urging both sides to translate progress on bilateral trade agreements into a broader regional economic partnership.
EU-ABC Chair Jens Ruebbert made the call during consultations with ASEAN Economic Ministers and EU trade officials at the 58th ASEAN Economic Ministers’ Meeting in Manila on Tuesday.
He said recent progress in trade negotiations between the EU and individual Southeast Asian countries demonstrated the growing strategic importance of ASEAN to Europe.
However, Ruebbert stressed that bilateral agreements should serve as the foundation for a more ambitious region-to-region FTA rather than become the final objective of economic cooperation.
“We strongly believe a regional deal would provide a competitive edge for European and Southeast Asian companies alike, bringing trade and investment to a level that reflects the scale and strategic importance of the ASEAN-EU relationship,” he said.
European Businesses Back Region-Wide Trade Deal
The call follows progress in the EU’s bilateral trade negotiations with several ASEAN member states.
European Commission President Ursula von der Leyen and Philippine President Ferdinand Marcos Jr. welcomed an agreement on an EU-Philippines FTA on Tuesday, with formal negotiations expected to conclude shortly and ratification anticipated in 2027
The EU has also concluded negotiations with Indonesia, while FTAs with Singapore and Vietnam are already in force. Negotiations with Malaysia and Thailand are targeted for completion by 2027.
Digital Trade And Investment Protection Among Priorities
The EU-ABC proposed an ASEAN-EU Economic Framework Agreement that would allow both regions to advance economic integration progressively without requiring every component of a comprehensive FTA to be negotiated simultaneously.
The framework would establish baseline economic commitments and mechanisms for reviewing progress and expanding cooperation into additional sectors.
Its first priority would be a region-to-region Digital Trade Agreement (DTA), with negotiations potentially launched in 2027.
Ruebbert said such an agreement could facilitate trusted cross-border data flows, strengthen digital integration and address emerging issues involving artificial intelligence governance and cybersecurity.
The proposed DTA could also build on ASEAN’s recently concluded Digital Economy Framework Agreement (DEFA).
An Investment Protection Agreement could follow to establish clearer investment standards and provide greater certainty for European companies making long-term commitments in Southeast Asia.
ASEAN Power Grid Partnership Proposed
Beyond trade agreements, the EU-ABC identified two additional priorities for the 2027 anniversary: a flagship partnership on the ASEAN Power Grid and structured cooperation to accelerate ASEAN’s regional economic integration.
The proposed power grid partnership would involve technical and financial support from the EU, drawing on its experience in interconnected electricity systems and funding mechanisms such as the Global Gateway initiative.
The council also proposed directing European resources towards ASEAN’s trade facilitation priorities, including implementation of the upgraded ASEAN Trade in Goods Agreement, enhancements to the ASEAN Customs Transit System and ASEAN Single Window, and implementation of DEFA.
EU-ABC Executive Director Chris Humphrey said €105 million in grant funding had already been allocated to Team Europe initiatives supporting sustainable connectivity and the green transition.
“The idea is to consolidate this substantial base and organise resources more clearly around tangible outcomes for a more resilient and integrated ASEAN market,” he said.
Humphrey also called for stronger political engagement between ASEAN and the EU, particularly through greater participation by European Commissioners in regional meetings and closer cooperation across digital technology, finance, energy and healthcare.
“The 50th anniversary of ASEAN-EU relations should not be merely symbolic. It must focus on delivering tangible outcomes, in order to build a trusted, long-lasting partnership that is rooted in practical cooperation,” he said.
