EU: Re-launch of negotiations for the EU-Malaysia Free Trade Agreement

 

The EU is re-launching trade negotiations with Malaysia.

Negotiations for a Free Trade Agreement (FTA) between the EU and Malaysia began in 2010 but were put on hold in 2012 after seven rounds at Malaysia’s request. In 2023, both sides conducted a stocktaking exercise to assess the potential for resuming talks. On 20 January 2025, the EU and Malaysia officially announced the relaunch of negotiations for a comprehensive and modern FTA.

The EU is Malaysia’s fourth-largest trading partner, with goods trade totaling €45 billion in 2023 and services trade reaching €11 billion in 2022. Strengthening trade relations with Malaysia—a key economy in Southeast Asia—would enhance EU competitiveness and economic security by creating new business opportunities, reinforcing supply chains, expanding export potential, and improving access to raw materials.

The agreement will also reinforce the EU-Malaysia partnership through strong commitments to labor rights, climate action, and environmental protection, while deepening the EU’s strategic engagement in the fast-growing Indo-Pacific region. Both parties are committed to advancing negotiations swiftly, with the first substantive round planned in the coming months. In line with the EU’s transparency policy, the EU’s text proposals will be published after this round. Additionally, a Sustainability Impact Assessment has been conducted to evaluate the agreement’s potential economic, environmental, social, and human rights implications.