KUALA LUMPUR (Reuters) – Malaysia and the European Union have announced the resumption of negotiations for a free trade deal, 12 years after talks were put on hold over a disagreement related to the Southeast Asian country’s palm oil industry.
The decision was made following Prime Minister Anwar Ibrahim’s working visit to Brussels on Sunday.
“The free trade agreement is expected to unlock immense benefits across multiple sectors of Malaysia’s economy while strengthening the global supply chain in critical sectors,” Anwar’s office said in a statement on Monday.
A free trade deal would boost EU investments in Malaysia in areas like manufacturing and green energy, it said, while bolstering exports to the EU market such as electrical and electronic products, optical and scientific equipment and palm oil and its derivatives.
Malaysia is the world’s second-largest palm oil exporter.
European Commission President Ursula von der Leyen said a trade deal with Malaysia was about more than economic exchanges.
“We will aim to build our partnership on robust commitments on labour rights and climate and environmental protection,” she said in a statement.
(Reporting by Ashley Tang; Editing by Martin Petty)
