Southeast Asia FTAs welcomed by Euratex

Euratex, the Brussels-based association representing around 200,000 textile industry companies, has published a position paper on the European Union’s new Free Trade Agreements (FTAs) with four key Southeast Asian countries.

The association strongly supports the swift conclusion of the FTAs with Indonesia, Malaysia, the Philippines and Thailand, to enhance the competitiveness, resilience and sustainability of the European textile and apparel industry.

The European textile sector is highly globalised, with over €60 billion in annual exports and more than half generated by small and medium-sized enterprises (SMEs). With rising global competition, particularly from China, the EU must act decisively to diversify trade, reduce dependency, and unlock new opportunities in the ASEAN region.

Euratex is advocating for FTAs that ensure open and efficient markets through reduced tariffs and fewer trade barriers and the legal certainty and protection of intellectual property rights for European businesses.

It also highlights the need for sustainable development goals to be aligned with international social and environmental standards, with    strong support for WTO principles, including reforms on subsidies, and public procurement.

As a major Southeast Asian economy, a deal with Indonesia would improve market access, reduce non-tariff barriers and strengthen EU investment, while Malaysia offers EU companies a gateway to wider Asian markets and high-value manufacturing partnerships.

The Philippines is an emerging market with growing demand and potential for enhanced cooperation on EU standards and as a  strategic trade hub, Thailand offers prospects for resilient supply chains and streamlined customs procedures.

To ensure mutual benefit, Euratex highlights the need for modern rules of origin, effective customs enforcement, non-tariff barrier elimination and public procurement access. Other provisions, such as including Turkey in the Malaysia agreement, should also be considered.

In the face of growing geopolitical uncertainty and global overcapacity – especially in the synthetic fibre segment – these FTAs offer a strategic response, Euratex believes. They will not only secure fair trade but also reinforce the EU’s presence in a region vital to the future of sustainable and competitive textiles, the association concludes.

The Euratex position paper can be read here.

www.euratex.eu

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