Jakarta. Many European businesses are still hungry for a regional trade agreement with ASEAN, as the tariff eliminations can create a level playing field with their rivals, according to a survey.

The European Union (EU) has long been eyeing a free trade agreement with ASEAN. But before heading in that direction, the 27-member group wants to pursue trade pacts with the individual ASEAN states. The EU-ASEAN Business Council (EU-ABC) recently interviewed around 150 European business leaders on whether they still want a bloc-to-bloc agreement. Results showed that the interest remained high.

“Nearly three-quarters of respondents [74%] believe that [such an agreement] would offer greater advantages than a series of bilateral [ones],” the EU-ABC report reads. 

But their appetite for an ASEAN-EU pact has been on a decline. The idea had gained backing from 84% of the respondents in 2025, also down from an 88% approval rating the previous year.  

The EU-ABC attributed the drop to the progress in the bilateral agreement negotiations, which European companies might have considered as a “near-term route to improved market access”. Some 49% would like to see the bloc-to-bloc deal talks in 2027 when the groups mark five decades of relations.

Many European businesses believe a regional framework can create a level playing field with its pact-backed rivals. Around 44% of the respondents believed that the lack of a regional trade agreement with ASEAN had put European firms at a “significant disadvantage” compared to their rivals that do benefit from one. About 44% perceive the absence as a “moderate disadvantage” against the competitors, while 12% do not see any negative consequences.

While the report did not point to a particular agreement, ASEAN and some of its key partners are bound to the world’s largest trade deal, RCEP. It builds upon ASEAN’s trade agreements with Japan, China, South Korea, New Zealand, and Australia. The RCEP allows businesses from these countries to gain tariff-free access to ASEAN markets. 

At Brunei Darussalam’s ASEAN-EU ministerial talks in late April, both sides agreed that a regional trade framework remained in the pipeline. But they framed it as a long-term goal and did not set any timeline for the negotiations.

"[A region-to-region deal] will expand market access for ASEAN and EU businesses. It will be very strategic. Today, we see many countries wanting to close their markets," Deputy Foreign Minister Arrmanatha Nasir told the Jakarta Globe at the time.

So far, Vietnam and Singapore are the only ASEAN nations to have an EU trade pact. Europe’s Indonesian deal is set to enter into force in early 2027, although only 29% of the respondents are confident that they can meet the deadline. The rest are either neutral or not confident. Negotiations are underway with the Philippines, Malaysia, and Thailand.

ASEAN data showed that its two-way merchandise trade with the EU totaled $320 billion last year.

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