EUTP 5EU TRADE RELATIONS WITH ASIA

EU – JAPAN EU – INDIA EU – CHINA EU – ASEAN

Overview of FTA and other EU trade negotiations with ASIA

EU – China EU – Japan EU – India

EU – ASEAN

ASEAN: 1. Brunei Darussalam2. Myanmar/Burma3. Cambodia4. Indonesia5. Laos6. Malaysia7. Philippines8. Singapore9. Thailand10. Vietnam

EU – China -> trade picture (1)

China is the EU's biggest source of imports and its second-biggest export market. China and Europe trade on average over €1 billion a day

EU’s main imports from China are industrial and consumer goods, machinery and equipment, and footwear and clothing

EU main exports to China are: machinery and equipment, motor vehicles, aircraft, and chemicals

EU-China trade in services amounts to more than 10% of total trade in goods, and the EU's exports of services make up 19% of EU's total exports of goods

EU – China -> trade picture (2)The European Union and China are two of the biggest traders in the world. China is now the EU's second-biggest trading partner behind the United States and the EU is China's biggest trading partner.

The EU is committed to open trading relations with China. However, the EU wants to ensure that China trades fairly, respects intellectual property rights and meets its obligations as a member of the World Trade Organization (WTO).

In 2013 the EU and China launched negotiations for an Investment Agreement. The aim is to provide investors on both sides with predictable, long-term access to the EU and Chinese markets and to protect investors and their investments.

EU – China -> Investmentagreement?

Negotiations of a comprehensive EU-China investment agreement were formally launched at the EU-China Summit of 21 November 2013 in Beijing

With this agreement, the EU seeks to create new investment opportunities for European companies by opening China’s market and eliminating discriminatory laws and practices

Provisions on investment protection should ensure a high level of protection for European companies, while preserving governments’ right to regulate

It will replace the 26 existing Bilateral Investment Treaties between 27 individual EU Member States and China by one single comprehensive investment Agreement

In 2016 the EU and China negotiators reached clear conclusions on an ambitious and comprehensive scope for the EU-China investment agreement and established a joint negotiating text

Next steps

Current status

The next round takes place on the week of 2 March via videoconference.

EU-China Comprehensive Agreement onInvestment

When China joined the WTO in 2001 it agreed to reform and liberaliseimportant parts of its economy. While China has made progress, someproblems remain:A lack of transparency; industrial policies and non-tariff measures that discriminate against foreign

companies; strong government intervention in the economy, resulting in a dominant position

for state-owned firms, unequal access to subsidies and cheap financing, and; poor protection and enforcement of intellectual property rights

In 2016 the EU adopted a new strategy on China mapping out the EU’s relationship with China for the next five years. The strategy promotesreciprocity, a level playing field and fair competition across all areas of co-operation

The strategy also includes a trade agenda with a strong focus onimproving market access opportunities – including negotiations ona Comprehensive Agreement on Investment

The negotiations aim to: improve investment for European

and Chinese investors by creating investment rights and guaranteeing non-discrimination

improve transparency, licensing and authorisation procedures

provide a high and balanced level of protection for investors and investments, and

put in place rules on environmental and labour-related aspects of foreign investment

China – WTO

China became the 143rd WTO Member on 11 December 2001

The admission to the WTO was preceded by a lengthy process of negotiations and required significant changes to the economy

After China joined the WTO: its service sector was considerably liberalized and foreign

investment was allowed its restrictions on retail, wholesale and distribution ended Banking, financial services, insurance and telecommunications

in China were also opened up to foreign investment China had to deal with certain concerns linked

to transparency and intellectual property that the accession to WTO underlined

China is respondent in numerous dispute cases settled by the WTO

Source: https://www.wto.org/english/thewto_e/countries_e/china_e.htm

ЕU – Japan –> trade picture

The EU and Japan's Economic Partnership Agreement (ЕPA) entered into force on 1 February 2019

EU firms already export nearly €70bn in goods and €28bn in services to Japan every year

In the past European firms faced trade barriers when exporting to Japan, which sometimes made it hard for them to compete.

The trade agreement with Japan: removes tariffs and other trade barriers and creates a

platform to cooperate in order to prevent obstacles to trade; and

helps us shape global trade rules in line with our high standards and shared values, and;

sends a powerful signal that two of the world's biggest economies reject protectionism

Japan is:

▶ the EU’s 2nd biggest trading partner in Asia after China ▶ the EU’s 6th most important trading partner worldwide Europe is: ▶ Japan’s 2nd biggest trading partner worldwide

The value of EU exports of goods to Japan is €58 billion The value of EU exports of services to Japan is €28 billion 600,000 jobs tied to EU exports to Japan 550,000 people employed by Japanese companies in the EU Almost 74,000 EU companies are exporting to Japan. 78% of those are

smaller firms

1 February 2020 - first anniversary of the entry into force of the EU-Japan EPA

In the first ten months following the implementation of the agreement, EU exports to Japan went up by 6.6% compared to the same period the year before

This outperforms the growth in the past three years, which averaged 4.7% (Eurostat data)

Japanese exports to Europe grew by 6.3% in the same period.

Certain sectors have seen even stronger export growth over the same period:Meat exports increased by 12%, with a 12.6% increase for pork exports, and frozen beef exports have

more than tripled.Dairy exports were up by 10.4% (including a 47% increase in butter exports).Beverages exports went up by 20%, with 17.3% growth in wine exports.Leather articles exports and apparel have seen an increase of 14% and 9.5%, respectively.Electrical machinery exports, such as telecommunications equipment, storage devices and electronic

circuits went up by 16.4%.

The key parts of the Economic Partnership Agreement (1)

With regards to agricultural exports from the EU, the agreement will, in particular:

scrap Japanese duties on many cheeses such as Gouda and Cheddar (which currently are at 29.8%) as well as on wine exports (currently at 15% on average);

allow the EU to increase its beef exports to Japan substantially, while on pork there will be duty-free trade in processed meat and almost duty-free trade for fresh meat;

ensure the protection in Japan of more than 200 high-quality European agricultural products, so called Geographical Indications (GIs), and the protection of a selection of Japanese GIs in the EU.

The agreement also secures the opening of services markets, in particular financial services, e-commerce, telecommunications and transport. It furthermore:

facilitates to EU companies access to the procurement markets of 54 large Japanese cities, and removes obstacles to procurement in the economically important railway sector at national level;

addresses specific sensitivities in the EU, for instance in the automotive sector, with transition periods of up to 7 years before customs duties are eliminated.

The agreement also includes a comprehensive chapter on trade and sustainable development; includes specific elements to simplify for small and medium-sized businesses; sets very high standards of labour, safety, environmental and consumer protection; strengthens EU and Japan's commitments on sustainable development and climate change and fully safeguards public services.

The key parts of the Economic Partnership Agreement (2)

EU – Japan Strategic Partnership Agreement

As of 1 February, a large part of another agreement – the Strategic Partnership Agreement between the European Union and Japan – also applies on a provisional basis

This Agreement, which was signed in July 2019 together with the Economic Partnership Agreement, is the first-ever bilateral framework agreement between the EU and Japan and strengthens the overall partnership by providing an overarching framework for enhanced political and sectoral cooperation and joint actions on issues of common interest, including on regional and global challenges

The Agreement will enter into force once it has been ratified by all EU Member States.

Negotiations continue separately for an Investment Protection Agreement (IPA) with Japan.

Next steps

EU – India -> trade picture

India represents a sizable and dynamic market, with an annual GDP growth rate of around 7% and is an important player in global economic governance

India is an important trade and investment partner for the EU

The EU is India's largest trading partner, accounting for €92 billion worth of trade in goods in 2018 or 12.9% of total Indian trade, ahead of China (10.9%) and the USA (10.1%)

The EU is the leading destination for Indian exports (almost 18% of the total) India is the EU’s 9th largest trading partner, accounting for 2.3% of EU’s total trade in

goods in 2018, well behind the USA (16.9%) and China (15.3%) Trade in goods between the EU and India increased by 72% in the last decade Trade in services between the EU and India increased from €23 billion in 2010 to €37

billion in 2017. India is now the 4th largest service exporter to the EU and the 6th largest destination for EU services exports

The EU's share in foreign investment inflows to India more than doubled from 8% to 18% in the last decade, making the EU the first foreign investor in India

EU foreign direct investment stocks in India amounted to €76.7 billion in 2017, which is significant but way below EU foreign investment stocks in China (€178 billion)

Some 6,000 EU companies are present in India, providing directly 1.7 million jobs and indirectly 5 million jobs in a broad range of sectors

Indian companies invested over €50 billion in Europe since 2000

EU-India

Negotiations for an ambitious and broad-based FTA were launched in June 2007 and, after 12 formal rounds and several technical meetings, were brought to a de facto standstill in the summer 2013 due to a mismatch of the level of ambitions

The EU remains committed to strengthening the economic partnership with India, and to a comprehensive and mutually beneficial India-EU FTA once there is sufficient mutual understanding on the scope and level ambition thereof

The two sides remain in regular contact.

Next steps

Current status

EU-India trade negotiations

Negotiations for a comprehensive Free Trade Agreement (FTA) between the EU and India were launched in 2007 and suspended in 2013 due to a gap in the level of ambition between the EU and India. The EU remains committed to working towards an ambitious, comprehensive and balanced agreement FTA with India that responds to each side's key interests and is a win-win

Such an agreement should be economically meaningful, delivering real new market openings in all sectors to both sides, and should include a comprehensive trade and sustainable development chapter, notably in order to deal with social and environmental impacts

A key EU objective in its trade relations with India is to work towards a sound, transparent, open, non-discriminatory and predictable regulatory and business environment for European companies trading with or investing in India, including the protection of their investments and intellectual property

Currently, India’s trade regime and regulatory environment remains relatively restrictive. Technical barriers to trade (TBT), sanitary and phyto-sanitary (SPS) measures, deviation from international standards and agreements, as well as discrimination based on legislative or administrative measures by India affect a wide range of sectors, including goods, services, investment and public procurement.

EU – ASEAN -> Trade picture

•ASEAN as a whole represents the EU's 3rd largest trading partneroutside Europe (after the US and China) with more than €237.3 billionof trade in goods in 2018. Bilateral trade in services amounted to € 85.5 billion in 2017

•The EU is ASEAN’s second largest trading partner after China, accounting for around 14% of ASEAN trade

•The EU is by far the largest investor in ASEAN countries. In 2017, theFDI stocks into ASEAN accounted for €337 billion. ASEAN investmentin Europe has also been growing steadily and impressively to a totalstock of over €141 billion in 2017

•The EU's main exports to ASEAN are chemical products, machineryand transport equipment. The main imports from ASEAN to the EU aremachinery and transport equipment, agricultural products as well astextiles and clothing.

Cooperation between the two regions is framed by a biannual ASEAN-EU Trade and Investment Work Programme, which is articulated along the following activities:

an EU-ASEAN dialogue, which includes discussions on trade and investment issues at ministerial and senior economic officials levels

biregional expert dialogue groups cooperation activities regular organisation by business of ASEAN-

EU Business Summits.

The Association of Southeast Asian Nations (ASEAN)

Established in 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand.

Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN

Aims: To accelerate the economic growth, social

progress and cultural development in theregion

To promote regional peace and stability To promote active collaboration and mutual

assistance on matters of common interest inthe economic, social, cultural, technical,scientific and administrative fields;

To provide assistance to each other in theeducational, professional, technical andadministrative spheres;

To collaborate more effectively for the greaterutilisation of their agriculture and industries, theexpansion of their trade, the improvement oftheir transportation and communicationsfacilities and the raising of the living standardsof their peoples

EU – ASEAN

The ASEAN region is a dynamic market with some 640 million consumers and ranks as the eighth economy in the world. The countries as a group are the EU's third largest trading partner outside Europe, after the US and China.

Ensuring better access for EU exporters to the dynamic ASEAN market is a priority for the EU. Negotiations for a region-to-region trade and investment agreement between the EU and ASEAN were launched in 2007 and paused by mutual agreement in 2009 to give way to a bilateral format of negotiations.

These bilateral trade and investment agreements were conceived as building blocks towards a future region-to-region agreement

So far, the EU has completed negotiations for bilateral agreements with two of them (Singapore in 2014 and Vietnam in 2015) while negotiations with Thailand, Malaysia and the Philippines are currently on hold

Negotiations with Indonesia are still ongoing and are used to further deepen EU-Indonesia trade and investment relations. Negotiations of an investment protection agreement are also under way with Myanmar (Burma).

Bilateral Free Trade Agreements (FTAs) between the EU and ASEAN countries will serve as building blocks towards a future EU-ASEAN agreement, which remains the EU's ultimate objective.

EU – Singapore (member of ASEAN)

The FTA entered into force on 21 November 2019.

The IPA will further need to be ratified by all EU Member States according to their own national procedures before it can enter into force

Next steps

Current status

EU – Singapore -> trade picture

Singapore is a small city state but an economic powerhouse in Southeast Asia

5.6 m Population

€250 bn Annual size of the economy (GDP)

The EU and Singapore already export a lot to each other, and invest a lot in each other

EU companies can export any goods to Singapore without having to pay duties at Singaporean customs

EU companies can easily invest in Singapore, as can Singaporean firms invest in the EU

EU- Singapore -> Free Trade Agreement and an Investment Protection Agreement

The agreements aim to:remove nearly all customs duties and get rid of

overlapping bureaucracy;improve trade for goods like electronics, food

products and pharmaceuticals;stimulate green growth, remove trade obstacles for

green technology and create opportunities for environmental services, and;encourage EU companies to invest more in

Singapore, and Singaporean companies to invest more in the EU.

Signed on 19 October 2018. It entered into force on 21 November 2019. The investment protection agreement will enter into force after it has been ratified by all EU Member States according to their own national procedures

EU – Malaysia -> trade picture

Bilateral trade between the two partners equalled € 39.8 billion in 2018

The EU is the third largest trading partner of Malaysia (after China and Singapore), accounting for 11.6% of the country’s total trade. In 2018, Malaysia became the EU's 23rd largest trading partner in goods.

Bilateral trade between the EU and Malaysia is dominated by industrial products. The EU mainly imports machinery and appliances and mainly exports electrical equipment and machinery (both ways industrial products account for more than 90% of trade). Other sectors of relevance in terms of EU imports from Malaysia are plastics and rubber and animal and vegetable fats and oils and in terms of exports, mechanical products.

Although Malaysia has not been a major trading partner in services so far, opportunities have already been increasing due to its liberalisation policies and would even further advance with a FTA. In 2017, Foreign Direct Investment outward stocks in Malaysia were €24.5 billion.

EU – Malaysia (member of ASEAN)

Trade and investment negotiations with Malaysia were launched in 2010 and, after seven rounds of negotiation, put on hold in April 2012 at the request of Malaysia.

The EU is looking for a comprehensive and ambitious agreement, equivalent to the ones it has reached with Singapore and Vietnam

The government that took office in Malaysia following the general elections of May 2018 has yet to take a position on the possible resumption of negotiations.

Next steps

Current status

EU – Malaysia

SIAs serve to support major trade negotiations, providing a comprehensive analysis of the possible impacts of the future agreement which feeds into the negotiation process. They further serve to foster communication with the wider public, by gathering a broad range of inputs and providing information on the FTA under negotiation and on its likely impacts.

Even though the FTA negotiations between the EU and Malaysia are on hold, a Sustainability Impact Assessment (SIA) was launched in support of FTA negotiations between the two partners

The SIA seeks to assess how trade and trade-related provisions in the proposed FTA could potentially impact economic, social, human rights, and environmental elements in each trading partner and in other relevant countries

EU – Vietnam (member of ASEAN)

Trade and investment negotiations with Vietnam were launched in 2012 and completed in December 2015

Following the Court of Justice of the EU Opinion 2/15, and in a similar way to what had been done with the EU-Singapore agreements, the result of negotiations with Vietnam was adjusted to create a Free Trade Agreement (FTA) and an Investment Protection Agreement (IPA)

The trade and investment agreements were signed on 30 June 2019. The European Parliament gave its consent to both agreements on 12 February 2020

Following the consent by the European Parliament, the trade agreement can be officially concluded by the Council and enter into force once the Vietnamese National Assembly has ratified it

The Investment protection agreement (IPA) will further need to be ratified by all EU Member States according to their own national procedures before it can enter into force

Next steps

Current status

EU - Vietnam -> Trade Agreement and an Investment Protection Agreement

Signed on 30 June 2019

Once in force, the agreements will provide opportunities to increase trade and support jobs and growth on both sides, through:

Eliminating 99% of all tariffsReducing regulatory barriers and overlapping red tapeEnsuring protection of geographical indicationsOpening up services and public procurement marketsMaking sure the agreed rules are enforceable

EU – Thailand (member of ASEAN)

Negotiations on an FTA with Thailand were launched in March 2013 and four rounds took place until April 2014

Since the military takeover in Thailand in May 2014 no further FTA rounds have been scheduled

In the conclusions it adopted in October 2019, the Council stressed the importance of taking steps towards the resumption of negotiations on an ambitious and comprehensive FTA with Thailand

Before resuming negotiations, it is important to ensure that the EU and Thailand see eye-to-eye on the level of ambition of a future deal

Next stepsCurrent status

EU-Thailand Free Trade Agreement (FTA)

Negotiations were launched in March 2013 and put on hold in 2014 following the military take-over in the country.

The negotiations aimed to conclude a comprehensive Free Trade Agreement

This included topics such as: tariffs and non-tariff barriers (e.g. – import

quotas)services, investment and procurementintellectual propertyregulatory issuescompetitionsustainable development

Thailand and the EU have negotiated and finalised in November 2013 a Partnership and Cooperation Agreement (PCA), which provides a comprehensive framework for EU-Thailand relations and will open up wide opportunities to develop cooperation.

EU – Thailand -> trade picture

In 2018, total bilateral trade between the EU and Thailand amounted to €38 billion

• The EU is Thailand’s third largest trade partner (after China and Japan), accounting for 9.1% of the country’s total trade. Thailand is the EU’s 25th largest trading partner worldwide. Thailand exported goods worth €22.9 billion to the EU in 2018

• Key exports from Thailand are machinery and electronics and transport equipment, miscellaneous manufactured articles, as well as food products

• The EU exported goods worth €15.1 billion to Thailand in 2018. Key EU exports to Thailand are machinery and transport equipment, chemicals and related products, and manufactured goods.

• Thailand is one of the most important destinations of European investments within ASEAN with €21.2 billion of outward stocks. The EU is the second-largest investor in Thailand after Japan

EU – Indonesia (member of ASEAN)

The Council gave the Commission the green light to start negotiations for an FTA with Indonesia on 18 July 2016

The first round of negotiations took place in September 2016 in Brussels

The last round of negotiations took place in the week of 2 December 2019 in Brussels.

The 10th round will take place from 16 - 20 March 2020 in Bali.

Next steps

Current status

EU – Indonesia

The relation between the EU and Indonesia has deepened over recent years

Following successful exploratory discussions in April 2016 to further deepen EU-Indonesia trade and investment relations, negotiations for an EU-Indonesia free tradeagreement were launched on 18 July 2016

Nine rounds have been held so far. The tenth round of negotiations will be held in midMarch 2020

A Free Trade Agreement (FTA) will develop a key aspect of the overall relationshipbetween the EU and Indonesia, which is framed by the Partnership and CooperationAgreement. The agreement entered into force on 1 May 2014.

EU – Indonesia –> trade picture

Trade picture• Indonesia is the largest economy in the ASEAN - about 35% of the region's GDP and has the largest population (264 million inhabitants in 2017)

• Bilateral trade in goods between the EU and Indonesia amounted to €26.3 bn in 2018, with EU exports worth almost €10 bn and EU imports worth €16.6 bn.

• The EU is Indonesia's third largest trading partner while Indonesia is the 31st global trading partner for the EU and fifth EU partner in ASEAN in 2017.

• Bilateral trade in services between EU and Indonesia in 2017 amounted to €7 bn in 2017, with EU exports amounting for €4.1 bn and Indonesia's exports amounting to €2.9 bn

EU – Philippines (member of ASEAN)

Trade and investment negotiations with the Philippines were launched in December 2015. The first round of negotiations took place in May 2016 in Brussels and the second round was held in February 2017 in Cebu City (Philippines)

No date has been set yet for the next round of negotiations.

Next steps

Current status

EU-Philippines Framework Agreement onPartnership and Cooperation

Negotiations for an EU-Philippines trade and investment agreement werelaunched on 22 December 2015. The aim is to conclude an agreement thatcovers a broad range of issues, including tariffs, non-tariff barriers to trade, trade in services and investment, as well as trade aspects of public procurement, intellectual property, competition and sustainable development

The trade and investment agreement will develop a key aspect of the EU'soverall relationship with the Philippines that is based on the EU-PhilippinesFramework Agreement on Partnership and Cooperation that entered into forcein March 2018

A Sustainability ImpactAssessment (SIA) hasbeen launched in support offree trade agreement (FTA) negotiations between theEuropean Union and thePhilippines. The SIA seeksto assess how trade andtrade-related provisions inthe proposed FTA couldpotentially impacteconomic, social, humanrights and environmentalelements in each tradingpartner and in otherrelevant countries.

EU – Philippines -> trade picture

Trade in goods between the two partners equalled € 15.6 billion in 2018 while bilateral trade in services between the EU and the Philippines reached € 4.8 billion in 2017.

The EU foreign direct investment stock in the Philippines reached €13.7 billion in the same year, making the EU the largest foreign investor in the Philippines.

The EU is the Philippines’ fourth largest trading partner, accounting for almost 10% of the country’s total trade in 2018 (after China, Japan and the US). The Philippines is the EU's 41st largest trading partner globally, accounting for 0.4% of the EU’s total trade.

EU exports to the Philippines are dominated by machinery, transport equipment, chemicals, food products, and electronic components, while the Philippines' main exports to the EU are office and telecommunication equipment, machinery, food products, and optical and photographic instruments.

The Philippines and GSP+

Since December 2014, the Philippines enjoys enhanced tradepreferences with the EU under the EU's Generalised Scheme ofPreferences plus (GSP+). The special incentive arrangementfor Sustainable Development and Good Governance GSP+ grants full removal of tariffs on two thirds of all productcategories, aiming to support sustainable development andgood governance

In order to maintain GSP+, the Philippines is subject toa regular monitoring of its obligation to the effectiveimplementation of 27 core international conventions on humanand labour rights, environmental protection and goodgovernance

EU – Myanmar/Burma (member of ASEAN)

The EU sent its text proposal in December 2014

Four rounds of negotiations have taken place so far

Technical discussions were held on 26-27 April 2017, and good progress was made, but discussions will have to continue

Negotiations are halted since 2017Next steps

Current status

The EU andMyanmar launched negotiations for an investment protection agreement in 2013.The agreement would: offer investors from both sides

a predictable and secure investment environment

protect them against discrimination

ensure they are treated in a fair and equitable way and

ensure that investments will not be unfairly taken away without fair compensation

A sustainability impact assessment complemented the negotiations. This evaluated the potential economic, social, environmental, and human rights impact of the future agreement.

EU – Myanmar/Burma -> trade picture

Since 2011, the EU has progressively re-engaged with Myanmar, including in its trade andinvestment relations. It has: lifted sanctions with the exception of an arms

embargo granted preferential access to the EU market launched negotiations for an investment protection

agreement

On 1 June 2016, the High Representative forForeign Affairs and Security Policy and theEuropean Commission adopted a joint communication that lays out a plan for coherentEU engagement and intensified cooperation withthe country to overcome the challenges it faces

On 20 June 2016, the Council adopted conclusions on an EU strategy with Myanmar

Trade picture in 2018:

Total trade between the two partners equalled €2.9 billion

The EU ranked as the fourth biggest trade partner of Myanmar (after China, Thailand and Singapore), accounting for 9% of the country’s total trade. Myanmar is the EU’s 75th largest trading partner (accounting for 0.1% of the EU’s total trade)

The EU imported goods worth €2,295 million from Myanmar. The key EU imports from Myanmar are dominated by garment (74%) and agricultural products

The EU exported goods worth almost €592 million to Myanmar. The key EU exports to Myanmar are dominated by machinery, transport equipment and chemicals.

Myanmar and the GSP

As a Least Developed Country (LDC), Myanmar benefits from the most favourable regime available under the EU's Generalised Scheme of Preferences (GSP), namely the Everything But Arms (EBA) scheme

The EU’s GSP regulation allows vulnerable developing countries to pay fewer or no duties on exports to the EU, giving them vital access to the EU market and contributing to their growth. The EBA scheme is one arm of the GSP, which grants duty-free and quota-free access to the EU for all products (except arms and ammunition) for the world's Least Developed Countries, as defined by the United Nations

Myanmar benefits significantly from its preferential access to the EU market under the EBA. Its duty free exports increased from €535 million in 2015 to an estimated €2.3 billion in 2018. Main exports (2018 estimates) to the EU are textiles (over € 1.7 billion), rice (over €140 million), precious stones (€130 million) and footwear (€120 million).

The GSP Regulation provides that trade preferences may be suspended in case of "serious and systematic violation of principles" laid down in the human rights and labour rights Conventions listed in Annex VIII of the Regulation.

Thank you for your attention!