EU, Malaysia kick off free trade talks

European Commission President Jose Manuel Barroso (R) greets Malaysia's Prime Minister Mohd Najib Abdul Razak prior to a meeting at the Royal Palace in Brussels during the Asia-Europe Meeting (ASEM).

Photo: AFP

BRUSSELS - Malaysia and the European Union kicked off free trade talks Tuesday in a move aimed at increasing a two-way trade that currently accounts for around 10 percent of Malaysian imports and exports.

The launch of negotiations was announced on the sidelines of the Asia-Europe Meeting (ASEM) attended by 46 nations representing 60 percent of world trade and almost 60 percent of the world's populations.

Malaysian Prime Minister Mohd Najib Abdul Razak and European Commission president Jose Manuel Barroso jointly announced the formal commencement of the talks, with Malaysia proposing a first round be held this year.

The free trade agreement will focus on market access for goods and services, investment, trade facilitation and economic cooperation.

The European Union on Wednesday signs a free trade deal with South Korea, described as its most ambitious yet, and Japan called for increased momentum in its bid for a similar deal during the two-day ASEM summit.

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EU, Vietnam say to start talks on free-trade pact soon

European Commission President Jose Manuel Barroso (R) shakes hands with Vietnam's Prime Minister Nguyen Tan Dung before their meeting at the EU Commission headquarters in Brussels on Monday - Photo: Reuters

BRUSSELS - The European Union and Vietnam will start negotiations on a free trade pact soon, EU and Vietnamese leaders said on Monday, fuelling Vietnamese hopes of being recognized by the EU as a free market economy.

Vietnamese Prime Minister Nguyen Tan Dung said free trade talks should also lead to an end to contentious EU import duties on Vietnamese-made shoes and greater access for Vietnam to the EU’s consumer markets under the EU’s Generalized System of Preferences for developing states.

“With the result obtained on Tuesday, the recognition by the European Union of Vietnam as a market economy ... will be agreed soon,” the Prime Minister told journalists after a meeting with Jose Manuel Barroso, President of the EU’s executive Commission.

The EU and Vietnam will launch free trade talks “as soon as possible”, Barroso said.

The two leaders met on the first day of a two-day summit of EU and Asian heads of state, which will address global financial governance issues, IMF voting rights, security issues, climate change and international trade.

Since talks for a global trade accord stalled at the World Trade Organization in 2006, the European Union has pursued bilateral trade accords, notably with Asian trading powers.

The bloc will this week sign its first bilateral free trade pact -- with South Korea -- and hopes to seal a deal with India this year.

With efforts frustrated for a regional trade accord with the ten-state Association of Southeast Asian Nations, the EU is considering individual pacts with Vietnam, Singapore and Malaysia.

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US NGO is angel of mercy for small firms

The US-based Arthur B. Schultz Foundation will provide small and medium-sized Vietnamese companies interest-free loans worth a total of US$180,000.

SMEs with a sound financial position, assets for collateral, good plans to effectively use and repay the fund will be able to borrow up to $20,000, Do Thanh Long, deputy director of the Center for Economic Development Studies of the Hanoi-based University of Economics and Business, which announced the Thriive, formerly known as Social Microenterprise Initiative in Vietnam program, said.

Job creation will be the most important criteria for getting funds, he said.

Borrowers will have to repay the loan in two years, but not in cash: They have to provide free goods and services to the poor for the value of the loan.

The program focuses on SMEs in 25 northern cities and provinces, prioritizing those with women bosses.

It will help them leverage investing in fixed assets and Property-Plant and Equipment (PPEs), Long said, adding that beneficiaries will be chosen from next month and disbursement will be made from January.

In the last five years the foundation has lent $370,800 to 28 SMEs, benefiting around 80,000 poor people in Vietnam.

ABSF, founded in 1985, is dedicated to improving the quality of life around the world through supporting small business entrepreneurs, women's empowerment, and disabled mobility. It is also active in Kenya and Palestine.

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