The European Union and Malaysia have announced the resumption of free trade negotiations. The EU is trying to diversify its trade partnerships as Donald Trump re-enters office in the US.
"This excellent news comes at a critical time. Geopolitical tensions are rising, and the risk of instability is growing," said European Commission President Ursula von der Leyen in a statement.
Trade between the EU and Malaysia currently amounts to €45 billion annually, and an agreement would "take things to the next level," the European executive chief argued. "While others turn inwards and isolate themselves, Europe and Malaysia choose another path: establishing partnerships."
'Significant milestone'
Brussels and Kuala Lumpur had initially launched negotiations in 2010 but suspended them two years later.
Malaysian Prime Minister Anwar Ibrahim, who concluded a two-day working visit to Brussels on Monday, described the reopening of discussions as a "significant milestone."
He believes such an agreement would boost Malaysian exports, particularly in electrical and electronic products, scientific equipment and palm oil. It would also stimulate EU investments in green energy and advanced manufacturing.
The EU is troubled by threats of drastic tariff increases on European products posed by Donald Trump, who will be inaugurated for his second US presidential term on Monday. The bloc is also conscious of its need to contend with competition from China.