Source · Select Committees · Foreign Affairs Committee
Recommendation 44
44
Accepted
Paragraph: 137
Initiate Free Trade Agreement negotiations with ASEAN and strengthen bilateral relationships with member countries.
Recommendation
We recommend that as well as taking full advantage of the UK’s recently acquired status as a Dialogue Partner of ASEAN, the UK should begin negotiations for an FTA with ASEAN, and concentrate equally on building bilateral relationships with ASEAN members based upon cooperation on those countries’ development objectives and UK expertise and experience in such areas as maritime security, finance, environmentally- friendly agriculture and technology.
Government Response Summary
The government agrees, outlining how it is already leveraging its ASEAN Dialogue Partner status through a new Plan of Action, pursuing FTAs with Indonesia and India, and actively building bilateral relationships with ASEAN members through partnerships in areas like energy transition, maritime security, finance, and technology.
Paragraph Reference:
137
Government Response
Accepted
HM Government
Accepted
The Government agrees with the Committee and welcomes the Committee’s support for its deeper engagement with ASEAN and its member states. We are taking full advantage of the UK’s Dialogue Partner status with ASEAN to deepen our partnership. In October 2023, the UK launched a new Plan of Action with ASEAN (2024-2028), committing both sides to closer cooperation on a range of issues including economic partnership, human security, and climate action. The UK is also using its Dialogue Partner status to promote trade and investment in the region. We are pleased to note that total trade between the UK and ASEAN has grown by 24.3% since 2021, reaching £55.1 billion in 2023. The UK is an active participant in ASEAN’s free trade agreement network. The UK has an ambitious trade agenda with ASEAN and its members. We signed a ground-breaking Digital Economy Agreement with Singapore in 2022 and are pursuing Free Trade Agreements with Indonesia and India. We are also pursuing an upgrade to our existing Free Trade Agreement with Korea and have joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). CPTPP will enhance the UK’s access to existing FTA markets, including CPTPP members in Southeast Asia, Malaysia, Singapore, Vietnam and Brunei. The UK will continue to explore new trading opportunities and agreements across the region. The Government agrees with the Committee on the importance of building bilateral relationships with ASEAN members. The UK works with ASEAN members across a wide range of issues to support their development objectives and utilise UK expertise. For example, the UK is a committed partner to Indonesia in its Just Energy Transition Partnership (JETP) supporting Indonesia to deliver ambitious climate goals and an equitable transition away from coal. In addition, the UK works closely with regional partners on issues such as maritime security, through our ongoing deployments to the Indo-Pacific. The UK has significant expertise in financial services, environmentally-friendly agriculture and technology, and we are working to grow collaboration in these areas. The UK’s Science and Innovation Network has a strong presence in the region. Through the ASEAN-UK Innovation Partnership, we continue to deepen our economic connections with this dynamic region and open doors for British business. We have also supported strong UK private sector participation in the annual ASEAN Business and Investment Summit and are using the British Investment Partnerships toolkit to promote public/private collaboration in areas such as renewable energy.