EU eyes Singapore as step to Asian trade pacts

The European Union is looking to seal commercial pacts across Southeast Asia, a top official said Wednesday after announcing the launch of free-trade talks with Singapore.

EU Trade Commissioner Karel De Gucht and Singapore Trade Minister Lim Hng Kiang agreed to launch the talks for a free-trade agreement (FTA), and Lim's Ministry said the first round would be held from March 8 to 12.

"Although Singapore is the first one in, our door remains open for other ASEAN countries interested in negotiating a comprehensive free-trade agreement with us," De Gucht said in a speech.

"We are not available to do shallow FTAs, but we will be mindful of differences in levels of development. I feel encouraged by the signals I am getting from certain ASEAN capitals," he said.

The talks with the wealthy city-state follow an announcement on Tuesday that the EU would also begin FTA negotiations with Vietnam, as the European bloc steps up efforts to engage with a booming region that sits in China's backyard.

The Singapore dialogue would be good for the business world and consumers alike, De Gucht said, adding: "For Europe, it will also mark an important stepping stone in the EU's engagement with the ASEAN region." The EU had earlier abandoned its strategy of negotiating a trade pact with the Association of Southeast Asian Nations (ASEAN) as a whole, publicly citing different levels of economic development within the 10-member bloc.

Instead, the EU decided it would secure free-trade pacts with individual ASEAN states.

Diplomats have said, however, that the change in EU strategy is also due to disagreements over the human rights record of military-ruled ASEAN member Myanmar.

The EU still maintains sanctions on Myanmar, including a travel ban on regime figures, a freeze of their assets and an arms embargo.