ASEANCham-EU publishes its first policy non-paper entitled “The EU-ASEAN relationship: The next chapter under a new reality”. Written with the current geopolitical and economic instability in mind, the paper underscores the need for the EU and ASEAN to draw closer together under global political uncertainty. The reset of the global order presents an opportunity for both sides to reinforce its relevance in the world and sets the stage for both sides to deepen their relationship. The paper examines how the EU-ASEAN relationship has evolved and what the key elements of what a renewed relationship should look like.

This non-paper is intended to set a basis for discussion among policy makers and represents only the views of the authors and not the views of the members of the Chamber.

The non-paper was written with inputs from ASEANCham-EU Vice-Chair Professor Yeo Lay Hwee and Advisory Board Member Petrus van Dijk.

Executive Summary

The emergence of a new global order and increasing geopolitical uncertainty has led countries across the world to realign their political partnerships and readjust their economic strategies. The EU–ASEAN relationship, in particular, has seen a decisive shift, driven by US President Donald Trump’s volatile trade policies following his re-election, as well as mounting internal pressures within the EU, including uncertainty over its economy, declining competitiveness, and an increasingly unstable transatlantic relationship. By contrast, ASEAN has demonstrated resilient and stable growth, reinforcing the region’s growing economic significance and potential to become a major regional and global player. These developments set the stage for a new chapter in the region-to-region relationship.

This paper examines the current state of EU-ASEAN relations and evaluates how global developments, particularly the US’ move away from multilateralism and departure from its traditional role in the global political economic landscape, have reshaped and continues to influence this dynamic. Looking ahead, we identify key opportunities and challenges that lie on the horizon including a series of strategic recommendations anchored around three pillars:

1. Enhancing economic interdependence and resilience;
2. Jointly upholding multilateralism and international rule of law; and
3. Deepening and broadening the EU-ASEAN partnership.

The paper concludes that ASEAN’s willingness to be a strategic partner to the EU is a key asset in the relationship, but this should not be taken for granted. To unlock the full potential of this partnership, the EU must match its political rhetoric with tangible investments and sustained engagement, treating ASEAN not just as a strategic partner in name but as one in practice. 

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