Talks between the European Union and the Association of South-East Asian Nations (ASEAN) progressed during Trade Commissioner Karel De Gucht’s trip to meet the bloc in Da Nang, Vietnam. A free trade deal with Singapore now looks likely by the end of next year and relations with other South-East Asian countries may also improve.

De Gucht added that a region-wide deal between the EU and ASEAN was still possible despite continuing objections to the human rights situation in Myanmar (Burma), which is currently subject to EU sanctions. DG Trade has focused on bilateral relations in the region since last year’s failure to reach a commerce pact with ASEAN as a whole.

The talks with Singapore have been the most successful, reflecting its status as South-East Asia’s most developed economy. Another round is due to take place in September with negotiators hoping to conclude their work in 2011. “Negotiations with Singapore are going well,” De Gucht confirmed. “We expect these talks being closed and having come to a positive end before the end of next year.”

Talks with Vietnam are likely to begin before the end of this year, followed by other countries “in the coming months,” De Gucht explained, without identifying the countries concerned. Myanmar is certainly not on the list, however, with the commissioner commenting that “It’s obvious that we are not ready, the European Union is not ready, to negotiate with Myanmar, but who knows what the political situation will be in Myanmar in five years or in seven years”.

Two-way trade between the EU and ASEAN was valued at almost US$172 billion last year, making the EU ASEAN’s largest foreign investor and second largest trade partner.