ASEANCHAM-EU

ASEANcham-EU keeps track of the latest developments in the EU that could interest and impact Southeast Asian businesses operating in Europe or planning to expand their trade and investments into the EU. Our coverage of topics in Europe and opinion pieces can be found on our website. 

Key 2023 developments in Europe and the EU:

• Carbon Border Adjustment Mechanism (CBAM): The Carbon Border Adjustment Mechanism (CBAM), touted as the EU’s “landmark tool” to combat carbon leakage, entered into an 18-month transitional phase that started from 1 October 2023 until the end of 2025. ASEAN exporters of steel, cement, fertilisers, aluminums, and hydrogen should be aware of the reporting obligations that EU importers need to adhere to during this transitional phase. Read more here. 
• EU Deforestation-free Regulation (EUDR): The EU’s attempt to combat deforestation takes the form of a new regulation on certain commodities and products associated with deforestation and forest degradation. The Deforestation-free Regulation, which entered into force on 29 June 2023, obliges companies to ensure products sold in the EU have not led to deforestation and forest degradation in their production. Companies will only be allowed to sell products in the EU if the supplier of the product has issued a due diligence statement confirming that the product does not come from deforested land or has led to forest degradation. Read more here.
• EU-Thailand Free Trade Agreement: Following the highly anticipated announcement that EU-Thailand FTA negotiations would restart, both sides held a first round of talks in September 2023 in Brussels, with the next round in January 2024 in Thailand. The FTA negotiations between the EU and Thailand, which had been suspended in 2014, would be the fourth ongoing FTA for ASEAN member states, including two already conclulded with Singapore and Vietnam. Read more here.
• EU-Philippines Free Trade Agreement: In another exciting development, following Commission President Ursula von der Leyen’s visit to Manila in July 2023, both sides annouced the decision to start the scoping process for a possible EU-Philippines trade deal. Read more here. 
• Corporate Sustainability Reporting Directive: new obligations for companies in the EU to report on their sustainability efforts. On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force as part of the European Union (EU)’s wider commitment towards the European Green Deal. Companies covered by the CSRD will be required to publish a sustainability report in accordance with the European Sustainability Reporting Standards (ESRS), to include information pertaining to the company’s impact on sustainability matters. The CSRD will be rolled out in stages and is set to come into full effect in the financial year 2028. Read more here.

• EU ICS2 (Import Control System): mew obligations for economic operators:The Import Control System 2 (ICS2), effective from 1 March 2023, is the EU’s cargo information system designed to monitor and manage all imported goods entering the EU. Under the ICS2, EU authorities will require all Economic Operators involved in handling, shipping, and transporting of cargo, express, or postal consignments to have an Economic Operators Registration and Identification (EORI) number from one of the EU member states’ customs authorities. Read more here. 

• Singapore Airlines announces launch of flights to Brussels from Singapore: The first direct connection between Brussels and ASEAN is set to be launched soon! Singapore Airlines, which had been most recently awarded the World’s Best Airlines award by Skytrax, announced that it will restart flights to Brussels, Belgium from 6 April 2024, more than 20 years since the route was last flown by them. Read more here.