Asean’s biggest trade problem is no longer tariffs. It is friction

FOR years, Asean’s economic proposition has been compelling: fast-growing consumer markets, manufacturing depth, strategic geography and increasingly, an alternative production and investment base in a more fragmented global economy.

European businesses still believe in that story. The EU-Asean Business Sentiment Survey published in September 2026 revealed 73 per cent of respondents said Asean has become more important to their worldwide revenues over the past two years.

Some 61 per cent saw South-east Asia as offering the best economic opportunities over the next five years, while 78 per cent expected to increase trade and investment in the region.