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Trade and Economic Security

Laos

EU trade relations with Laos. Facts, figures and latest developments.

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  • Laos
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  • Negotiations and agreements
  • Trade policy

The EU works closely with Laos under the framework of the EU-ASEAN Cooperation Agreement to ensure an effective environment for trade and investment relations.

Laos is a member of WTO since 2013 and, as a least developed country, benefits from the EU's 'Everything But Arms' (EBA) scheme, which grants unilateral duty-free, quota-free access for all exports, except arms and ammunition to the EU.

Trade picture

  • In 2024, Laos ranked as the EU’s 131st largest goods-trading partner, while the EU was Laos’ fifth-largest trading partner for trade in goods. Total trade in goods between the EU and Laos amounted to €583 million in 2024 (with a deficit for the EU of €320 million). EU imports mainly comprised textiles, accounting for more than half of total imports. EU goods exported to Laos mainly consisted of machinery and appliances. 
  • Total trade in services amounted to €195 million in 2023 (with a surplus for the EU of €34 million). 
  • In 2023, the stock of EU foreign direct investment in Laos amounted to €680 million and the stock of Laos’ investment in the EU was €5 million. 

The EU and Laos

As a Least Developed Country (LDC), Laos benefits from the most favourable regime available under the EU's Generalised Scheme of Preferences (GSP), namely the Everything But Arms (EBA) scheme. EBA grants the 46 LDCs - including Laos - duty-free, quota-free access to the EU for exports of all products, except arms and ammunition. 

92% of Laos' exports eligible for tariff reductions under EBA entered the EU at preferential rates in 2024. 

Laos and ASEAN

Laos is one of the 10 members of the Association of Southeast Asian Nations (ASEAN). The countries as a group are the EU's third largest trading partners outside Europe, after the US and China.

The ASEAN region is a dynamic market with some 640 million consumers. Laos is one of the three Least Developed Countries in ASEAN, and is part of the Regional Comprehensive Economic Partnership (RCEP).

The EU co-operates with ASEAN as a whole. Cooperation is maintained through the EU-ASEAN Dialogue, which includes discussions on trade and investment issues at ministerial and senior economic official level.

Ensuring better access for EU exporters to the dynamic ASEAN market is a priority for the EU. Negotiations for a region-to-region trade and investment agreement between the EU and ASEAN were launched in 2007 and paused by mutual agreement in 2009 to give way to a bilateral format of negotiations.

These bilateral trade and investment agreements were conceived as building blocks towards a future region-to-region agreement.

More information on ASEAN

Trading with Laos