UN envoy Razali Ismail said Tuesday trade between Southeast Asian nations and the European Union is being affected by a continued political deadlock over Myanmar.

"You can see the continuing problem of Myanmar is beginning to have more and more impact on the business of Asean (Association of Southeast Asian Nations) and the EU," he told reporters in Malaysia. He did not elaborate.

Myanmar's reluctance to allow political freedom has haunted Asean's relations with the EU since the country joined the 10-member group in 1997. Both the EU and the United States have imposed sanctions on Yangon.

An Asia-Europe Meeting finance ministers' gathering next month and a September meeting of the economy ministers has been cancelled due to a row over Myanmar's participation, casting doubt over an October summit.

Razali, however, said Asean and the EU would have to work together to find a solution. "There is a position of EU and there is an Asean position. These positions have to be married," he said.