Paving New Paths: ASEAN-China Free Trade Agreement Gets Major Upgrade

ASEAN and China are finalizing an upgraded Free Trade Agreement expected next year. This updated agreement aims to address modern economic challenges by enhancing digital and green economy rules. It promises improved trade flows and aims to strengthen economic ties and cooperative efforts in sectors like clean energy.

Negotiations to update the Free Trade Agreement between ASEAN nations and China are nearing completion after two years, as announced by leaders at a summit in Laos on Thursday.

While certain legal aspects remain unresolved, the ASEAN-China Free Trade Area (ACFTA) upgrade is anticipated to be finalized and signed next year, according to Channel News Asia.

Singapore's Prime Minister Lawrence Wong emphasized the significance of this upgrade amid growing global protectionism during the 27th ASEAN-China Summit, attended by Chinese Premier Li Qiang.

Wong highlighted that the upgraded FTA signals the importance of free trade and mutual cooperation.

The agreement, once implemented, will offer a more conducive business environment for ASEAN and Chinese companies by improving trade facilitation, transparency, consumer protection, and fostering opportunities in digital and green economies.

Wong noted that ASEAN-China trade has thrived under the current agreement, positioning both parties as top trading partners since 2020, with significant growth in trade volumes and investments.

He urged leveraging the ACFTA negotiations to also liberalize the ASEAN-China Air Transport Agreement, enhancing trade, investment, and interpersonal links.

Wong further identified clean energy collaboration as a potential area for increased partnership.

The negotiations began in 2022 with the aim of maintaining the relevance of the agreement amid global challenges, according to Singapore's Ministry of Trade and Industry.

Concluding part of the summit, ASEAN leaders also marked a commemorative milestone in relations with South Korea and held discussions with Japan, India, Australia, and Canada.

(With inputs from agencies.)