KUALA LUMPUR: Southeast Asian and Chinese leaders should move swiftly to ratify an upgraded free trade agreement signed on Tuesday (Oct 28) so businesses and citizens can begin reaping its benefits, said Singapore Prime Minister Lawrence Wong.
Speaking at the Association of Southeast Asian Nations (ASEAN) and China summit in Kuala Lumpur, Mr Wong said that effective implementation of the deal would unlock new economic opportunities across the region.
The ASEAN-China Free Trade Area (ACFTA), first signed in 2002 and entered into force in 2010, was China’s first free trade pact and ASEAN’s first with a major external partner. It was upgraded to version 2.0 in 2019 with a streamlining of trade rules.
Talks on the so-called 3.0 upgrade began in 2022 and ended in May to broaden the agreement’s scope to emerging areas, such as digital and green economies, as well as supply chain connectivity.
It also introduces new commitments against unfair or anti-competitive business practices to provide better protection for online and overseas consumers, said a press release from Singapore’s Ministry of Trade and Industry (MTI) on Tuesday.
Since 2010, trade between ASEAN and China has expanded more than 220 per cent.
China is ASEAN’s largest trading partner and third largest source of foreign direct investment. As of 2024, ASEAN-China trade reached US$777.2 billion (S$1 trillion), according to figures from MTI.
ASEAN’s top traded products with China include electrical machinery, mechanical appliances, mineral fuels and oils, medical and optical instruments, as well as natural and cultured pearls.
“The upgrade will further reduce trade barriers, strengthen supply chain connectivity and unlock opportunities in future growth areas,” said Mr Wong, calling the agreement a “significant achievement”.
https://www.channelnewsasia.com/singapore/asean-china-free-trade-upgrade-should-be-ratified-swiftly-lawrence-wong-5428766
