Upgraded free trade deal opens new opportunities for China, ASEAN

China and the Association of Southeast Asian Nations announced the conclusion of the China-ASEAN Free Trade Area (ACFTA) 3.0 Upgrade Negotiations in Vientiane, Laos, on Thursday, said China's Ministry of Commerce.

The ACFTA 3.0 will open up new opportunities as it remains responsive toward emerging challenges and takes into account modern trade practices, said a statement jointly released by China and ASEAN on Thursday.

The upgraded free trade deal will deepen commitments in existing areas such as customs procedures and trade facilitation, standard, technical regulations and conformity assessment procedures, sanitary and phytosanitary, and economic and technical cooperation, according to the statement.

In addition, it will introduce commitments and deepen cooperation in new areas, including the digital economy, green economy, supply chain connectivity, competition and consumer protection, as well as micro, small and medium-sized enterprises.

Both sides have confirmed that they will expedite the completion of legal reviews and domestic procedures to facilitate the signing of the upgraded protocol by 2025, according to the Ministry of Commerce.

The ministry said that these enhancements will foster an inclusive and sustainable regional economy, improve supply chain connectivity and resilience, and support the digital transformation of both ASEAN and China.

At the 25th ASEAN-China Summit, held in Phnom Penh, Cambodia, in November 2022, China and ASEAN agreed to launch the ACFTA 3.0 upgrade negotiations.