Asean and China ink upgraded free trade pact amid US tariffs, Chinese surplus

Asean and China have signed an upgraded free trade deal, which covers emerging areas such as the digital economy, green economy and supply chain connectivity.

- Lu Wei Hoong Malaysia Correspondent

Malaysian Investment, Trade and Industry Minister Tengku Zafrul Aziz signed the pact on behalf of Asean with Chinese Commerce Minister Wang Wentao at the Asean Summit in Kuala Lumpur on Oct 28.

Malaysian Prime Minister Anwar Ibrahim, who is Asean chair, lauded the signing of the pact as an important milestone in economic cooperation, while Chinese Premier Li Qiang called it a new opportunity to deepen economic ties between the two sides.

The Asean-China Free Trade Area (ACFTA), which kicked in from 2010, is China’s first free trade agreement (FTA) and also Asean’s first FTA with an external dialogue partner. Talks on the latest pact, ACFTA 3.0 Upgrade, began in November 2022 and came after the second version of the FTA took effect from November 2018.

The latest pact contains enhanced commitments on transparency and simplified Customs procedures, said Singapore’s Ministry of Trade and Industry (MTI) in a press statement. For example, both sides have agreed to boost transparency in health and safety regulations for food, animals, plants and other products to save time and costs for companies.