Asean, China close to upgrading FTA, covering digital, green economies

VIENTIANE, Laos - Negotiations to upgrade the free trade agreement (FTA) between Asean and China have almost concluded after nearly two years, with business-friendly initiatives for firms operating across these markets, leaders of both sides said on Oct 10 during a summit.

- Tan Tam Mei

The announcement was made at a meeting of Asean and China leaders during the ongoing 44th and 45th Asean Summits and related meetings in Vientiane, Laos.

"This upgrade to the FTA is an important move, especially in this time of growing protectionism in the world. It will send a very clear and important message to everyone on the importance of free trade and win-win market cooperation," said Singapore Prime Minister Lawrence Wong, addressing his regional counterparts during the 27th Asean-China Summit.

A full conclusion of the negotiations, which include upgrades in the digital and green economies, is targeted for 2025.

Once implemented, the upgraded agreement will, among other things, introduce new and enhanced rules covering Customs procedures, supply chain connectivity, competition and consumer protection, as well as economic and technical cooperation.