Upgrading ASEAN-China FTA 3.0 is of great significance in creating new momentum

Negotiations for a “significant” upgrade of the ASEAN-China Free Trade Area (ACFTA) 3.0 could be announced at the 44th and 45th ASEAN Summits to be held in Laos in early October, ASEAN Secretary-General Kao Kim Hourn said on October 2.

Accordingly, Mr. Kao Kim Hourn said that ASEAN and Chinese economies have been actively working to accelerate negotiations for ACFTA 3.0 and the results will be presented at the upcoming ASEAN-China Summit. This will be a very significant upgrade of ACFTA as all parties want to see this free trade area (FTA) become more suitable for businesses.

Upgrading the ASEAN-China FTA 3.0 is of great significance in creating new momentum. Illustrative photo

ACFTA came into effect in 2010, with zero tariffs covering more than 90% of imports from both sides. The agreement was upgraded to ACFTA 2.0 in 2019. Negotiations for ACFTA 3.0 are set to begin in November 2022, focusing on areas such as reducing non-tariff barriers, enhancing connectivity, and promoting both the digital and green economies.

China has been ASEAN's largest trading partner for 15 consecutive years, and ASEAN became China's top trading partner in 2020. In the first seven months of this year, the value of trade in US dollars between ASEAN and China totaled US$552 billion, up 7.7% year-on-year.

Together with the Regional Comprehensive Economic Partnership (RCEP), the ASEAN Secretary-General believes that the two free trade agreements will bring new momentum to trade relations between ASEAN and China. The RCEP agreement, which will come into effect in 2022, covers all 10 ASEAN member economies and five major ASEAN trading partners, including China.

These agreements bring with them the hope of seeing broader and deeper cooperation between China and ASEAN, not only in trade but also in people-to-people exchanges. By 2024, the number of flights connecting ASEAN and China will average around 2,300 per week for the first time, and this number is set to increase. Increased two-way travel is not just about tourists, as interactions between business people, students and others are also important in creating more dynamic people-to-people exchanges.

Among the activities, the recent China-ASEAN Expo (CAEXPO) is progressing by covering more areas and attracting more stakeholders, expanding from traditional areas to new areas such as digital trade.

At this year's event, highly regarded innovative programs such as the China-ASEAN Young Leaders Growth Program targeting the younger generation and CAEXPO will contribute more to the cooperation between ASEAN and China, as both sides have the common interest of bringing more prosperity to the people.

Source: https://congthuong.vn/nang-cap-fta-asean-trung-quoc-30-co-y-nghia-quan-trong-tao-dong-luc-moi-349784.html