ASEAN & China Free Trade Agreement Upgrade Targeted by Year-End

The ASEAN and China free trade agreement is expected to be upgraded by the end of 2026 as both sides seek to deepen cooperation in digital trade, green commerce and regional supply chains.

Officials attending the ASEAN-China Free Trade Agreement Joint Committee meeting discussed completing negotiations on ACFTA 3.0 before a leaders' summit scheduled for November.

The revised framework will introduce new commitments covering digital trade, environmental goods and services, and supply-chain connectivity.

Seven ASEAN members, including Thailand, have completed domestic ratification procedures.

The protocol will enter into force 60 days after China completes its own approval process.

The parties are also updating tariff schedules to the HS 2022 system and developing an electronic origin-data exchange intended to reduce paperwork and accelerate customs processing.

China has remained ASEAN's largest trading partner for 16 consecutive years, reinforcing the importance of the upgraded agreement for regional trade and investment.