Asean free trade areas to be upgraded

JAKARTA: Talks on the upgrade of Asean’s free trade area with China have been launched while negotiations on upgrading the one with Australia and New Zealand wrapped up recently.

Leaders of Asean and China have announced and welcomed the official launch of negotiations for the upgrade of the AseanChina Free Trade Area (ACFTA), reported Vietnam News Agency.

Speaking at the recent 25th Asean-China Summit in Cambodia’s Phnom Penh, they affirmed that the upgrade is meant to ensure that the ACFTA helps further deepen and broaden Asean-China economic relations and contribute to the region’s postpandemic economic recovery.

ACFTA is Asean’s oldest free trade agreement among its dialogue partners. Upgrading ACFTA sends a signal to the private sector and all stakeholders that both Asean and China are committed to making the ACFTA more relevant to businesses that are responsive to global challenges.

The upgraded ACFTA will cover areas of mutual interest, including the digital and green economies, supply chain connectivity, competition, consumer protection, and micro, small, and medium enterprises.

China is Asean’s largest trade partner and the second largest source of foreign direct investment (FDI).

In 2021, total merchandise trade between the two sides reached US$669 billion, registering a yearon-year increase of 29 per cent despite the Covid-19 pandemic’s lingering impacts.

During the same period, FDI flows from China to Asean amounted to US$13.6 billion, almost double the US$7 billion in 2020, and equivalent to 7.8 per cent of total FDI into the bloc. — AFP