Bangkok: The government is advancing plans to upgrade the ASEAN-China Free Trade Agreement (ACFTA) to ACFTA 3.0, a move aimed at enhancing trade and investment opportunities while supporting Thailand's digital economy, green economy, and small and medium-sized enterprises (SMEs). This initiative is set to facilitate exporters and strengthen economic ties with China and ASEAN member states.
According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, announced that the Cabinet has approved the submission of a protocol to elevate the Comprehensive Economic Cooperation Framework Agreement and certain agreements within that framework to the Parliament. This step is in accordance with the Constitution and is essential for making the agreement binding. The ASEAN-China Free Trade Agreement is a significant economic cooperation framework in the region, in place for several years, and was upgraded to ACFTA 2.0 in 2016. The latest negotiations aim to align the agreement with the global economic context and modern trade patterns, with completion expected in 2025.
ACFTA 3.0 focuses on modernizing trade regulations and standards, retaining current commitments to market openings for goods, services, and investment. The emphasis is on facilitating trade and improving business operations' efficiency among member states, rather than negotiating further tariff reductions or new market openings. Key revisions include upgrading customs procedures and trade facilitation through increased electronic system usage, transparent import-export information dissemination, and expedited clearance of perishable goods, targeted to be completed within 6 hours of arrival. The agreement also aims to align technical regulations, sanitary and phytosanitary measures, and economic and technical cooperation with international standards.
Additionally, ACFTA 3.0 introduces five new areas of cooperation reflecting global economic trends: competition and consumer protection, digital economy, green economy, supply chain connectivity, and micro, small, and medium-sized enterprises (MSMEs). Notably, the digital economy chapter encourages the use of e-systems, single-window data connectivity, digital payments, and responsible artificial intelligence (AI) usage. The green economy chapter focuses on promoting clean energy, renewable energy, green investment, and circular economy initiatives.
The Deputy Spokesperson highlighted that the agreement would enhance Thai entrepreneurs' competitiveness, particularly SMEs, by providing easier access to Chinese and ASEAN markets, reducing trade barriers, and improving logistics and supply chain efficiency. The Ministry of Commerce gathered feedback from over 4,000 individuals from government agencies, the private sector, and the public; most respondents believe upgrading the agreement will facilitate trade, enhance business capabilities, and create new long-term economic opportunities for Thai entrepreneurs. Ms. Lalida stated, 'The government prioritizes using free trade agreements as a tool to expand economic opportunities for the country. Upgrading ACFTA 3.0 will enable Thailand to connect more efficiently with regional supply chains, ready to support the new economy driven by technology, innovation, and sustainable development, benefiting entrepreneurs, farmers, and the Thai people in the long term.'