Latest news with #ACFTA
Barnama
2 days ago
- Business
- Barnama
RCEP, ACFTA Key To Unlocking ASEAN-China Trade Potential - ASEAN Sec-Gen
BUSINESS From Kisho Kumari Sucedaram HUANGSHAN, June 5 (Bernama) -- Stronger grassroots implementation, simplified processes for businesses, and closer public–private partnerships are key to unlocking the full potential of regional trade pacts, according to ASEAN Secretary-General Dr Kao Kim Hourn. Kao was referring to the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-China Free Trade Area (ACFTA). He said the frameworks of both are complementary and critical in expanding market access, fostering resilient supply chains and enhancing regional competitiveness. 'Strong public–private partnerships are essential not only to help businesses integrate into regional value chains, but also to support them in scaling up operations and contributing to more responsive policymaking,' he said at the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum held here today. Kao also noted that micro, small and medium enterprises (MSMEs), the backbone of the ASEAN economy, often face barriers in accessing financing and navigating complex regulations. In this regard, he encouraged local authorities to support MSMEs through targeted outreach, advisory services and simplified administrative processes. He commended the proactive efforts of cities and local governments in facilitating trade adoption through policy dialogues, capacity building and incentive schemes that are essential for helping businesses navigate technical trade rules and realise the benefits of both RCEP and ACFTA.
New Straits Times
2 days ago
- Business
- New Straits Times
RCEP, ACFTA key to unlocking Asean-China trade potential
HUANGSHAN: Stronger grassroots implementation, simplified processes for businesses, and closer public–private partnerships are key to unlocking the full potential of regional trade pacts, according to Asean secretary-general Dr Kao Kim Hourn. Kao was referring to the Regional Comprehensive Economic Partnership (RCEP) and the Asean-China Free Trade Area (ACFTA). He said the frameworks of both are complementary and critical in expanding market access, fostering resilient supply chains and enhancing regional competitiveness. "Strong public–private partnerships are essential not only to help businesses integrate into regional value chains but also to support them in scaling up operations and contributing to more responsive policymaking," he said at the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum held here today. Kao also noted that micro, small and medium enterprises (MSMEs), the backbone of the Asean economy, often face barriers in accessing financing and navigating complex regulations. In this regard, he encouraged local authorities to support MSMEs through targeted outreach, advisory services and simplified administrative processes. He commended the proactive efforts of cities and local governments in facilitating trade adoption through policy dialogues, capacity building and incentive schemes that are essential for helping businesses navigate technical trade rules and realise the benefits of both RCEP and ACFTA. RCEP covers 15 countries, including all 10 Asean members and five of its key partners, namely China, Japan, South Korea, Australia and New Zealand. Kao pointed out that RCEP economies contributed US$29.4 trillion, or nearly 28 per cent of global gross domestic product in 2023, while their combined trade was valued at US$13.5 trillion in 2024, accounting for over 28 per cent of global trade. The bloc also represents a consumer base of 2.3 billion people, or nearly one-third of the global population. In China alone, RCEP usage jumped 38 per cent last year, with most firms leveraging RCEP to boost exports and diversify supplier networks. Asean's total trade with RCEP partners totalled US$1.3 trillion in 2024, making up 34.5 per cent of Asean's overall trade. Kao also highlighted the growing importance of the ACFTA, established in 2003, which has already eliminated more than 90 per cent of tariffs between Asean and China. "The ACFTA 3.0 will modernise the agreement and open new doors in the digital economy, green economy, and supply chain connectivity. "It will redefine Asean-China economic relations through innovation and competitiveness," he said. On May 25, Asean Economic Ministers concluded negotiations for the ACFTA 3.0 upgrade alongside the completion of the upgraded Asean Trade in Goods Agreement (ATIGA). Both upgraded agreements are scheduled to be signed on the sidelines of the upcoming 47th Asean Leaders' Summit in Kuala Lumpur in October 2025. Kao further said ACFTA and RCEP form "mutually reinforcing frameworks" that allow Asean and Chinese businesses to expand their global supply chain footprints, with both agreements contributing to long-term economic resilience and integration. "By further harnessing the benefits of RCEP, Asean and China will build resilient and interconnected economies that are capable of withstanding uncertainties and challenges while capitalising on emerging opportunities," he added.
Malaysiakini
5 days ago
- Business
- Malaysiakini
Asean-GCC-China summit: Forging strategic trilateral future
LETTER | On May 27, Kuala Lumpur became the epicentre of a historic diplomatic convergence as the leaders of Asean, the Gulf Cooperation Council (GCC) and the People's Republic of China gathered for the first-ever Asean-GCC-China Summit. This unprecedented trilateral engagement, held under the chairmanship of Malaysia, marked a milestone in international diplomacy, economic cooperation and strategic alignment among three of the world's most dynamic regions. The summit was more than a mere multilateral meeting. It symbolised the coming together of regions connected by centuries of trade, civilisation, and cooperation from the ancient Silk Road and the maritime powerhouses of Melaka to the energy corridors of the Gulf and the technological advances of modern China. Prime Minister Anwar Ibrahim, as host and chair, reflected this spirit by emphasising the deep historical linkages and shared aspirations that bind these blocs together. Anwar described the summit as a 'new chapter in Asean's journey of outward-looking engagement,' underscoring the trilateral potential of a combined population exceeding 2.15 billion and a gross domestic product (GDP) of US$24.87 trillion. He stressed that such a scale presents immense opportunities to synergise markets, deepen innovation, and foster cross-regional investments. Global dynamics The 2025 summit took place against a backdrop of shifting global dynamics, notably the rise in U.S. protectionism under President Donald Trump's second term. As the United States imposed new rounds of tariffs on Asean exports - reaching up to 49 percent for some member states - there was a clear impetus for regional blocs to assert strategic autonomy. The Asean-GCC-China alignment thus appeared not as a defiance of global order, but as a recalibration of priorities towards multipolarity, cooperation and balanced engagement. While Anwar was careful to reiterate that the US remains an important trade partner, he also reaffirmed Asean's intention to maintain a policy of 'constructive, balanced engagement' with all major powers. This was echoed in the summit's joint statement, which pledged to uphold international law, multilateralism and mutual respect. The summit produced a far-reaching Joint Statement, outlining commitments in six primary domains: economic integration, energy and sustainability, digital transformation, food and agriculture, connectivity and people-to-people exchanges. These areas form the backbone of what the leaders termed a 'unified and collective path toward a peaceful, prosperous, and just future.' The summit reaffirmed the centrality of trade as the cornerstone of trilateral relations. Leaders committed to finalising and signing the Asean-China Free Trade Area (ACFTA) 3.0 Upgrade and looked forward to the early conclusion of the China-GCC Free Trade Agreement. Furthermore, they proposed the establishment of a trilateral regional business council to facilitate dialogue between companies across the three regions, with a special focus on digital trade, fintech, supply chains and empowering micro, small and medium enterprises (MSMEs). There was also a strong push for de-dollarisation strategies, with an emphasis on local currency usage and cross-border payment systems to shield regional trade from external volatility. Infrastructure development was positioned as both an economic and symbolic enabler of regional unity. The Belt and Road Initiative (BRI) was endorsed as a platform to enhance seamless regional connectivity, particularly through digital infrastructure, maritime security cooperation and the development of logistics corridors. These initiatives are expected to diversify economic access and deepen inter-regional trade links between the Asean archipelago, the Gulf and mainland China. On energy Energy featured prominently, reflecting the Gulf's strength as an energy powerhouse and China's and Asean's increasing drive toward clean energy transitions. The summit participants agreed to collaborate on an inclusive, affordable energy transition aligned with the Paris Agreement. Joint efforts will focus on clean hydrogen, low-carbon ammonia, carbon capture and nuclear energy guided by International Atomic Energy Agency (IAEA) standards. The parties also committed to strengthening energy market stability, investing in cross-border energy infrastructure such as LNG terminals and undersea power cables and promoting innovation in emerging green technologies. The leaders acknowledged digital innovation as a strategic priority. There was consensus on exploring cross-regional frameworks for cooperation in digital trade, fintech, artificial intelligence (AI), quantum computing, blockchain and smart city development. To ensure inclusivity in the digital age, the summit endorsed skills development, digital literacy programs, and inclusive platform work protections. Food security was highlighted as an urgent issue, especially amid ongoing conflicts and supply chain disruptions. The leaders agreed to enhance sustainable agricultural practices, promote halal food trade through mutual recognition of standards and diversify food sources to strengthen regional nutrition and food resilience. Cultural diplomacy was also a core theme. The summit committed to boosting educational exchange, scholarship programs, mutual tourism marketing, and cross-cultural initiatives through art, music and literature. A special focus was placed on youth engagement and intercultural dialogue to build mutual trust and long-term friendship among the peoples of the three regions. In addition to development priorities, the summit tackled pressing global humanitarian and security concerns. The plight of Palestinians was addressed comprehensively, with the leaders jointly condemning attacks on civilians in Gaza and calling for a durable ceasefire and full humanitarian access. The summit cited the International Court of Justice Advisory Opinion (July 19, 2024) and UN resolutions supporting the two-state solution based on pre-1967 borders. Qatar's mediation and China's role in facilitating Palestinian unity through the Beijing Declaration (July 2024) were acknowledged and praised. The leaders also endorsed Saudi Arabia's initiative to co-host a High-Level International Conference for Peace in Palestine with France in June 2025. Myanmar crisis In addressing the Myanmar crisis, the summit called for extending the ceasefire initiated after the March earthquake, although concerns were raised about the military regime's sincerity. Nonetheless, Asean reaffirmed its commitment to a peaceful solution through regional consensus and diplomacy. Anwar delivered multiple keynotes during the summit and the accompanying Asean-GCC-China Economic Forum. He celebrated the event as a landmark demonstration of Asean's capacity to convene and lead amidst complexity. Anwar highlighted the rapid economic rise of the GCC, particularly in energy transition and AI development, and reaffirmed China as a vital partner for regional stability, justice, and development. He praised the summit for achieving concrete consensus on governance, economic policy, and human rights advocacy, stating that this summit proves that open dialogue and collective spirit can overcome differences. Chinese Premier Li Qiang echoed similar sentiments, emphasising China's readiness to align development strategies with Asean and GCC partners, and expressing optimism that trilateral synergies would multiply benefits across all regions. GCC leaders, including Kuwait's Crown Prince Sheikh Sabah Khalid Al Sabah, stressed the importance of building resilient partnerships to withstand global crises, while advancing negotiations on a free trade area with Asean. The summit concluded with a collective pledge to implement the joint statement through agreed mechanisms and to build on existing frameworks such as the Asean-GCC and Asean-China platforms. The leaders also looked ahead to future summits, including the Asia Cooperation Dialogue in Doha (October 2025) and the Palestine Peace Conference (June 2025). In short, the Asean-GCC-China Summit represents a bold reimagining of global governance. It demonstrated that in a fragmented international order, regional blocs can lead with purpose, foster inclusivity and champion cooperation over conflict. With Malaysia at the helm, the summit has set a precedent for strategic trilateralism that could shape Asia and the Middle East for decades to come. NURUL AMELLYA AZHAR is a doctorate student in International Political Economy at Universiti Kebangsaan Malaysia. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
Business Times
25-05-2025
- Business
- Business Times
Asean finalises two key trade deals ahead of October signing, says Malaysia's trade minister
[KUALA LUMPUR] The Association of Southeast Asian Nations (Asean) concluded two major trade pacts on Sunday (May 25), a move expected to deepen regional integration and bolster economic resilience as global protectionism rises, said Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Aziz. The upgraded Asean-China Free Trade Area (ACFTA) 3.0 and the revised Asean Trade in Goods Agreement (ATIGA) are slated to be signed at the 47th Asean Summit in October in Kuala Lumpur. Tengku Zafrul said the successful conclusion of the trade negotiations is expected to strengthen Asean's economic integration and deliver substantial economic gains, particularly as the region grapples with rising global uncertainty. 'ATIGA, long seen as a cornerstone of Asean's economic framework, will now include forward-looking, commercially significant provisions designed to boost intra-regional trade, reinforce supply chain resilience, and deepen economic ties across the bloc,' he told the media after chairing the Asean Economic Community (AEC) Council meeting on Sunday. The ACFTA enhances Asean's trade relationship with its largest trading partner by incorporating provisions on the digital and green economy, while the ATIGA upgrade includes new rules to reduce non-tariff barriers, improve trade facilitation, and deepen economic integration within the bloc. AEC Strategic Plan 2026–2030 Tengku Zafrul Aziz says the successful conclusion of the trade negotiations is expected to strengthen Asean's economic integration. PHOTO: REUTERS Alongside the trade breakthroughs, Asean is set to unveil a new long-term economic strategy – the AEC Strategic Plan 2026-2030 – at the 46th Asean Summit, taking place on Monday and Tuesday. Along with it, related summits are also being held at the Kuala Lumpur Convention Centre A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The new blueprint, a successor to the AEC Blueprint 2025, will serve as the region's road map for economic integration, innovation, and sustainability over the next five years. It will also feed into the broader Asean Community Vision 2045, which outlines the bloc's long-term aspirations for a resilient and competitive regional community. 'We are entering a new chapter in Asean's economic integration journey,' Tengku Zafrul said in Kuala Lumpur, where ministers gathered for the AEC Council meeting. 'This forward-looking document will guide our next phase of growth as we navigate a more volatile global environment,' he added. Tengku Zafrul said the upcoming AEC blueprint will build on Asean's current economic framework, which has achieved a 97 per cent implementation rate. It will focus on inclusive and innovation-led growth, digital transformation, and stronger intra-regional connectivity. The new plan outlines six strategic goals, 44 objectives, and 192 strategic measures focused on inclusive growth, digital transformation, micro small and medium enterprises (MSME) development, and regional sustainability. A stakeholder engagement session is scheduled for Jun 12 in Kuala Lumpur to promote awareness and buy-in from the business community and civil society, he added. Kuala Lumpur Declaration Malaysia is the current Asean chair for 2025, under the theme of strengthening community resilience, economic sustainability, and future readiness and as the chair and host of this year's Asean meetings. This marks Malaysia's fifth time chairing the bloc since 1977. In conjunction with the summit, two key high-level meetings – the 2nd Asean-Gulf Cooperation Council (GCC) Summit and the Asean-GCC-China Summit – will also take place, marking an important platform for expanded regional and inter-regional cooperation. On Thursday, Malaysian Prime minister Anwar Ibrahim said the Kuala Lumpur Declaration will be unveiled at the Asean Summit on Monday. The declaration, developed as part of Malaysia's chairmanship priorities, seeks to embed resilience into Asean's long-term vision by enhancing institutional capabilities, embracing digital reforms, and increasing preparedness for geopolitical and economic shocks. Energy connectivity in focus In another milestone, Asean concluded negotiations on the Enhanced Memorandum of Agreement on the Asean Power Grid (APG). The agreement – set to be signed at the Asean Ministers on Energy Meeting in October – aims to boost cross-border electricity trade and strengthen regional energy security. Originally proposed more than two decades ago, the APG initiative is gaining traction as member states prioritise decarbonisation and energy transition goals. The bloc is also working on an APG Financing Facility Framework to attract foreign direct investment into large-scale infrastructure projects. 'The APG will play a pivotal role in accelerating energy connectivity, climate commitments, and economic resilience,' said Tengku Zafrul. Breaking the 'business-as-usual' mold At the briefing, the minister urged Asean member states to adopt bolder and more adaptive strategies. 'The current environment demands that we move away from a business-as-usual mindset,' he said. 'We must deepen intra-Asean trade and reduce reliance on external markets.' Ministers discussed 11 key agenda items, ranging from regional economic recovery and digital infrastructure to climate adaptation and MSME resilience. Representatives from all 10 Asean member states, as well as Timor-Leste, participated in the council meeting. The Asean ministers present also reaffirmed their support for Timor-Leste's accession to the bloc, following a road map adopted in 2023.
The Star
25-05-2025
- Business
- The Star
Asean conclude talks on upgrading ACFTA, Atiga, says Tengku Zafrul
Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Aziz chairs the 25th ASEAN Economic Community Council meeting at the Kuala Lumpur Convention Centre. -Bernama KUALA LUMPUR: Asean has concluded the upgrade of two existing trade agreements on Sunday (May 25), and it is expected to be signed at the 47th Asean Summit in October this year, says Tengku Datuk Seri Zafrul Abdul Aziz. According to the Investment, Trade and Industry Minister, this is the upgrade negotiations on the Asean-China Free Trade Area (ACFTA) 3.0 and the upgrade of the Asean Trade in Goods Agreement (Atiga). ALSO READ: Asean's measured approach to US tariffs opens doors for engagement with major economies, says Tengku Zafrul 'I am pleased to report that two of our priority economic deliverables (PED) for 2025 have been concluded. 'Both upgraded agreements are scheduled to be signed at the sidelines of the upcoming 47th Asean Leaders' Summit in October in KL. 'We remain confident that these milestones will serve as pivotal enablers for Asean's sustained growth and competitiveness,' said Tengku Zafrul during a press conference. Tengku Zafrul was speaking after chairing the 25th Asean Economic Community Council (AECC) Meeting at Kuala Lumpur Convention Centre (KLCC) on Sunday (May 25). Tengku Zafrul said the successful conclusion of these negotiations are expected to enhance the region's economic integration and generate significant economic benefits for Asean as it navigates an increasingly volatile global economic landscape. 'Atiga - long regarded as the cornerstone of Asean's economic integration - will feature forward-looking and commercially meaningful provisions aimed at further boosting regional trade, enhancing supply chain resilience and promoting deeper economic integration within Asean,' he added. At the same time, Tengku Zafrul also said the AECC meeting concluded negotiations on the Enhanced Memorandum of Agreement (MoA) on the Asean Power Grid (APG) initiative, and it is scheduled to be signed at the 43rd Asean Ministers on Energy Meeting in October this year. 'The APG is a strategic initiative in strengthening Asean's regional energy security, connectivity, and sustainability,' he added. Tengku Zafrul also welcomed the establishment of the APG financing facility network, which will enhance cross-border flows of foreign direct investments and new funding opportunities for regional energy-related projects. 'AEC Council also expressed full support for the convening of a joint meeting between Asean's energy, finance and economic ministers later in October this year. At the same time, Tengku Zafrul said the Asean Economic Community Blueprint 2025 has an overall implementation rate of 97%, comprising 75% completed measures and 22% currently still in progress. '2025 marks another pivotal milestone for Asean, as we prepare to launch the successor to the AEC Blueprint - the Asean Economic Community (AEC) Strategic Plan 2026-2030,' he added. The AEC Strategic Plan 2026 - 2030 will be launched on Monday (May 26). Asean Ministerial Meetings are taking place on Sunday (May 25), and it is expected to set the tone for the 46th Asean Summit and Related Summits scheduled for May 26-27. Leaders in the region will meet during the 46th Asean Summit on May 26 and the summits with the Gulf Cooperation Council and China on May 27.
