Latest news with #ATIGA
South China Morning Post
3 days ago
- Business
- South China Morning Post
Asean's ambitious 2045 plan faces Trump tariffs and implementation woes
Members of the Asean bloc have laid out an ambitious plan to become the world's fourth-largest economy by 2045, but analysts warn the region must first overcome deep-rooted trade barriers, domestic implementation woes and a shifting global trade order. Advertisement Released on Tuesday during the Association of Southeast Asian Nations summit in Kuala Lumpur, the five-year strategy to achieve the economic goal aims to boost regional integration and better address complex issues. 'Carrying on with business as usual will not suffice for this highly dynamic economic region,' the statement said. 'For Asean to become the fourth-largest global economy by 2045, countries in the region will need to deepen their economic integration and enhance their agility to address multifaceted challenges.' The plan's announcement, which called for increased energy security, transport security, and strengthened supply chains, came after the bloc finalised negotiations on an upgraded Asean Trade in Goods Agreement (ATIGA) on Monday. First implemented in 2010, ATIGA removed tariffs on 98.6 per cent of goods traded among member states. The upgraded version – expected to be signed in October – aims to further boost intra-Asean trade by eliminating remaining duties and removing non-tariff barriers, such as complex customs procedures and licensing rules. Advertisement ATIGA is one of three major agreements that form the foundation of the Asean free-trade area, which seeks to lower trade barriers and build a unified regional market.
Nikkei Asia
5 days ago
- Business
- Nikkei Asia
ASEAN agrees to lower barriers to boost regional trade
KUALA LUMPUR -- Southeast Asian leaders are pushing to deepen economic integration at a regional summit that began Monday, approving an upgraded trade agreement and endorsing a new long-term vision in their first meeting since Washington announced sweeping tariffs in April. In an effort to mitigate geopolitical risks, the bloc has just concluded negotiations on an upgraded ASEAN Trade in Goods Agreement (ATIGA), set to be formally signed at the annual October summit. The revised deal aims to lower remaining tariffs and remove non-tariff barriers to improve trade flows among member states.
Malaysian Reserve
5 days ago
- Business
- Malaysian Reserve
ASEAN Power Grid MoA to be signed in October
By FARAH SOLHI THE ASEAN Power Grid (APG) Memorandum of Agreement (MoA) is scheduled to be signed this October, after the successful conclusion on its enhanced MoA's negotiation at the 25th Asean Economic Community Council (AECC) meeting today. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz told reporters that the APG, which would be signed at the 43rd Ministers on Energy Meeting (AMEM), is a strategic initiative in strengthening ASEAN's regional energy security, connectivity, and sustainability. 'In this context, we also welcomed ongoing work towards the establishment of the APG Financing Facility Framework, which will enhance cross-border flows of foreign direct investments (FDIs) and new funding opportunities for regional energy-related projects. 'The AEC Council also expressed full support for the convening of a joint meeting between ASEAN's Energy, Finance, and Economic Ministers in August,' he said. The enhanced APG MoA was among the 11 matters deliberated in the meeting, attended by ASEAN member states and Timor Leste today. Tengku Zafrul further highlighted several other matters raised during the meeting including Malaysia's success in completing two out of 18 Priority Economic Deliverables (PED) this year, which were the full conclusion of the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Negotiations and the ASEAN Trade in Goods Agreement (ATIGA) upgrade. Both upgraded agreements are scheduled to be signed at the sidelines of the upcoming 47th ASEAN Leaders' Summit in October this year, he said. 'We remain confident that these milestones will serve as pivotal enablers for ASEAN's sustained growth and competitiveness. 'The successful conclusion of these negotiations is expected to enhance the region's economic integration and generate significant economic benefits for ASEAN, as we continue to navigate an increasingly volatile global economic landscape. 'In particular, ATIGA — long regarded as the cornerstone of ASEAN's economic integration — will now 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 said. Tengku Zafrul added that the council also welcomed the full completion of Laos' 2024 PEDs which marked the successful adoption of the Roadmap on Digital Trade Standards as this milestone reflects the continued commitment in advancing the ASEAN's digital economy agenda. He also highlighted the progress of AEC Blueprint 2025 progress, as it is in its final year of completion. 'The overall implementation rate stands at a commendable 97%, comprising 75% completed measures and 22% currently in progress, as of April. The Blueprint has played a pivotal role in shaping ASEAN's economic architecture over the past decade. 'It has served as the strategic roadmap for building a highly integrated and cohesive ASEAN economy, promoting inclusive and innovation-led growth, and deepening regional connectivity and competitiveness,' he said. He added that through the Blueprint, ASEAN has made significant strides in areas such as trade liberalisation, investment facilitation, micro, small and medium enterprise (MSME) development, digital transformation, and sustainable economic initiatives. 'This impressive 97% implementation rate not only demonstrates ASEAN's collective commitment to economic integration but also reinforces the region's ability to respond to global uncertainties in a cool, calm and calculated manner,' he added. The key learnings and progress under the AEC Blueprint 2025, he further said, will serve as a solid foundation for the development of the AEC Strategic Plan 2026–2030, which will chart the region's next phase of economic growth and transformation. Tengku Zafrul added that the bloc is prepared to launch the successor to the Blueprint, which is the AEC Strategic Plan 2026–2030, which will be launched as part of the Compendium with the overarching ASEAN Community Vision 2045 at the 46th ASEAN Summit on May 26. 'The AEC Council reaffirmed support and commitment to the effective implementation of the AEC Strategic Plan, which will guide ASEAN's post-2025 economic integration agenda. 'We also look forward to the Regional Socialisation of the AEC Strategic Plan, which will be held on June 12. This session will serve as a key multi-stakeholder platform to socialise and share the economic benefits of the AEC Strategic Plan,' he said.
CNA
6 days ago
- Business
- CNA
Q&A with ASEAN secretary-general Kao Kim Hourn on tariffs, relations with China and US
JAKARTA: Southeast Asian leaders are looking for ways to mitigate the impact of the United States' sweeping import tariffs as the ASEAN (Association of Southeast Asian Nations) Summit in Malaysia kicks off on Monday (May 26). In an interview with CNA ahead of the two-day summit, ASEAN secretary-general Kao Kim Hourn said he expects the bloc to deepen engagement and increase intra-regional trade. He also said Washington's tariff policy has strengthened unity and solidarity among member states. Q. How can ASEAN deepen its engagement within member countries and improve intra-regional trade? (Singapore's) Deputy Prime Minister Gan Kim Yong has been leading this on the finalisation of the current negotiation for ASEAN Trade in Goods Agreement (ATIGA). We have been working on this for some time. We expect to conclude this ATIGA as early as possible. That will bring us in to another level of having a deeper trade engagement within the region here. So this is something quite positive in my view - that as soon we can realise this ... we will remove more barriers, particularly NTBs (non-trade barriers), and we will open up more. We need to do more businesses among the 10 member states rather. Q. To what extent do you think the US reciprocal tariff policy or tariff hikes has fostered ASEAN unity? I think this is probably the indirect by-product. ATIGA has been working for some time already for the upgrade, so in a way (it helps) us to expedite even more because it provides a very important impetus for us to look at the way things are in our region. What more could be done? We have to maximise our own potential when things are getting difficult externally, because … the tariffs and counter-tariffs make the whole economic dynamics very challenging for all of us, despite the fact that among the 10 member states, we have different percentages of tariffs from 10 per cent to 49 per cent and the additional tariffs. But at least I think for the time being, we see some pauses here and there and the positive development in some negotiations (between the US and) United Kingdom and China. But I think we cannot take this for granted, meaning that we must continue our work. And that's why I think the 46th ASEAN Summit is a timely summit for leaders to really have an in-depth discussion. Q. Do you think this is a wakeup call for ASEAN not to rely too much on the US market? Yes, I think it's a wake-up call for us that we cannot rely on any single market (or) a country. We have to rely more on ourselves. This is the message that is going to be very clear for ASEAN moving forward. That's why the timing for the launching of the ASEAN Community Vision (ACV) 2045 is perfect timing in terms of that. (It) will give direction. I think the ACV 2045 is a new roadmap. We open a new chapter for ASEAN because we never had a 20-year vision. Q. For the first time, there will be the ASEAN-Gulf Cooperation Council (GCC)-China summit during the ASEAN Summit. What does the bloc hope to achieve? China has been ASEAN's number one trading partner for the past 16 consecutive years, and we have been China's number one trading partner for the past consecutive six years … There's a lot of trade, there's a lot of investment, a lot of cooperation. To bring the three regions together, to look at what kind of synergy (and) economic cooperation we can have ... this is a new arrangement that has been conceived by Malaysia. Let's see how the leaders will discuss. But what's important is that for us, we are always looking for new opportunities out there. On the one hand, we will continue to build on the existing and the current opportunities, but also to explore new opportunities, new avenues where we can advance our interests. Q. Do you think that this ASEAN-GCC-China summit is a signal or indication that ASEAN is moving closer towards China, and away from the US amid the trade tensions with Washington? No, I don't think so. ASEAN never chooses sides. We are friends to all and enemies to none. With the US, we have had an enduring partnership (for) the past 48 years, and it will be during the Trump administration that will be commemorating the 50th anniversary in 2027 during Singapore's chairmanship of ASEAN. It's clear that we will continue to engage with the US on many issues because the US is also our comprehensive strategic partner … I don't think we are moving closer to Beijing or to Washington or anywhere. I think ASEAN remains ASEAN. Q. What new initiatives can be expected at the ASEAN Summit with regards to resolving the crisis in Myanmar? There are some movements. Before the summit we will have two meetings - just focused on Myanmar, at the ministerial level. There will be a meeting of the present chair, incoming chair and previous chair … it's all ASEAN Foreign Minister consultation ... discussing Myanmar. In that regard, they will have more time than they have been allocated to discuss the current developments in Myanmar, including the recent 7.7 magnitude earthquake impact as well. I'm sure the leaders will discuss on looking at what we have done and what more can ASEAN do, particularly in the context of the Five-Point Consensus. How can we make sure the Five-Point Consensus will continue to be implemented in full? I think that's important. There has been some good progress on Timor-Leste's membership in ASEAN. We have finally set up an operational ... Timor-Leste unit within the ASEAN Secretariat, so we now have dedicated staff to look after Timor-Leste. And of course, we concentrate now on the seven requirement for full membership, and we are constantly updating this to make sure that Timor-Leste is ready. Once it becomes a full member ... there's a lot of obligation, and that's why it's important for Timor-Leste to understand this on the one hand, but for us to make sure that we are ready as well. So I would say we should anticipate the accession by Timor-Leste in the very, very near future.
The Star
6 days ago
- Business
- The Star
Conclusion of ATIGA upgrade talks show Asean commitment to seamless, resilient economy: Singapore DPM
SINGAPORE (Bernama): The conclusion of the Asean Trade in Goods Agreement (ATIGA) upgrade negotiations on Sunday demonstrates the bloc's commitment to building a more seamless and resilient economic region, said Singapore's Deputy Prime Minister Gan Kim Yong. Gan, who also serves as Minister for Trade and Industry, said it also reflects Asean's commitment to preserving a rules-based trading environment to better support business operations in the region amidst an uncertain global economic climate. "Singapore was pleased to Chair and work with our Asean partners to successfully conclude the ATIGA Upgrade negotiations,' he said in a Ministry of Trade and Industry (MTI) statement on Sunday. The negotiations were concluded at the 25th Asean Economic Community Council (AECC) Meeting in Kuala Lumpur, which Gan attended. As the next step, Asean Member States have agreed to sign the upgraded ATIGA at the 47th ASEAN Summit in October 2025. Businesses stand to benefit from an improved regional ecosystem for the flow of goods within Asean when the upgraded ATIGA comes into force, according to MTI. Meanwhile, Gan said that Singapore will continue to work with Asean and global partners to secure long-term growth, competitiveness, and shared prosperity, as the bloc deepens region-to-region cooperation and harnesses opportunities in digitalisation and sustainability. "Asean's focus on digitalisation, sustainability and expanding global cooperation ensures our region remains open, connected, and future-ready,' he added. MTI said that at the 25th AECC Meeting, Asean Member States endorsed the Asean Economic Community (AEC) Strategic Plan (2026-2030), laying the foundation for the region's next phase of economic integration under the Asean Community Vision 2045. It said that against a backdrop of global uncertainty, Asean reaffirmed its commitment to open, rules-based trade, focusing on deeper regional economic integration, region-to-region partnerships, as well as digital transformation and sustainable growth. - Bernama
