China ASEANPhoto:VCG

China and ASEAN announced the substantial conclusion of negotiations on the China-ASEAN Free Trade Area (FTA) Version 3.0 at the 27th China-ASEAN Summit, the Chinese Ministry of Commerce (MOFCOM) announced on Thursday.

Improvements to the FTA will strengthen cooperation in emerging areas, align standards and regulations, and promote trade facilitation and inclusive development for both sides, MOFCOM said.

The conclusion of the negotiations demonstrates the unwavering determination of both sides to maintain a rules-based trading environment and accelerate post-pandemic economic recovery by deepening and expanding economic integration and cooperation in a complex global environment, said the MOFCOM.

Negotiations on version 3.0 of the China-ASEAN FTA began in November 2022.

Version 3.0 will deepen cooperation in areas such as the digital economy, green economy, supply chain connectivity, competition and consumer protection, as well as for micro, small and medium-sized enterprises.

These improvements will significantly expand mutually beneficial cooperation between China and ASEAN in emerging areas, strengthen the integration of standards and regulations, and promote trade facilitation and inclusive development, MOFCOM said.

The two sides aim to complete legal reviews and domestic procedures to facilitate the signing of the upgrade protocol in 2025, MOFCOM said.

The first update of the FTA was signed in 2015 and entered into force in 2019, with improvements regarding rules of origin, customs procedures and facilitation of trade, investment and economic and technical cooperation , as well as market access for services, CCTV reported.

In the first eight months of this year, trade between China and ASEAN reached 4.5 trillion yuan ($638 billion), an increase of 10 percent year-on-year and accounting for 15.7 percent of trade China’s total exterior during this period. ASEAN has consolidated its position as China’s largest trading partner, according to customs data.