China and ASEAN member states have finalized negotiations for the upgraded China-ASEAN Free Trade Area (CAFTA 3.0), marking a milestone in regional economic cooperation. The agreement, announced by China's Ministry of Commerce on Wednesday, concluded after nearly two years of intensive talks spanning nine formal rounds since November 2022.
The modernized pact introduces nine new chapters addressing 21st-century economic priorities, including digital trade frameworks, green energy collaboration, and resilient supply chain networks. A ministry official emphasized the deal's role in "injecting greater certainty into regional and global trade" while fostering openness and mutual prosperity.
Analysts highlight CAFTA 3.0's potential to create a unified market of 2 billion people, with enhanced rules for cross-border e-commerce and sustainable development initiatives. The agreement specifically targets improved market access for agricultural and high-tech products while establishing new standards for digital transactions and environmental cooperation.
Both parties aim to complete domestic ratification processes before the end of 2024, with implementation expected to accelerate regional recovery post-pandemic. The deal builds on existing CAFTA frameworks that have already facilitated $722 billion in bilateral trade in 2023 alone.
This development comes as ASEAN maintains its position as China's largest trading partner for four consecutive years, with the upgraded agreement poised to strengthen industrial complementarity between the world's second-largest economy and Southeast Asia's dynamic markets.
