The ASEAN-China Free Trade Agreement (FTA) 3.0 is set to redefine regional collaboration, targeting digital trade, green economic practices, and agricultural innovation as key pillars. ASEAN Secretary-General Kao Kim Hourn confirmed negotiations are underway for a new digital economy framework agreement to streamline cross-border e-commerce, which accounted for $1.1 trillion in ASEAN transactions last year.
"This upgrade isn’t just about tariffs—it’s about creating future-ready ecosystems," Kim Hourn emphasized, pointing to plans for AI-driven logistics and standardized cross-strait digital payment systems. Agricultural cooperation will focus on sustainable farming technologies to address food security concerns, while green energy partnerships aim to align ASEAN’s renewable energy goals with China’s decarbonization targets.
Analysts predict the modernization of trade protocols could increase ASEAN-China merchandise trade by 18% by 2026, particularly benefiting SMEs through simplified customs procedures. The agreement comes as both regions seek to counterbalance global economic uncertainties through deeper integration.
