The Version 3.0 upgrade of the China-ASEAN Free Trade Area (CAFTA) represents a "transformational leap" for regional and global trade, according to Shi Zhongjun, secretary-general of the ASEAN-China Center.
This year marks the 15th anniversary of the establishment of the China-ASEAN Free Trade Area, one of the largest free trade areas among developing countries worldwide.
As of July 2024, cumulative two-way investment between China and ASEAN countries had exceeded 400 billion U.S. dollars. China has been ASEAN’s top trading partner for 16 consecutive years, while ASEAN has been China’s largest trading partner for five years in a row.
In an interview with China Global Television Network (CGTN), Shi described the 15 years of development as a story of shared prosperity between China and ASEAN, driven by win-win cooperation and deeper regional economic integration.
"The CAFTA brings lower barriers and stronger ties to ASEAN and China. As China has implemented zero tariffs on about 95 percent of tariff lines for goods from ASEAN countries, ASEAN member states have also seen a significant increase in exports to China. Tropical fruits such as durian and mangosteen from ASEAN have been popularised in the Chinese market, while the share of Chinese products such as cellphones and new energy vehicles in ASEAN has increased very rapidly," he said.
Last week, economic and trade ministers from China and ASEAN member states announced the full completion of Version 3.0 CAFTA negotiations. This enhanced agreement includes nine new chapters covering areas such as the digital economy, green economy, and supply chain connectivity, among others.
Looking ahead to the impact of the upgraded trade agreement, Shi expressed optimism about its potential to deepen regional cooperation and drive global growth.
"I believe that with the signing of CAFTA 3.0 in the future, it will surely inject new impetus into ASEAN-China pragmatic cooperation. China and ASEAN will continue to play a dual engine role in regional development and prosperity, as well as in the stability and growth of the global economy," he said.
"It could be said that CAFTA 3.0 isn't just an upgrade. It's a transformational leap for regional and global trade. Unlike traditional FTAs, this agreement achieves ground-breaking milestones through the first-time inclusion of chapters on digital economy, green economy, and supply chain connectivity. That meets the highest standards in both sides' respective economic agreements," he added.
China-ASEAN Free Trade Area upgrade marks 'transformational leap' for global trade: secretary general
