By Zufazlin Baharuddin
KUALA LUMPUR: ASEAN, which remains committed to upgrading existing free trade agreements (FTAs) to ensure they stay relevant and effective, will see the upgraded version of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) deal on April 21, 2025.
“Additionally, ASEAN is working towards signing the upgraded ASEAN-China FTA 3.0 and finalising the review of the ASEAN-India Trade and Goods Agreement later this year,” said ASEAN secretary-general Dr Kao Kim Hourn in his keynote address on the second day of the ASEAN Investment Conference (AIC), here today.
He said the ASEAN Economic Minister’s special meeting tomorrow will assess the impact of the United States’s (US) sweeping tariffs on each member country of the bloc as well as ASEAN’s collective deal.
Tariffs on the 10 member countries vary from as low as 10 per cent to as high as 49 per cent.
“These measures have sent shockwaves to the global trading system and strike the very foundation of corporate trade and investment that has underpinned ASEAN’s growth and prosperity for decades.
In the wake of this, Kao said deepening regional bonds is no longer a matter of choice but a strategic imperative for ASEAN as the grouping faces growing global trade tensions and economic uncertainty.
“In the face of these headwinds, ASEAN must hold firm to its founding ethos, (namely) openness, resilience and unity.
“We need to deepen our regional bonds, tap into the inherent strength of our 678 million people, unlock the breadth of our shared potential and diversify our markets and partners,” he said.
The AIC is held in conjunction with the 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) and related meetings.
The meeting, which runs from April 7-10 at the Kuala Lumpur Convention Centre, serves as one of the main platforms for ASEAN to strengthen regional economic integration and financial resilience collectively.
Kao opined that among the strategies to strengthen ASEAN connectivity is the goal of becoming a global supply chain hub, building on the region’s transformation into a single market and production base.
“Over many decades, ASEAN has actively eliminated tariffs and non-tariff measures, fostering a harmonised trade and investment regime.
“Through the ASEAN Trade and Goods Agreement, the ASEAN Trade and Services Agreement, and the ASEAN Comprehensive Investment Agreement, these agreements have lowered cross-border transaction costs, enhanced production factory mobility, and strengthened resilience by leveraging complementarities between our economies,” he said. – BERNAMA
