Kuala lumpur: ASEAN must continuously upgrade its trade agreements by including new sectors such as digital trade and the green economy to reflect the rapidly evolving global economy, said former Investment, Trade and Industry Ministry secretary-general Tan Sri Rebecca Sta Maria. She noted that while earlier frameworks such as the ASEAN Free Trade Agreement (AFTA) and the ASEAN Economic Community Blueprint had been designed to address market access, goods, services and investments, the realities of today's economy extend far beyond traditional trade.
According to BERNAMA News Agency, Rebecca emphasized the necessity of incorporating digital trade, the green economy, and inclusivity into ASEAN's trade architecture, as these were not captured in earlier agreements. Among the priority economic deliverables under Malaysia's chairmanship this year is the signing of the ASEAN-China Free Trade Agreement 3.0 (ACFTA 3.0) Protocol at the ASEAN Summit in October 2025, reflecting a commitment to an upgraded, future-ready trade framework.
Key discussions during the ASEAN Economic Ministers' Meeting included plans to upgrade the ASEAN-Korea Free Trade Agreement (AKFTA), focusing on the digital economy, critical minerals, supply chain resilience, micro, small and medium enterprises (MSMEs), sustainability, and the green economy. Rebecca also highlighted the Regional Comprehensive Economic Partnership (RCEP) as a pivotal platform for ASEAN's centrality in the trading system, emphasizing its ASEAN origin and the need for its alignment with ongoing upgrades of ASEAN's 'plus one' FTAs with China, South Korea, India, Australia, and New Zealand.
Rebecca mentioned ASEAN's open and inclusive approach to regionalism, allowing for expansion to new members such as Sri Lanka and Bangladesh, though technical considerations would be needed due to the lack of existing FTAs with these countries. She stressed the importance of engaging partners like China at both governmental and business levels to collaboratively address market pressures, viewing challenges as opportunities for system improvements and easing business processes.
Highlighting inclusivity, Rebecca pointed to the Initiative for ASEAN Integration (IAI) as crucial, especially with Timor-Leste's accession, advocating for special and differential treatment similar to that provided to Cambodia, Laos, and Myanmar. She cited ASEAN's adaptability and unity as strengths, referencing the successful transformation of the Trans-Pacific Partnership into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after the US withdrawal.
ASEAN's total GDP was approximately US$4.13 trillion in 2024, ranking it as the world's fourth-largest economic bloc. The Philippines is set to chair ASEAN for 2026, succeeding Malaysia, a decision reached by consensus among member states, bypassing Myanmar due to its ongoing political crisis.