ASEAN Moves Closer To Becoming Seamless Single Market With Upgraded Trade Deal, Says Sec-Gen

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Oct 28 (Bernama) -- ASEAN has taken a landmark step towards becoming a seamless single market and production base after member states concluded and signed the upgraded ASEAN Trade in Goods Agreement (ATIGA) that aims to boost trade and investment integration across the region.

ASEAN secretary-general Dr Kao Kim Hourn said the agreement comes as ASEAN’s combined gross domestic product (GDP) reaches nearly US$4 trillion (US$1 = RM4.20), with intra-ASEAN trade now accounting for 21.5 per cent of total trade -- a figure regional leaders want to raise further to unlock deeper connectivity and business flows.

“We have almost US$4 trillion GDP and out of that amount, about 21.5 per cent constitutes intra-ASEAN trade. We want to push that envelope a little bit more (in) intra-ASEAN trade and also investment towards the connectivity.

“That is good for the region as well as the people of ASEAN. But at the same time, that does not mean we stop here,” he told reporters on the sidelines of the 47th ASEAN Summit and Related Summits here today.

Kao said stronger economic integration remains key to ensuring prosperity for the region’s more than 680 million people while reinforcing its role as a global growth anchor.

“This morning, we just signed and finalised the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol and we expect this year, for the very first time, to have a US$1 trillion trade between ASEAN and Chin. That upgrade will push the envelope even further between the two sides.

“But at the same time, we just had the 4th Regional Comprehensive Economic Partnership (RCEP) Summit. This is basically ASEAN plus five. And we want to call for accession by other economies. So, it means that right now, ASEAN has the world's largest free trade agreement (via RCEP) and wants to have expansion again,” he added.

ASEAN is positioning itself at the centre of a rapidly expanding RCEP, already the world’s largest trade bloc, representing 30 per cent of global GDP and population, Kao said, noting efforts are ongoing to welcome wider accession.

He said that maintaining peace in Southeast Asia remains a non-negotiable foundation for sustaining trade and investment flows, as businesses demand stability and predictability.

“If we don’t have peace in the region, we cannot attract investment, expand trade -- people will not do business with us. So that's why I think the fact that all of us have come together, working very hard to maintain and promote peace and stability, is very important.

“Artificial intelligence (AI), emerging technologies (and) digitalisation ... open up so much opportunity, immense opportunity, but of course, there's a lot of risks and threats that come along. So, I think, the bottom line is that that's where we have to work very hard to make sure that our people are protected, to make sure that data and privacy are protected,” he said.

As ASEAN accelerates trade integration, he said, digital transformation efforts including the ASEAN Digital Economy Framework Agreement (DEFA) will open enormous opportunities for enterprises and workers as the region strengthens its competitiveness.

“This year we're making substantial conclusions (for DEFA). And there have been a lot of discussions, not just within ASEAN but with our partners and the private sector. They are very keen on the digital economy because the digital economy will bring enormous opportunities.

“Of course, we are now embarking with partners, including technology giants, to train and offer a digital skills training programme. Hence, we have to continue to make sure we upskill and reskill our people, particularly the young people, but of course they are very tech-savvy in our region,” he said.

Kao said with the upgraded trade rules, rising connectivity and a united approach to global challenges, ASEAN is really on track in positioning itself as a stable and increasingly influential economic force.

-- BERNAMA