Upgraded ATIGA Set to Unlock Over 99% Regional Trade Openness
The upgraded ASEAN Trade in Goods Agreement (ATIGA), a pivotal document for the region, is projected to elevate regional trade flows to an openness exceeding 99 percent by granting greater concessions and preferential treatment for goods traded among member states.
This significant forecast was delivered by ASEAN Economic Community (AEC) Deputy Secretary-General, Satvinder Singh, during the ASEAN Business and Investment Summit (ABIS) $2025$.
The much-anticipated and enhanced ATIGA is set to deliver substantial benefits to the ASEAN bloc, particularly as it intensifies its efforts to address key, persistent regional trade challenges.
The primary obstacle remains the widespread issue of non-tariff barriers (NTBs), which are currently estimated to number between 5,000 and 7,000 across the region.
These numerous NTBs have historically posed one of the biggest issues in cross-border commerce, especially when managing trade disputes.
To directly tackle this, the new agreement is introducing a crucial alternative dispute resolution mechanism in the form of mediation.
This addition will empower exporters to more effectively engage regulators and their counterparts in other member states, allowing them to sit down, discuss, and mediate solutions to NTB-related problems, thereby streamlining trade for businesses.
New Mechanisms to Address NTBs and Boost Trade Facilitation
A major enhancement within the upgraded ATIGA is the focus on robust mechanisms aimed at reducing friction in trade and enhancing dispute resolution capabilities.
Singh pointed out that NTBs, while often technical, create significant costs and delays for businesses operating across multiple ASEAN countries.
Historically, dispute management largely relied on formal arbitration channels, which, although available within ASEAN’s existing framework, can be time-consuming and costly, potentially sidelining smaller exporters.
The introduction of mediation as an alternative resolution method provides a more accessible, flexible, and efficient path for settling disagreements arising from non-trade barriers.
This pragmatic approach recognizes that swift resolution is key to maintaining healthy regional trade flows and is expected to be a major win for the business community.
Furthermore, the upgraded agreement is structured to ensure that foundational trade facilitation tools are comprehensively integrated and more impactfully implemented.
These tools include the ASEAN Single Window, which simplifies customs clearance processes, and the ASEAN Customs Transit System, which expedites the movement of goods across borders, alongside the Authorized Economic Operator and Mutual Recognition Arrangements, all of which contribute to moving goods quicker, faster, and cheaper across member state borders.
Embracing the Circular Economy and Securing Future Investment
Beyond trade facilitation, the enhanced ATIGA incorporates forward-looking, circular elements that are legally binding for all ten member states, signaling a united commitment to circular trade principles within the bloc.
Singh highlighted this as a significant structural shift, noting that all ASEAN countries have agreed to address the issue of circularity.
For the first time under this new, upgraded agreement, the free flow of re-manufactured goods within ASEAN will be permitted.
This provision is viewed as a substantial positive development for the region, as it is expected to capture a whole new generation of foreign direct investment (FDI) specifically concentrated on the recycled circular economy.
By facilitating the trade of re-manufactured items, ASEAN is positioning itself as a hub for sustainable industrial processes, which is projected to generate new jobs, boost revenues, and foster the growth of entirely new industries focused on sustainability and resource efficiency.
The collective agreement to address this issue is intended to place ASEAN in a very competitive and favorable position globally, signaling the bloc’s readiness to embrace modern, sustainable trade practices and further capitalize on the physical side of regional economic integration.
ASEAN member states are slated to officially ink the upgraded ATIGA during the 47th ASEAN Summit, chaired by Prime Minister Datuk Seri Anwar Ibrahim, under the theme “Inclusivity and Sustainability.”
