Advancing Trade with the Upgraded ACFTA Protocol
The signing of the upgraded protocol for the Asean-China Free Trade Area (ACFTA) represents a major achievement for Asean and China, a milestone highlighted by Commerce Minister Suphajee Suthumpun.
She specifically acknowledged Thailand’s significant leadership role in guiding the complex negotiations to a successful and timely completion.
With the signing concluded in Kuala Lumpur, the focus now shifts to domestic implementation.
The Thai Ministry of Commerce is actively preparing an extensive outreach campaign to thoroughly explain the new features of the Asean-China Free Trade Area (ACFTA) to all stakeholders.
This effort includes holding public hearings to ensure that businesses, industry representatives, and the public fully comprehend the agreement’s changes and are well-positioned to maximize the resulting trade and economic benefits.
The Department of Trade Negotiations has been tasked with spearheading the public awareness campaign for the so-called ACFTA 3.0 upgrade protocol.
After the necessary public hearings are conducted and feedback is integrated, the ministry will then submit the agreement to the Thai parliament for its formal consideration and final approval.
Following this domestic ratification, all member countries must complete their own internal processes and formally notify the Asean Secretariat of their readiness for the protocol’s official enforcement.
The Commerce Minister emphasized that the new ACFTA 3.0 protocol significantly modernizes and improves upon the previous agreement, making the entire framework more transparent and streamlined to ease cross-border trade processes across the region.
Key Enhancements and New Pillars of Cooperation in the ACFTA 3.0
The newly signed ACFTA 3.0 protocol introduces substantial improvements to various aspects of regional trade, aiming to create a more efficient and harmonized operating environment for businesses.
Key areas of enhancement include streamlining customs procedures, establishing greater harmonization of industrial standards, clarifying and standardizing agricultural standards, and fostering stronger economic and academic collaboration between Asean and China.
Furthermore, the upgraded agreement strategically aligns itself with the demands of the evolving global economic landscape by introducing entirely new areas of cooperation.
These new pillars are critical for future economic integration and include provisions related to the burgeoning digital economy and the rapidly developing green economy.
The protocol also addresses the vital issue of supply chain connectivity, aiming to enhance the resilience and efficiency of regional supply chains.
Additional new focus areas cover crucial aspects such as business competition, ensuring fair practices for all enterprises, and robust consumer protection measures.
Significantly, the ACFTA 3.0 upgrade also includes dedicated provisions for supporting micro, small, and medium-sized enterprises (MSMEs), recognizing their essential contribution to the Asean-China trade relationship and overall regional prosperity.
The sustained importance of this trade relationship is clearly reflected in recent figures; bilateral trade between Asean and China experienced a robust increase of 18.7% year-on-year in the first half of this year, reaching a total value of $430 billion, with exports amounting to $145 billion and imports totaling $285 billion, underscoring the deep economic links that the enhanced ACFTA will further solidify.
Thailand’s Strong Trade Relationship with China and Key Exports
Thailand, in particular, has seen its trade relationship with China flourish, which further validates the country’s proactive role in pushing the ACFTA upgrade forward.
Trade between Thailand and China grew even more substantially than the Asean average, increasing by an impressive 28.1% year-on-year over the first nine months of 2025, with the total value reaching $109 billion.
This trade comprised $30.7 billion in exports from Thailand and $78 billion in imports from China.
The composition of Thailand’s exports highlights the diverse and significant role of its agricultural and high-tech sectors in the bilateral trade.
Key exports included highly sought-after fresh, chilled, frozen, and dried fruits, reflecting Thailand’s strong agricultural production capabilities.
Other major export categories included rubber products, a commodity where Thailand holds a strong global position, and computer, peripherals, and parts, indicating its capacity in manufacturing.
Furthermore, significant exports were recorded for plastic pellets and tapioca products, along with various rubber-related goods.
Conversely, Thailand’s major imports from China were primarily centered on sophisticated industrial and technological goods, demonstrating the supply chain dependency and collaborative nature of their manufacturing ecosystems.
These imports largely comprised electric machinery and parts, general machinery and parts, electric appliances, chemicals, computers, peripherals and parts, and essential iron, steel, and steel products.
The streamlined trade processes and new cooperative frameworks established under the ACFTA 3.0 protocol are expected to further boost these trade figures, particularly by easing transactions in the digital and green sectors and enhancing supply chain security for these critical goods.
