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The now 11-member Association of Southeast Asian Nations updated its regional trade pact, easing the cargo clearance process and opening more opportunities for micro, small, and medium enterprises to participate in value chains
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The bloc’s economic ministers signed on October 26 the Second Protocol to Amend the ASEAN Trade in Goods Agreement
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ATIGA 3.0 addresses current global trade challenges and trends, and improves trade facilitation, transparency and dispute settlement, according to Frederick D. Go, special assistant on Investment and Economic Affairs to Philippine President Ferdinand Marcos Jr.
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ASEAN members and China are also scheduled to sign the ASEAN-China Free Trade Area 3.0 Upgrade on October 28
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ACFTA 3.0 includes guidance on Competition and Consumer Protection, Digital Economy, Green Economy, Supply Chain Connectivity, and MSMEs
The now 11-member Association of Southeast Asian Nations (ASEAN) has updated its regional trade pact, easing the cargo clearance process and opening more opportunities for micro, small, and medium enterprises (MSMEs) to participate in value chains.
The bloc’s economic ministers signed on October 26 the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA), which was originally signed in February 2009 and had its first update in 2019.
“This forward-looking Agreement deepens and widens economic integration among ASEAN Member States, fostering an environment conducive to the growth and development of robust supply chains,” the ASEAN said in a news release on the signing ceremony held on the sidelines of the 47th ASEAN Summit, in Kuala Lumpur, Malaysia.
The ATIGA 3.0 addresses current global trade challenges and trends, and improves trade facilitation, transparency and dispute settlement, according to Frederick Go, special assistant on Investment and Economic Affairs to Philippine President Ferdinand Marcos Jr.
Go, in a statement issued through the Presidential Communications Office, said certified traders stand to benefit from the expedited cargo clearance throughout ASEAN through the mutual recognition of Authorized Economic Operators.
Businesses will find it easier to comply with administrative requirements on self-declaration of origin, with the implementation of the Electronic Certificate of Origin (e-Form D) and the acceptance of digital documentation.
Go said the strengthened transparency and cooperation provisions of the ATIGA will enable ASEAN member-states to better respond to the potential impacts of new trade policies.
“These provisions are particularly beneficial for micro, small, and medium-sized enterprises, enabling them to prepare for regulatory changes and mitigate adverse effects,” he emphasized.
Go also said the inclusion of new and emerging issues such as provisions on remanufactured goods, opens avenues for future growth across ASEAN.
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Philippine Foreign Affairs Secretary Ma. Theresa Lazaro said the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade opens new opportunities for cooperation in areas vital to the region’s future, including the green and digital economies and sustainable supply chain connectivity.
“The ASEAN-China Free Trade Area has long been one of ASEAN’s most important economic partnerships. Now, with the 3.0 Upgrade, both sides are working to make this partnership more modern, more comprehensive, and better aligned with today’s global realities,” she said.
Lazaro said the Upgraded Protocol also empowers MSMEs to participate more fully in regional value chains, while the strengthened frameworks on fair competition and consumer protection will help ensure inclusive and sustainable growth.
The ACFTA 3.0 Upgrade includes guidance on the following aspects of trade: Competition and Consumer Protection; Digital Economy; Green Economy; Supply Chain Connectivity; and MSMEs.
The original ACFTA provided guidance on Trade in Goods; Rules of Origin; Customs Procedures and Trade Facilitation; Standards, Technical Regulations, and Conformity Assessment Procedures; Sanitary and Phytosanitary Measures; Trade in Services; Investment; and Economic and Technical Cooperation.
ASEAN is composed of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, and Timor-Leste, which formally joined the regional bloc last week.
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