Priority Areas of Cooperation
The ASEAN-China Free Trade Area (ACFTA) was initiated with the signing of the Framework Agreement on Comprehensive Economic Cooperation in 2002,167 followed by the ASEAN-China Trade in Goods Agreement in 2004,168 ASEAN-China Agreement on Trade in Services in 2007, and ASEAN-China Investment Agreement in 2009. The Framework Agreement entered into force on 1 July 2003 and subsequently amended in 2003, 2006, 2012, and 2015.
The ASEAN-China Framework Agreement featured an Early Harvest Programme. Implemented on 1 January 2004, the Programme saw the elimination of tariff lines for some agricultural products for all the parties to the FTA. Since its entry into force in 2005, The ASEAN-China Trade in Goods Agreement has been revised to include, among others, provisions on TBT and SPS Measures. In terms of market access, tariff elimination has now been completed for more than 91.9% of total tariff lines for the ASEAN-6 and China. As for the remaining AMS, tariff elimination is currently being implemented in accordance with the timelines provided for in the agreement.
The ASEAN-China Agreement on Trade in Services was signed in 2007, with the subsequent Protocol to Implement the Second Package of Specific Commitments under the Trade in Services signed in 2011. ASEAN and China also signed the Agreement on Investment in 2009.
Ten years after the Framework Agreement, the decision to upgrade the ACFTA was formalised in 2013. Leaders welcomed the initiative to enhance the ACFTA through, among others, improving market conditions and trade balance between both sides, as well as expanding the scope and coverage of the Framework Agreement. The ‘Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation and Certain Agreements thereunder between ASEAN and the People’s Republic of China’ (ACFTA Upgrading Protocol) was signed on 21 November 2015 in Kuala Lumpur on the sidelines of the 27th ASEAN Summit and Related Summits.
The ACFTA Upgrading Protocol entered into force on 1 July 2016. The Protocol provides amendments to the text of the Rules of origin (ROO) Chapter and incorporates a section on Customs Procedures and Trade Facilitation to the ASEAN-China Trade in Goods Agreement. This includes a third package of specific commitments under the Agreement on Trade in Services, adds provisions on the promotion and facilitation of investment in the Investment Agreement, and introduces additional rules and areas of coverage for Economic and Technical Cooperation under the Framework Agreement. The Protocol also provides a Future Work Programme for unfinished elements, namely on the further liberalisation of trade in goods, review of product-specific rules, and the promotion and protection of investment.
The ACFTA Upgrading Protocol was fully implemented with the implementation of the revised ACFTA Rules of Origin under the Protocol in August 2019.
Economic cooperation was embedded in various provisions under the ACFTA Framework Agreement. Subsequently, as part of the upgrading, parties agreed to have a standalone Chapter on Economic and Technical Cooperation under the Protocol to amend the ACFTA Framework Agreement and related agreements (2015). China is providing an ASEAN-China Grant to support the implementation of the ACFTA
The ASEAN-China Framework Agreement featured an Early Harvest Programme. Implemented on 1 January 2004, the Programme saw the elimination of tariff lines for some agricultural products for all the parties to the FTA. Since its entry into force in 2005, The ASEAN-China Trade in Goods Agreement has been revised to include, among others, provisions on TBT and SPS Measures. In terms of market access, tariff elimination has now been completed for more than 91.9% of total tariff lines for the ASEAN-6 and China. As for the remaining AMS, tariff elimination is currently being implemented in accordance with the timelines provided for in the agreement.
The ASEAN-China Agreement on Trade in Services was signed in 2007, with the subsequent Protocol to Implement the Second Package of Specific Commitments under the Trade in Services signed in 2011. ASEAN and China also signed the Agreement on Investment in 2009.
Ten years after the Framework Agreement, the decision to upgrade the ACFTA was formalised in 2013. Leaders welcomed the initiative to enhance the ACFTA through, among others, improving market conditions and trade balance between both sides, as well as expanding the scope and coverage of the Framework Agreement. The ‘Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation and Certain Agreements thereunder between ASEAN and the People’s Republic of China’ (ACFTA Upgrading Protocol) was signed on 21 November 2015 in Kuala Lumpur on the sidelines of the 27th ASEAN Summit and Related Summits.
The ACFTA Upgrading Protocol entered into force on 1 July 2016. The Protocol provides amendments to the text of the Rules of origin (ROO) Chapter and incorporates a section on Customs Procedures and Trade Facilitation to the ASEAN-China Trade in Goods Agreement. This includes a third package of specific commitments under the Agreement on Trade in Services, adds provisions on the promotion and facilitation of investment in the Investment Agreement, and introduces additional rules and areas of coverage for Economic and Technical Cooperation under the Framework Agreement. The Protocol also provides a Future Work Programme for unfinished elements, namely on the further liberalisation of trade in goods, review of product-specific rules, and the promotion and protection of investment.
The ACFTA Upgrading Protocol was fully implemented with the implementation of the revised ACFTA Rules of Origin under the Protocol in August 2019.
Economic cooperation was embedded in various provisions under the ACFTA Framework Agreement. Subsequently, as part of the upgrading, parties agreed to have a standalone Chapter on Economic and Technical Cooperation under the Protocol to amend the ACFTA Framework Agreement and related agreements (2015). China is providing an ASEAN-China Grant to support the implementation of the ACFTA
