ASEAN to roll out upgraded trade pact ahead of schedule: Gan Kim Yong

MANILA - ASEAN is moving to make it easier for goods and businesses to move across South-east Asia as the regional grouping pushes for closer economic ties, said Deputy Prime Minister Gan Kim Yong.

ASEAN economic ministers have agreed to roll out an upgraded regional goods trade pact ahead of schedule, he said in a Facebook post on Sept 19.

It is one of the key outcomes from the first day of talks during the ASEAN Economic Ministers’ Meeting and Related Meetings being held in Manila from Sept 19 to 22.

The ASEAN Trade in Goods Agreement (ATIGA) governs trade in goods within the region, with rules aimed at reducing trade barriers and making it easier for businesses to sell their products across markets.

This upgraded agreement was originally due to take effect on June 1, 2027 or 18 months after it was signed, but ASEAN is now moving to bring forward its implementation to the end of 2026.

Gan said the early roll-out would allow goods to move more easily across borders and give businesses better access to markets across the region.

“ASEAN’s direction is clear: we will remain united in our resolve to integrate more deeply within the region and strengthen our partnerships beyond it,” he said.

The move comes as ASEAN seeks to strengthen trade within the region amid uncertainty in the global economy.

The upgraded ATIGA seeks to further cut barriers to trade and improve the movement of goods across South-east Asia, including through updated rules on customs procedures, supply chains and other trade measures.

Gan said economic ministers also laid the groundwork for a review of the ASEAN Trade in Services Agreement, as the grouping looks to ensure that its rules governing the services trade keep pace with changes in the economy.

The ministers also discussed the need for a clear plan to implement the ASEAN Digital Economy Framework Agreement, which is expected to be signed when ASEAN leaders meet in Manila in November.

This pact seeks to make it easier for businesses and consumers to transact across South-east Asia, covering areas such as e-commerce, digital payments, cross-border data flows and cyber security.

Gan said the focus now should be on turning ASEAN’s digital ambitions into concrete outcomes for businesses and consumers across the region.

“I look forward to carrying this good momentum into our meetings with Dialogue and External Partners over the coming days,” Gan said.