Philippines anticipates stronger trade flows from key ASEAN deals

KUALA LUMPUR — The Philippines expects stronger regional trade and investment flows as two key trade pacts — the Association of Southeast Asian Nations (ASEAN)-China Free Trade Area (ACFTA) 3.0 Upgrade and the Second Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA) — promise to modernize economic cooperation across the regional bloc.

At a news briefing here on Sunday, Palace Press Officer Clarissa A. Castro quoted Special Assistant to the President for Investment and Economic Affairs Frederick D. Go as saying the ATIGA upgrade will keep the intra-ASEAN trade pact relevant amid evolving global trade conditions.

“The enhanced agreement offers significant benefits, particularly through improvements in trade facilitation measures, transparency provisions, dispute settlement mechanisms, and the inclusion of new and emerging trade elements,” she said.

The amended ATIGA was inked by Trade Secretary Ma. Cristina A. Roque on Saturday and was turned over to the ASEAN leaders on Sunday.

Ms. Castro said the new provisions, including mutual recognition of Authorized Economic Operators, will allow certified traders faster cargo clearance throughout ASEAN.

The agreement also promotes self-declaration of origin, electronic certification (e-form B), and the acceptance of digital documentation, making cross-border trade easier for Philippine businesses.

“Businesses will find it easier to comply with administrative requirements self-declaration of origin, the implementation of the Electronic Certificate of Origin (e-Form D), and the acceptance of digital documentation,” Ms. Castro added.

Meanwhile, the Philippines and Canada aim to finish free trade agreement negotiations by 2026, vowing to accelerate talks following a bilateral meeting at the 47^th ASEAN Summit between President Ferdinand R. Marcos, Jr. and Canadian Prime Minister Mark Joseph Carney.

They talked about efforts to deepen a trade relationship valued at more than USD 3 billion, covering sectors such as manufacturing, defense, and both conventional and clean energy.

Mr. Carney, in a separate statement, outlined Canada’s strategy to double its non-US exports over the next decade, positioning Southeast Asia as a key partner in that effort.

Canada and the Philippines agreed to fast-track negotiations on a bilateral free trade agreement, with the goal of completing talks by 2026.

They also committed to advancing a broader Canada-ASEAN free trade pact, which they aim to conclude during the Philippines’ ASEAN chairmanship the same year.

The two leaders also welcomed the prospect of a bilateral visit “at the earliest opportunity” and agreed to maintain close coordination as both countries look to expand trade and investment cooperation.

Meanwhile, Ms. Castro said the ACFTA 3.0 upgrade will make the ASEAN-China partnership “more modern, more comprehensive, and better aligned with today’s global realities.”

Citing Foreign Affairs Secretary Ma. Theresa P. Lazaro, Ms. Castro said the revised framework will deepen cooperation in digital and green economies, enhance sustainable supply-chain connectivity, and promote the empowerment of micro, small and medium enterprises (MSMEs) within regional value chains.

The ACFTA 3.0 Upgrade expands the original pact, which was signed in 2002, by introducing provisions on competition, consumer protection, digital economy, green economy, and supply-chain connectivity, on top of trade in goods, customs procedures, and investment cooperation.

The pact with China was ASEAN’s first FTA outside the bloc and remains one of the most important partnerships of the bloc.

Beijing is the largest trading partner of the bloc since 2019, reaching USD 507.9 billion in 2019, according to ASEAN’s website.

The ASEAN-China FTA in 2005 quadrupled the trade between the two.

ASEAN studies lecturer at De La Salle-College of St. Benilde Josue Raphael J. Cortez said the upcoming signing of the ACFTA 3.0 Upgrade underscores ASEAN’s commitment to strengthening ties with major global powers while ensuring its economies remain adaptable and competitive.

The enhanced pact reflects the bloc’s readiness to address global trade challenges, green transition, and sustainable growth — priorities shared with key partners such as China, the US, and the European Union, he added.

“With China showing further commitment to embrace green prosperity, we may expect that this partnership will signal deepened ties between the 11-country membership and Beijing not just on tech transfer, but also in devising ways on how we may effectively navigate green transition together,” he said via Facebook Messenger.

“At the same time, in recognition of the integral role MSMEs play in bolstering the Southeast Asian economies, this may also be a way for the sector to gradually embrace digitalization, which is now the name of the game in conducting business.” — Chloe Mari A. Hufana, Reporter