ASEAN Must Upgrade Trade Pacts To Reflect New Realities – Rebecca Sta Maria

By Siti Radziah Hamzah

KUALA LUMPUR, Oct 22 (Bernama) -- ASEAN must continuously upgrade its trade agreements by including new sectors such as digital trade and the green economy to reflect the rapidly evolving global economy, said former Investment, Trade and Industry Ministry secretary-general Tan Sri Rebecca Sta Maria.

She noted that while earlier frameworks such as the ASEAN Free Trade Agreement (AFTA) and the ASEAN Economic Community Blueprint had been designed to address market access, goods, services and investments, the realities of today’s economy extend far beyond traditional trade.

“Digital trade, the green economy, and inclusivity were not captured in our earlier agreements. That is why upgrades are necessary to incorporate these areas into ASEAN’s trade architecture,” she told Bernama in an interview recently. 

Among the Priority Economic Deliverables of ASEAN’s Economic Pillar under Malaysia’s chairmanship this year is the signing of the ASEAN-China Free Trade Agreement 3.0 (ACFTA 3.0) Protocol at the ASEAN Summit in October 2025. 

ACFTA 3.0 represents both sides’ commitment to an upgraded, rules-based, future-ready trade framework. Key features of the upgraded FTA include its expansion into emerging sectors, such as the digital economy, the green economy and supply chain connectivity.

Meanwhile, discussions between ASEAN and South Korea during the ASEAN Economic Ministers’ Meeting centred on the planned upgrade of the ASEAN-Korea Free Trade Agreement (AKFTA), with particular emphasis on areas that are critical to shaping the future of ASEAN-South Korea economic cooperation including digital economy; critical minerals; supply chain resilience; micro, small and medium enterprises (MSMEs); sustainability; and the green economy. 

Rebecca pointed to the Regional Comprehensive Economic Partnership (RCEP) as a key platform for ASEAN to assert its centrality in the trading system. 

She stressed that RCEP was conceived by ASEAN, not by external partners, and should now be strengthened through alignment with the ongoing upgrades of ASEAN’s “plus one” free trade agreements with China, South Korea, India, Australia and New Zealand.

“RCEP gives us the opportunity to diversify our markets even more, because we already have that platform. It is ASEAN’s design, and it should be built upon,” she said.

She added that ASEAN’s open and inclusive approach to regionalism allows for expansion to new members such as Sri Lanka and Bangladesh, though technical considerations would have to be worked out given that these countries do not yet have free trade agreements with ASEAN.

“Open regionalism has always been one of ASEAN’s principles. The important thing now is to think differently; this is not business as usual,” she said.

Rebecca also emphasised the need for ASEAN to creatively engage with partners such as China, not only at the government level but also with businesses, to find collaborative ways of addressing market pressures.

“In all these challenges, we can either see them as distractions or as opportunities. From Malaysia’s perspective, it is a chance to relook at our own system (such as) our non-tariff barriers, our processes, our bureaucracy. The ease of doing business must remain a focus,” she added.

Rebecca further highlighted the Initiative for ASEAN Integration (IAI) as a critical mechanism to support inclusivity, particularly with the accession of Timor-Leste. 

She noted that ASEAN has long provided special and differential treatment to less developed members such as Cambodia, Laos and Myanmar, and this approach could easily be extended to Timor-Leste.

“ASEAN already has mechanisms in place. It is nothing new, we have done it before. The goal is to help new members come on board with our agreements without making it unnecessarily difficult,” Rebecca said.

She also pointed out that ASEAN’s strength lies in its ability to adapt and pull together, citing the successful transformation of the Trans-Pacific Partnership into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after the United States’ withdrawal.

ASEAN's total gross domestic product was approximately US$4.13 trillion in 2024, making it the world's fourth-largest economic bloc.

The Philippines will be the ASEAN Chair for 2026, taking over from Malaysia. This decision bypassed Myanmar due to its ongoing political crisis, following a consensus among member states.

-- BERNAMA