FX.co ★ China and ASEAN Seal Enhanced Free Trade Pact

On Tuesday, the Southeast Asian bloc ASEAN, together with China, officially enhanced their free trade agreement. As reported by Reuters, this upgraded pact is poised to expand its scope to include areas like digital trade, the green economy, and other burgeoning industries. The Association of Southeast Asian Nations, comprising 11 members, holds the status of China's largest trading partner, with their mutual trade reaching a substantial USD 771 billion last year, as per ASEAN's statistics. In a strategic move to counteract the elevated import tariffs imposed worldwide by the administration of former U.S. President Donald Trump, China is eager to strengthen its ties with ASEAN. This region boasts a combined gross domestic product of USD 3.8 trillion. China has previously indicated that this renewed agreement aims to enhance market access in key sectors, including agriculture, the digital economy, and pharmaceuticals, between China and ASEAN.