Bangkok: The government is set to upgrade the ASEAN-China Free Trade Agreement (ACFTA) to ACFTA 3.0, aiming to boost trade and investment opportunities, support the green digital economy, and assist Thai SMEs while facilitating exporters. Today (June 10, 2026), Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, revealed that the Cabinet has approved submitting the Protocol to further upgrade the Framework Agreement on Comprehensive Economic Cooperation and certain agreements under that framework between the member states of the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China, or ACFTA 3.0, to the Parliament for consideration and approval in accordance with the Constitution. Thailand will then proceed with the necessary steps to make the agreement binding.
According to Thai News Agency, Ms. Lalida stated that the ASEAN-China Free Trade Agreement (ACFTA) is one of the most important economic cooperation frameworks in the region. It has been in effect for several years, covering trade in goods, services, and investment, before being upgraded to ACFTA 2.0 in 2016. Most recently, ASEAN and China have negotiated further revisions to the agreement, with completion expected in 2025, to align with the global economic context and modern trade patterns under the ACFTA 3.0 framework.
The essence of ACFTA 3.0 is to modernize trade regulations and standards while maintaining existing commitments regarding market opening for goods, services, and investment. There will be no negotiations for further tariff reductions or new market openings; instead, the focus will be on facilitating trade and improving the efficiency of business operations among member countries.
The revised chapter includes improvements to customs procedures and trade facilitation, such as increased use of electronic systems, transparent dissemination of import-export information, and expedited clearance of perishable goods to be completed within 6 hours of arrival. It also aligns technical regulations, sanitary and phytosanitary (SPS) measures, and economic and technical cooperation with international standards.
Furthermore, ACFTA 3.0 adds five new areas of cooperation aligned with global economic trends: competition and consumer protection, digital economy, green economy, supply chain connectivity, and micro, small, and medium-sized enterprises (MSMEs). In particular, the digital economy chapter promotes the use of e-systems, single-window data connectivity, digital payments, and the responsible use of artificial intelligence (AI). Meanwhile, the green economy chapter focuses on promoting cooperation in clean energy, renewable energy, green investment, and the circular economy.
Ms. Lalida further stated that this agreement will help enhance the competitiveness of Thai entrepreneurs, especially SMEs, by providing them with easier access to the Chinese and ASEAN markets, reducing trade barriers, improving logistics and supply chain efficiency, and enabling Thailand to fully leverage the growth of the digital and green economies in the region.
The Ministry of Commerce has solicited feedback from over 4,000 people across government agencies, the private sector, and the public. The majority believe that upgrading the agreement will facilitate trade, enhance the ability to conduct business between Thailand and China, and create new long-term economic opportunities for Thai entrepreneurs.
'The government prioritizes using free trade agreements as a tool to expand economic opportunities for the country. Upgrading ACFTA 3.0 will enable Thailand to connect more effectively with regional supply chains, while supporting the new economy driven by technology, innovation, and sustainable development. This will benefit entrepreneurs, farmers, and the Thai people in the long term,' Ms. Lalida said.