The government announced that the Cabinet meeting advanced the upgrade of the ASEAN-China Free Trade Agreement (FTA) to ACFTA 3.0, aiming to increase trade and investment opportunities, support the digital economy, green economy, and Thai SMEs, and facilitate exporters.
At the Cabinet meeting on 10 June 2026 GMT+7, Ms. Lalida Pertwivatana, Deputy Spokesperson of the Prime Minister's Office, revealed that the Cabinet approved submitting the protocol to further upgrade the comprehensive economic cooperation framework and certain agreements under it between the ASEAN member states and the People's Republic of China—known as ACFTA 3.0—to Parliament for constitutional consideration and approval, before Thailand proceeds with steps to legally bind the agreement.
The Deputy Spokesperson explained that the ASEAN–China Free Trade Agreement (ACFTA) is one of the region's most important economic cooperation frameworks, having been in effect for goods trade, services trade, and investment for several years. It was upgraded to ACFTA 2.0 in 2016, and most recently, ASEAN and China completed negotiations in 2025 to further improve the agreement to align with the global economic context and modern trade practices under ACFTA 3.0.
The core of ACFTA 3.0 involves modernizing trade regulations and standards while maintaining existing commitments on market access for goods, services, and investment. There will be no additional tariff reductions or new market openings; instead, the focus is on trade facilitation and enhancing business efficiency among member countries.
Revised chapters include upgrading customs procedures and trade facilitation by increasing the use of electronic systems, ensuring transparency in import-export information, and expediting clearance of perishable goods within six hours of arrival. Additionally, standards for technical regulations, sanitary and phytosanitary measures (SPS), and economic and academic cooperation will be enhanced to meet international standards.
Moreover, ACFTA 3.0 introduces five new cooperation areas aligned with global economic trends: competition policy and consumer protection; digital economy; green economy; supply chain connectivity; and micro, small, and medium enterprises (MSMEs). In particular, the digital economy chapter promotes electronic systems usage, single window data integration, digital payments, and responsible application of artificial intelligence (AI) technology. The green economy chapter aims to foster cooperation in clean energy, renewable energy, green investments, and the circular economy.
The Deputy Spokesperson added that this agreement will enhance the competitiveness of Thai entrepreneurs, especially SMEs, by facilitating easier access to Chinese and ASEAN markets, reducing trade barriers, improving logistics and supply chain efficiency, and enabling Thailand to fully benefit from the growth of the digital and green economies in the region.
The Ministry of Commerce has gathered feedback from more than 4,000 representatives from government agencies, private sector, and civil society, most of whom agree that upgrading the agreement will facilitate trade, enhance business capabilities between Thailand and China, and create new economic opportunities for Thai entrepreneurs in the long term.
"The government prioritizes using free trade agreements as tools to expand economic opportunities for the country. Upgrading to ACFTA 3.0 will enable Thailand to connect more efficiently with the region’s supply chains and prepare for a new economy driven by technology, innovation, and sustainable development, benefiting entrepreneurs, farmers, and the Thai people in the long run," Ms. Lalida said.