KUALA LUMPUR — In an abrupt u-turn, the upgraded Association of South-east Asian Nations (ASEAN)-China Free Trade Agreement (ACFTA) was concluded this afternoon (Nov 22), a day after the signing was called off at the last minute.

The ACFTA signed in 2004 - China’s first FTA, has played a key role in promoting trade between China and ASEAN.

“ACFTA has contributed to the rapid development of trade and investment between ASEAN and China. It is important that the scope and content of ACFTA continue to grow in line with the current regional and global economic landscape and are comparable to other modern free trade agreements,” said a statement issued by the Malaysian Ministry of International Trade and Industry today.

“The amendments under the protocol is also expected to contribute and meet the goals set forth by the leaders of ASEAN and China to achieve two-way trade of US$1 trillion (S$1.4 trillion) and investment of US$150 billion by the year 2020.”

China is the top trading partner of almost every ASEAN member state. Two-way trade between China and ASEAN has grown nearly 50 times from US$8 billion in 1991 to over US$370 billion now.

The upgraded protocol will introduce more flexible rules of origin to make it easier for Singaporean exports to qualify for preferential tariff treatment and guarantee more access for Singaporean service providers in China, among others.

While the signing of the upgraded protocol was initially scheduled for yesterday afternoon, the signing ceremony was later cancelled.

“I understand that a few key details have still to be worked out and we are not quite ready to sign it today (Saturday), and I hope in the spirit of ASEAN-China cooperation, we will be able to get this done without delay,” Prime Minister Lee Hsien Loong had said during the ASEAN-China Summit yesterday.

“This (upgraded FTA) will enhance opportunities for trade, investments and people-to-people engagement,” Foreign Minister Vivian Balakrishnan told reporters on Friday.

“This is a major deliverable very early in Singapore’s three-year term as coordinator for ASEAN-China dialogue relations,” he added. The Republic took over the coordinatorship in August.