ASEAN countries sign groundbreaking trade agreement with the USA!

ASEAN countries sign groundbreaking trade agreement with the USA!

A lot has happened in the ASEAN world in the last few days, especially in the economic area. Four ASEAN countries - Thailand, Malaysia, Vietnam and Cambodia - have signed trade agreements with the US that include some tariff exemptions for certain products. This will be officially announced during the ASEAN Summit in Kuala Lumpur from October 26th to 28th, 2025 and clearly approved by President Donald Trump thaipublica reported.

While the U.S. maintains tariffs of between 19 and 20 percent on certain goods, it grants tariff exemptions for products from these four countries. Most notably, Cambodia has agreed to eliminate tariffs on all US goods, while Malaysia will reduce tariffs in three strategic sectors - aerospace, pharmaceuticals and key raw materials.

Thailand and Vietnam in focus

Thailand is also pulling out all the stops: here, tariffs are being abolished on 99 percent of goods, and foreign ownership restrictions are being relaxed in the telecommunications sector. Vietnam, on the other hand, has ambitious plans, including launching a new high-speed rail project between Hanoi and Ha Long with an investment volume of USD 5.4 billion. This connectivity will not only improve domestic transport, but could also have a positive impact on international trade.

Singapore has already outlined its vision for the future, with plans to develop Jurong Island as a renewable energy hub and the country's largest data center. Indonesia is in talks with the US about tariff exemptions similar to those obtained by Malaysia. Meanwhile, Cambodia has signed a sweeping trade liberalization agreement that eliminates all tariffs on U.S. goods.

ASEAN Free Trade Area: A Bigger Picture

To give further context to these latest developments, it is important to understand the role of the ASEAN Free Trade Area (AFTA). The AFTA was created to intensify economic cooperation between ASEAN countries. Your goal? To increase the attractiveness of the entire economic area for foreign investors. Currently, over 630 million people live in the ASEAN region, making it even larger than the European Union Wikipedia emphasized.

AFTA aims to almost completely eliminate tariff barriers, affecting 98 percent of all tariffs. This initiative began in 1991 and the framework conditions were gradually created, which came into full force on January 1, 2003. AFTA was intended to significantly increase the exchange of goods between the ASEAN states, which at that time was around 15 percent.

All in all, it could be said that economic progress within ASEAN countries will not only loosen up the trading environment, but also help the region play an even stronger role in global trade. Cooperation could be the new magic word here – a really good deal for everyone involved.