Overview

The 57th ASEAN Economic Ministers’ (AEM) Meeting took place at a critical juncture for the region. Supply chain disruptions are reshaping global trade, shifting geopolitical alignments, and accelerating the transition toward digital and sustainable economies. For ASEAN, these challenges are also opportunities: to reinforce the region’s resilience, deepen economic integration, and sharpen its competitiveness in a crowded global marketplace. Against this backdrop, the ministers gathered to chart a collective course forward.

The AEM marked an important milestone in the region’s journey toward deeper economic integration. Against the backdrop of global uncertainty and rapidly shifting trade dynamics, ASEAN reaffirmed its commitment to strengthening competitiveness, enhancing cooperation, and accelerating its transformation toward a more resilient and sustainable economy. The meeting produced significant outcomes in three key areas: the upgrade of the ASEAN Trade in Goods Agreement (ATIGA), the push for digital and sustainable trade facilitation, and customs integration through the ASEAN Authorised Economic Operator Mutual Recognition Arrangement (AAMRA) and the ASEAN Customs Transit System (ACTS).

ATIGA Upgrade: Meeting New Trade Challenges

One of the most notable achievements of the meeting was the conclusion of the ATIGA Upgrade negotiations in May 2025. The agreement will be formalized through the signing of the 2nd Protocol to Amend the ATIGA at the 47th ASEAN Summit in October 2025. This development could not be more timely, as the global trading environment faces unprecedented uncertainty, economic volatility, and disruptions in supply chains.

The upgraded ATIGA is viewed as a strategic tool to enhance ASEAN’s economic resilience. It will better equip the region to absorb external shocks, safeguard supply chains, and navigate disruptions with greater coordination and resilience. Importantly, the revised agreement expands ASEAN’s scope of economic integration by covering emerging issues such as the circular economy, remanufactured goods, trade and environment, food security, supply chain connectivity, and even trade in humanitarian crises.

Another significant improvement lies in the inclusion of a new dispute resolution mechanism, designed to speed up the settlement of trade-in-goods disputes between ASEAN Member States. This mechanism is expected to smooth trade and investment flows across the region, while also improving transparency and predictability for businesses.

By upgrading ATIGA, ASEAN is signalling that regional trade agreements are no longer just about lowering tariff barriers but about creating a robust environment for the growth of modern, resilient, and transparent supply chains (Table 1).

Table 1. ATIGA Upgrade Highlights – Resilience, Inclusion, and Efficiency

Trade Facilitation: Digital and Sustainable

Another central theme of the AEM Meeting was trade facilitation, with a clear focus on digitalization and sustainability. In partnership with the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), ASEAN is scheduled to release the 2025 Report on Digital and Sustainable Trade Facilitation in October 2025.

The report does more than assess ASEAN’s compliance with the World Trade Organisation’s Trade Facilitation Agreement (WTO TFA). It also highlights ASEAN’s adoption of WTO TFA-Plus measures, including digital trade facilitation, particularly cross-border paperless trade, as well as sustainability-focused initiatives. These measures focus on key areas, including agriculture, micro, small, and medium-sized enterprises (MSMEs), women traders, e-commerce, trade finance, and emergency preparedness.

Findings from the 2025 UN Global Survey showed that ASEAN has achieved an impressive 83 percent trade facilitation performance rate, surpassing both the global average of 70.4 percent and the Asia-Pacific regional average of 70 percent. This achievement demonstrates ASEAN’s ability to modernize its trade practices, making them more efficient, inclusive, and competitive on a global scale (Figure 1).

Figure 1. Trade Facilitation Performance 2025: ASEAN vs Global & Asia-Pacific

The ministers encouraged Member States to continue implementing the report’s recommendations so that the benefits of trade facilitation can be felt more broadly by businesses and communities across the region.

Customs Integration: AAMRA and ACTS

Customs integration was a key topic in the meeting’s discussions, reflecting its vital role in facilitating cross-border trade. Two flagship initiatives were highlighted: the ASEAN Authorised Economic Operator Mutual Recognition Arrangement (AAMRA) and the ASEAN Customs Transit System (ACTS).

AAMRA represents a major step toward mutual recognition of Authorized Economic Operators (AEOs) across ASEAN. AEOs are companies recognized for their strong compliance with customs regulations and supply chain security. Under AAMRA, businesses that qualify as AEOs in one ASEAN Member State will enjoy similar benefits in other ASEAN Member States, such as faster clearance times, fewer inspections, and greater facilitation. As of February 2025, six ASEAN countries; Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand, have implemented AAMRA. The goal is for all ten ASEAN Member States to adopt it by December 2025. Ultimately, this initiative aims to streamline customs processes, reduce costs, and enhance ASEAN’s regional competitiveness.

Meanwhile, ACTS is a shared electronic transit system that has been operational since November 2020. ACTS enables goods to move seamlessly across multiple ASEAN countries with a single transit document and guarantee, eliminating the need for repetitive customs procedures at each border. To date, ACTS has recorded over 650 movements across six participating countries. Between September 2024 and September 2025 alone, 256 movements were recorded. Current efforts are focused on extending ACTS to Myanmar by the end of 2025. This expansion would further strengthen ASEAN’s logistics connectivity and ensure smoother regional supply chains. Together, AAMRA and ACTS represent ASEAN’s efforts to harmonize customs procedures, reduce unnecessary costs, and establish a trading system that is both efficient and trustworthy (Table 2).

Table 2. ASEAN Customs Integration – AAMRA & ACTS

What Are ACTS and AAMRA?

ACTS (ASEAN Customs Transit System) is an electronic system that facilitates the movement of goods across multiple ASEAN countries under a single transit declaration and a single guarantee. This arrangement enables goods to move more quickly and efficiently, eliminating repetitive customs checks at each border and thereby saving both time and costs for businesses. Meanwhile, AAMRA (ASEAN Authorised Economic Operator Mutual Recognition Arrangement) is a recognition framework that enables companies with AEO status in one ASEAN country to receive the same preferential treatment in other ASEAN countries. Through this framework, trusted businesses benefit from faster clearance, fewer inspections, and smoother cross-border trade (Table 3).

Table 3. What Are ACTS and AAMRA?

Conclusion

The 57th ASEAN Economic Ministers’ (AEM) direction toward deeper economic integration and stronger resilience. Through the upgrade of ATIGA, the region is preparing itself with a modern and comprehensive trade agreement capable of addressing emerging global challenges. Through digital and sustainable trade facilitation, ASEAN is showing leadership in modernizing trade while ensuring inclusivity and sustainability. And through customs integration initiatives like AAMRA and ACTS, ASEAN is paving the way for faster, more efficient, and more secure trade flows across its borders.

Together, these decisions demonstrate ASEAN’s commitment not only to strengthening regional competitiveness but also to positioning itself as a resilient, innovative, and forward-looking hub in the global economy. Far beyond technical agreements, the outcomes of the 2025 AEM Meeting reflect ASEAN’s vision of being a driver of inclusive and sustainable growth for its people.

References

ASEAN. (2020, August 11). ASEAN Customs Transit System: Promotional leaflet. https://acts.asean.org/sites/default/files/acts_promotional_leaflet_final_11_august_2020.pdf

ASEAN. (n.d.). ASEAN Customs Transit System (ACTS). https://acts.asean.org/acts

ASEAN. (2023, September 19). ASEAN Authorised Economic Operator Mutual Recognition Arrangement (AAMRA): Text signed by 10 AMS. https://asean.org/wp-content/uploads/2023/09/AAMRA-Text-Signed-10-AMS-by-19-Sept-2023.pdf 

ASEAN. (2025, September 23). Joint media statement of the 57th ASEAN Economic Ministers’ (AEM) Meeting. Kuala Lumpur, Malaysia: ASEAN Secretariat.