The ASEAN–China Free Trade Agreement (ACFTA) has significantly expanded agricultural trade between China and Southeast Asia, with overall trade increasing nearly five-fold since tariff reductions and early-harvest measures took effect. However, the benefits have been uneven across ASEAN members. Vietnam has emerged as the primary beneficiary, recording substantial growth in exports of rice, coffee, pepper, seafood, processed foods, and tropical fruits to the Chinese market. Its diversified agricultural base, strong supply chains, and effective use of tariff preferences have enabled Vietnamese producers to penetrate the large and growing Chinese food market, where products like durian accounted for much of its export growth. Vietnam’s integration into broader regional supply chains and its ability to meet China’s sanitary and phytosanitary standards has further reinforced its competitive position relative to other ASEAN economies.
The unequal impact of ACFTA has also influenced competitive dynamics for U.S. agricultural exporters. In the absence of comparable free trade agreements with most ASEAN countries, U.S. products often face higher most-favored-nation tariff rates than competitors benefiting from preferential access under ACFTA and other regional trade frameworks. This tariff disadvantage, combined with non-tariff measures and regulatory complexities in ASEAN markets, has contributed to declining U.S. market share in key categories such as fruits, vegetables, and processed foods. As ASEAN agricultural sectors deepen integration under preferential agreements, U.S. exporters face increased pressure to adapt through market diversification, product differentiation, and strategies to navigate tariff and non-tariff barriers to maintain competitiveness.
