China to start cutting tariffs on ASEAN imports by next year<\/p>\n
Martin Abbugao, Agence France-Presse, Bandar Seri Begawan<\/p>\n
China is to start cutting tariffs on selected ASEAN imports
\nnext year under an \"early harvest\" package in its future free
\ntrade agreement (FTA) with the 10-nation regional bloc, economic
\nministers said Friday.<\/p>\n
The move is expected to give momentum to forming the world's
\nbiggest free trade zone -- based on a population of more than 1.7
\nbillion people -- within 10 years.<\/p>\n
Association of Southeast Asian Nations (ASEAN) economic
\nministers, who met China's Minister of Foreign Trade and Economic
\nCooperation Shi Guang Sheng, here Friday said they welcomed
\n\"progress in developing the early harvest package\" to be
\nimplemented by Jan. 1, 2004.<\/p>\n
The package \"is an integral part of the ASEAN-China Free Trade
\nArea and would provide incentives to accelerate the
\nestablishment\" of the zone, the ministers said in a statement.<\/p>\n
\"Negotiation of specific agreements for the liberalization of
\ntrade in goods, services and investments will commence in 2003.\"<\/p>\n
Early harvest provides that China slashes tariffs on selected
\nASEAN goods well before the full implementation of the FTA within
\n10 years.<\/p>\n
The ministers said early harvest will be implemented for a
\nperiod of three years for ASEAN's core members Brunei, Indonesia,
\nMalaysia, the Philippines, Singapore and Thailand.<\/p>\n
A longer time frame will be accorded to ASEAN's newer and less
\ndeveloped members Cambodia, Laos, Myanmar and Vietnam.<\/p>\n
China levies higher tariffs on some imports from Southeast
\nAsia and the package is designed as a goodwill gesture by
\nBeijing.<\/p>\n
Reports from Manila have said China imposes between 30-54
\npercent on sauces and mixes from the Philippines, compared to
\nonly seven percent levied by Manila on imports for these items.<\/p>\n
Beijing slaps a 29 percent tariff on fresh papaya and 15
\npercent on cabbage lettuce. The Philippines levies only 10
\npercent for fresh papaya imports and 7.0 percent for cabbage
\nlettuce, the Philippine Star reported.<\/p>\n
However, the ministers said a \"few issues remain unresolved\"
\nto finalize a draft framework agreement on the planned
\ncomprehensive economic cooperation with China, in which the FTA
\nis the key component.<\/p>\n
While declining to identify the issues, ministers have
\nacknowledged an agreement has yet to be reached on the products
\nto be included in the early harvest package.<\/p>\n
China has proposed mainly agricultural products, while ASEAN
\nwants non-farm goods to be part of the deal.<\/p>\n
ASEAN Secretary General Rodolfo Severino said he hoped
\noutstanding issues would be resolved when senior officials from
\nASEAN and China meet in Singapore next month.<\/p>\n
Brunei's Minister of Industry and Primary Resources Abdul
\nRahman Taib said the ministers \"have considered the draft and we
\nare confident that the framework agreement with all its
\ncomponents will be ready for signing at the ASEAN-China summit in
\nCambodia\" in November.<\/p>\n
Severino said: \"In a sense with the early harvest, the process
\n(toward an ASEAN-China free trade zone) will have begun. But the
\ndate of completion will be 10 years.\"<\/p>\n
There are also differences on when the 10-year period required
\nfor the completion of an FTA would end.<\/p>\n
But the ministers said they agreed the FTA will cover both
\ntrade in goods, services and investments and that poorer ASEAN
\nmembers will be given special and differential treatment.<\/p>\n
The early harvest package will be \"undertaken or implemented
\non an accelerated basis\" and while it will initially cover goods,
\nthe feasibility of including the services sector should be
\nexplored, the ministers said.<\/p>\n
\"The framework agreement is more detailed than I anticipated
\nso they are moving faster than I thought they would,\" Severino
\nsaid.<\/p>\n
China's Shi described the establishment of an ASEAN-China FTA
\nas a \"historical move\" that would result in greater Asian
\neconomic and political stability.<\/p>",
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