China, ASEAN move towards world's biggest FTZ
China, ASEAN move towards world's biggest FTZ
Peter Harmsen, Agence France-Presse/Vientiane
China and 10 Southeast Asian countries signed historic trade
pacts Monday to pave the way for the world's biggest free-trade
zone by 2010, covering nearly two billion people.
Chinese Prime Minister Wen Jiabao and his counterparts from
the 10-country Association of Southeast Asian Nations (ASEAN)
signed the agreements in the Laotian capital Vientiane.
"The agreements signed today show that ties between China and
ASEAN have reached a new stage," Wen told reporters after the
agreements had been inked.
"It shows the relations have now entered into a new period of
overall cooperation."
The pacts include an agreement to liberalize tariff and non-
tariff barriers on traded goods and one to set up a mechanism to
resolve trade disputes.
The trade pact will form the first component of a
comprehensive accord planned for completion by 2010 that will
include the full liberalization of the services sector.
"ASEAN is an important trading partner for China. China is
also an important trading partner for ASEAN," China's Finance
Minister Jin Renqing told AFP.
"Our economies have a great deal of complimentarity. It's
important for both parties to promote their cooperation going
forward," he said.
ASEAN's efforts to deepen trade and investment ties with China
are considerably more advanced than similar efforts with its
other Northeast Asian dialogue partners, with free trade
negotiations with Japan and South Korea only expected to start
next year.
If completed on time, the overall ASEAN-China deal will result
in the creation of the world's biggest free trade zone, covering
nearly two billion people.
It will also enhance China's role as a major growth engine for
ASEAN's export-led economies because of its growing appetite for
raw materials, finished goods and components.
Chinese foreign ministry spokesman Liu Jianchao told reporters
that poor ASEAN countries might be given some slack in entering
the agreement, given their worries about being overwhelmed by the
Chinese juggernaut.
"They have some worry, so we have to have some flexible
policies," he said. "There might be some leeway or some extension
of time for countries like Vietnam, Myanmar, Cambodia and Laos."
Annual two-way trade is expected to rise 28 percent to 100
billion dollars next year from 78.2 million dollars in 2003.
ASEAN members have urged the group to look towards its own
region for growth.
"We cannot rely on the West alone," Philippines Gloria Arroyo
told a gathering of business executives on Sunday, pushing for an
East Asia free-trade bloc.
"An enlarged East Asia bloc cannot only secure the future of
ASEAN but also the future of China, Japan and South Korea," she
said.
The ultimate objective of the free-trade area is to reduce
average customs duties among its members to between zero and five
percent.
Chinese foreign ministry spokesman Liu said trade agreements
with ASEAN were more than just symbolic exercises, but actions
with real importance for customers in the region.
He cited "early-harvest" arrangements with countries like
Thailand that allow Thai agricultural produce to enter China at
greatly reduced tariff rates.
"It's not really a piece of paper," he said. "Now in the
markets of Beijing you can easily find tropical fruit like durian
and some other Thai fruit which used to be very, very expensive,
but now they're cheap."
Peter Harmsen, Agence France-Presse/Vientiane
China and 10 Southeast Asian countries signed historic trade
pacts Monday to pave the way for the world's biggest free-trade
zone by 2010, covering nearly two billion people.
Chinese Prime Minister Wen Jiabao and his counterparts from
the 10-country Association of Southeast Asian Nations (ASEAN)
signed the agreements in the Laotian capital Vientiane.
"The agreements signed today show that ties between China and
ASEAN have reached a new stage," Wen told reporters after the
agreements had been inked.
"It shows the relations have now entered into a new period of
overall cooperation."
The pacts include an agreement to liberalize tariff and non-
tariff barriers on traded goods and one to set up a mechanism to
resolve trade disputes.
The trade pact will form the first component of a
comprehensive accord planned for completion by 2010 that will
include the full liberalization of the services sector.
"ASEAN is an important trading partner for China. China is
also an important trading partner for ASEAN," China's Finance
Minister Jin Renqing told AFP.
"Our economies have a great deal of complimentarity. It's
important for both parties to promote their cooperation going
forward," he said.
ASEAN's efforts to deepen trade and investment ties with China
are considerably more advanced than similar efforts with its
other Northeast Asian dialogue partners, with free trade
negotiations with Japan and South Korea only expected to start
next year.
If completed on time, the overall ASEAN-China deal will result
in the creation of the world's biggest free trade zone, covering
nearly two billion people.
It will also enhance China's role as a major growth engine for
ASEAN's export-led economies because of its growing appetite for
raw materials, finished goods and components.
Chinese foreign ministry spokesman Liu Jianchao told reporters
that poor ASEAN countries might be given some slack in entering
the agreement, given their worries about being overwhelmed by the
Chinese juggernaut.
"They have some worry, so we have to have some flexible
policies," he said. "There might be some leeway or some extension
of time for countries like Vietnam, Myanmar, Cambodia and Laos."
Annual two-way trade is expected to rise 28 percent to 100
billion dollars next year from 78.2 million dollars in 2003.
ASEAN members have urged the group to look towards its own
region for growth.
"We cannot rely on the West alone," Philippines Gloria Arroyo
told a gathering of business executives on Sunday, pushing for an
East Asia free-trade bloc.
"An enlarged East Asia bloc cannot only secure the future of
ASEAN but also the future of China, Japan and South Korea," she
said.
The ultimate objective of the free-trade area is to reduce
average customs duties among its members to between zero and five
percent.
Chinese foreign ministry spokesman Liu said trade agreements
with ASEAN were more than just symbolic exercises, but actions
with real importance for customers in the region.
He cited "early-harvest" arrangements with countries like
Thailand that allow Thai agricultural produce to enter China at
greatly reduced tariff rates.
"It's not really a piece of paper," he said. "Now in the
markets of Beijing you can easily find tropical fruit like durian
and some other Thai fruit which used to be very, very expensive,
but now they're cheap."