China, ASEAN to implement tariff reduction program in 2005

China, ASEAN to implement tariff reduction program in 2005

Agence France-Presse, Shanghai

China and the Association of Southeast Asian Nations (ASEAN) plan
to implement a round of tariff reductions beginning in January
2005 as part of their greater plan to create a free trade zone,
state press reported Wednesday.

Formal free trade area (FTA) negotiations will be concluded by
June 2004, according to the Framework Agreement on Comprehensive
Economic Cooperation between China and ASEAN set last year, the
Xinhua news agency said.

The first round of negotiations are due to take place later
this week in the southern province of Guangxi.

With the establishment of the China-ASEAN FTA, China's exports
to ASEAN are forecast to increase by US$10.6 billion, the report
said.

ASEAN's exports to China are predicted to grow by $13 billion.

Amid a shaky global economy, trade between China and ASEAN
continued to surge last year, jumping 31.8 percent to a high of
$54.8 billion.

China has long been keen to establish a Sino-ASEAN free trade
zone and made that clear to visiting Thai Prime Minister Thaksin
Shinawatra last week.

"China will abide by its commitments and take measures to
foster a Sino-ASEAN free trade zone to promote the economic
development of ASEAN countries and prosperity of the region,"
Premier Zhu Rongji said.

"Efforts to establish a Sino-ASEAN free trade zone is of
important and far-sighted significance."

ASEAN comprises the Philippines, Vietnam, Laos, Cambodia,
Thailand, Myanmar, Malaysia, Brunei, Singapore and Indonesia.