The agreement to establish a China-ASEAN Free Trade Area (FTA)
has helped trade grow rapidly and the momentum will continue, a
senior official said yesterday.
"The FTA is the major contributor to China-ASEAN trade growth.
It has benefited, and will continue to benefit, both sides," said
Gao Hucheng, vice-minister of Commerce.
"The negotiation of China-ASEAN FTA has progressed smoothly, and
work should be complete by 2010 as scheduled," he added.
Since the 1990s, bilateral trade has witnessed an average annual
increase of more than 20 percent, and since 2001, it has registered
even stronger growth.
In 2004, China-ASEAN trade volume rose by 35 percent
year-on-year, reaching US$105.9 billion, realizing in advance the
goal of topping US$100 billion by 2005. In 2005, bilateral trade
stood at US$130.3 billion, with a year-on-year increase of 23
percent.
Until 2005, ASEAN became China's fifth largest trading partner
for 13 consecutive years.
It is the fifth largest export market and the third largest
import source for China.
China has also become the fourth largest trading partner for
ASEAN.
"Bilateral trade will surpass US$200 billion by 2010. Trade
sectors will shift away from primary goods to finished products
like machines, energy, high-tech, and agricultural products," said
Gao.
In November 2002, the leaders of China and ASEAN signed the
Framework Agreement on China-ASEAN Comprehensive Economic
Cooperation, and set the ball rolling on the FTA.
"This was a strategically important starting point for
China-ASEAN trade," said Gao.
In November 2004, the two sides signed the Agreement on Trade in
Goods and the Agreement on Dispute Settlement Mechanism under the
Framework of China-ASEAN FTA. On July 20 2005, the tariff reduction
process started on all fronts.
In July 2006, bilateral trade reached US$143 billion, increasing
by 23 percent year-on-year.
By 2010, China will establish FTAs with Brunei, Indonesia,
Malaysia, the Philippines, Singapore and Thailand, while Vietnam,
Laos, Cambodia and Burma can enjoy five more years of
transition.
"By that time, China and ASEAN will realize zero-tariffs for
most products," said Gao.
There is also financial support from the Chinese Government to
promote bilateral trade.
In the next three years, one-third of the loans China plans to
offer to developing countries will go to ASEAN member states, and
the nation will also provide loans worth US$5 billion to Chinese
companies aiming to expand business in ASEAN member states.
(China Daily September 7, 2006)