A Chinese official confirmed yesterday that China and the
Association of Southeast Asian Nations (ASEAN) are to sign a
landmark agreement next Monday on the establishment of a free-trade
agreement (FTA).
The trade liberalization project is widely expected to get under
way next year, beginning with agricultural products.
A
Vietnamese trade newspaper reported yesterday that China has agreed
to lower tariffs on agricultural imports from ASEAN to zero in
three years in order to facilitate the establishment of the
FTA.
The agreement will be handed in to the Sixth China-ASEAN summit in
Phnom Penh, Cambodia, for approval in November, said the
newspaper.
The newspaper went on to say the agreement will bring huge benefits
to Thailand, the world's largest rice exporter, as well as Viet
Nam.
But the Chinese official said the newspaper story was
inaccurate.
"The agreement includes more substantial trade liberalization
measures than that," he told China Daily.
He
declined to disclose details of the agreement, saying it will be
formally released on November 4.
The upcoming Sixth China-ASEAN summit is expected to achieve
significant results in negotiations for the China-ASEAN free-trade
area, cooperation in developing the Mekong River Basin.
Premier Zhu Rongji is scheduled to attend this summit which runs
from November 1 to 4.
The two sides are expected to sign a framework agreement on
comprehensive economic co-operation during the summit.
The agreement will outline areas for China-ASEAN economic
cooperation and officially initiate processes for the establishment
of the free-trade area by prescribing guiding principles, a
framework and a timetable.
The free-trade area will help create a free market encompassing 1.7
billion people, the largest market of its kind in the world.
The trade volume between China and ASEAN reached US$41.6 billion
last year, making China the sixth largest trading partner of ASEAN
and ASEAN the fifth largest of China. Two-way trade volume hit
US$33.3 billion in the first half of this year.
The establishment of a free-trade area is expected to result in a
surge of nearly 50 percent in exports from both sides.
The Chinese premier is expected to introduce a comprehensive plan
for China's participation in the development of the Mekong River
Basin when he attends the first Greater Mekong Sub-region (GMS)
Summit, to be held before the China-ASEAN summit.
Besides addressing reductions in tariffs, non-tariff measures and
restrictions on service trade, the framework agreement is expected
to include provisions for technical assistance.
(China
Daily October 30, 2002)