The foundations of the world's largest free trade area may be
laid next month as China and members of the Association of
Southeast Asian Nations (ASEAN) plan to sign
deals on trade and dispute resolution mechanisms, said a senior
trade official.
China is scheduled to meet ASEAN leaders in Vientiane, capital
of Laos, in November.
Agreement in principle on a free trade pact was reached when
ministers met in Jakarta, Indonesia on September 4 and three
working groups were set up to consider: rules of origin, trade of
goods and trade of services.
An Min, Chinese vice minister of Commerce, said China and ASEAN
members could establish the free trade area (FTA) as early as next
year. By 2010, it could become the world's largest FTA with 1.7
billion consumers and a combined gross domestic product of US$2
trillion.
The recognition of China's market economy status by all ASEAN
members in Jakarta cleared the way to reach a deal on the trade of
goods, and An believes the FTA will offer great prospects as the
early harvest program has proved.
This initiative was launched January 1 this year, offering
preferential tariffs on more than 500 items, mostly agricultural
products. Agricultural trade was boosted with China importing
US$330 million worth of fruit and vegetables from ASEAN countries
in the first half of the year, an increase of 38.7 percent from the
previous year. During the same period, China's ASEAN exports jumped
33.9 percent to US$270 million.
During a summit in Bali last October, a decision was made to
hold the first China-ASEAN Expo from November 3 to 6 in Nanning,
capital of the Guangxi
Zhuang Autonomous Region. By the end of August 4,261
enterprises had filed applications to fill the 1,763 booths
available.
(China Daily October 22, 2004)