ASEAN-China summit to work on free trade agreement encompassing one-third of world’s population
All Headline News
ASEAN-China Summit To Work On Free Trade Agreement Encompassing One-Third of World’s Population
October 29, 2006
Komfie Manalo - All Headline News Foreign Correspondent
Nanning, China (AHN) — Leaders from China and the 10-nation Association of Southeast Asian Nations will open a summit on the Chinese city of Nanning as both sides prepare the groundwork for a free trade agreement that would encompass at least one-third of the world’s population.
But officials downplay the significance of the two-day summit and described it as a low-key affair with no major announcement expected. Although the two sides will be working on the ambitious free-trade zone which is a priority for ASEAN.
Ong Keng Yong, secretary general of the ASEAN said, "I feel that the concern that we initially had that we might be overshadowed by China completely has been somewhat moderated."
In 2002, China and the ASEAN inked a framework agreement on economic partnership which saw more liberal policies in trade of goods and all around tariff reductions since July last year.
Talks on trade in services and investment are ongoing, and ASEAN officials say the parties are trying to finish negotiations on the first tranche, or part, of services to be liberalized by the end of 2006.
But at the top of the agenda is creation of the ASEAN-China Free Trade Area by 2010. If concluded, the zone would create a huge trading bloc with a free flow of goods, services and investment, with a combined population of nearly two billion and gross domestic product or over $2 trillion.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
