Pact’s progress
China Daily
Pact’s progress
9 January 2006
The China-ASEAN FTA will form a huge market, with 1.85 billion consumers and a combined gross domestic product of almost US$2.5 trillion. Both sides hope to establish an FTA by 2010, and will gradually reduce export tariffs until then.
The "early harvest programme" (EHP) was launched on January 1, 2004 in anticipation of the FTA between China and ASEAN. The EHP, which primarily covers more than 500 agricultural products, will allow ASEAN members to benefit from tariff reductions earlier.
China and ASEAN began the second round of tariff reduction programmes last July. Under the agreement, China and six ASEAN countries gave tariff cuts to each other, and lifted tariffs on more than 7,000 kinds of commodities.
Tariffs are to be axed by 2010 for the six most advanced ASEAN members: Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. The four under-developed members Laos, Viet Nam, Cambodia and Myanmar will have until 2015 to comply.
China now mainly imports electronic products, crude and liquefied petroleum, and vegetable oil from ASEAN countries. It exports electronics, machinery, textiles, garments, processed oil and cereals to the ASEAN.
Statistics from the Ministry of Commerce indicate that from 2002 to 2004 the average annual growth rate of bilateral trade stood at 38.9 per cent. In 2004, volume reached US$105.9 billion, exceeding the target one year ahead of schedule. The trade volume is expected to reach more than US$120 billion in 2005, and the target for 2010 is US$200 billion.
The China-ASEAN FTA was proposed by former Chinese Premier Zhu Rongji at the 4th ASEAN Informal Summit in November 2000.
