SINGAPORE, Dec. 29 (Xinhua) -- The establishment of China-ASEAN Free Trade Area (FTA), which is a significant event in Asia, will exert a deep influence on bilateral relations between China and the Association of Southeast Asian Nations (ASEAN), a renowned Singapore scholar has said.
In a recent exclusive interview with Xinhua, Tan Khee Giap, Chair of the Singapore National Committee for Pacific Economic Cooperation, said that China has made great contributions to the establishment of the FTA, which is to set sail on Jan. 1, 2010, and is mutually beneficial to China and the regional bloc.
Tan noted that the FTA, which was initially proposed by China, shows that China is willing to grow together and share with its neighbors the economic achievements the largest developing country has scored over the past three decades.
"This has put tremendous momentum to the establishment of the FTA," Tan said, adding that "It took a relatively short period of time to reach the free trade agreement, which is a good thing for both sides and a significant event in Asia."
The China-ASEAN FTA will create an economic region with 1.9 billion consumers, a regional Gross Domestic Product (GDP) of about 6 trillion U.S. dollars and total trade estimated at 4.5 trillion U.S. dollars. This makes it the biggest FTA in the world in terms of population size.
Tan said the FTA will bring both political and economic benefits to ASEAN, which has further enhanced its strategic position after the completion of the China-ASEAN FTA.
The China-ASEAN FTA is pioneering, he said, adding that after the China-ASEAN FTA, countries such as Japan, India and South Korea all want to follow suit.
In terms of economic profits, he said that ASEAN countries have enjoyed a surplus in its trade with China in recent years. "ASEAN will certainly get more benefits in the future when it is more involved in the China market," Tan said.
In his opinion, ASEAN countries at various development levels could each make use of their respective advantages under the FTA.
The less developed countries can export to China their agriculture goods while countries with abundant resources could sell oil, minerals and rubber to China, he said, adding that they can also buy more cheap manufacturing products from China. "So people from both ASEAN and China can have more choices and better prices on products," Tan said.
Tan believes that the China-ASEAN FTA will have positive effects for the development of Asia.
"Over the next 10 years, as China continues to open its market more widely, the total trade volume between Asian nations will grow and the dependence on export to western countries will decrease, which is helpful to the economic stability in Asia, " Tan said.
Tan said that as Asian countries become less dependent on the western market and gradually increase their domestic consumption, their economy could be more resilient in the future to another financial crisis should it be triggered by the mismanagement of western finance industry.
Tan regards the establishment of China-ASEAN FTA as only a new beginning, saying that two things must be done for the development of the FTA.
First, all countries must fully cooperate with each other and abide by the agreements under the FTA to realize free trade in the area. Second, all countries should further open their domestic markets and promote free trade policies, and improve trade and investment environments.
On reducing non-tariff trade barriers, Tan stressed the importance of regular negotiation, supervision and discussion among all nations under the FTA.
"Non-tariff trade barriers will indirectly harm international trade, and all governments need to prevent policies which are contradictory to free trade," Tan said.
On the prospects of the FTA, Tan said that in the mid-term future, 10 years from now, bilateral trade between China and ASEAN should double its current volume, which grew from 100 billion U.S. dollars in 2004 to 231 billion U.S. dollars last year.
"When the trade volume increases, Asian nations will accumulate their wealth and Asian people will improve their ability to spend, and the service sector and urban planning will flourish. Singapore can also share its experiences in these areas," Tan said.
Tan stressed that the healthy economic relationship between China and ASEAN will also enhance mutual trust, hence China and the regional bloc can see more cooperations in anti-terrorism, counter-pirate and other regional security issues.
Chinese motorcycle company operating in Vietnam eyes opportunities in China-ASEAN FTA
HANOI, Dec. 25 (Xinhua) -- In a motorcycle shop on the Tay Son Street in Vietnamese capital city of Hanoi, two young attendants were busy introducing motorcycles with the logo of Chinese brand Lifan to customers.
The motorcycles sold in this shop were all produced in an industrial zone in Hung Yen province thirty kilometers away from Hanoi. Eyeing the market opportunities in Vietnam, Chinese motorcycle company Lifan established a production base in Hung Yenseven years ago. It has now grown into an industrial zone comprising of 11 factories making motorcycle parts and assembling motorcycles. Full story
Malaysian Tourism Ministry bears deep hope in China-ASEAN FTA
KUALA LUMPUR, Dec. 25 (Xinhua) -- The Malaysian Tourism Ministry firmly believes that the full implementation of the China-ASEAN Free Trade Agreement (FTA) will benefit friends from China and ASEAN.
Malaysian Tourism Minister Ng Yen Yen told Xinhua here recently that she bore great expectations of the future and prospects of the free trade area. Full story
Interview: China-ASEAN FTA to make regional trade leap
KUALA LUMPUR, Dec. 24 (Xinhua) -- The establishment of China-ASEAN Free Trade Area (FTA) is expected to help the bilateral trade between the two sides grow by leaps and bounds, a leading Malaysian businessman said here recently.
The FTA will also promote the economic integration in the region to go forward rapidly, said Yong Ah Pwi, President of Malaysia-China Chamber of Commerce, in an interview with Xinhua. Full story
ASEAN-China Free Trade Area benefits both sides
HUA HIN, Thailand, Oct. 24 (Xinhua) -- The ASEAN-China Free Trade Area (ACFTA) that takes effect early next year is well on track, with great potentials to produce huge benefits to both sides.
During the on-gong 15th ASEAN Summit and Related Summits, ASEAN leaders said Saturday that the effective implementation of the major milestone in FTA brings ASEAN closer to the ASEAN Economic Community where free flow of goods is one of its major objectives. Full story
ASEAN looks forward to realization of ASEAN-China Free Trade Area
HUA HIN, Thailand, Oct. 24 (Xinhua) -- The 15th Association of Southeast Asian Nations Summit issued a Chairman's Statement Saturday, saying the bloc looked forward to the realization of the ASEAN-China Free Trade Area (ACFTA) on January 1, 2010.
"The leaders were pleased to note the progress in the implementation of the ASEAN-China Trade in Goods Agreement and looked forward to the realization of the ASEAN-China Free Trade Area (ACFTA) on January 1, 2010 when ASEAN 6 and China eliminates tariffs on products in their Normal Track," said the Statement. Full story
Special Report: Global Financial Crisis
