Beijing: A free trade agreement between China and the Association of Southeast Asian Nations (ASEAN) came into effect today, creating world's biggest free trade
area in terms of a combined population of about 1.9 billion.
The trade pact is expected to boost bilateral trade by USD
106 billion by lifting tariffs on some 7,000 items, 90 per
cent of all traded commodities.
China, which is likely to overtake Japan as the world's
second largest economy this year, and six founding ASEAN
members such as Singapore and Thailand eliminated tariffs on
about 90 per cent of products.
Four other members such as Vietnam will gradually lower
tariffs down to zero in 2015.
Bilateral trade between China and the 10 ASEAN members
grew from some USD 100 billion in 2004 to USD 231 billion last
year, averaging a 14 per cent annual growth rate, according to
official figures.
ASEAN Secretary General Surin Pitsuwan said the FTA will
benefit both sides, given the rising purchase power of their
growing middle class populations, according to China's Xinhua
News Agency.
"Middle class of China is expanding, which will be good
for ASEAN products. Middle class of ASEAN is growing,
expanding, which will be good for Chinese export and Chinese
services," Xinhua quoted Surin as saying in a dispatch from
Jakarta.
PTI
First Published: Saturday, January 02, 2010, 01:01