Thread: ASEAN benefit more from China-ASEAN FTA arrangement

http://news.xinhuanet.com/english/2005- ... 183470.htm


ASEAN benefit more from China-ASEAN FTA arrangement
www.chinaview.cn 2005-07-06 17:11:03

BEIHAI, Guangxi, July 6 (Xinhuanet) -- Members of the Association of Southeast Asian Nations (ASEAN) will benefit much more from the China-ASEAN Free Trade Area (CAFTA) arrangement than their partner, China, said a senior official with the US-based commerce organization at a business forum held here on Monday.

Compared with ASEAN members, China enjoys few advantages in terms of production costs, said Siva Yam, president of the United States of America-China Chamber of Commerce (USCCC), while addressing the China-ASEAN Business Forum on Monday. Tariff reduction for more than 7,000 categories of goods provided by the Trade in Goods Agreement has little effect on Chinese enterprises in the short term, but will translate into a more open huge marketfor ASEAN members, he added.

Still, the building of CAFTA benefits China in two major aspects: it will not make trouble for China, which enjoys close economic ties with ASEAN member countries; and the recognition of China's full market economy status by ASEAN will help the nation tackle the problem of anti-dumping investigations in the United States, according to Yam.

A free trade area means not only eliminating tariffs, but also realizing the free flow of capital to ensure the sustainable development of the whole area, said Yam.

China's exports to ASEAN countries reached 42.9 billion US dollars in 2004, and its imports from those countries hit 62.98 billion dollars. Out of the ten members of ASEAN, Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand enjoytrade surpluses with China. Vietnam has taken the place of Australia to be the largest import source of coal for China.

Founded in 1993, the USCCC has 200-plus members, of who 90 percent are American enterprises. The council is dedicated to helping US businesses to enter China and vice versa. Enditem

China is pleased with CAFTA? They say why it would benifit them right there.