Party To The Asean China Free Trade Agreement

On 1 January 2010, the average tariff rate on Chinese products sold in ASEAN countries increased from 12.8% to 0.6% until the remaining ASEAN members implemented the free trade area. Meanwhile, the average tariff rate on ASEAN products sold in China increased from 9.8% to 0.1%. [13] Up to 2015, ASEAN`s total merchandise trade with China reached $346.5 billion (15.2% of ASEAN trade), and ACFTA accelerated growth in Chinese direct investment and trade cooperation. [6] As there is no end to the trade war between the United States and China, the updated protocol of the ASEAN-China Free Trade Agreement also allows China to have better access to the entire neighbouring region and to diversify its focus on European and American markets. In addition to the ASEAN Free Trade Area (AFTA) between ASEAN countries, the regional trade bloc has signed several free trade agreements with some of the major economies in the Asia-Pacific region. These include the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), the ASEAN-China Free Trade Agreement (ACFTA), the ASEAN-India Free Trade Agreement (AIFTA), the ASEAN-Korea Free Trade Agreement (AKFTA) and the ASEAN-Japan Comprehensive Economic Partnership (AJCEP). The aim of these free trade agreements is to encourage and encourage businesses of all sizes in ASEAN to trade without customs barriers, both regionally and internationally. Companies operating in ASEAN can take advantage of free trade agreements to facilitate access to new export markets for their low-cost products and benefit from simplified export and import procedures. Changes to the free trade area framework mainly concerned Vietnam. These amendments were intended to help Vietnam reduce tariffs and were cited as guidelines.

[14] “It will also show the world that ASEAN, together with ASEAN partners, says no to protectionism and yes to free trade.” ACFTA, launched on January 1, 2010, provided the necessary platform for deepening economic engagement. Economic relations intensified following the signing of the framework agreement and the ASEAN-China Free Trade Agreement in 2004, which provides a solid basis for increased trade and investment flows between ASEAN and China. “The implementation of this agreement will help ensure open markets and an uninterrupted supply chain,” he said. China first proposed the idea of a free trade area in November 2000. The leaders of ASEAN and China therefore decided to discuss economic integration measures in the region the following year[1][2] In Brunei, they supported the creation of an ASEAN-China free trade area. [3] Heads of state and government both China and ASEAN (AMS) signed the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN at the Sixth China-ASEAN Summit in November 2002. In November 2004, Chinese Prime Minister Wen Jiabao and AMS leaders witnessed the signing of the China-ASEAN Free Trade Agreement, which came into force in July 2005. In January 2007, both sides signed the Trade in Services Agreement, which came into force in July of the same year.

In August 2009, both parties signed the investment agreement. The creation of the China-ASEAN Free Trade Area strengthens close economic and trade ties between the two sides and also contributes to the economic development of Asia and the world as a whole.