|
| Portfolio |
|
|
Mr. Bo Xilai's portfolio covers the overall affairs of the Ministry of commerce.
He is particularly in charge of the General Office and the Department of Human Resources. |
|
| Contact Editor |
|
|
Add:No.2 Dong Chang'an Avenue,Beijing China (100731)
Tel:(010)65284671
Fax:(010)65599340 |
|
|
 |
| Minister Bo Xilai Answering Questions of the Press on China-ASEAN FTA |
|
| 2006-08-10 13:42 MOFCOM |
July 20, 2006 is the first anniversary of the implementation of comprehensive tariff reduction under the framework of China-ASEAN FTA. Days ago, Minister of Commerce Bo Xilai received an interview and answered the questions from the press on China-ASEAN FTA. The following is the full detail.
Q: Under what historical background was the decision on establishing China-ASEAN Free Trade Area made?
A: China and ASEAN countries are close to each other geographically and culturally. Politically we respect each other, while economically we support each other. All these serve as conditions for more extensive cooperative relations at higher level. During the Asian Financial Crisis, China, feeling as though it experienced the same suffering, insisted on keeping the value of RMB stable. As a result, we overcame the difficulty together. Going through the crisis, China and ASEAN countries are deeply convinced that it is the only way to common development and prosperity for the two parties to enhance the mutual cooperation and promote the economic integration. Since the beginning of the 21st century, China-ASEAN economic relations have developed more intensively with rapidly growing bilateral trade and investment, technical cooperation, and human exchanges. The shared political will and constantly tightening economic ties have laid a key foundation for the establishment of China-ASEAN FTA.
Under such a background, the Chinese and ASEAN country leaders signed the Framework Agreement on the Comprehensive Economic Cooperation between China and ASEAN (hereinafter referred to as the Framework) on Nov. 4, 2002, delivering a blueprint of China-ASEAN FTA. On Nov. 29, 2004, the two-year negotiations led to the signing of the Agreement on Trade in Goods between China and 10 ASEAN countries, under which tariff concession was initiated as from July 20, 2005. It symbolizes the comprehensive start of the process of building the China-ASEAN FTA. During the negotiations, China has firmly obeyed the principles of taking less while giving more, and equality and mutual benefit, with which China demonstrated the great vision of a great nation, which was widely well commented.
China-ASEAN FTA is a great event in the history of China-ASEAN relations and is of epoch-making significance.
Q: Could you talk about the main content of the Framework Agreement and the Agreement on Trade in Goods?
A: The Framework Agreement, signed in Nov. 2002, is a programmatic document for the establishment of China-ASEAN FTA. According to the Framework Agreement, the aim of the FTA is to realize the liberation of trade in goods and services, to create a transparent, free and convenient investment environment, and to expand the fields of economic cooperation. China-ASEAN FTA plans to be completed in 2010.
The Agreement on Trade in Goods, signed in 2004, is a fundamental document providing for the mode of tariff concession, rules of origin and trade relief measures in trade in goods within the FTA. It says that as from July, 2005, China and the 10 ASEAN countries start the overall tariff reduction process and phase out the tariff for most of the products from both sides by 2010. Cambodia, Laos, Myanmar and Vietnam will enjoy a transition period of 5 years. In addition, all parties will also eliminate all import quantity limitations and non-tariff measures incompliant with the WTO rules.
Q: How is the general effect of the one-year implementation of the Agreement on Trade in Goods ?
A: As early as January 1, 2004, China and ASEAN initiated the Early Harvest Program to reduce the tariff of about 600 agricultural products including aquatic products, fruit and vegetable. All tariff rates of these products were brought down to zero in 2006. On July 20, 2005, China, Brunei, Indonesia, Malaysia, Myanmar, Singapore and Thailand started the mutual comprehensive tariff reduction, which were followed by other ASEAN countries one after another.
Statistics from the Chinese Customs say that, in the past 2 years since the initiation of the Early Harvest Program, the bilateral trade in products under the Program went up quickly. In 2004, China’s import off the early harvest products from ASEAN increased by 46.6%, amounting to US$1.15 billion, and the export grew by 31.2%, reaching US$820 billion. On this basis, new growth was obtained in 2005. The successful implementation of the Early Harvest Program consolidated our confidence in promoting the establishment of bilateral FTA.
Since the start of comprehensive tariff concession one year ago, China’s trade with ASEAN as a whole has witnessed a rapid growth as expected. From July 2005 to June 2006, our import from ASEAN reached US$ 81.61 billion, and import US$61.78 billion, up by 20.4% and 23.4% respectively. The trade growth is even more impressive with respect to products with each side’s comparative advantages. For example, China’s import of rubber products from ASEAN rises by 46.6%, mineral products by 38%, while China’s export of knitted garment to ASEAN increased by 60.2% and ceramics by 58.9%. The implement of tariff concession has tightened the bilateral trade and economic relations between China and the ASEAN and brought tangible benefits to the consumers and businesses of both China and ASEAN countries.
Q： According to the Agreement on Trade in Goods, China and the ASEAN will phase out most of the tariff by 2010. Could you please share with me the tariff concession arrangement in the coming few years?
A: From 2005 to 2010, the FTA tariff reduction process will gradually quicken up. Therefore the coming few years are a key period for the establishment of the FTA. According to the Agreement on Trade in Goods, in 2005, the average tariff rate China offers to ASEAN was lowered from 9.9% to 8.1%, and will be further decreased to 6.6% in 2007, 2.4% in 2009. In 2010, 93% of China’s imports from ASEAN will be subject to zero tariff. ASEAN countries will make similar arrangements. Taking Thailand as an example, the average tariff rate of Thailand for Chinese products in 2005 had been cut down from 12.9% to 10.7%, and will be lowered to 6.4% in 2007 and 2.8% in 2009. In 2010, Thailand will implement zero tariffs for 90% of its imports from China.
Q: What’s the priority in the next step efforts of building the China-ASEAN FTA?
A: In the coming years, China’s priority for the FTA with ASEAN is to earnestly enforce the Agreement on Trade in Goods, and facilitate the negotiations on trade in services and investment in order to reach an agreement at an early date.
Trade in services is an important part of the FTA. In recent years, China’s services trade has been growing rapidly to US$ 158.2 billion in 2005, in the breakdown, export US$ 74.4 billion and import US$83.8 billion. Tourism between China and ASEAN countries has been expanding especially fast. At the same time, China also becomes a key destination for ASEAN tourists. An Agreement on Trade in Services as a result of the negotiations can effectively promote the cooperation between the tourist departments of China and ASEAN, and further stimulate the liberalization and development of the service industry.
Investment facilitation and liberalization is another part and parcel of the FTA. China and ASEAN are crucial investment partners to each other. By the end of March 2006, the aggregate ASEAN direct investment to China had amounted to US$40 billion. Meanwhile, China has been very active in implementing the Going Global strategy. Consequently, its investment to the ASEAN has shown a rapidly growing momentum. More and more Chinese companies choose ASEAN countries as their major investment destinations. Improvement of the investment environment will drive up the two-way investment and result in mutual benefit.
In line with the magnificent blueprint worked out by the leaders of the two sides, China-ASEAN FTA, once completed in 2010, will be the most populous FTA in the world, and also the biggest one among developing countries. It will enormously facilitate the economic development of China and all ASEAN countries, lift up the bilateral economic and trade relations, push ahead the East Asia Economic Integration process, and make important contribution to the economic growth of Asia and the world at large.
(Source: Network Center of MOFCOM)
|
|
All articles marked with "Article type: Original" posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of "Source: Ministry of Commerce Website".
All articles posted on this website or its sub-sites marked with "Article type: reproduced" or "Article type: translated" and "Article type: redistributed" come from other media, and are provided solely for the user's information, which does not mean this Website or its sub-sites endorse the ideas thereof or assume any legal liability or responsibility for their authenticity. Any other media, websites or individuals must maintain the source of information indication on this Website or its sub-sites when using the information, and shall assume legal liability for the use.
|
