ASEAN–China Free Trade Area
ASEAN–China Free Trade Area | ||
---|---|---|
Hanyu Pinyin Zhōngguó-Dōngméng Zìyóu Màoyì Qū | | |
IPA | [ʈʂʊ́ŋkwǒ tʊ́ŋmə̌ŋ tsɹ̩̂jǒʊ mâʊî tɕʰý] |
The ASEAN–China Free Trade Area (ACFTA) is a
History
China first proposed the idea of a free trade area in November 2000. Leaders of ASEAN and China thus decided to explore measures aimed at economic integration within the region[1][2] In Brunei the following year, they endorsed the establishment of an ASEAN–China Free Trade Area.[3]
The framework agreement was signed on 4 November 2002 in
The first stage implied the 6 first signatories who engaged in the elimination of their tariffs on 90% of their products by 2010.
Once the 6 first signatories accomplished their goal by 2010, the CLMV countries (Cambodia, Lao PDR, Myanmar, Vietnam) engaged in the same policy on tariffs, with the same goal to achieve by 2015.[6] In 2010, the ASEAN–China Free Trade Area became the largest free trade area in terms of population and third largest in terms of nominal GDP. It was also the third largest trade volume after the European Economic Area and the North American Free Trade Area.[12][7]
On 1 January 2010, the average tariff rate on Chinese goods sold in ASEAN countries decreased from 12.8 to 0.6 percent pending implementation of the free trade area by the remaining ASEAN members. Meanwhile, the average tariff rate on ASEAN goods sold in China decreased from 9.8 to 0.1 percent.[13] By 2015, ASEAN's total merchandise trade with China reached $346.5 billion (15.2% of ASEAN's trade), and the ACFTA accelerated the growth of direct investments from China and commercial cooperation.[6]
Description
Amendments for the framework of the free trade area mostly concerned Vietnam. These amendments were designed to assist Vietnam lower tariffs and put forth dates as guidelines.[14]
The free trade agreement reduced tariffs on 7,881 product categories, or 90 percent of imported goods, to zero.[15] This reduction took effect in China and the six original members of ASEAN: Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. The remaining four countries were supposed to follow suit in 2015.[16]
Signatories
Flag | Country | Capital | Area (km2) | Population (2017, U.N. data) |
GDP (nominal) (bln USD, 2017, IMF) |
Currency | Official languages |
---|---|---|---|---|---|---|---|
Brunei Darussalam | Bandar Seri Begawan | 5,765 | 428,697 | 11.9 | dollar | Malay | |
Cambodia | Phnom Penh | 181,035 | 16,005,373 | 22.2 | riel | Khmer | |
Indonesia | Jakarta | 1,904,569 | 263,991,379 | 1,015.4 | rupiah | Indonesian | |
Laos | Vientiane | 236,800 | 6,858,160 | 17.1 | kip | Lao | |
Malaysia | Kuala Lumpur | 329,847 | 31,624,264 | 314.4 | ringgit | Malay, English | |
Myanmar (Burma) | Naypyidaw | 676,578 | 53,370,609 | 66.5 | kyat |
Burmese | |
Philippines | Manila | 300,000 | 104,918,090 | 313.4 | peso | Filipino, English | |
Singapore | Singapore | 707.1 | 5,708,844 | 323.9 | dollar | Malay, Mandarin, English, Tamil | |
Thailand | Bangkok | 513,115 | 69,037,513 | 445.3 | baht | Thai | |
Vietnam | Hanoi | 331,690 | 95,540,800 | 220.4 | đồng | Vietnamese | |
People's Republic of China | Beijing | 9,640,821 | 1,409,517,397 | 12,014.6 | renminbi | Mandarin |
Members of the
See also
- ASEAN Free Trade Area
- Chiang Mai Initiative
- Comprehensive Economic Partnership for East Asia
- Economic Cooperation Framework Agreement (between ROC and PRC)
- List of free trade agreements
- ASEAN–India Free Trade Area (AIFTA)
- Bamboo network
- Nanning-Singapore Economic Corridor
- Rules of Origin
- Market access
- Free-trade area
- China and Southeast Asia in the Xi Jinping Era
References
- ^ Richardson, Michael (27 November 2000). "Asian Leaders Cautious on Forging New Regional Partnerships". The New York Times. Archived from the original on 11 April 2012. Retrieved 3 January 2010.
- ^ Asmoro, Andry (23 December 2009). "ASEAN-China free trade deal: Let's face the music". The Jakarta Post. Archived from the original on 7 June 2011. Retrieved 1 January 2010.
- S2CID 150644951.
- ^ a b "Framework Agreement on Comprehensive Economic Co-Operation Between ASEAN and the People's Republic of China". ASEAN. 5 November 2002. Archived from the original on 7 November 2002. Retrieved 1 January 2010.
- )
- ^ a b c Vasundhara Rastogi (7 December 2017). "ASEAN's Free Trade Agreements: An Overview". Aseanbriefing.com. Retrieved 24 May 2018.
- ^ a b Gooch, Liz (31 December 2009). "Asia Free-Trade Zone Raises Hopes, and Some Fears About China". The New York Times. Retrieved 1 January 2010.
- ^ Quinlan, Joe (13 November 2007). "Insight: China's capital targets Asia's bamboo network". Financial Times.
- ISBN 978-0-684-82289-1.
- ^ equivalent to US$11.4 trillion by PPP in 2008
- ^ Brown, Kevin (1 January 2010). "Biggest regional trade deal unveiled". Financial Times. Retrieved 1 January 2010.
- ^ Walker, Andrew (1 January 2010). "China and Asean free trade deal begins". BBC News. Retrieved 1 January 2010.
- ^ a b Coates, Stephen (31 December 2009). "ASEAN-China open free trade area". Agence France-Presse. Archived from the original on 3 January 2010. Retrieved 1 January 2010.
- ASEAN. 6 October 2003. Archived from the originalon 17 May 2012. Retrieved 2 January 2010.
- ^ "ASEAN-6 zero tariffs take effect immediately". The Jakarta Post. 2 January 2010. Retrieved 2 January 2010.
- ^ "China-ASEAN FTA pact set to boost trade volume". China Daily. 30 December 2009. Retrieved 1 January 2010.
- Bloomberg. Retrieved 1 January 2010.