Overview of ASEAN-China (ACFTA)
 updatetime:2010-04-01 15:01:33   Views:0 Source:www.fta.gov.sg
   In November 2001, ASEAN and China agreed to launch negotiations for an ASEAN-China Free Trade Area (ACFTA).

In November 2001, ASEAN and China agreed to launch negotiations for an ASEAN-China Free Trade Area (ACFTA). In the following year, ASEAN and China signed the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China.

The objectives of this Agreement are to:

(a) strengthen and enhance economic, trade and investment co-operation between the Parties;

(b) progressively liberalise and promote trade in goods and services as well as create a transparent, liberal and facilitative investment regime;

(c) explore new areas and develop appropriate measures for closer economic co-operation between the Parties; and

(d) facilitate the more effective economic integration of the newer ASEAN Member States and bridge the development gap among the Parties.

The Agreement on Trade in Goods was signed in 2004 and implemented in 1 July 2005 by the ASEAN countries and 20 July 2005 by China. Under this Agreement, the 6 original ASEAN members and China have to eliminate tariffs on 90% of their products by 2010, while Cambodia, Lao PDR, Myanmar and Vietnam, have until 2015 to do so.

The Trade In Services Agreement entered into force in July 2007. Under this agreement, services and services suppliers/providers in the region will enjoy improved market access and national treatment in sectors/subsectors where commitments have been made.

The Investment Agreement was implemented on 15 February 2010. The Agreement will help to create a more transparent and facilitative environment, and give companies from ASEAN a competitive edge to tap on thriving opportunities in China.