|
|
|
|
China moves to free the shackles from
trade
BEIJING - China will
continue to actively pursue the establishment of
free trade agreements (FTAs) after starting talks
on this with 23 countries this year. Strategic
progress is expected this year and next, paving
the way for China to expand its regional
cooperation.
Beginning this year, China
and the Association of Southeast Asian Nations
(ASEAN) have kicked off the implementation of an
agreement on the trade of goods under their FTA
pact. The practical implementation of China's
first FTA will be critically important as it will
provide an example to other counties, said Jin
Ming, an expert from the Chinese Academy of
International Trade and Economic Cooperation.
"China's FTA negotiations with the Gulf
Cooperation Council [GCC], Chile and Pakistan will
also enter a substantive stage this year," he
said.
China and the GCC will start FTA
negotiations in a matter of weeks, he said. To
China, the possible FTA means easier access to GCC
members' rich oil reserves and strong capital
muscle. The GCC possesses 45% of global oil
reserves and accounts for 20% of world oil
production. These rich Arab countries also have
large overseas investment, totaling US$1.5
trillion at the end of 2003. A tariff-cutting FTA
would make Chinese manufacturers more competitive
in GCC countries, home to 20 million consumers.
Sino-GCC trade surged 10 times from $1.5
billion in 1991 to $16.9 billion in 2003,
according to Chinese statistics. "But there is
still room for growth," Jin pointed out. More
importantly, the GCC countries - Bahrain, Kuwait,
Oman, Qatar, Saudi Arabia and the United Arab
Emirates - will become bases for Chinese goods
entering other Arab countries, Jin added.
China also has its eyes on Latin America,
with Chile being the bridge. The two countries
started FTA talks this January. Chile is the first
Latin American country to have entered into FTA
talks with China. The Chinese government expects
it will become a successful model for China's
relationship with Latin America, said Lu Guozheng,
an expert on Sino-Latin American trade.
Yi
Xiaozhun, China's assistant minister of commerce,
said he believed the development of Sino-Chilean
relations would enhance the country's cooperation
with the rest of Latin America. After launching
free trade negotiations with Chile, China is
considering the feasibility of signing more free
trade agreements with other Latin American
countries and organizations such as Mercado Commun
del Sur (the Common Market of the South, or
Mercosur), Lu said. China and Chile are very
likely to reach a free trade deal within a year.
Australia and New Zealand were the first
developed countries to launch free trade talks
with China. A joint feasibility study into whether
such a deal should proceed between China and
Australia will be completed soon. Australian Trade
Minister Mark Vaile will meet China's Commerce
Minister Bo Xilai and other Chinese trade
officials in Beijing from Tuesday to Friday to
ensure that the study on the feasibility of a FTA
is finalized before Prime Minister John Howard's
visit to China next month.
A timetable for
negotiations is expected to be set by Vaile while
he is in Beijing. China is Australia's
third-largest and fastest-growing trading partner
and the nation's fourth-largest export market.
Trade between the two countries has quadrupled
over the past decade.
As for an FTA with
New Zealand, the talks will be special for China
as it will be the first such agreement with a
developed country. China and New Zealand started
the talks in December, which are expected to
expand into detailed issues this year. Apart from
the trade implications, FTAs with Australia and
New Zealand also mean market economy status for
China. The World Trade Organization (WTO) will not
sanction any possible deal between two countries
unless they are equal trading partners. It means
any economy should first recognize China as a
market economy before it launches FTA talks with
it.
New Zealand recognized China as a
market economy before it launched talks, and
Australia will decide on China's market economy
status at the launch of the negotiations. Granting
of this status will serve as an example to other
developed countries, as few of them recognize
China as a market economy, Jin said.
In
South Asia, China will begin an FTA feasibility
study with Pakistan, while remaining active in
promoting economic cooperation with the entire
region. The joint feasibility study on the
proposed FTA is likely to be completed during the
upcoming visit of premier Wen Jiabao to Pakistan
in April. Along with the completion of the study,
formal FTA negotiations are expected to commence
during Wen's visit. Reports say Pakistan and China
have agreed on a summary regarding the FTA, which
comprises items that would get duty facilitation
ahead of the FTA and would be signed in April
during Wen's visit.
But for China, a more
encouraging prospect would be an FTA with East
Asia this year, said Jin. An East Asian FTA,
bringing together China, Japan, South Korea and
ASEAN member states, should be an exciting goal
for China and the entire region, although
achieving this will not be a simple task,
according to Jin.
Both China and ASEAN members
see the benefits offered by an FTA. Figures from
the Ministry of Commerce show that trade in goods
covered by an "early harvest program" - the
prelude to an FTA - between China and ASEAN
members, reached $1.7 billion, up 41%
year-on-year. The "early harvest program" exempts
some products from tariffs before the FTA is
completed.
Trade in 188 types of fruit and
vegetables between China and Thailand increased
120% since the launch of the program in October
2003. This has helped Thailand achieve a trade
surplus of $175 million with China. The result is
contrary to local concerns and reports that the
FTA with China would place Thai exporters at a
disadvantage as they are not fully prepared for
competition with China.
China's keen
interest in FTAs will be a long-term strategic
consideration, according to officials and experts.
"FTAs will offer more preferential treatment for
members," said an official from the International
Department of the Ministry of Commerce. "Within
FTAs, members enjoy lower tariffs, less non-tariff
barriers and improved market access to goods,
services and capital. The cost of trade would
therefore be lowered
." The official said
FTAs will help Chinese firms obtain raw materials
and equipment at a lower cost and also improve
services. Chinese customers will also gain better
access to cheaper and high-quality goods and
services as a result. It is important for China to
pursue regional integration rather than develop in
isolation, following its entry to the WTO, Jin
said.
Regional economic integration is a
global trend. There were a total of 305 regional
economic arrangements, and internal trade within
these areas accounts for 50% of global trade. So,
according to Jin, China should actively
participate in the process of regional economic
integration to meet the challenges of
globalization and sustain trade and economic
growth.
(Asia
Pulse/XIC) |
|
|
|
|
|
|
|
 |
|
|
|
|
|
All material on this
website is copyright and may not be republished in any form without written
permission.
© Copyright 1999 - 2005 Asia Times
Online Ltd.
|
|
Head
Office: Rm 202, Hau Fook Mansion, No. 8 Hau Fook St., Kowloon, Hong
Kong
Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
|
Asian Sex Gazette China Sex News
|
|
|
