A free trade zone spanning more than 1.9 billion people will come into life on January 1 as China and ten South East Asian countries join together to scrap tariffs.
December 30, 2009 - In another sign of Asia's ascendancy, and of its growing economic and political union, duties will be dropped on everything from steel to rubber and shoes to electronics.
China hopes that the zone will quickly rival the European Economic Area and the North American Free Trade Area and provide new outlets for its goods in the face of Western protectionism.
Duties will be scrapped on 90pc of goods traded across China, Indonesia, Malaysia, Singapore, Thailand, Brunei and the Philippines. Over the next five years, tariffs will also be removed on trade in Cambodia, Laos, Vietnam and Burma.
"Since the financial crisis, demand for goods has declined from Europe and the United States," said Tang Min, an economist at the China Development Research Foundation. "If the zone grows to include Japan, Korea or even Australia, it could be a similar size to the North American market," he added. READ MORE ...
China hopes that the zone will quickly rival the European Economic Area and the North American Free Trade Area and provide new outlets for its goods in the face of Western protectionism.
Duties will be scrapped on 90pc of goods traded across China, Indonesia, Malaysia, Singapore, Thailand, Brunei and the Philippines. Over the next five years, tariffs will also be removed on trade in Cambodia, Laos, Vietnam and Burma.
"Since the financial crisis, demand for goods has declined from Europe and the United States," said Tang Min, an economist at the China Development Research Foundation. "If the zone grows to include Japan, Korea or even Australia, it could be a similar size to the North American market," he added. READ MORE ...
