The Impact Of China Asean Free Trade Agreement

These favourable conditions have entered into force in China and in ASEAN home members such as Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. In total, this ACFTA will create an economic region of 1.7 billion consumers, a regional gross domestic product (GDP) of approximately $2 trillion and an estimated total trade of $1.23 trillion. It is therefore the largest free trade agreement in the world in terms of demographic size. One of the main features of the TIG Agreement is the non-maintenance of quantitative restrictions and the elimination of non-tariff barriers. [5] Removing these trade barriers will reduce trade costs, further increase trade between ASEAN and China, and improve economic efficiency. The ASEAN bloc has largely eliminated all import and export tariffs on intermediate items, with the exception of Cambodia, Laos, Myanmar and Vietnam, which continue to impose nominal tariffs on certain items. But these will also be completely eliminated by 31 December 2015, so that the entire region will be exempt from customs duties from that date. ASEAN, the Association of Southeast Asian Nations, is gaining importance as a trading bloc and is now the third largest in the world after the European Union and the North American Free Trade Agreement. Composed of the Asian Tigers of Indonesia, Malaysia, philippines, Singapore, Thailand and Vietnam (ASEAN 6) with smaller players like Brunei, Cambodia, Laos and Myanmar, it has a combined GDP of $2.31 trillion (2012) and hosts about 600 million people…