With the deepening development of the China-Asean Free Trade Area (CAFTA), the bilateral cooperation areas have been increasingly expanded and yielded fruitful results, which has injected strong impetus into the regional economic prosperity and stability. This paper will deeply analyze the advantages and benefits of CAFTA, and show its unique charm as the largest free trade zone among developing countries.
1. Overview of the free trade zone
The China-Asean Free Trade Area was officially launched on January 1,2010, covering 1.9 billion people in 11 countries, with a GDP of us $6 trillion and trade of US $4.5 trillion, accounting for 13% of world trade. As the world’s largest population and the largest free trade zone among developing countries, the establishment of CAFTA is of great significance to the economic prosperity and stability of East Asia, Asia and even the world.
Since China proposed the initiative of establishing the China-ASEAN Free Trade Area in 2001, the two sides have gradually realized trade and investment liberalization through several rounds of negotiations and efforts. The full launch of the FTA in 2010 marks a new stage in bilateral cooperation. Since then, the free trade zone has been upgraded from version 1.0 to version 3.0. The areas of cooperation have been expanded and the level of cooperation has been continuously improved.
2. Advantages of the free trade zone
After the completion of the free trade zone, trade barriers between China and ASEAN have been significantly reduced, and tariff levels have been significantly reduced. According to statistics, tariffs on more than 7,000 products have been cancelled in the FTZ, and more than 90 percent of goods have achieved zero tariffs. This not only reduces the trade cost of enterprises, but also improves the efficiency of market access, and promotes the rapid growth of bilateral trade.
China and ASEAN are very complementary in terms of resources and industrial composition. China has advantages in manufacturing, infrastructure construction and other fields, while ASEAN has advantages in agricultural products and mineral resources. The establishment of the free trade zone has enabled the two sides to allocate resources on a larger scale and at a higher level, realizing complementary advantages and mutual benefit.
The CAFTA market, with 1.9 billion people has huge potential. With the deepening of the bilateral cooperation, the consumer market and investment market in the free trade zone will be further expanded. This not only provides a broad market space for Chinese enterprises, but also brings more development opportunities for ASEAN countries.
3. Benefits of the free trade zone
The establishment of the FTA has promoted trade and investment liberalization and facilitation between China and ASEAN, and injected new impetus into the economic growth of both sides. According to statistics, in the past decade since its establishment, the trade volume between China and ASEAN has achieved rapid growth, and the two sides have become important trading partners and investment destinations for each other.
The establishment of the free trade zone has promoted the optimization and upgrading of the industrial structure of both sides. By strengthening cooperation in emerging areas such as high-tech and green economy, the two sides have jointly promoted the industrial development to a higher level and with a higher quality. This not only improves the overall competitiveness of both economies, but also lays a solid foundation for the sustainable development of regional economy.
The establishment of the FTA has not only promoted the cooperation and development of the two sides economically, but also enhanced the mutual trust and understanding between the two sides politically. By strengthening cooperation in policy communication, personnel exchanges and cultural exchanges, the two sides have built a closer community relationship with a shared future and made positive contributions to regional peace, stability, development and prosperity.
Looking ahead, the China-ASEAN Free Trade Area will continue to deepen cooperation, expand areas and upgrade its level. The two sides will work together to create brilliant achievements and make new and greater contributions to the prosperity and stability of the regional and global economy. Let us look forward to a better tomorrow for the China-ASEAN Free Trade Area!
Post time: Sep-19-2024
