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China-ASEAN to launch free trade by 2010
( 2002-11-05 09:15 ) (1 )

China and the Association of Southeast Asian Nations (ASEAN) Monday signed the Framework Agreement on China-ASEAN Comprehensive Economic Co-operation to launch the establishment process for free trade area by 2010.

The agreement was signed by Chinese Premier Zhu Rongji and leaders of ASEAN countries at the sixth China-ASEAN summit.

Analysts said the pact is a milestone for China-ASEAN relations.

"Accelerated efforts towards the Free Trade Area (FTA) serve our common interests, for the earlier the FTA is in place, the sooner the two sides can benefit from it," Zhu said, adding it will also contribute to the faster progress of East Asian co-operation as a whole.

Zhu said China is ready to make joint efforts with all ASEAN countries to move forward economic agreements through the establishment of the FTA.

Trade between the two sides reached US$38.55 billion in the first three quarters of this year, a growth of 27.1 per cent compared with the same period in 2001.

ASEAN's exports to China increased by 27 per cent in the first nine months of this year over those for 2001.

While providing a market for ASEAN exports, China has also gradually increased its investment in the region.

The framework agreement has given full consideration to the interests of new ASEAN members, Laos, Cambodia, Myanmar and Viet Nam, allowing them five more years to join the FTA.

China has decided to accord the most-favoured-nation status to Viet Nam, Laos and Cambodia, three non-World Trade Organization members.

Zhu said China will do as much as it can to increase input in the development of the Mekong River basin.

China has signed a framework agreement with Laos to provide US$30 million to improve the road in Laos as part of the Kunming-Bangkok highway.

It will also make funds available for the comprehensive renovation and construction of the Kunming-Hekou Railway to support the early connection of the Pan-Asian Railway.

China and ASEAN also signed a joint declaration on co-operation in the field of non-traditional security issues at the summit.

In another development on Monday, China and ASEAN signed the Declaration on the Conduct of Parties in the South China Sea, marking a higher level of political trust between the two sides.

Zhu said the treaty will contribute to regional peace and stability.

China will make concerted efforts with ASEAN nations to promote an early accession by all five Nuclear Weapon States to the Treaty on Southeast Asia Nuclear Weapons Free Zone, Zhu said.