A report by Research Center of Thai Farmers Bank, Thai authoritative economic research institute, shows, Association of Southeast Asian Nations (ASEAN) has seen fast trade growth since the launch of the "early harvest" plan within the framework of China-ASEAN Free Trade Area in January 2004. Export, for instance, grew by 14 percent in the Philippines, 7 percent in Malaysia and Indonesia, 5 percent in Singapore, and 22 percent in Thailand. Plus, China and ASEAN countries' related trade negotiations ended ahead of schedule with extensive consensus reached. This shows the "10+1" Free Trade Area jointly advocated by China and ASEAN has made a big way ahead and is full of vigor.

ASEAN countries are China's neighbors and developing countries as well. Developing mutually beneficial cooperation with ASEAN and seeking for long-term stable development in relations with ASEAN is in line with China's interest and beneficial to the overall revitalization of Asia. In recent years, mutual political trust constantly strengthened, economic exchanges increasingly grew and cooperation turned more and more fruitful. Bilateral trade between China and ASEAN has been growing by 15 percent since 1995. In 2003, it grew by 40 percent to a new high of US$ 78.2 billion, in which China imported US$ 47.3 billion from ASEAN, a 50 percent rise. Presently, ASEAN has become China's fifth largest trade partner, and China the sixth of the ASEAN.

The "early harvest" plan under the framework of China-ASEAN Free Trade Area implemented in January 2004 further pushed trade growth in Asia. For Thailand alone, Sino-Thai trade heralded in agricultural produce. Since China and Thailand initiated zero tariffs for vegetable and fruit on October 1, 2003, such trade rose rapidly. It has not only greatly promoted bilateral trade, but also provided new commercial opportunities for the enterprises of the two countries with materialized benefit.

Statistics show, in January to March 2004, vegetable trade between the two countries totaled US$ 114 million, in which China exported to Thailand commodities worth of US$ 13.98 million, a year-on-year rise of 87.84 percent, meanwhile China imported from Thailand US$ 99.63 million, a year-on-year growth of 143.42 percent. Official with Thai Ministry of Commerce said that Thailand is actively pushing free trade in other commodities, and is striving to realize zero tariffs in fish and milk products in 2004, and industrial products in 2005. Currently, national economies of China and Thailand have been growing fast, bilateral trade, investment and economic cooperation intensified.

China's sustained and fast economic growth maintains a vigorous momentum of interregional trade in Asia. It is predicted at the ASEAN Finance Ministers' Meeting in Singapore on April 7 that the average economic growth rate in ASEAN countries will be 5.05-5.09 percent. Singapore scholar held, for ASEAN countries, to establish China-ASEAN Free Trade Area is conducive to catching up with China's economic high-speed train and to making sure that the ASEAN continue to play the role as an important economic zone. This is agreeable to its own interest.

Negotiations on China-ASEAN Free Trade Area started early 2002. In November 2002, the two sides signed framework agreement on economic cooperation, and decided to realize step by step free trade with zero tariffs. According to "early harvest" plan, over 500 kinds of commodities, mainly agricultural produces, will have reduced duties and to zero by 2006. Till 2010 when China-ASEAN Free Trade Area is established, there will be an economic area with 1.7 billion consumers, a Gross Domestic Product (GDP) of two trillion, US$ 120 million economic aggregate. It will be the most populous free trade area, the largest one composed of developing countries.

In spite of a wide gap in economic development, different economic development stages among the ASEAN members, as well as their goals and acceptability, challenges will be conquered and mutual benefit realized as long as the two sides have negotiations with equality, seek common grounds while shelve the differences. Just as Indonesian President Megawati Soekarnoputri put it, ASEAN-China cooperation has growing increasingly mature, and it is hoped that the dialogue partnership in trade, investment, technological cooperation, culture and society can be further enhanced to promote regional stability and prosperity.

Now China-ASEAN cooperation has made a breakthrough with marked harvest: the trade volume between China and Thailand in the first quarter of 2004 alone has exceeded US$ 3.8 billion. Singapore Deputy Prime minister Lee Hsien Loong stressed in his recent visit to China, the agreement on free trade area is a significant step forward and Singapore will have negotiations with China on free trade in 2004 to further push "10+1" Free Trade Area. With regard to the prospect, China-ASEAN Free Trade Area will be sure to maintain a constantly fast pace forward.

By People's Daily Online