core sector communique

China Ready to Accommodate on ASEAN-China FTA

ASEAN Secretariat, 22 January 2010

China is ready to work with ASEAN in the adjustments that ASEAN Member States need to make in implementing the ASEAN-China Free Trade Area, the Secretary-General of ASEAN disclosed today. “China understands the period of transition and adjustment and is ready to accommodate and cooperate,” said Dr Surin Pitsuwan after a bilateral meeting with the visiting State Councilor of the People’s Republic of China, H.E. Dai Bingguo, at the ASEAN Secretariat.

Dr Surin also said that the State Councilor had expressed his willingness to assist and help ASEAN in the transition period.

The visit by State Councilor Dai was the first high-level visit from China to the ASEAN Secretariat. He delivered an address on ASEAN-China relations and China’s foreign policy to a packed audience of some 300 dignitaries and diplomats at the ASEAN Hall at the Secretariat.

The ASEAN-China FTA – the world’s third largest free-trade area – came into effect on 1 January 2010. The FTA has a combined GDP of US$ 6.6 trillion, 1.9 billion people and total trade of US$ 4.3 trillion. In recent weeks, however, the regional media had reported on the apprehension raised by the private sector and industry associations in Indonesia which fear that the entry of cheaper Chinese products would undermine domestic manufacturing.

“I have all the confidence and admiration for the ASEAN leadership during this transformation and transition period,” said Dr Surin, who also added that the Indonesian Government has been handling the issues raised under the ASEAN-China FTA with responsibility and grace.

Dr Surin said that all FTA agreements, including the ASEAN-China FTA, provide for measures that will protect, assist and facilitate industry adjustments. These include safeguards, anti-dumping measures or modifications of concessions.

Dr Surin also said that that the State Councilor had stressed that China is committed to common development and prosperity and that he had urged both ASEAN and China to seize the opportunities and further develop their cooperation.
 
Earlier in his remarks welcoming the State Councilor, Dr Surin said that economic and trade relations between ASEAN and China have strengthened significantly. The total trade between ASEAN and China reached US$ 192.7 billion in 2008. This growth placed China as ASEAN’s third largest trading partner in 2008, accounting for 11.3 per cent of ASEAN’s total trade. With the Investment Agreement coming into effect in February 2010, China’s FDI inflows into ASEAN is expected to increase dramatically.