Upgrading FTA in building China-ASEAN relations

Updated: 2013-10-08 16:23
( Xinhua)

Upgrading CAFTA is a process of building an area of more free and comprehensive economic and trade cooperation, according to observers.

"The ASEAN-China Free Trade Agreement, which was launched over 10 years ago, can no longer satisfy the need of rapidly growing bilateral economic and trade relations in terms of the liberalization and facilitation of trade and investment," Ma Keqing, Chinese ambassador to the Philippines, told Xinhua, adding that the scope and content of the agreement are falling behind new trends and demands of regional economic integration.

An upgraded version of CAFTA will help drive bilateral trade and investment cooperation into the next stage, she noted.

Upgrading CAFTA is a multifaceted task, which includes enhancing political mutual trust, former Chinese Ambassador to Thailand, Singapore and Nepal Zhang Jiuhuan told Xinhua.

South China Sea disputes have raised concerns that China-ASEAN relations may be affected by tensions between China and few ASEAN nations. But analysts say better economic and trade relations brought by new developments of CAFTA will lead to more communication in various fields, and hence result in a higher level of mutual trust.

Corazon H. Dichosa, an official with the Board of Investments of the Philippines, said CAFTA has been effective in promoting mutual economic benefit between China and ASEAN, and will play an important role in improving Sino-Philippine relations.

Upgrading CAFTA will also serve as a powerful catalyst for enhancing connectivity between ASEAN and China.

A more comprehensive CAFTA requires more open and inclusive integration, which means more "hardware links" such as roads, railways, water transport, aviation, telecommunication and energy, as well as "software connections" in standard systems such as information exchange, customs clearance and quality control, observers say.

In an effort to boost mutual connectivity, Chinese President Xi Jinping, in a speech to the Indonesian parliament last week, proposed to set up an Asian investment bank to provide capital support to infrastructure construction in ASEAN countries.

"China will propose the establishment of an Asian infrastructure investment bank that would give priority to ASEAN countries' needs," he said.

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