China and Russia's entry into the WTO (World Trade Organization), the most important events in the past decade of the organization, is now attracting the world's renewed attention to the world trade body, especially during the times of debate about regionalism and globalization.

Recalling China's accession to the WTO in 2001 after 15 long years of negotiations, Sundram Pushpanathan, Deputy Secretary General of South East Asian Nations (ASEAN) for ASEAN Economic Community, said that China's accession to the WTO could be regarded as a "fitting cap" to the program of economic reforms that China started to implement in 1978.

"Opening up the Chinese market for trade and investment, and subsequently allowing its trade regime to be subjected to multilateral rules and disciplines, have resulted in a more dynamic, more vibrant China's economy," Pushpanathan said in a recent interview with Xinhua.

According to ADB's statistics, China's growth rate of real GDP per capita has been steadily on the rise since it acceded to the WTO, soaring from 7.5 percent in 2001 to 13.6 percent in 2007. China is recovering from the latest global financial crisis with a 9.9 percent growth rate in 2010.

"Not withstanding the above, earlier this year, China has overtaken Japan as the world's second largest economy. If China remains on course, it would not be surprising to see China overtaking the United States as the world's largest economy," Pushpanathan said.

Prior to China's entry into the WTO, there was hardly any form of economic and trade relations between ASEAN and China, except perhaps on a bilateral basis between China and individual ASEAN member states.

In fact, the first formal discussion in the economic sphere took place only in November 2000 when, at the ASEAN-China Summit, leaders agreed to look into the implications of China's accession into the WTO as well as measures to further enhance economic cooperation and integration, including the possible establishment of a free trade area between ASEAN and China, Pushpanathan said.

The ASEAN-China free trade area, now the largest in terms of market size and the third largest in terms of nominal GDP, boasts an annual average growth rate of more than 20 percent and is expected to achieve a total trade of $500 billion by 2015. China is now ASEAN's largest trading partner.

Pushpanathan said ASEAN and China have to ensure that their free trade area is regularly being reviewed and aligned with newer and more modern free trade agreements, especially in terms comprehensiveness as well as deepening and broadening liberalization commitments.

With the Doha Development Round in deadlock, focus has shifted to regional trading arrangements and how these could be building blocks that would reinforce the multilateral trading system, he said, adding "without a doubt, the ASEAN-China free trade area has boosted global trade and has spurred economic growth and development not only in ASEAN and China but also in the East Asian region as well."

As both are strong supporters of the multilateral trading system, it could also be expected that the FTAs, ASEAN and China enter into would be consistent, if not value add, to WTO rules and disciplines, he said.

Regardless of efforts to contribute to the growth of regional and global trade through their respective economic integration initiatives, the priority of ASEAN as reaffirmed by the leaders at the 19th ASEAN Summitis still in supporting and strengthening the WTO, which serves as the backbone of regional economic integration initiatives, Pushpanathan said.

On Russia's due entry to the WTO in mid-December, he said that it would bring all the big economies subject to the rules and disciplines of the multilateral trading system, adding that Russia 's commits to adhere to an open, transparent and predictable trade and investment regime could "propel ASEAN-Russia bilateral trade to new heights."

According to Pushpanathan, among Russia's commitments to align its trade regime with WTO rules and disciplines, of particular interest to ASEAN are: reduction of average tariff ceiling to 10.8 percent for agricultural products and 7.3 percent for manufactured goods; upon accession, the Customs Union Generalized System of Preferences would be applied by Russia for 152 developing and least-developed countries; Russia's specific commitments on 11 services sectors and 116 sub-sectors, including specific commitments on telecommunications, insurance, banking, maritime and road transport services, among others.

"But while this is a development that we all welcome, it is also something that brings about challenges for us to strive even harder to remain competitive to be able to compete with Russia in the global market for trade and foreign direct investment," the Deputy Secretary General said.

(Xinhua News Agency December 6, 2011)