Freer trade

The China-ASEAN Free Trade Area (FTA) will be established on January 1, 2010. As a major free trade area in the world that covers a population of 1.9 billion, or 30 percent of the world's people, the FTA will conduct a zero-tariff policy on 90 percent of products traded between China and ASEAN. (See p.11)

"Establishment of the China-ASEAN FTA will promote the overall trade between China and ASEAN, especially in fields such as investment, service trade, educational cooperation and project contracting," Nong said.

To Vietnamese companies selling products to Guangxi, the direct benefit from the establishment of the China-ASEAN FTA is that they can expand their market shares, just as Viet Nam's Standing Deputy Prime Minister Nguyen said at the Roundtable Dialogue.

Take Lai Kim's company as an example. Their agent in Guangxi now has to pay tariffs of 20 percent to 30 percent. After the free trade area is established, tariffs will be reduced to zero. Lai Kim estimates their exports to Guangxi may increase by as much as 100 percent.

"By saving expenses in tariffs, our agent can put more funds in advertising and marketing to bring more products to China," Lai Kim said.

(Source: Bureau of Statistics of Guangxi Zhuang Autonomous Region)