China-ASEAN free trade area by regulating tax favourable bilateral trade growth

1 January this year, China-ASEAN free trade area starts falling tax total with the old China and ASEAN countries 7000 products implement zero tariffs. In fact, China-ASEAN free trade area in goods trade tax will not be achieved, but rather a gradual process. As early as January 1, 2004, two convenient start implementation of the "early harvest" program, on 500 kinds of products, reducing taxes, by 2006, the tariff for those products has dropped to zero.

A new round of tax process is rigorous and careful. In accordance with the agreement reached between the parties, with the exception of 2004 has already implemented tax early harvest products and a small number of sensitive products, the two sides will on other approximately 7 000 levies a tax reduction product implementation, and also this part of the product into fine products and sensitive products. Sensitive products are parties for domestic industry development taking into account the need for protection of the product, so their final tax is not zero.

For the most sensitive products, China and ASEAN old members through 2012 for the period from 1 January to 20% tax, 2018-1-1, further reduced to 5%. New members for ASEAN, this timetable slightly later, i.e. to 2015 for the period from 1 January to 20% in 2020, 1, 1, further reduced to 5%.

For highly sensitive product, China and ASEAN old members and new members, will be in 2015 and 1 January 2018 January 1 of the year, the tax to 50%.

To sum up, in accordance with China and ASEAN signed agreement on trade in goods, starting from this year's tax, only relates to China and the ASEAN countries of old six normal product, not involving the four new ASEAN countries and other sensitive products, which are more conducive to the ASEAN countries, economic development, promote the construction of a free trade area in an orderly manner.

Since the implementation of early harvest programme, China and ASEAN trade began to grow rapidly. In 2003, bilateral trade to $ 782, 2008 that is rapidly growing-2311 billion, annual growth of 24.2%. 2009 January-October, despite the global financial crisis, bilateral trade was reached by China 1658, ASEAN's sixth-largest trading partner JumpStart's third largest trading partner, ASEAN from China's fifth largest trading partners to rise to the fourth-largest trading partner. We can look forward to the future as long as you continue pressing regulatory tax, conscientiously implement the agreement on trade in goods, trade between the two sides also renders fast growth trend. (The author is a Department of Commerce's Institute of international trade and economic cooperation between China's Director of research)