Countdown of Zero Tariffs for Sino-ASEAN, Average Tariff to ASEAN Drops to 2.8%

According to Guangxi News, since January 1, 2009, China conducts the conventional tariff rate of Sino-ASEAN Free Trade Agreement on some commodities original from ten countries of ASEAN, and implements the third step to lower tariffs. After lowering the tariffs, the commodities under conventional tariff rate are 6750, a preference of 80% relative to the most-favored country tariff rate.

In 2009, the tariff in China remains 9.8%, but 2.8% to ASEAN. According to the agreement between China and ASEAN, the tariff between those two countries will be zero on more than 90% commodities till January 1, 2010. Sino-ASEAN trade area will become to the largest free trade area with huge consumers, which is also named as the free trade of “ The third economy entity in the coming world”. The trade volume of Sino-ASEAN free trade area in 2007 takes up 13.7% in the global trade volume, which is a half of Asia trade volume.

After the opening up of Sino-ASEAN market, more and more consumers and enterprises in both sides will benefit from the free trade area. Because of tariff reduction and exemption, consumers can buy the products of other countries in a lower price, and enterprise can reduce production cost when importing zero tariff products, to make the product become more competitive and gain greater market space for development.