China-ASEAN Free Trade New Agreement to be Implemented

The 2nd Protocol of the Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Cooperation between China and the ASEAN, which was jointly signed at the end of October 2010 by China's Minister of Commerce and economic and trade ministers of countries of the ASEAN, will take effect as from January 1, 2011. By then, the new preferential certificate of origin of China-ASEAN Free Trade Area (Form E certificate) will be put into service.

After the implementation of the new Protocol, enterprises from both sides will enjoy more convenience and obtain more interests from the preferential policies.

China-ASEAN Free Trade Area is China's first external free trade area and also the ASEAN's first free trade area with other countries as a whole. Following its completion on January 1, 2010, more than 90% of the products between China and 6 old members of the ASEAN including Brunei, the Philippines, Indonesia, Malaysia, Thailand, and Singapore realized zero tariffs; and the average tariff of these 6 members towards China was reduced to 0.6% from 12.8%. And in 2015, zero tariffs shall apply to 90% of products from 4 new members of the ASEAN, including Vietnam, Laos, Cambodia, and Myanmar.