Regional free trade tops China-ASEAN summit agenda

China and ASEAN leaders are in Nanning for a top-level summit that is expected to boost strategic partnership. The summit, which marks the 15th anniversary of the China-ASEAN dialogue, will focus on creating a regional free trade zone by 2010.

The North Korean nuclear situation and the lack of democratic reform in Myanmar are also expected to come up in a discussion of regional and international issues. Malaysian Foreign Minister Syed Hamid told AFP before the summit that the North Korean issue had possible "negative implications on economic, trade and investment."

The planned regional free trade area is at the center of deepening China-ASEAN relations. The proposed free trade zone will have a combined population of nearly two billion people and a gross domestic product of over two trillion dollars.

Tariff cuts and a more liberal trade in goods between China and ASEAN began in July last year, under a 2002 framework agreement on comprehensive economic partnership. Talks on liberalising trade in services and investment are ongoing.

Chinese statistics show that China-ASEAN bilateral trade grew 20 percent annually over the past 15 years. Last year, it reached 102 billion euros. China is ASEAN's fourth largest trading partner and ASEAN is China's fourth largest as well.

The free trade framework agreement specifies that by 2010, China and six old ASEAN member nations -- Brunei, Indonesia, the Philippines, Singapore and Thailand -- will impose zero tariffs on most products while China and the remaining four ASEAN members -- Cambodia, Laos, Myanmar and Vietnam -- will have the same arrangement by 2015.

According to CRI, the World Bank has predicted that the China-ASEAN free trade zone will be one of the most influential powers in the Pacific Rim when it is completed.