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[www.ferro-alloys.com] Penny Pan, who is the managing director of ferro-alloys.com, introduced the CAFTA in February Vietnamese meeting about international ferroalloys and steel market. The next is the main points of her speech:

China-ASEAN Free Trade Area, also called as ASEAN 10+1, is a Free Trade  Area among the ten member states of the Association of Southeast Asian Nations and the People’s Republic of  China. (ASEAN, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam)

Full Completion of CAFTA during 2011-2015

Most of the commodities trade between China and 4

ASEAN Countries like Vietnam, Laos, Cambodia and                   

Myanmar got zero tariff. Moreover, a further                

comprehensive-opened service and investment market 

should be achieved by the two sides .

China and ASEAN sealed a deal to upgrade the existing FTA on November 22, 2015. Covering a wide range of areas including goods, services, investment, and economic and technological cooperation, the upgrade will provide fresh momentum for economic development of both sides and the achievement of $1 trillion bilateral trade volume in 2020.

The  second track normal goods may be arranged to reduce their tariff  firstly to 5% and further to zero after a late period. China and the old ASEAN countries could remain the 5% tariff unchanged until Jan. 1 of 2012 while the new ASEAN countries remain to Jan. 1 of 2018.

Zero-tariff is the ultimate goal of regional trade liberalization. There is no unified time- table between China and ASEAN countries to achieve zero-tariff. In January 2010, CAFTA was established as scheduled, and zero tariff treatment was provided for more than 90 percent of the products exchanged between China and ASEAN. China's average tariff rate for ASEAN dropped from 9.8 percent to 0.1 percent, while the average tariff rate of the six old ASEAN member countries for China was slashed from 12.8 percent to 0.6 percent. The 10 ASEAN countries listed some Chinese products as the sensitive products, such as rubbers, plastics, home appliance, auto and motorcycles. Different ASEAN countries have different time-table in reducing the sensitive products tariff.

Most Chinese Ferro-Alloys Products can be Exported to ASEAN Market with zero tariff Except the Goods Listed  under  HS Code 7202.41.00 to Vietnam Market.

Anyhow, there is a 20% export tariff for Chinese Ferro-Alloys Products when exporting to ASEAN markets.

Most ASEAN Countries’s Ferro-Alloys Products can be Exported to Chinese Market with zero tariff.

• [Editor:Chen Zhen Seng]