China-ASEAN Free Trade Area to Set Example for Global Co-op: Lao PM

2009-10-20
Xinhua
Web Editor: Cao Jie

The China-ASEAN Free Trade Area (CAFTA), to be established on Jan. 1, 2010, will set a good example for global cooperation, Lao Prime Minister Bouasone Bouphavanh said Tuesday.

The China-ASEAN Free Trade Area (CAFTA), to be established on Jan. 1, 2010, will set a good example for global cooperation, Lao Prime Minister Bouasone Bouphavanh said Tuesday.

"China and ASEAN have established strategic partnership, and it will attract much attention from the whole world," Bouasone said on the sideline of the 6th China-ASEAN Expo held from Oct. 20 to 24 in Nanning, capital of south China's Guangxi Zhuang Autonomous Region.

ASEAN, or the Association of Southeast Asian Nations, is a regional cooperation group founded in 1967. It groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, with a total area of 4.5 million square kilometers.

CAFTA is the first free trade area agreement signed by China, which will provide zero tariff on 90 percent of products traded between China and ASEAN and other favorable policies on trade and investment.

"The establishment of CAFTA is both an opportunity and a challenge for China and ASEAN countries. In the future, a lot more issues concerning all aspects will need discussion," Bouasone said.

CAFTA is expected to create a combined GDP of nearly 6 trillion US dollars to become the third largest FTA in the world, only next to the North American FTA and European FTA.

"Laos is on its way to improve infrastructure and kick off construction projects, such as building railways and highways between Laos and China and other ASEAN countries, to jump into the China-ASEAN trade and investments cooperation as soon as possible," Bouasone said.

He also mentioned China, as the world's largest developing country, was a key player in the regional development and that China was of much help to ASEAN countries.

"From the Asian financial storm in 1997 to the global financial crisis starting from 2008, China has offered 10 billion US dollars worth of financial aid to ASEAN countries," Bouasone said.