Trade push in the right direction

Trade between ASEAN economies and China has flourished since the late 1970s. Now, the China-ASEAN Free Trade Area (CAFTA), which became operational from Jan 1, is bound to make trade and investment a greater mutually beneficial experience between China and the 10 member states of the Association of Southeast Asian Nations (ASEAN).

CAFTA's aim is to enhance economic cooperation between China and ASEAN to facilitate the region's collective development and raise its people's living standards. Here's an example how that can be achieved.

The average tariff on ASEAN goods imported by China is only 0.1 percent, while that on other WTO members, except countries such as Peru that have signed free trade agreements with China, is at 9.8 percent. This means ASEAN goods have more competitive power in China.