7 January 2010

FRAMEWORK AGREEMENT ON COMPREHENSIVE
ECONOMIC CO-OPERATION BETWEEN THE
ASSOCIATION OF SOUTH EAST ASIAN NATIONS AND THE
PEOPLE'S REPUBLIC OF CHINA
_________

PREAMBLE

WE, the Heads of Government/State of Brunei Damssalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic.Republic. ("Lao~PDR"), Malaysia, ihe Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Viet Nam, Member
States of the Association of South East Asian Nations (collectively, "ASEAN" or "ASEAN Member States", or individually, "ASEAN Member State"), and the People's Republic of China ("China11):

RECALLING our decision made at the ASEAN-China Summit held on 6 November 2001 in Bandar Sen Begawan, Brunei Darussalam, regarding a Framework on Economic Ca-operation and to establish an ASEAN-China Free Trade Area ("ASEAN-China FT A") within ten years with special and differential treatment and flexibility for_the newer ASEAN Member States of Cambodia, Lao PDR, Myanmar and Viet Nam ("the newer ASEAN Member States") and with provision for an early-harvest in which the list of products and services will be determined by mutual consultation;

DESIRING to adopt a Framework Agreement on Comprehensive Economic Co-operation ("this Agreement") between ASEAN and China (collectively, "the Parties", or individually referring to an ASEAN Member State or to China as a "Party") that is forwardlooking in o/der to forge closer economic relations in the 21st century;

HAVE AGREED AS FOLLOWS:
ARTICLE 1
Objectives

The objectives of this Agreement are to:
(a)strengthen and enhance economic, trade and investment co-operation between the Parties;
(b)progressively liberalise and promote trade in goods and services as well as create a transparent, liberal and
facilitative investment regime;
(c)explore new areas and develop apprppriat.e.jneasuies for closer economic co-operation between the Parties'; and
(d)facilitate the more effective economic integration of the newer ASEAN Member States and bridge the
development gap among the Parties.

ARTICLE 2
Measures-For Comprehensive Economic Co-operation

The Parties.agree to negotiate expeditiously in order to establish an ASEAN-China FTA within 10 years, and to strengthen and enhance economic co-operation through the following:

(a)progressive elimination of tariffs and non-tariff barriers in substantially all trade in goods;
(b)progressive liberalisation of trade in services with substantial sectoral coverage;
(c)establishment of an open and competitive investment regime that facilitates and promotes investment within the
ASEAN-China FTA;
(d)provision of special and differential treatment and flexibility to the newer ASEAN Member States;
(e)provision of flexibility to the Parties in the ASEAN-China FTA negotiations to address their sensitive areas in the
goods, services and investment sectors with such flexibility to be negotiated and mutually agreed based on the principle of reciprocity and mutual benefits;
(f)establishment of effective trade and investment facilitation measures, including, but not limited to, simplification of customs procedures and development of mutual recognition arrangements;
(g)expansion of economic co-operation in areas as may be mutually agreed between the Parties that will complement
the deepening of trade and investment links between the Parties and formulation of action plans and programmes
in order to implement the a'greed sectors/areas of co operation; and
(h) establishment of appropriate mechanisms-for the purposes of effective implementation of this Agreement.

PARTI
ARTICLE 3
Trade In Goods

1. In addition to the Early Harvest Programme under Article 6 of this Agreement, and with a view to expediting the expansion of trade in goods, the Parties agree to enter into negotiations in which? duties and other restrictive regulations of commerce (except, where necessary, those permitted under Article XXIV (8)(b) of the WTO General Agreement on Tariffs and Trade (GATT)) shall be eliminated on substantially all trade in good between the Parties.

2. For the purposes of this Article, the following definitions shall apply unless the context otherwise requires:
(a) "ASEAN 6" refers to Brunei, Indonesia, Malaysia; Philippines, Singapore and Thailand;

(b) "applied MFN tariff rates" shall include in-quota rates, and shall:

(i) in the case of ASEAN Member States (which are WTO .members as of 1 July 2003) and China, refer
to their respective applied rates as of 1 July 2003; and
(ii) in the case of ASEAN Member States (which are non-WTO members as of 1 July 2003), refer to the
rates as applied to China as of 1 July 2003;

(c) "non-tariff measures" shall include non-tariff barriers.

3. The tariff reduction or elimination programme of the Parties shall require tariffs.on listed products to be gradually reduced and where applicable, eliminated, in accordance with this Article.

4. The products which are subject to the tariff reduction or elimination programme under this Article shall include all
products not covered by the Early Harvest Programme under Article 6 of this Agreement, and such products shall be categorised into 2 Tracks as follows:

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