Asean-China FTA
13 August 2009
The Commerce Ministry stated yesterday that a treaty to liberalize investment between Asean and China will be signed at the 41st Asean Economic Ministers Meeting in Bangkok on Saturday. The treaty is expected to be implemented by next year.
The treaty will aid investment growth through more favorable regulations, thus instilling confidence in investors of Asean member countries and China as well as other countries.
The agreement will embody investment facilitation, protection for investors and capital for certain types of investments, equitable practices, and measures for compensation in the event of expropriation or chaos. Additionally, it will provide a structure for dispute settlement between governments and investors and safeguards for the protection of financial status and exchange rates.
Furthermore, the Asean-India FTA on trade in goods will be signed unofficially today as India has not completed all details of the agreement. The FTA is scheduled to take effect next year after the official signing of the FTA.
Under the FTA, 71 percent of trade in goods are to be opened by 2013, and 80 percent by 2016.
Five percent of trade in goods between Asean and India has been classified as sensitive, and their tariffs will be progressively reduced to 5 percent by 2016.
Nevertheless, negotiations to remove tariffs on 489 items remaining on protected lists will take place one year after the agreement has been implemented. |