Asean-China Investment Agreement Signed
16 August 2009
Yesterday during the 41st Asean Economic Ministers’ meeting in Bangkok, Asean and Chinese trade and commerce ministers signed the Asean-China Investment Agreement under the Foreign Trade Agreement. The investment agreement will be implemented on 1 January 2010.
In the forthcoming two years after its implementation, the agreement is expected to increase investment between Asean and China of 40 to 60 percent.
The agreement will give impartial treatment to investors, provide a structure for compensation in the event of expropriation, increase green field investment, establish a mechanism for investor and state dispute settlement, and maintain fair rules to boost investor confidence.
The Chinese government has consented to providing funds for Asean countries. A part of the funds will be used for the development of logistics, construction, and transportation within Asean. Funding details will be provided at the Asean leaders’ summit in October.
An agreement on intellectual property rights was also signed to eliminate trade obstacles through policies on investment sustainability and growth. |