South East Asia and China open huge free trade area

South East Asia and China open the world's biggest free trade area (FTA)  on January 1st covering a market of  1.9 billion consumers.

The ASEAN-China FTA will rival the European Union and the North American Free Trade Area in terms of value and overpass these markets in terms of population.

China and the six  ASEAN countries -- Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand -- are to eliminate barriers to investment and tariffs on 90 percent of products. Over the next five years, tariffs will also be removed on trade in Cambodia, Laos, Vietnam and Burma. 

The average tariff rate China charged on ASEAN goods would be cut to 0.1 %  from 9.8 %. Average tariffs imposed on Chinese goods by ASEAN states will fall to 0.6% from 12.8 %.