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The FTA, launched by the Association of Southeast Asian Nations (ASEAN) in 2012, has ten member countries – Vietnam, Thailand, the Philippines, Laos, Cambodia, Myanmar, Malaysia, Singapore, Indonesia and Brunei – and five partners, China, participate. Japan, South Korea, Australia and New Zealand.
The agreement with this covers nearly a third of the world’s population, 2.2 billion people and nearly 30 percent of the world’s gross domestic product (GDP).
In terms of GDP, this is the largest free trade agreement in the world, ahead of, among other things, the European Union.
India was also included in the original initiative, but New Delhi withdrew from the talks last year. However, ASEAN member states intend to continue expanding trade with India.
According to a report by CGTN China International News Channel, Li stressed that the agreement, signed after eight years of negotiations, could bring hope in the current bleak international situation, indicating that multilateralism and free trade remain the right direction to go. the world economy and human development.
Under the agreement partners gradually reduce and eliminate tariffs on trade in goods and improve their rules on trade in servicest, by providing, inter alia, market access for service companies in Member States. In addition, non-tariff barriers will be reduced.
The Chinese Ministry of Finance announced in a statement on its website: China and Japan have also signed a bilateral agreement to reduce tariffs. According to the ministry, the measure is a historic milestone in trade relations between the two countries.
Cover image: Getty Images
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