• TIN TỨC
• VIDEO

A new free trade area comes into effect on January 1, incorporating China and the six founding members of the Association of South East Asian Nations (ASEAN).

These countries include Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. They plan to eliminate tariffs on 90 percent of imported goods.

This will reduce the cost of trade and is likely to lead to an expansion of cross border commerce between the countries concerned.

In terms of population it will be the largest trade area in the world, with nearly 1.9 billion people and it includes some of the leading export driven economies.

Chinese manufacturers will gain and so will South East Asian exporters of raw materials. Those countries are also likely to gain access to cheaper materials and components from China.

Other members of ASEAN, including Vietnam and Cambodia are due to follow suite in five years.

Regional and bilateral trade agreements have proliferated in recent years.

The World Trade Organization says about 400 are due to be in operation by 2010.

(VOV)