Some businesses in Malaysia, Thailand and the Philippines have also expressed reservations about wide-ranging tariff cuts on Chinese imports under the FTA. -- PHOTO: REUTERSJan 6, 2010
By Lynn Lee, Correspondent
The Straits Times (Singapore)
Their concern: They wil not be able to compete with Chinese imports
JAKARTA - A FREE trade area (FTA) set to boost the flow of goods and investment between Asean and China has triggered calls from Indonesia's businesses for protection from their Chinese competitors, even as consumers cheer its potential to offer more choices and lower prices.
Some businesses in Malaysia, Thailand and the Philippines have also expressed reservations about wide-ranging tariff cuts on Chinese imports under the FTA.
Under pressure from the business community, the Indonesian government is seeking to re-negotiate the deal, which was signed in 2002 and kicked in last Friday.
Under the FTA, China and the six founding Asean countries - Indonesia, Singapore, Thailand, the Philippines, Malaysia and Brunei - must cut tariffs on 90 per cent of imported goods across 7,000 product categories. The group's newest members - Cambodia, Laos, Vietnam and Myanmar - will gradually reduce tariffs and must eliminate them entirely by 2015.
China is now Asean's third-largest commercial partner after Japan and the European Union, with a trade volume of US$230 billion (S$320 billion) in 2008.
In the run-up to Jan 1, Indonesian trade associations - particularly those in the steel and textile businesses - had voiced concern that the FTA would lead to a surge of cheap China imports and put them out of business.
JAKARTA - A FREE trade area (FTA) set to boost the flow of goods and investment between Asean and China has triggered calls from Indonesia's businesses for protection from their Chinese competitors, even as consumers cheer its potential to offer more choices and lower prices.
Some businesses in Malaysia, Thailand and the Philippines have also expressed reservations about wide-ranging tariff cuts on Chinese imports under the FTA.
Under pressure from the business community, the Indonesian government is seeking to re-negotiate the deal, which was signed in 2002 and kicked in last Friday.
Under the FTA, China and the six founding Asean countries - Indonesia, Singapore, Thailand, the Philippines, Malaysia and Brunei - must cut tariffs on 90 per cent of imported goods across 7,000 product categories. The group's newest members - Cambodia, Laos, Vietnam and Myanmar - will gradually reduce tariffs and must eliminate them entirely by 2015.
China is now Asean's third-largest commercial partner after Japan and the European Union, with a trade volume of US$230 billion (S$320 billion) in 2008.
In the run-up to Jan 1, Indonesian trade associations - particularly those in the steel and textile businesses - had voiced concern that the FTA would lead to a surge of cheap China imports and put them out of business.
1 comment:
hey, sounds like those countries of thailand, the philipines, malaysia and so forth used to be in their comfort zone, so when there is a competition from china and newly emerged cambodia come on the scene, their don't feel comfortable anymore, thus, they are proned to bitching and whining about competition, really. you have to understand this. hey, one advise for them all, the world is changing and get out of your comfort zone for a change, ok. don't be so greedy and selfish, even cambodia is moving forward as nothing good or bad can stay the same forever, you know! wake up, people. god bless cambodia.
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