Upgrade to China-Asean agreement could make up for TPP
26/11/2015
China is Asean’s largest trading partner, while Asean is China’s third-largest trading partner. Trade between China and Asean had a value of $480 billion in 2014. China, which is not part of the proposed wider Trans Pacific Partnership trade agreement, has told the Asean partners that it envisages growing two-way trade with the bloc to $1 trillion by 2020 and has promised $100 billion in investment in the region over the next five years.
The Asean nations are Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam. Of these, Brunei, Malaysia, Singapore and Vietnam are also part of TPP.
Commentators have said the significance of the upgrade protocol to the existing agreement between Asean and China is that it will make it easier for companies from Asean to operate in China and vice-versa. The logical conclusion is that this would make it easier for Chinese manufacturers to set up operations in an Asean partner country with TPP status to gain duty-free access in future to all TPP markets.
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