Study on China-Sri Lanka Free Trade Agreement

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• China-Costa Rica FTA • China-Switzerland FTA • China-Iceland FTA Further, China is in the process of negotiating eight more FTAs: • China-GCC (Gulf Cooperation Council) FTA • China-Australia FTA • China-Norway FTA • China-SACU (Southern African Customs Union) • China-Korea FTA • China-Japan-Korea FTA • China-India FTA • China-Sri Lanka FTA This section will explore the main features of China’s FTAs, focusing on the agreements that have been signed and in force at the moment: China-ASEAN FTA, China-Chile FTA, China-New Zealand FTA, China-Singapore FTA, China-Pakistan FTA, China-Peru FTA, China-Costa Rica FTA, China- Switzerland FTA and China-Iceland FTA. Given that negotiations on Sri Lanka-China FTA are likely to begin to in the near future, it is worth while looking at the main features of China’s existing FTAs to get an idea of what a possible a FTA with China would look like. The section finds that China has adopted a flexible strategy that addresses its own prerogatives as well that of partner countries. 92 The variety of forms the agreements demonstrates geographic and development diversity of the partner countries. 92 Zhao, J. & Webster, T. (2011), Taking Stock: China’s First Decade of Free Trade, Available at: [https://www.google.lk/url?url=https://www.law.upenn.edu/live/files/140- zhaowebster33upajintll652011pdf&rct=j&frm=1&q=&esrc=s&sa=U&ei=5m- uU47bLIaIuASHsILgCw&ved=0CBIQFjAA&sig2=WpNHYdEB2u0MHICgkKrizg&usg=AFQjCNFel7ydWu0Q- XusQIcuH4_aV9bGfg] Page 26 of 88
3.2 China-ASEAN Free Trade Agreement China-ASEAN FTA is China’s first initiative, which was proposed by China and supported by ASEAN as a group in 2000. A Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China was signed in 2002 providing the basis for ASEAN and China to negotiate enabling agreements that have led to the creation of the ASEAN-China Free Trade Area (ACFTA) on 1 January 2010. In essence it was an agreement to agree. The Framework laid down the broad economic aims of the China-ASEAN relationship and acknowledges the special status of the LDCs of ASEAN – Vietnam, Laos, Cambodia and Myanmar) without imposing binding commitments . The Early Harvest Programme was signed in 2004, and this was followed by Agreement on Trade in Goods (2004), Agreement on Services (2007), Investment Agreement (2009) . The Agreement on Trade in Services aims to liberalize and substantially eliminate discriminatory measures with respect to trade in services among in various services sectors. The level of liberalization commitments under this Agreement would be considerably higher than the commitments made under the General Agreement on Trade in Services (GATS) in the WTO . The Agreement on Investment aims to create a favourable environment for the investors and their investments from ASEAN and China. Thus, China’s FTA with ASEAN can be best described as a series of agreements making progress incrementally rather than a ‘big bang type’ of agreement favoured by developed countries like the US, Japan . Liberalization of Tariffs and Trade: Under the Agreement on Trade in Goods, tariffs were reduced to zero per cent on nearly 8000 products items or 90 per cent of goods traded between the original 6 ASEAN members (Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand) and China by 2010 . Other members of ASEAN (Cambodia, Laos, Myanmar and Vietnam) will follow suit; they have an additional five years to reduce their tariffs (2015). With the implementation of the ASEAN-China Free Trade Area in 2010, the average tariff rate on Chinese goods exported to the ASEAN bloc has fallen to just 0.6 per cent from 12.8 per cent while the tariff rate on ASEAN goods exported to China fell from 9.8 per cent to 0.1 per cent . With the implementation of the agreement, the ASEAN-China FTA became the largest free trade area in terms of population, and third largest in terms of nominal GDP after the European Union and NAFTA. Bilateral trade gas rapidly increased from US$40 billion in 2000 to US$362.9 billion in 2011, suggesting that both sides have gained from increasingly favourable market access. Bilateral trade is further expected to reach US$500 billion by 2015. While the Agreement includes provisions on general exceptions and security exceptions but does not include a specific list of excluded products. In addition, the agreement allows all parties to list sensitive products whose tariffs will be reduced by 2015 for ASEAN-6 and China and 2018 for LDC members of ASEAN. Page 27 of 88
Page 1 and 2: Study on China-Sri
Page 3 and 4: IPS Team of Researchers Janaka Wija
Page 5 and 6: • Tariff-rate Quotas: Although ta
Page 7 and 8: 1. Background to the study While hi
Page 9 and 10: efore the agreement is finalized, w
Page 11 and 12: 2.1 Introduction While Sri Lanka ha
Page 13 and 14: Rules of Origin: The rules of origi
Page 15 and 16: vegetable fats and oils, refined co
Page 17 and 18: margin to 889 products from India i
Page 19 and 20: 2.3 Pakistan-Sri Lanka Free Trade A
Page 21 and 22: Sri Lanka has been involved in both
Page 23 and 24: Trade facilitation issues: Further,
Page 25: 3.1 Introduction China has emerged
Page 29 and 30: Product specific rules pertaining t
Page 31 and 32: verification networking system on c
Page 33 and 34: Table 3.4: China’s Tariff elimina
Page 35 and 36: Rules of Origin (ROO) are a critica
Page 37 and 38: Parties China , New Zealand Date of
Page 39 and 40: Table 3.9: China’s Tariff elimina
Page 41 and 42: One of the quantitative restriction
Page 43 and 44: 3.5 China-Singapore Free Trade Agre
Page 45 and 46: exportation of any good destined fo
Page 47 and 48: with the following: elimination of
Page 49 and 50: under the Agreement, corresponding
Page 51 and 52: Table 3.17: China’s Tariff Elimin
Page 53 and 54: 3.7 China-Peru Free Trade Agreement
Page 55 and 56: Liberalization of Tariff Lines: Bot
Page 57 and 58: articles. In 2026, the overall aver
Page 59 and 60: 3.8 China-Costa Rica Free Trade Agr
Page 61 and 62: Both the countries have gradually e
Page 63 and 64: China maintains a negative list wit
Page 65 and 66: 3.9 China-Switzerland Free Trade Ag
Page 67 and 68: 3.11 Conclusion China’s shift in
Page 69 and 70: HS section and description Table 3.
Page 71 and 72: 2013. 170 China is now demonstratin
Page 73 and 74: 4.1 Introduction Over the past 55 y
Page 75 and 76: Using World Bank’s WITS database
Page 77 and 78:
39 4 391231, 391239, 392321, 392620
Page 79 and 80:
4.4 Identification of Potential Exp
Page 81 and 82:
Table 4.7: Summary Analysis of Chin
Page 83 and 84:
Table 4.8: Tariffs for Top 10 Curre
Page 85 and 86:
Table 4.9: Tariffs for Top 10 Indic
Page 87 and 88:
5. Conclusion to the study Section
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