China waives import duty on 90 items from ASEAN

Wednesday, 20 January 2010 21:20 Kyaw Thein Kha

Chiang Mai (Mizzima) - China has waived import duty on 90 items imported from the ‘Association of South East Asian Nations’ (ASEAN) countries, the Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI) said today.

“China has allowed import duty exemption on 90 goods imported from ASEAN countries. But only unimportant items are included in the list. The important items are not included,” an executive officer of the UMFCCI told Mizzima on condition of anonymity.

Brunei, Indonesia, Singapore, Malaysia, Philippines and Thailand from ASEAN countries first joined the ASEAN-China free trade. Cambodia, Laos, Myanmar (Burma) and Vietnam are hoping to join the trade by 2015.

China and ASEAN countries signed the ASEAN-China Free Trade Area (ACFTA) treaty on 6 November 2001 at the 7th ASEAN Summit in Brunei. The treaty came into force on 1, January 2010.

But Burmese economists feel that it is difficult for underdeveloped countries to compete with economically developed countries as they are ill equipped for such economic competition.

“Though it starts with slashing import duty, there are many other points in the free trade agreement such as standardization of specifications, elimination of tax and other trade barriers, free flow of services and investment in the region, among others,” Burmese economist and writer Khin Maung Nyo said.

Moreover small and medium enterprises from backward and underdeveloped countries cannot compete with the enterprises from developed countries. The small and medium enterprises in backward countries cannot procure investment. Being technologically backward, not knowing specifications set by other countries, they cannot follow these specifications even if they know them. Also having poor infrastructure and poor communication technology will undermine their competition with developed countries in the free trade zone, he added.

Retired Prof. Daw Sin Thein Gi from the Rangoon Institute of Economics said, “Generally speaking, free trade is good but the competition will be among the ASEAN countries. Our products must be of good quality and competitive in price. Though China has provided exemption on duty, the consumers will not buy our products if they are of poor quality. So the competition will be mainly among the countries which have common production basis”.

According to ASEAN Development Bank statistics, the trade value between China and ASEAN reached USD 193 billion during 2003-2009.

The biggest trading partner with ASEAN is Japan; EU stood second and China overtook US in the third position.