China-ASEAN free trade agreement: implications for the Pan-Pearl Delta

Abstract

The formation of the China-ASEAN FTA (CAFTA) signifies the creation of an economic region of 1.7 billion consumers with a combined GDP of US$2 trillion and a trade volume of US$ 1.2 trillion, and therefore was widely seen as the first significant step towards the proposed East Asian Community. It is examined in this paper of the progress this FTA initiative and its challenges as well as future prospects. Particularly, the impact of the establishment of the CAFTA on the Pan-PRD region will be investigated and some comparative study will be offered on the pattern of '10+1' and '9+2' cooperation. The CAFTA is envisaged to lead to greater economic cooperation between China and ASEAN with mutual benefit to both sides, among which Pan-PRD region is expected to gain considerably in tapping international resources and market, and in trade liberalization.