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Stories
Brunei-China Trade Skyrockets With The Introduction Of CAFTA (26 May 2010) In 2008, the exports from Brunei to China recorded US$88.87 million, and Brunei invested in 180 new projects in China, with an actual capital value of US$340 million. In the first five months of 2009, Brunei has managed to export US$16 million worth of products to China, an increase of 1082.8 per cent. The China-Asean Free Trade Area (CAFTA) came into force on January 1 this year and is expected to further boost Brunei's exports to China and as a result create more jobs and boost economic growth. The 7th China Asean Expo to be held in Nanning, China from October 20-24 looks to further boost trade between China and Brunei. The CAFTA, comprising of China and 10 Asean countries, is the largest FTA among developing countries, which covers 1.9 billion people, a GDP of US$6 trillion and a total trade volume of US$4.5 trillion. Since the 'Framework Agreement on Comprehensive Economic Co-Operation Between Asean and China' was concluded in November 2002, China and Asean successively signed the `CAFTAN Agreement on Trade in Goods', the CAFTA Agreement on Trade in Services' and the `CAFTA Investment Agreement'. In line with the agreements, China and Asean will open their markets to each other, dramatically cutting down the tariffs over commodities for bilateral trade and promoting facilitated trade in services and investment. The CAFTA will effectively promote Brunei's export to China, over 90 per cent of Brunei commodities will be under zero per cent tariff, which will reduce trade costs by a large margin and giving Brunei's commodities a very competitive edge in China's market. The crude oil, natural gas and textiles of Brunei enjoy a substantial market share in China's market. The rapid increase of the export will benefit industries and sectors, creating more jobs and fuelling economic growth. Upon the establishment of CAFTA, the investment environment of China and Asean countries will be more transparent, and trade in services will be further liberalised. The changes will promote the two-way investment between China and Brunei. -- Courtesy of Borneo Bulletin
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