By John Roberts
World Socialist Web Site
A Free Trade Agreement (FTA) between the Association of South East Asian Nations (ASEAN) and China came into effect on New Year’s Day, creating the world’s third largest free trade bloc behind the European Union (EU) and the North American Free Trade Association (NAFTA). While limited in scope, the agreement is further testimony to the expansion of China’s influence in Asia and internationally at the expense of its rivals, above all the US.
Initially proposed by China, the FTA is the product of eight years of negotiations, with the details only being settled last year when investment rules were sorted out. As of January 1, tariffs have been abolished on more than 7,000 items or 90 percent of the total number for China and the six more economically developed ASEAN members—Indonesia, the Philippines, Thailand, Singapore, Malaysia and Brunei. The four remaining ASEAN nations—Vietnam, Laos, Cambodia and Burma—have until 2015 to end tariffs.
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