Leaders of China and ten ASEAN countries gathered Monday in Nanning to attend a summit marking the 15th Anniversary of China-ASEAN dialogue relations, charting blueprint for future cooperation and stepping up efforts to build a free trade area.

"Negotiations on trade in service and investment should be accelerated to speed up the process of establishing the China- ASEAN Free Trade Area," said Chinese Premier Wen Jiabao at the summit.

China and ASEAN have agreed to build up a free trade area before 2010, which is expected to become world third largest FTA. The two sides have completed negotiation on trade in goods and are currently engaged in talks on the fields of investment and service.

"Agreement on Trade in Goods should be fully implemented," he said, calling for "signing a follow-up agreement on expanding economic and trade ties."

According to a joint statement inked by China and ASEAN countries here, China and ASEAN are determined to establish a free trade area by 2010 as scheduled.

By 2010, China and six old ASEAN member nations -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- will impose zero tariffs on most normal products, while China and the other four new ASEAN members -- Cambodia, Laos, Myanmar and Vietnam -- will do the same in 2015.

Gloria Macapagal Arroyo, president of the Philippines, the rotating presidency of the ASEAN for the year, said ASEAN leaders will continue to deepen ties with China in establishing the ASEAN- China free trade area, believing it will help economies of ASEAN countries to grow.

The China-ASEAN free trade area boasts 1.8 billion consumers and a combined gross domestic product of two trillion U.S. dollars when completed, making it world third largest after the European Union and the North American free trade area.

To facilitate the regional economic integration, Wen said Chinese government will donate one million U.S. dollars to the ASEAN Development Fund and another million U.S. dollars for projects under the Initiative for ASEAN Integration.

"The China-ASEAN summit will reap great results, bringing their strategic partnership to a new development height, for benefits of all related parties," the Vietnamese newspaper People's Army said in an editorial Monday.

China-ASEAN FTA crystallizing

Chinese official statistics showed that two-way trade has been growing at a rapid speed over the past few years, exceeding 130 billion U.S. dollars in 2005.

Looking back over the past 15 years, bilateral trade has increased over 20 percent annually. The China-ASEAN trade volume is now 15 times that in 1991, when China had established diplomatic ties with all members of ASEAN.

China and ASEAN have become each other's fourth largest trading partner. Trade experts estimate that China-ASEAN trade may well reach 200 billion U.S. dollars by 2008, two years ahead of the schedule.

"Development of China-ASEAN bilateral trade is so fast that it already outpaced the growth of foreign trade in China," said Gao Hucheng, Vice Commerce Minister of China.

More importantly, the traded products between China and ASEAN are changing from raw products to industrial products, especially mechanical, electrical or high-tech products, according to industry insiders.

"China-ASEAN relations have evolved from removal of misgivings, to commencement of dialogue, to enhancement of mutual trust, and to the final establishment of strategic partnership," said Wen.

"The envisioned China-ASEAN Free Trade Area is crystallizing," said the joint statement.

Enhance regional security and cultural exchange

According to the joint statement, China supports and welcomes the efforts of ASEAN to establish a Southeast Asia Nuclear-Weapon Free Zone.

"ASEAN appreciates China's intention to accede to the Protocol to the Treaty on the Southeast Asia Nuclear-Weapon Free Zone and will continue to consult China on this matter," said the statement.

China and ASEAN are committed to maintaining high-level visits, strengthening cooperation and information sharing in non- traditional security issues, according to the statement.

Chinese experts believed nurturing the strategic partnership orientated to peace and prosperity is the orientation shared by both China and ASEAN. The completion of the Free Trade Area will further cement the regional stability and boost ASEAN's international standing.

According to Chinese Premier, China also offers to train 8, 000 ASEAN professionals in different fields in the next five years and invites 1,000 young people from ASEAN countries to visit China.

"Young people are our hope and future," said Wen. "They should be encouraged to work in each other's countries as volunteers to deepen mutual understanding and friendship and this will enable our friendship to pass on from generation to generation."

Source: Xinhua