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Chinese imports of intermediate consumer goods are chosen because China applies unique tariffs on products from different ASEAN countries, making it easy to identify trade changes in response to tariff reductions. A key feature of the agreement is the non-maintenance of quantitative restrictions and the removal of non-tariff barriers. [5] Removing these trade barriers will reduce the costs of trade transactions, further increase ASEAN-China trade and improve economic efficiency. Because, under the free trade agreement, low-priced imports go from one member to another, production specializes, which increases real incomes in both ASEAN and China, with resources allocated to sectors where they can be used more efficiently and productively. MERCOSUR is an economic and political agreement between Argentina, Brazil, Paraguay and Uruguay. And like any other free trade agreement, ACFTA will strengthen ASEAN-China trade, which has grown at a dramatic rate, reflecting the growing economic interdependence between ASEAN and China, as shown in Table 1 below. The first phase focused on the first six signatories who, until 2010, expressed support for the abolition of their tariffs on 90% of their products. [6] Between 2003 and 2008, trade with ASEAN increased from $59.6 billion to $192.5 billion. [7] China`s transformation into a major economic power in the 21st century has led to an increase in foreign investment in the bamboo network, with a network of Overseas Chinese companies operating in Southeast Asian markets and sharing family and cultural ties.

[8] [9] In 2008, ASEAN members and the People`s Republic of China had a nominal gross domestic product of about $6 trillion. [10] [11] China first proposed the idea of a free trade area in November 2000. The leaders of ASEAN and China therefore decided to discuss economic integration measures in the region the following year[1][2] In Brunei, they supported the creation of an ASEAN-China free trade area. [3] ASEAN members together have a population of more than 650 million. Indonesia accounts for more than 40% of the region`s population and its population has been the most opposed to the agreement. [17] [13] During the ACFTA period, the GFC significantly removed the global flow of ADI (UNCTAD 2010). A regression of the Model 3 was achieved by adding a GFC dummy variable. The results show that the GFC effect could not be separated from the ACFTA, as GFC has an insignificant positive coefficient. Medvedev D (2012) Beyond Trade: The Impact of Preferential Trade Agreements on Dl Flows. World Dev 40:49-61. doi:10.1016/j.worlddev.2011.04.036 Jiabao L (21/12/2013) IDE enters a new structural era. Cai KG (2003) The ASEAN-China Free Trade Agreement and the East Asian Regional Group.