KEY NOTE SPEECH FOR SENIOR MINISTER OF STATE (T&I) MR LEE YI SHYAN, 2012 FORUM ON ASEAN-CHINA FREE TRADE AREA, 21 SEPTEMBER 2012, 1430 hrs, NANNING, CHINA
Your Excellencies
Distinguished delegates
Ladies and gentlemen
On the auspicious occasion of the 10th anniversary of the China-ASEAN Framework Agreement on Comprehensive Economic Cooperation, I am honoured and delighted to join you at this important forum in the beautiful city of Nanning.
ASEAN-China Free Trade Area
We began with a common vision to integrate our economies in ASEAN and China. 10 years on, ACFTA is now the world’s largest FTA, covering close to two billion people with a combined GDP of over US$9 trillion1. Since we concluded the FTA in 2001, China-ASEAN trade increased seven fold from under US$43 billion (2002) to US$280 billion last year. ASEAN is currently China’s third largest trading partner while China continues to be ASEAN’s largest trading partner. More importantly, our economies have prospered, creating more jobs as businesses thrived.
Singapore-China Relations
Singapore is pleased to be part of this landmark agreement between ASEAN and China. Bilateral economic relations between Singapore and China are at an all-time high.
China is currently Singapore’s third largest trading partner and the top overseas investment destination for Singaporean companies. By 2011, Singapore companies have invested cumulatively US$53 billion and have just under 20,000 projects in China. The number of Chinese companies in Singapore has risen from 500 in the year 2000 to more than 4,000 last year. We believe that the array of opportunities brought by the ACFTA has catalysed our mutual trade and investments.
FTA Benefits
And indeed we have been encouraged to witness increased utilisation of the ACFTA. We have also received positive feedback from our companies that using the FTA helps them to maintain a competitive edge in the market.
Looking Ahead
Many success stories in our economies tell us that ASEAN and China have done well in pursuing our economic integration. But FTAs are not static instruments. Instead, “百尺竿头，更进一步” which means we can take another step forward in addition to the 100 steps we have taken. The ACFTA must be improved upon, expanded, and deepened to take into consideration the state of our integration. The ACFTA can be a strong catalyst to stimulate our domestic demand to rebalance our economies against those of the developed world.
It is heartening therefore to know that ASEAN and China are currently in the midst of reviewing the Trade in Goods aspects of the ACFTA, specifically on the examination of Sensitive Track products and improvements to the rules of origin. A more liberal set of rules would enhance market access and facilitate greater trade in the region. I urge officials from both sides to intensify their ongoing efforts so as to improve the Agreement. I am pleased to note that the Trade in Goods Agreement will be expanded to include chapters on SPS and TBT2 and this will be signed at the 15th ASEAN-China Summit in November.
Conclusion
The ASEAN-China FTA is an invaluable tool to promote dynamism in East Asia. With its continued evolution, it can complement ASEAN’s efforts in striving for a wider and inclusive economic architecture in the region through the Regional Comprehensive Economic Partnership, which is envisioned to further integrate ASEAN and its FTA partners. Let us build on the positive inroads made and press on towards greater integration and sustained growth for the region.
On this note, I wish you a productive session at today’s forum. Thank you.