Metals News
[Pb] The China-ASEAN Free Trade Area Not Likely Benefit China's Lead Exports
industry news
01:16PM
Dec 7,2009
Source:SMM

SHANGHAI, Oct. 28 (SMM) -- The 15th ASEAN (Association of Southeast Asian Nations) Summit and ASEAN-related summits were concluded on October 25th in Hua Xin, Thailand. According to the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN, the China-ASEAN Free Trade Area to be established on January 1st, 2010 will provide zero tariff on more than 7,000 kinds of products traded between China and ASEAN, and will open service and trading market, which will further strengthen regional economic cooperation.

    Domestic lead industry insiders showed special attention to this issue for two reasons. First, the possible additional adjustment in export tariff of 10% for refined lead will have great impact on global lead supply and demand amid current situation of strong LME lead prices and weak domestic lead prices; second, when the catalogue of related products enjoying tariff adjustments between China and ASEAN will be released has also drawn particular attention.

    SMM contacted the Department of Commerce. The original intention of China-ASEAN Free Trade Area is that China will benefit 30-40% and the ASEAN countries will benefit 60-70% from the establishment of FTA. The best possibility is the trade surplus between ASEAN and China will attract ASEAN's investment in China, which will achieve economic win-win situation and mutual political trust. In addition, the proportion of trading volume between China and ASEAN in China's total trading volume is limited. The reciprocity tariff policy will focus on import tariffs, and the industrial division will be taken into account in selecting more than 7,000 kinds of goods. In addition, no specific schedule for the release of product catalogue is heard.

    In general, the possibility of previous market speculations that refined lead would enjoy zero export tariff in a certain range is relatively low.

 

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