Free trade talks between Asean, China hit snag

China is having difficulty opening up its market as part of a plan to enter into a free trade agreement (FTA) with the Association of South East Asian Nations (ASEAN), high ranking government sources disclosed over the weekend.

"China has already cited difficulties in meeting its commitments as member of the World Trade Organization (WTO)," sources said, adding that "It (China) has complained that its economy has had to undergo structural adjustments."

The sources said China is also reluctant about the so-called "early harvest" concession it would grant to member countries of Asean.

An "early harvest" concession will allow ASEAN members access to China’s market ahead of China’s own access to the ASEAN countries.

China cited problems with the "early harvest" concession, including issues about rules of origin, technical preparation by China’s custom authorities, and securing firm commitment from individual ASEAN members about their own commitment to the FTA.

The ASEAN-China FTA, which will be held in Manila, will be part of the agenda during the 22nd Meeting of the Joint Trade Commission between the Philippines and the People’s Republic of China.

According to Trade and Industry Secretary Manuel Roxas II, the Philippines will push for greater market access for its exports, particularly coconut coir and peat and sulfuric acid during the said meeting.

It will also ask for tariff reduction on carrageenan exports.

"The Philippines is also interested to work with China in the exchange and valuation of trade information, product standard harmonization and conformity assessment, and in pursuit of the North Rail project from Manila to Clark," Roxas said.

The meeting will also take up the review of the status of the agreement on the avoidance of double taxation and prevention of fiscal evasion, and the agreement between the Philippine Associated Smelting and Refining Corp. (PASAR) and China Minmetal Group. – Marianne V. Go