China Trade Agreements
The Free Trade Agreement between China and Switzerland is the first bilateral free trade agreement signed between China and a country on the European continent and one of the world`s top 20 economies. China has developed a strategic position when it comes to free trade agreements – the policy of allowing tariff and tax reductions for certain goods and services is one of the most important cornerstones the nation has projected in recent years as the world`s production center. There is no doubt that the signing of the China-ASEAN Free Trade Agreement will have and will have a huge impact on China and Asia`s development in global government procurement and related foreign investment. It is also a U.S. withdrawal from large-scale trade agreements that redefine global relations. Nearly four years ago, President Trump pulled the United States out of the Trans-Pacific Partnership (P.T.), a broader agreement than the R.C.E.P., widely seen as Washington`s response to China`s growing fluctuations in the Asia-Pacific region. Joseph R. Biden Jr., the president-elect, has not committed to joining the T.P.P. successor. He also said that after taking office, labour and environmentalists „will be at the table of all the trade agreements we make.“ China also concluded a free trade agreement with New Zealand in 2009, which will be phased in over a 10-year period for its products. The free trade agreement will eliminate all tariffs on Chinese exports to New Zealand by 2016 and eliminate 96% of Tariffs on New Zealand exports to China by 2019. The agreement will also facilitate reciprocal investment and trade in services. The deal has been very beneficial for kiwis like Fonterra.
New Zealand`s fishing industry has also benefited. Trade between China and South Korea increased from US$6.4 billion in 1992, when the two countries established diplomatic relations, from $6.4 billion in 2014 to $235.4 billion. China has been South Korea`s largest trading partner since 2004. South Korea is China`s fourth-largest trading partner since the same year, putting the United States with the largest economy and India, the largest democracy, on one of the world`s largest trading blocs, even as China deepens trade and investment partnerships in the region and the world. Due to the pandemic, the signing of the agreement on Sunday was unusual, with separate ceremonies in each of the 15 member countries, all video-linked. The trade minister of each country took turns signing a separate copy of the pact, while its head of state or head of government stood nearby and watched.