Inclusion of HK sought
China wants Hong Kong included in its free-trade agreement with Asean to increase market access for the mainland's goods.
During the recent China-Asean Business and Investment Summit, China indicated that it would like to ask for Asean’s agreement to add Hong Kong to the Asean-China FTA, said Srirat Rastapana, director-general of the Commerce Ministry’s Trade Negotiations Department.
Extending the FTA to Hong Kong would eliminate problems with rules of origin, as many mainland Chinese companies have opened factories and businesses in the city, which is a special administrative region of China.
However, Beijing has not yet officially submitted the proposal to Asean countries. Asean will wait for an official note so it can conduct a feasibility study on the issue.
Hong Kong is already considered a free port for Thai exports, with zero duties levied on Thai goods.
If China sends an official letter to Asean, the department will discuss again with Asean member states whether to accept the proposal. It will also ask for the Thai government’s mandate to approve the framework of the FTA extension.
Mainland China is the second-largest market for Thai exports while Hong Kong is seventh. Hong Kong is also a gateway for re-exporting Thai goods to the mainland.
Trade between Thailand and mainland China was worth US$45 billion (Bt1.4 trillion) last year, with Thai exports accounting for $21 billion. Two-way trade with Hong Kong was valued at $10.35 billion last year, of which Thai exports were $3.07 billion.
Asean will also focus on the agendas for the leaders’ meeting during the East Asia Summit next month, including how to integrate the Asean+3 and +6 countries into a single package to strengthen their cooperation, Srirat said.
The six trading partners are China, Japan, South Korea, India, Australia and New Zealand.
Thailand will also bring up the flood situation. The country will reaffirm that its economy will continue to grow in order to boost confidence among foreign investors.
