WORLD TRADE  
ORGANIZATION  WT/COMTD/N/20 
21 December 2004 
 
 (04-5605) 
Committee on Trade and Development Original:   English 
 
  
FRAMEWORK AGREEMENT ON COMPREHENSIVE ECONOMIC COOPERATION 
BETWEEN THE ASSOCIATION OF SOUTH EAST ASIAN NATIONS  
AND THE PEOPLE'S REPUBLIC OF CHINA 
 
Notification from the Parties to the Agreement
 
 
 
 The following communication, dated 24 November 2004, is being circulated at the request of 
the delegations of Malaysia on  behalf of the ASEAN members of the WTO (Brunei Darussalam, 
Cambodia, Indonesia, Malaysia, Myanmar, the Ph ilippines, Singapore and Thailand) and China. 
 
_______________ 
  
The Permanent Representatives of the Memb er States of ASEAN and of the People's 
Republic of China to the World Trade Organiza tion (WTO) wish to notify that the Framework 
Agreement on Comprehensive Economic Cooperation between ASEAN and the People's Republic of China was signed on 4 November 2002 and entered into force on 1 July 2003. 
 
The Permanent Representatives of the ASEAN members of the WTO and of the People's 
Republic of China hereby notify the Framework Agre ement to the WTO pursuant to the Decision of 
28 November 1979 under the GATT on Differential an d More Favourable Treatment, Reciprocity and 
Fuller Participation of Developing Countries,  known as the "Enabling Clause". 
The objectives of this Framework Agreement are to: 
(i) strengthen and enhance economic, trade and investment co-operation 
between ASEAN and China; 
(ii) progressively liberalise and promote trad e in goods and services as well as 
create a transparent, liberal a nd facilitative investment regime; 
(iii) explore new areas and develop appropria te measures for closer economic co-
operation between ASEAN and China;  and 
(iv) facilitate the more effective economi c integration of the newer ASEAN 
Member States and bridge the develo pment gap among the parties to the 
Framework Agreement. WT/COMTD/N/20 
Page 2  
 
 The Framework Agreement specifically provides for: 
 
(i) negotiations to establish an ASEAN- China Free Trade Area (ACFTA)  
within 10 years;  whereby there will be:  
(a) progressive elimination of ta riffs and non-tariff barriers in 
substantially all trade in goods; 
 
(b) progressive liberalisation of trade in  services with substantial sectoral 
coverage;  and the 
 
(c) establishment of an open and competitive investment regime that 
facilitates and promotes investment  within the ASEAN-China FTA;  
 
(ii) the establishment of effective trade and investment facilitation measures 
including, but not limited to, simplification of customs procedures and development of mutual recognition arrangements; 
(iii) the expansion of economic co-operation in areas as may be mutually agreed 
between the parties to the Framework Agreement that will complement the 
deepening of trade and investment links between the parties;  and 
(iv) with a view to accelerating the implementation of the Free Trade Area, 
provision has also been made for the implementation of an Early Harvest 
Programme. 
The Early Harvest Programme is an integral  part of the ASEAN-China FTA covering 
products in Chapters 1-8 of the Customs Harmonise d System as well as a limited number of products 
outside these Chapters.  Tariffs on all these products will be eliminated over a period of three years 
beginning 1 January 2004.  A longer time-frame has been accorded to Cambodia, Laos, Myanmar and 
Viet Nam, i.e. no later than January 2010. 
Details of the specific concessions of each i ndividual party to the Framework Agreement for 
the Early Harvest Programme are contained in th e Protocol to Amend the Framework Agreement on 
Comprehensive Economic Cooperation between the Association of Southeast Asian Nations and 
China.  The Protocol, which aims to facilitate th e implementation of the Early Harvest Programme, 
was signed on 8 October 2003 and forms an integral part of the Framework Agreement. 
The Framework Agreement has provided for the parties to the Framework Agreement to enter 
into negotiations to eliminate duties and other restri ctive regulations of commerce  on substantially all 
trade in goods between the parties.  Tariff el imination pursuant to this  is to commence from 
January 2005 in accordance with schedules current ly under negotiation.  The Framework Agreement 
provides for the establishment of the ASEAN-Chin a FTA by 2010.  Flexibility up to 2015 has been 
provided for Cambodia, Laos, Myanmar and Viet Nam.   
Negotiations in services and investment co mmenced in 2003 and will be concluded as 
expeditiously as possible for implementation in acco rdance with time-frames to be mutually agreed. 
ASEAN and China have also agreed to strengthen economic cooperation by building upon 
existing activities and developing new programmes in five priority sectors:  WT/COMTD/N/20 
 Page 3 
 
 
 (i) Agriculture 
(ii) Information and communication technology 
(iii) Human resources development 
(iv) Investment 
(v) Mekong River basin development 
A copy of the Framework Agreement and Prot ocol together with Annexes have been 
submitted to the WTO.  The documents are also available at www.aseansec.org.1 
 
__________ 
 
 
                                                      
1 The texts of the Framework Agreement and Protocol are being circulated as document 
WT/COMTD/51.