It is a list of free trade agreements between two parties in which each party could be a country (or another customs territory), a trade bloc or an informal group of countries. agreements negotiated and signed by the respective heads of state of each country, but which have not yet been ratified by the country`s legislative body. Chinese President Xi Jinping (l.) shook hands with Pakistani President Mamnoon Hussain on April 21, 2015 in Islamabad, Pakistan. [Xinhua] The Free Trade Agreement between China and Switzerland (FTA) officially entered into force on 1 July 2014. Free trade negotiations between the two countries were officially launched in 2011. After nine rounds of negotiations, the two sides signed the agreement in July 2013. In 2002, when CAFTA had just been established, the volume of bilateral trade was $54.8 billion. In 2014, the volume of bilateral trade increased to $480.4 billion, and increased ninefold in 12 years, with annual growth of 20%. The China-ASEAN Free Trade Agreement (CAFTA) is the first free trade agreement for foreign negotiations in China and the largest free trade area. CAFTA has strongly encouraged the long-term stable and rapid development of bilateral trade and economic relations. Negotiations on the free trade agreement began for the first time in September 2004, when trade ministers from both countries met on the sidelines of the ASEAN Plus Three economic ministers meeting.
The first round of negotiations was launched in May 2012. The two sides signed the free trade agreement in June 2015, after 14 rounds of negotiations. Unlike the CPTPP – the comprehensive and progressive agreement on the Trans-Pacific Partnership – and the EU, no uniform employment and environmental standards are established or require countries to open services and other vulnerable areas of their economies. The RCEP agreement is flexible enough to meet the needs of different countries as diverse as Australia, Myanmar, Singapore and Vietnam. But because the legal and tax professions are effectively divided in China, few law firms are familiar with China`s free trade agreements and, as a result, ignore them when they structure foreign investment in the country. This is problematic because the identification and ability to use existing free trade agreements should often be taken into account in the statutes – and be negotiated in advance with customs and tax officers in China. Otherwise, there may be general tax costs that are far from necessary. Some consultants are also known to have deliberately chosen to withhold such data in order to prevent an CPP investor from becoming interested in external markets and losing his client in another country, perhaps better suited to the client`s needs. Many Chinese advisers are simply not aware of the importance of free trade agreements between China and even of the procedure that followed the creation of a Chinese company with local customs authorities, including the intention to invoke the status of the treaty as part of an applicable free trade agreement. If this is not the case with customs registration in China, the company may lose all the contractual benefits to which it is truly entitled. In this issue of Vietnam Briefing Magazine, we present to our readers production in Vietnam as a key part of their business strategy in the ASEAN region and beyond.
In particular, we explain the new ASEAN Free Trade Area, outline what foreign investors can look forward to in creating their production presence in the country, and present the country`s main tax points.