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Economist praises ASEAN's FTA pact with China

0 CommentsPrint E-mail Xinhua, October 28, 2009
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A senior economist at the Swiss- based UBS investment and financial institution praised Wednesday the Free Trade Agreement (FTA) between ASEAN countries and China scheduled to take into effect January next year.

Edward Teather, Executive Director and a senior analyst at Singapore-based UBS ASEAN Research, said that ASEAN FTA pact with China is very positive since it would bring production method improvements, technology sharing and prosperity in the two emerging economies.

"It's extremely positive, the more trade would bring more productivity," Edward was responding to Xinhua's question on the benefit of ASEAN FTA pact with China in a session to convey UBS' outlook on Indonesia's economy in 2010 held here.

He said that the trade pact initiated by economies of 10 ASEAN countries, which face less impact from the global economy crisis, and China, which has been regarded as the world's most emerging economy country with estimated growth at 9 percent in 2010, would result in an incredibly positive economies of scale.

He said besides obtaining the technology sharing, ASEAN countries can tap huge benefit from China market by supplying raw materials, half processed products or semi high technology for the rapid growing manufactures in China.

With the FTA commencement on the eve of the crisis recovery beginning, Edward expected that it would be the correct time to set up such a trade pact for ASEAN countries, either with China or any other economies.

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