FTA is selling a bright future

As the bell chimed for the new year, we witnessed the establishment of a giant Free Trade Area (FTA) in the eastern quarter of our shared planet. With 1.9 billion consumers, a regional Gross Domestic Product (GDP) of about $6 trillion and total trade estimated at $4.5 trillion, the newly founded China-ASEAN Free Trade Area is the largest by population. According to the agreement, the average tariff rate of both sides will be reduced, with a zero tariff policy on the trade of many goods.

Surely, it is good news, especially with the effects of the economic crisis still being felt. During the past two years, when the world's finances experienced ups and downs, almost all major economies employed measures for their self-preservation. Besides the commonly-seen stimulus plans and the restructuring of financial systems, protectionism was once again raised, creating trade barriers of all kinds over the world. Even the nations where a free trade tradition has dominated for centuries resorted to economic protectionism.

It should be noted that both China and ASEAN (Association of Southeast Asian Nations) members are victims in this worldwide trend of protectionism. As important factories for the world's manufacturing industry, their main products - from iron pipes to shoes, from tires to dog food - are suffering from visible and invisible economic barriers.