What is the significance of the China-ASEAN FTA Agreement?

The China-ASEAN FTA Agreement is a strategic game-changer when put in a larger perspective. The biggest impact on trade through the agreement will not be between China vis-à-vis ASEAN countries individually, but rather, through inter-country trade within the ASEAN Union.

The FTA agreement covers a region of 1.9 billion people, and a trade volume of US$ 4.5 trillion. It is the largest free trade agreement in the developing world.

Outside of trade, the agreement represents increased integration among East Asian nations. Amongst ASEAN countries, two abiding interests impel the momentum for greater cooperation – keeping sea routes open and freer regional trade.