Chongqing And Asean Trade Cooperation Under The Framework Of The China - Asean Free Trade Area

Since the20th century, especially after World War II, due to the rapid developmentof global trade, finance and investment, the relation between the countries in the worldbecomes closer. At the meantime, the multilateral trading system continue to make newprogress, and the tide of economic globalization begin to sweep the world, and hasbecome a significant trend of the world's economic development. In this case, theEuropean Union, NAFTA and many other regional economic integration organizationshave begun to emerge, they make the member countries be able to take full advantage ofthe international division of labor through free trade agreement to create a stable marketenvironment, enhance regional economics' ability to attract multinational investment toseek benefits for their own economic development in order to meet the challenges ofeconomic globalization.China-ASEAN Free Trade Area is officially completed on January1,2010.This is China's first participation in a regional economic integration organizations basedon free zone, and in practice, this is a new opening-up areas compared with APEC andWTO. Southwest of china has unique location advantage in China-ASEAN Free TradeArea. As one of the five central cities of China, due to its unique position in the west,Chongqing should play an important role in this cooperation, and strive to become theopening window in the southwestern region of China.This paper introduced the China-ASEAN Free Trade Area from its background,content and prospects for development on the basis of the regional division of labortheory and the theory of regional economic integration; and made a brief introduction tothe overall trade situation between Chongqing and ASEAN, then pointed out thedirection of the cooperation between Chongqing and ASEAN in trade through theempirical research of trade complementarity and competition between Chongqing andASEAN. The paper also analyzed the economic impact of trading between Chongqingand ASEAN, from trade creation and diversion effects after the completion of the freetrade zone in order to identify the purpose and feasibility of bilateral economiccooperation between Chongqing and ASEAN, which provides the policy advice for theeconomic development of Chongqing. Finally, this paper summed up the above analysis,and put up with policy recommendations of the trade cooperation between Chongqingand ASEAN for the problems pointed out by the empirical analysis.Through the above analysis, this paper concluded as follows: 1.According to the analysis of trade complementarity and trade competitionbetween Chongqing and ASEAN in this article, Chongqing has comparativedisadvantage in the market of agricultural products, food, minerals and other primaryproducts compared with ASEAN countries, but is in a relatively advantageous positionin finished product market as chemical, textile, metal, mechanical and electricalindustrial system.2. Trade creation effect is obvious but trade diversion effect is of the opposite afterthe establishment of China-ASEAN free trade area.3. The establishment of China-ASEAN Free Trade Area may improve the degreeof openness of Chongqing in some degree.