It's Happening....
ASEAN becomes Ningbo's third largest trading partner
- Details
- Category: Ningbo Business
- Published: Tuesday, 12 February 2013 12:31
Ningbo Customs said on February 6th that since China-ASEAN Free Trade Area was initiated three years ago, trade between Ningbo and this region has grown steadily. ASEAN has become the third largest trading partner of Ningbo Port, only behind the US and the EU.
Since the free trade area came into effect on January 1st, 2010, 90% of the products between China and the 6 old members of ASEAN including Brunei, the Philippines, Indonesia, Malaysia, Thailand and Singapore have been levied zero tariffs.
As the US and European economy is sluggish and the traditional export market is bleak, newly emerging markets have been thriving. And ASEAN, whose over 7000 products are tariff-free, has attracted the eyeballs of many Ningbo enterprises.
Zhejiang Future Petrochemical Co., Ltd. is a direct beneficiary of the China-ASEAN Free Trade Area. Since the free trade area was established, the company has increased its import of plastic particles. The monthly import of PP and LLDPE from Thailand has exceeded 1500 tons. Someone in the company tells us that the zero-tariffs have helped them reduce the cost. Ganglong Fruit Co., Ltd. in Ningbo Free Trade Zone is a big importer of foreign fruits. In the past two years, it has increased the import of fruits from Southeastern countries, such as longans and mangosteens from Thailand, bananas from the Philippines and pitayas from Vietnam. These exotic fruits offer more choices for Ningbo people.
“According to the agreement, over 7000 products are tariff free. The tariff of some products was as high as 12%. But now enterprises, especially private ones, are benefiting from this zero-tariffs policy and turning their eyes to ASEAN,” said someone with the Ningbo Customs.
In the beginning of 2013, Ningbo Cixing Co., Ltd. has declared 94 computerized flat knitting machines at the Customs. These machines worth over 2 million dollars and are all exported to Indonesia.
According to the statistics from the Customs, trade between Ningbo and ASEAN has grown steadily since the free trade area was established three years ago. From 2010 to 2012, the trade volume was 5.09 billion dollars, 7.27 billion dollars and 7.78 billion dollars respectively. In 2012, the trade volume reached 7.78 billion dollars, up by 7.1%. The export volume stood at 4.06 billion dollars, up by 10.7% and the import volume stood at 3.73 billion dollars, up by 3.4%.
Private enterprises are the main force in doing trade with ASEAN. The trade volume between private enterprises in Ningbo and the free trade area amounted to 4.63 billion dollars, up by 19.9%, accounting for 59.5% of the total trade between Ningbo and the free trade area. Indonesia, Thailand and Singapore are among the top 3, with the trade volume reaching 2.08 billion dollars, 1.91 billion dollars and 1.19 billion dollars respectively.
The products exported from Ningbo to the free trade area are mainly mechanical and electronic products, textile and garments. The products imported are liquid chemicals and plastics in primary forms.
