

Currently released so far... 12478 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AU
ASEC
AE
AF
AORC
AEMR
AMGT
ABUD
AFFAIRS
APER
AS
AMED
AY
AG
AR
AJ
AL
AID
AM
AODE
ABLD
AMG
AFIN
ATRN
AGAO
AFU
AN
AA
ALOW
APECO
ADM
ARF
ASEAN
APEC
AMBASSADOR
AO
ASUP
AZ
AADP
ACOA
ANET
AMCHAMS
ACABQ
ASECKFRDCVISKIRFPHUMSMIGEG
APCS
AGMT
AINF
AIT
AORL
ACS
AFSI
AFSN
ACBAQ
AFGHANISTAN
ADANA
ADPM
AX
ADCO
AECL
AMEX
ACAO
ASCH
AORG
AGR
AROC
ASIG
AND
ARM
AQ
ATFN
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
BL
BR
BO
BA
BD
BM
BK
BG
BU
BB
BH
BTIO
BY
BEXP
BP
BE
BRUSSELS
BF
BIDEN
BT
BX
BC
BILAT
BN
BBSR
BTIU
BWC
BMGT
CA
CASC
CVIS
CM
CH
CO
CU
CD
CWC
CI
CS
CY
CMGT
CF
CG
CR
CB
CV
CW
CE
CBW
CT
CPAS
COUNTERTERRORISM
CJAN
CODEL
CIDA
CDG
CDC
CIA
CTR
CNARC
CSW
CN
CONS
CLINTON
COE
CROS
CARICOM
CONDOLEEZZA
COUNTER
CL
COM
CICTE
CIS
CFED
COUNTRY
CJUS
CBSA
CEUDA
CLMT
CAC
COPUOS
CIC
CBE
CHR
CTM
CVR
CITEL
CLEARANCE
CACS
CAN
CITT
CARSON
CACM
CDB
CAPC
CKGR
CBC
EC
EG
EPET
ECON
ETRD
EFIN
EIND
EMIN
ENRG
EAID
EAGR
EUN
ETTC
EAIR
ENIV
ES
EU
EINV
ELAB
ECIN
EFIS
ELTN
EWWT
ECPS
ECONOMIC
ENGR
EN
EINT
EPA
ELN
ESA
EZ
ER
ET
EFTA
EINVECONSENVCSJA
EUMEM
ETRA
EXTERNAL
EI
EUR
EK
ERNG
ENGY
ETRDEINVECINPGOVCS
ENERG
EINVEFIN
ENVR
ECA
ELECTIONS
ETC
EUREM
ENNP
EFINECONCS
EURN
ECINECONCS
EEPET
EXIM
ERD
ENVI
ETRC
ETRDEINVTINTCS
ETRO
EDU
ETRN
EAIG
ECONCS
ECONOMICS
EAP
ECONOMY
EINN
EIAR
EXBS
ECUN
EINDETRD
EREL
EUC
ESENV
ECONEFIN
ECIP
EFIM
EAIDS
ETRDECONWTOCS
EUNCH
EINVETC
IZ
IT
IR
IS
IN
IC
IAEA
IO
ICAO
IWC
ID
IV
ISRAEL
IAHRC
IQ
ICTR
IMF
IRS
IDP
IGAD
ICRC
ICTY
IMO
IL
INRA
INRO
ICJ
ITU
IBRD
INMARSAT
IIP
ITALY
IEFIN
IACI
ILO
INTELSAT
ILC
ITRA
IDA
INRB
IRC
INTERPOL
IA
IPR
IRAQI
ISRAELI
INTERNAL
ISLAMISTS
INDO
ITPHUM
ITPGOV
ITALIAN
IBET
INR
IEA
IZPREL
IRAJ
ITF
IF
KDEM
KU
KPAL
KNNP
KCRM
KZ
KN
KS
KJUS
KTFN
KSCA
KV
KISL
KPAO
KPKO
KIRF
KTIA
KIPR
KFLO
KFRD
KTIP
KAWC
KSUM
KCOM
KAID
KE
KTDB
KMDR
KOMC
KWBG
KDRG
KVPR
KTEX
KGIC
KWMN
KSCI
KCOR
KACT
KDDG
KHLS
KSAF
KFLU
KSEO
KMRS
KSPR
KOLY
KSEP
KVIR
KGHG
KIRC
KUNR
KIFR
KCIP
KMCA
KMPI
KBCT
KHSA
KICC
KIDE
KCRS
KMFO
KRVC
KRGY
KR
KAWK
KG
KFIN
KHIV
KBIO
KOCI
KBTR
KNEI
KPOA
KCFE
KPLS
KSTC
KHDP
KPRP
KCRCM
KLIG
KCFC
KTER
KREC
KTBT
KPRV
KSTH
KRIM
KRAD
KWAC
KWMM
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KOMS
KX
KMIG
KRCM
KVRP
KBTS
KPAONZ
KNUC
KNAR
KPWR
KNPP
KDEMAF
KNUP
KNNPMNUC
KERG
KGIT
KPAI
KTLA
KFSC
KCSY
KSAC
KTRD
KID
KOM
KMOC
KJUST
KGCC
KREL
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFTFN
KO
KNSD
KHUM
KSEC
KCMR
KCHG
KICA
KPIN
KESS
KDEV
KCGC
KWWMN
KPAK
KWNM
KWMNCS
KRFD
MOPS
MCAP
MPOS
MARR
MO
MNUC
MX
MASS
MG
MY
MU
ML
MR
MILITARY
MTCRE
MT
MEPP
MA
MDC
MP
MAR
MASSMNUC
MARAD
MAPP
MZ
MD
MI
MEETINGS
MK
MCC
MEPN
MRCRE
MAS
MIL
MASC
MC
MV
MTCR
MIK
MUCN
MEDIA
MERCOSUR
MW
MOPPS
MTS
MLS
MILI
MTRE
MEPI
MQADHAFI
MAPS
NO
NATO
NL
NP
NZ
NSF
NI
NH
NG
NAFTA
NU
NASA
NR
NATOPREL
NSSP
NSG
NA
NT
NW
NK
NPT
NPA
NATIONAL
NPG
NSFO
NS
NSC
NE
NGO
NDP
NIPP
NRR
NEW
NZUS
NC
NAR
NV
NORAD
OTRA
OPCW
OVIP
OAS
OREP
OPIC
OIIP
OPRC
ODIP
OEXC
OPDC
OSCE
OIC
OSCI
OECD
OFDP
OFDA
OMIG
OPAD
OFFICIALS
OVP
OIE
OHUM
OCS
OBSP
OTR
OSAC
ON
OCII
OES
PGOV
PREL
PHUM
PTER
PINS
PINR
PREF
PK
PROP
PA
PARM
PBTS
PMAR
PM
PGIV
PE
PRAM
PHUH
PHSA
PL
PNAT
PO
PLN
PAO
PSA
PHUMPGOV
PF
PEL
PBIO
POLITICS
PHUMBA
PAS
POL
PREO
PAHO
PMIL
POGOV
POV
PAK
PNR
PRL
PG
PREFA
PSI
PINL
PU
PARMS
PRGOV
PALESTINIAN
PAIGH
POLITICAL
PARTIES
POSTS
PROG
PORG
PTBS
PUNE
POLICY
PDOV
PCI
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PP
PS
PY
PTERE
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PRELP
PSEPC
PGOVE
PINF
PNG
PGOC
PFOR
PCUL
POLINT
PGGV
PHALANAGE
PARTY
PGOVLO
PHUS
PDEM
PECON
PROV
PHUMPREL
RS
RU
RELATIONS
RW
RO
RM
RP
ROOD
RICE
RUPREL
RSO
RCMP
REACTION
REPORT
REGION
RIGHTS
RF
RFE
RSP
RIGHTSPOLMIL
ROBERT
SU
SCUL
SNAR
SOCI
SF
SA
SHUM
SENV
SP
SR
SY
SANC
SC
SMIG
SZ
SARS
SW
SEVN
SO
SEN
SL
SNARCS
SNARN
SI
SG
SN
SH
SYR
SAARC
SPCE
SHI
SCRS
SENVKGHG
SYRIA
SWE
STEINBERG
SIPRS
ST
SNARIZ
SSA
SK
SPCVIS
SOFA
SIPDIS
SAN
TC
TI
TBIO
TH
TSPL
TRGY
TSPA
TPHY
TU
TW
TS
TAGS
TK
TX
TNGD
TZ
TF
TL
TV
TN
TD
TIP
TR
TP
TO
TT
TFIN
THPY
TERRORISM
TINT
TRSY
TURKEY
TBID
US
UK
UNGA
UP
UZ
UNMIK
USTR
UNO
UNSC
UN
UNESCO
UNAUS
UNHRC
UY
UG
UNHCR
UNCND
USOAS
USEU
UNICEF
UNEP
UV
UNPUOS
UNCSD
USUN
UNCHR
UNDC
USNC
UE
UNDP
UNC
USPS
USAID
UNVIE
UAE
UNFICYP
UNODC
UNCHS
UNIDROIT
UNDESCO
UNCHC
Browse by classification
Community resources
courage is contagious
Viewing cable 06BEIJING9501, CHINA'S AMBITIOUS FREE TRADE AGREEMENT AGENDA FOR
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06BEIJING9501.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06BEIJING9501 | 2006-05-18 06:20 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Beijing |
VZCZCXRO8915
PP RUEHCN RUEHGH
DE RUEHBJ #9501/01 1380620
ZNR UUUUU ZZH
P 180620Z MAY 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 5778
RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHCN/AMCONSUL CHENGDU 6262
RUEHGZ/AMCONSUL GUANGZHOU 0498
RUEHHK/AMCONSUL HONG KONG 7392
RUEHGH/AMCONSUL SHANGHAI 4564
RUEHSH/AMCONSUL SHENYANG 6076
RUEHIN/AIT TAIPEI 5551
RUEHGV/USMISSION GENEVA 1058
RUEHSG/AMEMBASSY SANTIAGO 0227
RUEHIL/AMEMBASSY ISLAMABAD 6365
RUEHJA/AMEMBASSY JAKARTA 1816
RUEHKL/AMEMBASSY KUALA LUMPUR 2247
RUEHGP/AMEMBASSY SINGAPORE 8586
RUEHBK/AMEMBASSY BANGKOK 4156
RUEHML/AMEMBASSY MANILA 8741
RUEHPF/AMEMBASSY PHNOM PENH 0883
RUEHVN/AMEMBASSY VIENTIANE 3976
RUEHGO/AMEMBASSY RANGOON 4343
RUEHHI/AMEMBASSY HANOI 3426
RUEHBD/AMEMBASSY BANDAR SERI BEGAWAN 0484
RUEHWL/AMEMBASSY WELLINGTON 0538
RUEHBY/AMEMBASSY CANBERRA 9214
RUEHRH/AMEMBASSY RIYADH 0538
RUEHKU/AMEMBASSY KUWAIT 0564
RUEHMK/AMEMBASSY MANAMA 0206
RUEHMS/AMEMBASSY MUSCAT 0011
RUEHDO/AMEMBASSY DOHA 0183
RUEHSA/AMEMBASSY PRETORIA 0371
RUEHRK/AMEMBASSY REYKJAVIK 0006
UNCLAS SECTION 01 OF 06 BEIJING 009501
SIPDIS
SENSITIVE
SIPDIS
USDOC FOR DAS LEVINE AND ITA/MAC/AP/MCQUEEN
STATE PASS USTR STRATFORD, WINTER, ALTBACH
GENEVA PASS USTR
E.O. 12958: N/A
TAGS: ETRD WTRO ECON CH AS NZ SA
SUBJECT: CHINA'S AMBITIOUS FREE TRADE AGREEMENT AGENDA FOR
2006
REFS: A) BEIJING 6453, B) BEIJING 6849, C) CANBERRA 1845,
D) SANTIAGO 2322, E) WELLINGTON 366
¶1. (SBU) Summary: Chinese Ministry of Commerce (MOFCOM)
Minister Bo Xilai announced in early 2006 an ambitious plan
for nine free trade agreements (FTAs) covering twenty-seven
countries, according to MOFCOM officials. These twenty-
seven countries represent 18 percent of China's imports and
11 percent of Chinese exports, but the proposed agreements
would not cover all traded goods. China's growing demand
for raw materials, energy, and light manufactured goods to
support its export-led growth is fueling the trade
component of the PRC's broader "go out" policy. Preferring
to engage first in relatively easy-to-win FTAs focusing
only on goods, China is meeting resistance in negotiating
FTAs with more developed countries. Trade in services and
investment have been relegated to later stage negotiations
except in the case of Australia, which is seeking a
comprehensive FTA.
¶2. (SBU) Summary continued. China is implementing early
stage trade agreements with ASEAN, Chile and Pakistan this
year. Negotiations with Australia, New Zealand and the
Gulf Cooperation Council (GCC) are expected to conclude
over the next one to two years. China is conducting
feasibility studies with Iceland and South Africa.
Paragraphs 8 - 20 summarize the status of FTAs. Comment
follows. End Summary.
Overall Strategy Unclear but Easy FTAs Come First
--------------------------------------------- ----
¶3. (SBU) Asked to comment on press reports in early 2006
that indicated that Minister Bo planned to conclude nine
FTAs covering twenty-seven countries, Ms. Wang Jingning,
Deputy Director (Division II) of the Department of
International Trade and Economic Affairs (DITEA) at MOFCOM
confirmed that an ambitious FTA agenda exists. She
clarified, however, that several of the previously
announced bilateral negotiations have already concluded
initial "Early Harvest" multi-round talks with tariff
reductions being implemented this year. Two regional
agreements (ASEAN and the Gulf Cooperation Council) cover
sixteen countries. According to an Australian Embassy
official based in Beijing, Australia has not set a
timetable for concluding an FTA this year.
¶4. (SBU) While a focus on ASEAN is a strategic initiative
for China's expansive trade agenda (the five ASEAN members
accounted for 8 percent of total PRC trade in 2005), China
has not announced plans for several countries that are
large and growing trade partners (Brazil, India and
Russia). Both Brazilian and Indian embassy officials based
BEIJING 00009501 002 OF 006
in Beijing have stated that FTA talks are highly unlikely
in the near term. Countries that account for far smaller
trade with China are actively engaged in negotiations
(Chile, Pakistan and New Zealand). According to Ms. Zhang
Bin, Deputy Director (Division I) of MOFCOM's DITEA,
China's criteria for launching FTA negotiations are good
political relations, an increasing trend in trade and a
large potential market.
¶5. (SBU) Several Latin American diplomats based in Beijing
have commented that the China-Chile FTA, which was
negotiated relatively easily, is not an apt model for the
rest of the region. These diplomats believe that it would
be harder for their countries to agree on tariff reductions
for Chinese products that would not hurt their domestic
producers. DITEA's Zhang commented that Chile initiated
talks on the FTA with China at an APEC meeting (see reftel
B). Since China's basic criteria were met, negotiations
moved quickly.
China's FTA Negotiations Focusing on Goods
------------------------------------------
¶6. (SBU) China's recent FTA agreements have tended to focus
on trade in goods followed by services and investment (e.g.
Chile, ASEAN and GCC). According to MOFCOM officials, the
goods component is most easily negotiated. Services and
investment agreements, they contend, are more complicated
and take longer to complete. The Australian FTA
discussions, however, include goods, services, and
investment (the outcome of arduous discussions according to
an Australian diplomat based in Beijing). Australian
officials are uncertain whether negotiations will in fact
follow the Memorandum of Understanding guidelines
established for the FTA talks with China (see para 16-18).
Organizational Limits on an Aggressive FTA Agenda
--------------------------------------------- ----
¶7. (SBU) According to Deputy Director Wang Jingning of
MOFCOM DITEA Division II, two DITEA divisions with a staff
of 20 persons are responsible for most FTA negotiations.
Many of these 20 DITEA officials are relatively junior with
limited trade negotiating experience. Division One covers
Chile, the GCC and Pakistan. Wang's division (Division
Two) covers ASEAN and New Zealand. Because of limited
DITEA staffing, responsibilities for FTA negotiations with
Australia were shifted to MOFCOM's Department of WTO
Affairs. (Note: The WTO Affairs Department was created at
about the time of China's 2001 WTO accession and, at least
initially, was largely staffed by officials formerly in
DITEA. End note.) DITEA and the WTO Affairs Department
both report to Vice Minister Yi Xiaozhun. Deputy Director
BEIJING 00009501 003 OF 006
Wang and her colleagues expressed strong interest in USG
FTA talks with South Korea and in USG staffing size for FTA
negotiation delegations and support.
Summary of FTA Agreements and Status
------------------------------------
¶8. (U) Chinese FTA negotiators divide their negotiations
into three phases. First the negotiators engage in "Early
Harvest" talks that focus on tariff reductions on
relatively non-controversial goods that can be implemented
quickly. Recent Early Harvest agreements were launched and
implemented within two years. The next phase is the
launching of "Normal" negotiations which involve goods and
services that require more effort. Lastly the negotiators
tackle "Sensitive" track items which include the most
contentious goods, services and investment sectors.
According to Wang, the Chinese Government attempts to limit
the number of goods placed on sensitive lists in FTA
negotiations in two ways. First, the total value of
sensitive items should not exceed ten percent of total
goods traded bilaterally based on 2001 statistics. Second,
the sensitive list should include no more than 500 items at
the harmonized schedule (six-digit tariff line) level.
¶9. (SBU) Tariff reductions on a wide variety of goods with
Chile, Pakistan, and ten countries in Southeast Asia (the
ASEAN-5: Indonesia, Malaysia, Singapore, Thailand and the
Philippines; CLMV: Cambodia, Laos, Myanmar, Vietnam; and
Brunei) will come into effect in 2006. MOFCOM officials
initially expected to conclude agreements in goods with New
Zealand, Australia and the GCC by the end of 2006, but now
believe it may take a bit longer. Chinese Premier Wen
Jiabao recently announced that he expects an agreement with
Australia in the next one to two years (see para 16-18).
Wang stated that FTA feasibility studies are now underway
with Iceland and South Africa. If the outcomes of the
feasibility studies are positive, MOFCOM could begin "Early
Harvest" negotiations within one year, Wang said.
ASEAN
-----
¶10. (SBU) An Early Harvest Agreement on Trade in Goods was
signed in November, 2004 with tariff reduction on 7,000
eight-digit tariff-line items beginning July, 2005. By
2010 ninety percent of tariffs are to be eliminated.
Negotiations on trade in services and on investment are
ongoing. This is the most significant Early Harvest
Agreement China has concluded to date.
Chile
-----
BEIJING 00009501 004 OF 006
¶11. (U) China and Chile signed an "Early Harvest" agreement
in November, 2005 with tariff reductions to begin in July,
¶2006. Ninety-seven percent of tariffs are to be eliminated
by 2015. Subsequent negotiations are expected. According
to previous reporting (see reftel D) the FTA focused only
on goods to accelerate conclusion of this agreement.
Pakistan
--------
¶12. (U) Targeted tariff reductions on three thousand
products began in April, 2006, one year after the "Early
Harvest" Agreement was signed. Within two years 1,000
tariffs are to be eliminated entirely.
Hong Kong and Macau
-------------------
¶13. (SBU) Ongoing discussions regarding trade
liberalization continue. The mainland is interested in
increasing tourism opportunities. No timeframe for
formalization of agreements has been set, according to
MOFCOM officials.
Gulf Cooperation Council (GCC)
------------------------------
¶14. (SBU) The GCC includes Saudi Arabia, United Arab
Emirates, Kuwait, Bahrain, Oman, and Qatar. The UAE is the
2006 chair of the group which rotates yearly. Three trade
negotiation rounds have been conducted as of early May
¶2006. Saudi Embassy Charge Maghrabi told Econoffs that he
expects China and Saudi Arabia to conclude an agreement in
goods only (no energy items) by the end of 2006. Mr. Cao
Jiachang, Director in MOFCOM's West Asia Department, said
the FTA talks with Saudi Arabia were progressing smoothly.
¶15. (SBU) The third round of negotiations was held in
January, 2006 and covered custom inspections and sanitary
and phytosanitary (SPS) trade remedies. Previous rounds
were conducted in June, 2005 (trade and economy, investment
protection, establishing a Joint Commission on Commerce and
Trade) and April, 2005 (trade in goods, tariffs,
intellectual property rights and technology transfer).
Australia
---------
¶16. (SBU) According to an Australian embassy official in
Beijing, Premier Wen's remarks during his recent visit to
Australia regarding conclusion of an FTA within one to two
years were encouraging. The Chinese and Australians are
BEIJING 00009501 005 OF 006
currently engaged in quarterly discussions on their FTA and
thirty Australian negotiators are expected to arrive in
Beijing on May 22nd for the fifth round of talks. Goals
for this round include agreement on the text of the FTA.
¶17. (SBU) The Fourth Round, completed in Canbera in March,
2006, produced a Memorandum of Uderstanding for
"comprehensive" negotiations including goods, services, and
investments. This was the hardest point to come to
agreement on, according to this Australian Embassy
official, since the Chinese preferred to discuss only
goods, leaving trade and investment to an unspecified time
in the future. The Australian Government has not committed
itself to a specific timetable. Based on Embassy Canberra
reporting (see reftel C) there is some doubt on the part of
an Australian trade negotiator as to whether China will
indeed follow through on a comprehensive negotiation.
¶18. (SBU) The March 2006 MOU established the completion
date for the feasibility study period and also included
Australian recognition of China's full market economy
status. (Note: Australia thereby gave up seeking recourse
to sections 15 and 16 of the Protocol of Accession of the
PRC to the WTO and paragraph 242 of the WTO Report of the
Working Party on the Accession of China. China has been
pushing for this recognition, because it limits anti-
dumping actions that can be initiated by its trade
partners. End note.)
New Zealand
-----------
¶19. (SBU) According to the New Zealand Deputy Chief of
Mission in Beijing, the fifth round of negotiations went
well. The Chinese negotiating team was technically
oriented and very interested in formalizing an agreement
(See ref E for another account.) Trade in goods and
intellectual property rights are the main issues being
discussed. They are exploring establishment of a Joint
Commission on Commerce and Trade (JCCT) similar to the
USG's JCCT but are meeting resistance from the Chinese.
New Zealand officials are under significant pressure from
NZ businesses to have an IPR-related mechanism to resolve
disputes, according to a New Zealand Embassy Economic
Official.
Iceland and South Africa
------------------------
¶20. (SBU) China has begun preliminary feasibility studies
with no set timetable for Iceland and South Africa. Asked
why these two countries with minimal trade relations would
be chosen, DITEA Deputy Director Wang surmised that those
BEIJING 00009501 006 OF 006
countries had approached China, seeking more access to
China's large and growing market.
Comment
--------
¶21. (SBU) Comment: While China's historically large
trading partners fall outside of Minister Bo's free trade
agreement agenda for 2006, China is pursuing a steady trade
liberalization plan. These early "wins" give the trade
negotiating teams more experience on relatively easier
agreements as they tentatively approach larger trade
partners. Recent Chinese discussions with Russia, Brazil
and India did not include formal FTA negotiations but
rather laid the groundwork for future exchanges and formal
dialogues. For China, the FTAs also offer more political
dividends and fewer costs than pushing forward in
multilateral fora like the WTO Doha Development Round
multilateral trade liberalization negotiations. It is
likely that China's attempts to negotiate future FTAs will
be more difficult and will take longer than their earlier
agreements. End Comment.
RANDT