China has developed a strategic position when it comes to free trade agreements – the policy of allowing tariff and tax reductions for certain goods and services is one of the most important cornerstones the nation has projected in recent years as the world`s production center. There is no doubt that the signing of the China-ASEAN Free Trade Agreement will have and will have a huge impact on China and Asia`s development in global government procurement and related foreign investment. Bilateral trade between China and Costa Rica increased in 2014 to $5.3 billion, a 145 percent increase over 2006. List of agreements between two states, two blocs or one bloc and one state. The Free Trade Agreement between China and Iceland came into force on 1 July 2014. Iceland is the first developed European country to recognize China as a complete market economy and the first European country to negotiate a free trade agreement with China. China and New Zealand formally began free trade negotiations in December 2004 and concluded negotiations in December 2007 after 15 rounds of negotiations. This agreement was signed in 2002 and came into force three years ago. The ASEAN-China Free Trade Area is the largest free trade area in the world in terms of population and, after the European Union and NAFTA, the third largest in terms of nominal GDP. The initial free trade agreement reduced tariffs to nearly 8,000 product categories, or 90% of imported goods at zero. These favourable conditions came into force in China and in ASEAN members, including Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
Cambodia, Laos, Myanmar and Vietnam will also apply these conditions in 2015. The EU is in favour of opening trade relations with China. However, the EU wants China to act fairly, respect intellectual property rights and meet its obligations as a member of the World Trade Organization (WTO). Further down the pipeline, there are possible agreements with India, South Korea and an agreement between China and Japan and Korea. In 2002, when CAFTA had just been established, the volume of bilateral trade was $54.8 billion. In 2014, the volume of bilateral trade increased to $480.4 billion, and increased ninefold in 12 years, with annual growth of 20%. The free trade agreement between China and South Korea officially entered into force on December 20, 2015. Under the agreement, South Korea will eliminate tariffs on 92% of all Chinese products within 20 years of implementation, in exchange for China`s abolition of tariffs on 91% of South Korean products.