Both members of the Association of Southeast Asian Nations (ASEAN) and China can benefit from the bilateral free trade zone to be launched in late July, said Thai Commerce Minister Thanong Bidaya.

"China is a big economy that ASEAN cannot neglect. Its economic growth means both a market and a rise for Asia," said the Minister in an interview with Xinhua on Monday.

Taking Thailand as an example, the minister noted that agriculture and food processing will be the first sector to benefit from the ASEAN-China free trade zone to be formally launched on July 20.

Thanong noted how increased order from China has pushed up locally produced rubber's price more than twice in three years, predicting tropical fruits will become Thailand's next "niche product" in free trade with China.

"We are always seeking market for our agriculture surplus, while China is near enough for transport of fresh fruits and vegetables from Thailand," he said.

The free trade with China therefore is expected to improve living standards of almost one third of Thailand's total population, since more than 30 percent Thais work in agriculture and related sectors, said the minister.

China is now Thailand's third largest export destination after the United States and Japan, and the second largest import source after Japan, according to statistics provided by the Thai Commerce Ministry.

Meanwhile, Thailand has become China's 14th largest trade partner around the world and the third among ASEAN, while bilateral trade grew by 37 percent to a total volume of US$17.34 billion in 2004, according to statistics released by China's State Customs.

The Thai minister, however, is still unsatisfied with the fasting growing trade between Thailand and China, calling it "too small compared to the size of the Chinese economy."

Trade will not be Thailand's only sector to benefit from free trade with China.

Active economic cooperation between the two countries will result in more people-to-people contacts and goods movements, which is expected to promote Thailand's tourism, one of the kingdom's pillar industries.

"If we can target 1 percent of Chinese population to Thailand, that's 13 million tourists; if we can target 5 percent, that's 65 million," said Thanong, predicting Chinese will be the largest number of foreigners visiting Thailand in less than 10-year time.

The Thai government has an even more ambitious goal to achieve from the ASEAN-China free trade zone, which is to build Thailand into an economic hub for trade between China and ASEAN countries.

"Thailand is located close to China and there's a large number of Chinese-Thai businessmen who can speak Chinese," said Thanong.

"Compared to the rest of ASEAN countries, Thailand...can be a good economic hub for China to enter markets (in Southeast Asia)," he added. "We feel Thailand can certainly make gain from the free trade with China."

He went further by saying that the same story also goes well with the situation of China and the rest of ASEAN members.

While China finds a close market and investment opportunities in ASEAN, the Southeast Asian countries also gain momentum for development and assure access to competent technology and quality products, said Thanong.

Though composed of economies varying from least developed to advanced levels, ASEAN still reached an agreement among its members to establish a free trade zone with China, he noted.

The decision itself showed free trade with China has been a major strategy of all ASEAN countries, said Thanong, stressing that "free trade (with China) is a win-win situation, not a win-lose one."

(China Daily July 12, 2005)