The Analysis Of CAFTA's Trade Benefits

China and ASEAN signed the formal The Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN in November 2002. This agreement went into effect in July first of 2003 and made certain that the CAFTA would be completed within 10 years.This paper try hard from the Background being founded and the relative theory of CAFTA, analyzes bilateral trade structure and trade benefits of China and ASEAN, discoveries the main problems in the process of construction of Free Trade Area, and proposes some solutions strategies and suggestion in order to strengthen confidence of constructing CAFTA.This is the first FTA that China joined. For researching the Benefits of this international economic integration organization to China and ASEAN, this paper introduces two main Theories, Theory of Customs of Union and Theory of FTA, which influence construction of FTA in chapter 1. In chapter 2, this paper analyses the Background and developing status of CAFTA, introduces the main contents of "The Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN" and bilateral deduction tariffs process. Chapter 3 uses the large amount of statistical data and analyzes the trade creating effect and trade diverting effect from the aspect of the reduction of the tariff, trade competition and complementarity. From this part gets the conclusion that there is the trade creating effect and trade diverting effect exist many products between China and ASEAN in the present economic situations. In chapter 4, the paper analyzes prominent question in the construction of FTA which both sides facing, in view of these questions, proposes several measure suggestion in the construction of CAFTA should be adopted in chapter 5.The establishment of China-fSEAN free-trade area would bring some active and negative effects. But in a word, the active effects will play the key role.