The Research On Economic Integration Of CAFTA

In recent years, with the rapid development of the economic globalization and regional economic cooperation, the regional trade arrangement (RTA) becomes the most attractive form. At the end of 2009, there have been nearly 90 free trade zones. At present, the whole world has been affected by this trend. However, the development of economic integration of East Asia region is very slow.After the Asian financial crisis in 1997, the process of ASEAN free trade area has made an enormous change. It not only pays more attention to the development of free trade area, but also strengthens the trade negotiations with other East Asian countries, especially in China, Japan and South Korea. Meanwhile, in the tide of regional economic integration in the world, China has expanded into the field of international economic activities, and also adjusted actively to participate in the strategy of the regional arrangement.On July 1,2007, China and ASEAN signed the agreement on Trade in Service of CAFTA in Cebu, Philippines. In the background of the construction of FTA, sub-regional co-operation has become more active. For example, the Pan-Beibu Gulf Rim Economic Zone, Nanning-Singapore Economy Corridor, and China-Singapore Free Trade Zone, est. China-ASEAN made a substantive step in economic integration. CAFTA began to operate formally on January 1,2010, which will benefit 19 million people,$6 trillion for GDP,$4.5 trillion trade for free trade, it will be the third largest FTA in the world, as well as the largest FTA among the developing countries.The establishment of CAFTA is not only in conformity with the interests of both parties, but also makes deep influence on the promotion of Asian, even world regional economic cooperation. However, the way of economic and trade cooperation between China and ASEAN belongs to South-South cooperation, it will be affected by some factors inevitably. For example, both in the aspects of attracting foreign investment and exporting market, there is a certain competitive, and the internal political instability in ASEAN caused many problems on the road of CAFTA development, which resulted in slowing down the construction of CAFTA process. Therefore, how to overcome these problems, and through which effective ways to ensure successful completion of CAFTA, is a very worthy of study.From the angle of the integration of regional economy and international economic cooperation, the latest situation of CAFTA and the obstacles during the process of CAFTA have been discussed. Through qualitative and quantitative analysis, the paper tries to grasp the latest economic integration process of CAFTA, according to the problems and barriers; it puts forward some corresponding countermeasures. Finally, this essay summarizes the research results of CAFTA and makes prediction of development trend of economic globalization in the future.