SCO members propose free trade zone, stress regional connectivity

Asia-Pacific, News December 15, 2015 , by IRIA No Comments

China’s PM called for pooling efforts to attain free movement of commodities, capitals, services, and technologies among the member-states by 2020

ZHENGZHOU (China) – China proposes to set up a free trade zone in Shanghai Cooperation Organization (SCO), Chinese Premier Li Keqiang said on Tuesday at a session of the SCO Council of prime ministers in China’s Henan Province.

The proposal of SCO free trade zone may be established by 2020.

“A short while ago when we had a session in the narrow format we agreed to give an instruction to the ministers of trade and economy to work out tangible measures for setting up a free trade zone within the SCO so as to create more favorable conditions for internal trade,” he said.

Heads of government of the Shanghai Cooperation Organization (SCO) will instruct ministers of trade and economy to work out measures to harmonize the formation of a free trade zone within the SCO.

Government heads of all the six SCO member states attended the meeting. Some leaders and officials from SCO observers and dialogue partners were also present.

In the context of searching new forms of trade Li Keqiang also proposed to create a trade association for electronic commerce within the SCO. He said that the association will create businesses of the member-states favorable conditions for cross-border e-cooperation.

“We’re also prepared to tap new forms of trade,” he said. “I propose to set up a trade and manufacturing association for e-commerce within the SCO and to furnish the enterprises in the member-states with conditions for prompt cross-border transactions.”.

The Chinese premier emphasized that the country has signed 14 free trade agreements with 20 countries and regions.

China proposes six platforms for SCO cooperation

Chinese Premier also proposed that the Shanghai Cooperation Organization (SCO) establish six platforms for cooperation in areas including security, production capacity, connectivity, financial cooperation, regional trade cooperation and cooperation on social affairs and improving people’s lives.

The Shanghai Cooperation Organization, while paying attention to the three traditional areas of security, economy, and civilian exchanges, should focus on building six platforms of cooperation to push for concrete achievements, Li suggested.

The SCO should cement the existing security cooperation mechanism, accelerate an agreement on border defense cooperation, move toward an anti-extremism pact and support Afghanistan’s national reconciliation process, said Li.

The SCO should establish a production capacity cooperation mechanism under which China is willing to provide SCO members with its mature technology, equipment and contracting services, Li said.

China can also co-build factories to increase local employment opportunities. Such cooperation between China and Kazakhstan has proven fruitful with more than 10 projects already or about to be launched, said Li, adding that China would like to promote such experience to other countries according to their needs.

The SCO currently has six members – China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan and Uzbekistan, with Afghanistan, India, Iran, Mongolia, Pakistan and Belarus as observers.

The prime ministers signed a joint communique, a resolution on trade cooperation and another resolution on preparations for the SCO development bank and fund, among other documents.