The new free trade area between China and the Association of Southeast Asian Nations (ASEAN) i.e. CAFTA (China–ASEAN Free Trade Agreement) came into effect on 1 January 2010. It is said to be the biggest and in the future the most developed and powerful union in the world which will push aside other powers such as the EU. CAFTA makes up a powerful economic area (inhabited by 1,9 bin people) with its turnover of 200 bin dollars. Today it is the largest and the third biggest free trade area as regards GDP (after the European Economic Area and North American Free Trade Area). The signed Agreement will enable the ASEAN members to have a free access to the most dynamically developing economic market. Whereas China will increase its impact, both political and economic, in Southeast Asia which can give it an advantage over local competitors.