ASEAN speeds up tariff reductions in 11 sectors<\/p>\n
Meidyatama Suryodiningrat, The Jakarta Post, Vientiane<\/p>\n
Leaders of the Association of Southeast Asian Nations (ASEAN)
\nagreed on Monday to accelerate tariff reductions by eliminating
\nCommon Effective Preferential Tariffs (CEPTs) in 11 sectors by
\n2007.<\/p>\n
The 11 sectors are agro-based, automotive, electronics,
\nfisheries, rubber-based, textile and apparels, wood-based, air
\ntravel, e-commerce (also known as \"e-ASEAN\"), health care and
\ntourist industries.<\/p>\n
\"This is a significant decision since these 11 sectors
\nconstituted more than 50 percent of intra-ASEAN trade in 2003,\"
\nASEAN Secretariat spokesman M.C. Abad said.<\/p>\n
Data from the ASEAN Secretariat shows that intra-ASEAN trade
\nlast year reached US$84 billion, or 23 percent of the region's
\ntrade with the world, a slight drop from the previous year's $80
\nbillion but higher than the $79 billion in 2001.<\/p>\n
The decision, endorsed under the Framework Agreement for the
\nIntegration of Priority Sectors, is aimed at hastening further
\neconomic integration toward a single market and production base
\nin the region.<\/p>\n
Under the ASEAN Free Trade Area (AFTA), all tariffs within
\nASEAN will be eliminated by 2010.<\/p>\n
With Monday's agreement, the ASEAN-6 countries -- Indonesia,
\nSingapore, Malaysia, the Philippines, Brunei and Thailand -- will
\nachieve the elimination of tariffs in these 11 priority sectors
\nby 2007.<\/p>\n
Tariffs averaged about 12 percent during the start of AFTA and
\nnow stand at an average of 2 percent.<\/p>\n
Due to the economic disparity between the first six ASEAN
\nmember states and the last four -- Cambodia, Laos, Myanmar and
\nVietnam (known by the acronym CLMV) -- a later deadline of 2012
\nhas been set for the CLMV countries for the elimination of
\ntariffs in the 11 priority sectors.<\/p>\n
ASEAN also agreed to establish criteria for identifying non-
\ntariff barriers by June next year, to be followed by a definitive
\nprogram for the removal of these barriers starting Dec. 31, 2005.<\/p>\n
While ASEAN officials were upbeat about this new initiative, a
\ncloser examination of the agreement revealed the stipulation
\nthat products \"on the sensitive list, highly sensitive list and
\ngeneral exception list would be exempt from the acceleration\".<\/p>\n
The director general of international cooperation at the
\nIndonesian Ministry of Trade, Pos M. Hutabarat, earlier said a
\ncountry could only place on the \"sensitive list\" an average of 15
\npercent of its total products from each sector.<\/p>\n
He said Indonesia had proposed a sensitive list dominated by
\nautomotive products and their components.<\/p>\n
ASEAN Framework Agreement for the Integration of Priority Sectors<\/p>\n
-- Eliminate tariffs in priority sectors by 2007 for ASEAN-6
\nand 2012 for CLMV countries.<\/p>\n
-- A work program for the removal of non-tariff barriers by
\nDec. 31, 2005.<\/p>\n
-- Accelerate the liberalization of services in priority
\nsectors by 2010.<\/p>\n
-- Encourage recognition of test reports by accredited
\nlaboratories to enhance harmonization of product standards and
\ntechnical regulations.<\/p>\n
-- Visa exemption for intra-ASEAN travel by ASEAN nationals by
\n2005.<\/p>\n
-- Develop an agreement to facilitate movement of
\nbusinesspeople, experts, professionals and skilled labor by Dec.
\n31, 2005.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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