AFTA reviews progress in tariff reductions

AFTA reviews progress in tariff reductions

PHUKET, Thailand (AFP): The ASEAN Free Trade AREA (AFTA) Council yesterday began reviewing the progress the six member states have made in reducing tariffs on the goods traded within the group.

The ASEAN nations -- Thailand, Brunei, Indonesia, Malaysia, the Philippines and Singapore -- agreed on the tariff reduction scheme at the last meeting of economic ministers, in Chiang Mai, northern Thailand, last September.

The scheme calls for reducing to no more than five percent the tariffs each nation charges on many items traded to ASEAN partners. The cuts are to be made over a period of 15 years. So far, 2,800 items are on the tariff reduction list. But 282 items are on another "sensitive" list of items the countries want to protect longer and at higher rates, and 525 items are excluded from tariff cuts completely.

Senior economic officials from the six nations have been conferring here this week, in part to find ways to reduce the "sensitive" and "excluded" lists, Krirk-krai Jirapaet, chairman of the ASEAN senior economic officials meeting, told reporters on Wednesday.

"The idea is that, one, (ideally) nothing be excluded, two, that the list be as short as possible, and three, that we might have flexibility on some sensitive items," Krirk-krai said. "This will be discussed later."

The sticking point reportedly has been the inclusion of non- processed agricultural items, about which all six countries are sensitive.

The results of the discussions by the technocrats were to be brought before the AFTA Council meeting here yesterday afternoon.

Any action taken by the council would be referred to the regular EOM meeting this September in Brunei. The discussions here are informal, with the conference billed as a "retreat" for the ministers.

Golf was on the agenda Thursday morning and again Saturday. The economic ministers are expected to agree at their Brunei meeting to recommend further tariff reductions. These will be put to the ASEAN heads of state at their summit this December in Bangkok.