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.