New ASEAN members present tariff cut list

PETALING JAYA, Malaysia (JP): Laos and Myanmar submitted yesterday a list of nearly 3,000 products to be included in the list for the ASEAN Free Trade Area (AFTA) just moments after they were admitted as the newest members of the grouping.

The inclusion list of products of the Common Effective Preferential Tariff (CEPT) of the two countries was presented by Laotian Foreign Minister Somsavat Lengsavad and Myanmar Foreign Minister Ohn Gyaw to ASEAN Secretary-General Dato Ajit Singh after yesterday's induction ceremony.

Under the CEPT scheme, members are required to undertake a tariff reduction program of 5 percent or less within 10 years, starting from the date they participated in the scheme.

The deadline for most ASEAN members -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- is 2003. Vietnam who joined ASEAN in 1995 will complete its commitments by 2006.

As new members, Laos and Myanmar will begin participating in the CEPT scheme on Jan. 1, 1998 and have to fulfill all their commitments by 2008.

Before the entry of the new members, the inclusion list was comprised of 42,253 tariff lines. The addition to the new list now increases it to 45,119.

The drawing up of the list was conducted under the assistance of the ASEAN Secretariat.

Laos' initial package of tariff reduction accounts for 15 percent of its total tariff lines, of which over two-thirds are in the electrical appliances and machinery sector. About 20 percent are in the optical, musical and precision instruments sector.

Myanmar's initial inclusion list represents about 43 percent of its total tariff line. The largest chunk, about 20 percent, is in the base metal and metal articles.

Products from the optical, chemical and agricultural sector account for about 9 percent each.

Ohn Gyaw and Lengsavad expressed their commitment to ASEAN's free trade regime saying they would continue to adhere to the requirements and obligations required.

Singapore Foreign Minister S. Jayakumar said he was confident Laos and Myanmar could integrate smoothly and successfully into ASEAN.

"They have signaled their determination to modernize and liberalize their economies, and have committed themselves to AFTA," said Jayakumar. (mds)