New ASEAN members present tariff cut list
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)