RI delays liberalization of auto sector under ASEAN plan
RI delays liberalization of auto sector under ASEAN plan
Zakki P. Hakim, The Jakarta Post/Jakarta
The government is determined in protecting the country's
automotive industry from competition with automotive players from
neighboring countries until 2010, despite the Association of
Southeast Asian Nations (ASEAN) plan to open up the sector within
the next two years.
According to a document obtained by The Jakarta Post,
automotive components dominated the country's temporary exclusion
list from ASEAN's plan to liberalize 11 "priority sectors"
including automotive by 2007.
Director General of Trade for international cooperation Pos M.
Hutabarat confirmed this.
"The automotive sector dominates the (negative) list by nearly
80 percent, or 78.8 percent to be precise," he told the Post
recently.
The inclusion of certain goods on the negative list was based
on the request of local industry players.
ASEAN members have agreed to liberalize the 11 sectors by 2007
for the regional grouping's six founding member countries, and
2012 for the newer members in a bid to boost trade and investment
within the region.
The 11 sectors are agro-based products, automotive, e-ASEAN,
electronics, fisheries, healthcare, rubber-based products,
textiles and apparel, tourism, wood-based products and air
travel.
ASEAN leaders are slated to strengthen this liberalization
commitment at a summit in Vientianne, Laos, later in November.
But under the liberalization plan, each country has a quota to
exclude no more than 641 groups of goods, or 15 percent of the
total tariff categories in the 11 priority sectors. This
temporary exclusion will expire in 2010.
There are a total of 4,273 tariff categories traded in the 11
priority sectors. The tariff groupings are based on the eight
digit tariff categories of the ASEAN Harmonized Tariff
Nomenclature (AHTN).
The ministry's director for regional cooperation, Eliver
Radjagoekgoek said that the proposed negative list had been
submitted to the ASEAN Secretariat on Monday.
ASEAN founding members are Brunei, Malaysia, Indonesia, the
Philippines, Singapore and Thailand, while Cambodia, Laos,
Myanmar and Vietnam joined later.
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RI's "negative list" in 11 priority sectors
Sectors Negative List
Tariff Posts
Electronics 38
Fisheries 6
Agro-based 18
Healthcare 5
Rubber-based 58
Textiles and Apparels 11
Automotive 505
Total 641
Note: Sectors on nonnegative list not included in the table
Source: Ministry of Trade