S'pore to abolish import tariffs

S'pore to abolish import tariffs

SINGAPORE (AFP): Singapore said on Friday it will abolish all import tariffs on ASEAN goods from Jan. 1 in an attempt to give impetus to a Southeast Asian free trade area due to come into effect in 2003.

The small but affluent city-state, the strongest economy in the Association of Southeast Asian Nations, said it will remove import tariffs for goods under the Common Effective Preferential Tariff (CEPT) scheme of the ASEAN Free Trade Area (AFTA).

Under the AFTA schedule, tariffs within ASEAN will fall to zero to 5 percent within the region at the start of 2002.

"With effect from 1 January 2001, Singapore will accord tariff-free access for all ASEAN goods under the CEPT scheme for AFTA," the Ministry of Trade and Industry said in a statement.

"Reciprocally, Singapore companies will also be able to enjoy preferential tariffs on their exports to ASEAN under the CEPT scheme for AFTA," it added.

Singapore, which has been criticized for seeking free trade agreements with a host of other countries outside ASEAN, said it had reviewed its AFTA tariff commitments "with the view to catalyze free and open trade in the region".

It sealed a free trade arrangement with New Zealand earlier this year, is negotiating a similar pact with the United States and hopes to start talks with Japan next year.

ASEAN hopes to complete the AFTA process by the end of 2002 for six of its more developed members -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- and at a later date for Cambodia, Laos, Myanmar and Vietnam.

Under the AFTA timetable, ASEAN slashed tariffs to between zero and 5 percent for 85 percent of products in its "inclusion list" this year.

This will be raised to 90 percent in 2001 and 100 percent in 2002 but with some flexibility for countries wanting longer protection for key products.

Average CEPT tariff rates this year fell to 4.43 percent from 12.76 percent in 1993 when AFTA was launched.