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.