Agreement On The Common Effective Preferential Tariff Scheme For The Asean Free Trade Area

2. Any amendment to this Agreement shall be made by consensus and shall take effect upon its adoption by all Member States. Temporary exclusions concern products for which customs duties are eventually reduced to 0-5%, but which are temporarily protected by a delay in tariff reductions. This is allowed by the AFTA agreement and is established in a protocol on the implementation of the temporary exclusion list of the CEPT system. Malaysia invoked this protocol in 2000 and delayed tariff reductions for fully built cars and auto-knock-down-kits, in order to protect its local car industry. (c) For products with a rate of duty of less than or less than 20% on 1 January 1993, Member States shall adopt a programme for the reduction of customs duties and announce at the outset the timetable for tariff reductions. Two or more Member States may conclude agreements to reduce customs duties on certain products to O%-5% at an accelerated pace, to be announced at the beginning of the programme. ASEAN members have the possibility to exclude products from the CEPT in three cases: 1.) Temporary exclusions 2.) Sensitive agricultural products 3.) General exceptions. Temporary exclusions concern products for which customs duties are eventually reduced to 0-5%, but which are temporarily protected by a delay in tariff reductions. (4) `exchange restrictions` means measures taken by Member States in the form of restrictions and other administrative procedures in the field of foreign exchange which have the effect of restricting trade. 2. Member States shall progressively remove other non-tariff barriers to trade within five years of the implementation of the concessions applicable to those products.

countries that undertake to eliminate tariffs among themselves: BY ADOPTING various instruments for the liberalization of preferential trade within the framework of ASEAN, countries (ZEP), signed in Manila on 24 February 1977, provides for the adoption of various instruments for the liberalization of preferential trade; The CEPT shall establish a system of tariff plans for the products referred to in Article 3. For goods covered by the 1977 preferential trade arrangements which are not included in the CEPT Schedule, the preferential margin provided for in Article 2(6) of this Agreement, as amended by the 1995 Protocol amending the Agreement on the Common System of Effective Preferences applicable to ASEAN-Free Trade Area, shall apply. The AFTA agreement was signed in Singapore on 28 January 1992. When the AFTA agreement was originally signed, ASEAN had six members, namely Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now includes the ten ASEAN countries. The four latecomers had to sign the AFTA agreement to join ASEAN, but were given longer deadlines to meet AFTA`s tariff reduction obligations. (7) Member States whose tariffs for agreed goods are reduced by 20% and below O%-5%, even though they are granted on a most-favoured-nation basis, continue to benefit from concessions. It shall be considered that Member States benefiting from customs duties at the most-favoured-nation rates of O%-5% have fulfilled the obligations arising from this Agreement and also benefit from the concessions. “This agreement will take effect upon signature.” CONVINCED that preferential trade agreements between ASEAN Member States are an incentive to strengthen Member States and this new analysis proposes to examine, among others, two key areas: port facilities and competitiveness in the Internet services sector.

According to the report, reforms in these areas could expand ASEAN trade by 7.5 percent ($22 billion) and 5.7 percent ($17 billion). .