The ASEAN-Australia- New Zealand FTA. September 23, 2008. Outline. Objectives Progress of Negotiations Tariff Reduction/Elimination Schedules Normal Track Sensitive Track 1 Sensitive Track 2 Exclusion List. Objectives. 1. ZERO TARIFFS FOR ALL PRODUCTS FOR ANZ
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The ASEAN-Australia- New Zealand FTA
September 23, 2008
1. ZERO TARIFFS FOR ALL PRODUCTS FOR ANZ
ASEAN’s target since the start of the negotiations is to demand 100% tariff elimination from Australia and New Zealand.
2. PHILIPPINES EQUALIZING WITH THAILAND –
( a major competitor which currently enjoys lower tariffs because of their bilateral FTAs with Australia and New Zealand)
3. Promote product complementation
Most of our major exports are not products of selling interest of Australia/New Zealand
Most of our imports from Australia/New Zealand are not locally produced or are locally produced but insufficient quantity
Examples of product complementation with Australia are on the autoparts and copper industries
Lowering of tariffs promotes lower-priced manufacturing inputs
1997 – Economic Benefits Study
(GDP increase of US$ 16.1 Bn )
2005 – Start of Negotiations
August 2008 – Conclusion of Negotiations
December 2008 – Signing of the Agreement at
the Summit in Bangkok
Entry in Force - 2009
Progress of Negotiations
AANZFTA Tariff Elimination/Reduction Modality
Philippine Tariff Reduction ScheduleNormal Track – 90% of tariff lines by 2013
Philippine Tariff Reduction ScheduleSensitive Track 1 – 6% of tariff lines by 2020
Zero for Zero for some auto and auto parts
Objective: Export Opportunity In Australia For The Automotive Industry
To equalize with Thailand’s existing rates under TAFTA
With zero tariffs for Philippine cars, Australia becomes an attractive export market for car and car parts manufacturers.
Philippines becomes an alternative investment site for international car companies planning to export to Australia.
Australian car exports to the Middle East and even Africa would constitute a valuable market for Philippine parts manufacturers.
Heavy Vehicles – no local production - Zero for Zero (ZFZ)
Big Engine Displacement (> 3 liters) – no local production - 0% by 2010,
Small Engine Displacement (3 liters or less)
30% MFN – 20% (2009), 14% (2010), 7% (2011), 0% (2012)
20% MFN – 15% (2009), 10% (2010), 5% (2011), 0% (2012)
15% MFN – 10%(2009), 5% (2010), 0% (2011)
Categories for CBU Tariff Reduction