AFTA [ASEAN Free Trade Area]. Members Of AFTA. Malaysia, Singapore, Thailand, Brunei Darussalam, Philippines, Indonesia [January 1992]. Vietnam [ 1995]. Laos and Myanmar . Cambodia . Objectives Of AFTA.
Members Of AFTA • Malaysia, Singapore, Thailand, Brunei Darussalam, Philippines, Indonesia [January 1992]. • Vietnam [ 1995]. • Laos and Myanmar . • Cambodia .
Objectives Of AFTA (i) accelerate the economic growth, social progress and cultural development in the region through joint efforts in the spirit of equality and partnership. (ii) promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region.
Ultimate Target for AFTA: Zero Tariff Rates • eliminate all the import duties on products. • 2015 for the six original ASEAN Member Countries and • 2018 for the newer Members. [Free flow of goods within region.]
Common Effective Preferential Tariff(CEPT) • cooperative arrangement among ASEAN Member States that will reduce intra-regional tariffs and remove non-tariff barriers over a 10-year period commencing 1 January 1993 for the ASEAN-6. • goal • to 0-5% by the year 2003 [ASEAN-6], 2006 for Vietnam, 2008 for Laos and Myanmar, and 2010 for Cambodia.
CEPT Product Lists • Inclusion List (IL) • Temporary Exclusion List (TEL) • Sensitive List (SL) • General Exception List (GEL)
Inclusion List (IL) • Products in the (IL) are subject to undergo liberalization through CEPT Agreement. • for example, all ASEAN-6 automotive products, machinery equipment, electrical equipment, and iron and steel products.
Temporary Exclusion List (TEL) • ultimately be lowered to 0-5%, but which are being deemed to be protected temporarily by a delay in tariff reductions. • Be eliminated by five equal installments annually. 1st installment was effected on January 1,1996 ; last effected on January 1, 2000. • For examples, mineral fuels.
Sensitive List (SL) • Due to their sensitivity, a special arrangement or mechanism (e.g., a longer timeframe of implementation, final CEPT rate higher than the existing 0-5%. • A small number of sensitive agriculturalproducts will be extended a deadline of the year 2010 for their integration into the CEPT scheme.
Sensitive List (SL)(Cont’) • Products in the “Highly Sensitive” category refer to rice for Indonesia, Malaysia, and the Philippines
General Exception List (GE) • products, which a country deems necessary for the protection of national security, public morals, the protection of human, animal or plant life and health, and protection of articles of artistic, historical value. • For examples, live plants and animals, alcoholic beverage and armaments