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1 ASEAN-China: Agreement on Trade in Goods  Signed in 2004 by the ASEAN Economic Ministers and China’s Minister of Commerce  Implementation began on.

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Presentation on theme: "1 ASEAN-China: Agreement on Trade in Goods  Signed in 2004 by the ASEAN Economic Ministers and China’s Minister of Commerce  Implementation began on."— Presentation transcript:

1 1 ASEAN-China: Agreement on Trade in Goods  Signed in 2004 by the ASEAN Economic Ministers and China’s Minister of Commerce  Implementation began on 1 July 2005 for ASEAN (Brunei Darussalam, Indonesia, Myanmar, Malaysia, Singapore, and Thailand) and China  Covers substantial reduction or elimination of tariffs and other barriers to establish the ASEAN-China Free Trade Area (ACFTA) by 2010, under the following tracks:  Normal Track – , with flexibility up to 2012  Sensitive Track – 2012 up to 2018

2 2 Normal Track: ASEAN-6 & China Tariff Reduction Modality Tariff Rate /2012 x ≥ ≤ x < ≤ x < < x < x ≤ 5Standstill00

3 3 Sensitive Track: Tariff Reduction/Elimination Modality ASEAN-6 and China  Two tracks: Sensitive (SL) and highly sensitive items (HSL)  Initial target: For SL, tariffs will be reduced to 20% in 2012 : For HSL, no commitment in 2012  Ending rate : 0-5% (SL) : 50% (HSL)  Ending date : 2018 (SL) : 2015 (HSL)  Article 17(2): Review ST in 2008 with a view to improving market access condition of sensitive products, including further possible reduction of the number of products in the ST

4 4 Comparative Tariff Reduction/Elimination Modality REDUCTION / ELIMINATION TRACK END RATE IMPLEMENTATION DATE ASEAN-6Cambodia, Laos, Myanmar and Vietnam Early Harvest Programme (EHP) 0 %2004 – – 2010 Normal Track: a. Normal Track b. Normal Track 2 0 % 2005 – – Sensitive Track: a. Sensitive List (SL) b. Highly Sensitive List (HSL) 0 – 5 % 50 % 2012 – –

5 5 ASEAN-China FTA: Executive Orders  Executive Order No. 485 (29 December 2005) implements EHP concessions  Executive Order No. 487 (12 January 2006) implements first tranche of tariff reduction under NT, i.e – 2008  Executive Order No. 613 (17 April 2007) implements second tranche of tariff reduction under NT, i.e.,  Executive Order No. 618 (23 April 2007) implements reciprocal tariff rate arrangement

6 6 ASEAN-Korea Free Trade Area Trade in Goods (TIG) Agreement  Signed in December 2006  Provides for the substantial reduction/elimination of tariffs and other barriers to trade by 2010, with flexibility up to 2012  Various Tracks Normal Track ( ) Sensitive Track ( )

7 7 Comparative Tariff Reduction/Elimination Modality FTA ElementsCommitments Normal Track - Thresholds ASEAN % of tariff lines in the NT at 0-5% by % of tariff lines in the NT at 0% by All tariffs in the NT at 0% by 2010, with flexibility to have tariff lines not exceeding 5% of all tariff lines or as listed in an agreed schedule, by All tariffs in the NT eliminated by 2012 Korea: - 70% of tariff lines in the NT at 0% upon entry into force of the Agreement - 95% of tariff lines in the NT at 0% by All tariffs in the NT eliminated by 2010 Sensitive Track -Cap -Category -SL/HSL Ratio -Thresholds 10% of all tariff lines and 10% of total import value based on 2004 statistics Sensitive and Highly Sensitive List SL: 7% of all tariff lines and 7% of total import value HSL: 200 tariff lines or 3% of all tariff lines and 3% of total import value SL: ASEAN 6 and Korea -Reduction to 20% by Reduction to 0-5% by 2016 HSL: ASEAN 6 and Korea Group A: Reduction to not more than 50% by 2016 Group B: Reduction by not less than 20% by 2016 Group C: Reduction by not less than 50% by 2016 Group D: Tariff lines subject to TRQs Group E: Tariff lines exempted from concessions (maximum of 40 tariff lines)

8 8 Modality for Tariff Reduction and Elimination under Normal Track X=applied MFN tariff rate ASEAN-Korea FTA Preferential Tariff Rate X ≥ 20% % ≤ x < 20% % ≤ x < 15 % % < x < 10%55300 X ≤ 5%Standstill00

9 9 ASEAN-Korea FTA: Executive Orders  Executive Order No. 639 (21 July 2007) implements NT concessions  Executive Order No. 638 (21 July 2007) implements reciprocal tariff rate arrangement

10 10 Contact Address Bureau of International Trade Relations Department of Trade and Industry 4/F Department of Trade and Industry - International Bldg. 375 Sen. G. Puyat Avenue Makati City Tel. No. 897 – 8289 / / 897 – 8290 Fax. No

11 11 Thank You!


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