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 – 2005-2010, with flexibility up to 2012  Sensitive Track – 2012 up to 2018

2. 2 Normal Track: ASEAN-6 & China Tariff Reduction Modality Tariff Rate200520072009 2012 2010/2012 x ≥ 20201250 15 ≤ x < 20 15850 10 ≤ x < 15 10850 5 < x < 105500 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 – 20062004 – 2010 Normal Track: a. Normal Track b. Normal Track 2 0 % 2005 – 2010 2012 2005 – 2015 2018 Sensitive Track: a. Sensitive List (SL) b. Highly Sensitive List (HSL) 0 – 5 % 50 % 2012 – 2018 2015 2015 – 2020 2018

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. 2005 – 2008  Executive Order No. 613 (17 April 2007) implements second tranche of tariff reduction under NT, i.e., 2007-2008  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 (2006-2010) Sensitive Track (2012-2016)

7. 7 Comparative Tariff Reduction/Elimination Modality FTA ElementsCommitments Normal Track - Thresholds ASEAN 6 - 50% of tariff lines in the NT at 0-5% by 2007 - 90% of tariff lines in the NT at 0% by 2009 - 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 2012 - 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 2008 -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 2012 -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 20062007200820092010 X ≥ 20%20131050 15% ≤ x < 20%1510850 10% ≤ x < 15 %108530 5% < 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 / 897-8292 / 897 – 8290 Fax. No. 890-5149

11. 11 Thank You!