TARIFFSOVERVIEW AND OF REGIONAL TRADE THEAGREEMENTS AEC 2015 1 1 Association of Southeast Asian Nations (ASEAN) DATE MILESTONES 08 August 1967, Bangkok, Thailand ASEAN was established with the signing of the ASEAN Declaration (Bangkok Declaration) by Indonesia, Malaysia, the Philippines, Singapore and Thailand – the Founding Fathers of ASEAN 4th ASEAN Summit in Singapore in 1992 ASEAN Heads of Government formally agreed to establish the ASEAN Free Trade Area (AFTA) Common Effective Preferential Tariff (CEPT) Main mechanism for the realization of AFTA; Nucleus of ASEAN integration ASEAN Trade in Goods Agreement (ATIGA) Signed on 26 February 2009 at Cha-am, Thailand, and entered into force on 17 May 2010; Improvement over the current AFTA-CEPT Scheme 2 KEY ELEMENTS OF ATIGA Consolidates, streamlines all CEPT-AFTA provisions Provides the full tariff reduction schedule of each Member State; making it transparent and predictable for business community Free Flow of Goods Elimination of NTBs Trade Facilitation Measures 3 ASEAN Community DATE MILESTONES December 1997, Kuala Lumpur, Malaysia ASEAN Leaders agreed on a shared vision (ASEAN 2020) of outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies 9th ASEAN Summit, October 2003, Bali, Indonesia ASEAN Leaders resolved that an ASEAN Community shall be established 12th ASEAN Summit, January 2007, Cebu, Philippines Leaders affirmed their strong commitment to accelerate the establishment of an ASEAN Community by 2015 with the signing of the Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015 4 ASEAN Economic Community 2015 KEY CHARACTERISTICS OF THE AEC a single market and production base a highly competitive economic region a region of equitable economic development a region fully integrated into the global economy 5 ASEAN Economic Community 2015 On Free Flow of Goods: Elimination of all import duties by the 10 ASEAN MemberCountries Laos and Myanmar ASEAN 6 2003 – 60% 2008 – 60% 2007 – 80% 2012 – 80% 2010 – 100% 2015 – 100% with Viet Nam flexibility up to 2018 2006 – 60% Cambodia 2010 – 80% 2010 – 60% 2015 – 100% with 2015 – 100% with flexibility up to 2018 flexibility up to 2018 6 Status of Philippine Tariff Commitments under ATIGA No. of 2012 Products Category AHTN Share to Total Products Covered Lines Inclusion List: With zero tariff 9,685 98.63% All except those listed below With 5% tariff 74 0.75% Maize, Cassava, Sweet Potato, Live/Meat of Poultry, Live/Meat of Swine Special 35 0.36% Rice: 2013-2014 - 40%, 2015Consideration for 35%; Rice and Sugar Sugar: 2013 -18%, 2014 10%, 2015-5% Exclusion List 26 0.26% Arms and ammunition Total 9,820 100.00% 7 Philippine Tariff Commitments under FTAs by 2015 2015 Rates of Duty ACFTA AKFTA AANZFTA Timeframe 2010 2010 2013 2018 2018 0 0.75-5 5.25 - 15 15.36-25 25.18 UP HSL GE/EL TOTAL 86.84 3.43 88.09 0.51 92.89 1.90 3.47 57.17 67.12 24.15 4.10 3.17 2.05 0.01 0.40 100.00 3.77 3.87 3.35 0.39 100.00 4.83 0.05 0.41 1.00 100.00 23.11 0.88 1.12 14.24 100.00 4.01 1.59 0.76 2.43 100.00 Percentage Share (%) AIFTA AJCEPA 8 EXISTING FTAs IN THE PHILIPPINES FTA Implementing EOs TIG Agreement Signed Entry Into Force ATIGA 850 (AFTA-CEPT ) 26 Feb. 2009 17 May 2010 (retroactive 01 Jan. 2010) ACFTA 485, 487, 613, 618, 814, 71, 72 26 Nov. 2004 2006 AKFTA 638, 639, 812, 73,74 24 Aug. 2007 01 Jan. 2008 PJEPA 767, 905 09 Sept. 2006 2008 AJCEPA 852 14 April 2008 July 2010 AANZFTA 851 19 Feb. 2009 01 Jan. 2010 AIFTA 25 13 Aug. 2009 17 May 2011 9 WAY FORWARD Government Sector Complete the tariff reduction schedule to 0‐5% for IL products CLMV countries Elimination of Non‐Tariff Barriers Continuous reform, enhance and simplify CEPT ROO and its operational procedures Customs integration ‐ ensure customs development; operationalize ASEAN Single Window 10 WAY FORWARD SMEs Ensure that Trade Officials are fully aware of the sectoral interests and concerns Provide inputs in the consultations conducted by various government agencies Take advantage of all the institutional and informal channels to pro-actively participate in decisionmaking process 11 WAY FORWARD SMEs Have a good understanding of the opportunities offered, as well as the changes brought about by the FTAs Familiarity with the FTA provisions of relevance to your sector 12 TARIFF COMMISSION 5th Floor Philippine Heart Center, East Avenue, Diliman, Quezon City Tel. (+632) 926-8731 Fax (+632) 921-7960 Website: www.tariffcommission.gov.ph Email : info@tariffcommission.gov.ph 13 THANK YOU !!! 14