ATIGA to remove tariffs in ASEAN by 2018

Wednesday, 20 January 2016
Viet Nam has signed nearly 10 free trade agreements (FTAs) bilaterally and multilaterally at different levels, notably a pact to become a member of the ASEAN Economic Community (AEC) from December 31, 2015 and the ASEAN Trade in Goods Agreement (ATIGA) to remove tariffs among the member countries by 2018.

 

ATIGA, the first comprehensive agreement of ASEAN to monitor all commercial activities of the block, was built on the basis of the Common Effective Preferential Tariff (CEPT),the ASEAN free trade agreement (AFTA) and other related agreements and protocols.


Illustrative image
 
Accordingly, the ASEAN member countries will grant priorities to each other equal or higher than those to partners in FTAs in which the block has participated in. Tariffs on most of goods were removed in 2015 and 7% of them will be flexible until 2018. Several agricultural products of Viet Nam are allowed to keep a 5% tariff after 2018.
 
Implementing ATIGA, by the end of 2014 Viet Nam cut 6,859 types of tax, equivalent to 72% of the import-export tariff and 1,720 tariffs were down to zero in 2015.
 
The 687 remaining tariffs, mainly related to sensitive products in Viet Nam-ASEAN trade, will be removed by 2018.
 
Viet Nam mainly exports to the ASEAN member countries rice; crude oil; steel; mobile phones and components; machine, equipment, tools and spare parts; petroleum and gasoline; computers, electronic products and components.
 
Viet Nam’s imports from the region include fundamental products; materials for local production; computers, electronic products and components; machines, equipment, tools and spare parts; and material plastic.
Van Hai (Source: VGP)

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