fta strategies of asean and china’s advance...

1

Japan External Trade Organization Japan External Trade Organization (JETRO)(JETRO)

Asia and Oceania Division, Overseas Asia and Oceania Division, Overseas Research DepartmentResearch Department

Seiya SukegawaSeiya Sukegawa

November 11, 2008

Institute of Social Science, The University of TokyoInternational Workshop for FY2008 by Contemporary China Research Base“Trade Team”

Date: November 11, 2008 13:00-17:30Venue: Center Conference Room (Room No. 549)

FTA Strategies of ASEAN and FTA Strategies of ASEAN and ChinaChina’’s Advance Southwards Advance Southward

Table of ContentsTable of Contents

ASEAN: trying to intensify integrationASEAN: trying to intensify integrationASEAN+1 and the move to establish an ASEAN+1 and the move to establish an

extensive economic regionextensive economic regionThe possibility of a sharp rise in imports The possibility of a sharp rise in imports

from China due to the deregulation of AFTA from China due to the deregulation of AFTA rules of originrules of origin

2

EPA: Economic Partnership AgreementFTA: Free Trade Agreement

Reduce or eliminate tariffs on goods

Reduce or eliminate service trade barriers

Elimination of investment regulations

Liberalization of the flow of people

(employment, etc.)

Cooperation (fostering industries, etc.)

Harmonization of intellectual properties systems and

competition policies

International trade agreement with the purpose of reducing or eliminating tariffs on goods and service trade barriers between certain countries and regions.

A mode (expanded form) of free trade agreement. In order to further liberalize and facilitate the flow of people, goods and money within the region, it eliminates national and border regulations and harmonizes different economic systems.

FTAEPA

Preparation of business environment Other

FTA (free trade agreement) and EPA (economic partnership agreement)

3

Em

erging markets

Em

erging markets

Export? Local production?OR

4

Association of Southeast Asian Nations (ASEAN)

Export Local productionAdvantage Avoids costs and risks associated with entry into the

marketRealizes short lead time and avoids trade risks

Dis-advantage

Transportation costs, lead time including customs clearing, certificates of origin, trade risks such as AD, exchange risks

Costs for entry into the market, operational risks

Russia: population: 142,220,000growth: 8.1% (2007)

India: population: 1,123,970,000growth: 9.0% (FY2007)

China: population: 1.321,290,000growth: 11.9% (2007)

Brazil: population: 183,990,000growth: 5.4% (2007)

EPA/FTA are tools to tap into emerging markets

GDP: 1,278,900 million dollarsPopulation: 563,980,000 (2007)

Entry

Industrial materials

Capital goods

Consumables

Foods and beverages

* ASEAN countries occasionally grant the benefit of tax exemption on industrial materials, capital goods (particularly for export products), etc.

Reduced/eliminated only through EPA

Occasional benefits of reduction and exemption of taxes as an investment incentive policy

Tariffs on end products can be eliminated only through EPA!

EPA/FTA

ASEAN Free Trade Area…Common Effective Preferential Tariff (CEPT)Elimination of tariffs, non-tariff barriers within the region

ASEAN6Thailand, Singapore, Malaysia, Indonesia,Philippines, Brunei

0-5% tariffSome exceptions approved

0-5% tariff for all items0% tariff for 60% of all items

AFTA started in 19932002

2003

20100% tariff for all items

Vietnam

Myanmar, Laos

Cambodia

0-5% tariff

0-5% tariff

0-5% tariff

2006

2008

2010

0% tariff for all items (exceptions until 2018)

2015

0% tariff for 11 prioritized areas of integration

2007

20070% tariff for 80% of all items

0% tariff for 11 prioritized

2012

Reduce tariffs of sensitive and highly sensitive lists to 0-5%

[Sensitive and highly sensitive lists]Vietnam: 0-5% tariff until 2013Laos, Myanmar: 0-5% tariff until 2015Cambodia: 0-5% tariff until 2017

AFTA

areas of integration

6

Finished cars, diesel engines, lamps, steering columns, bumpers, body panels

Toyota

Diesel engines, press parts, engine parts

Isuzu

Plastic parts, presses, outfitting goods, meters, cylinder blocks

Honda

Press parts, pumps, camshafts

Nissan

Engines, engine partsMitsubishi

Thailand

Gasoline engines, CKD parts for multipurpose vehicles, door lock frames, clutches, regulators, body panels

Toyota

Brake partsIsuzu

Engine parts, underbody parts, automatic transmissions

Honda

Brakes, fuel tanksMitsubishi

Indonesia

MetersNissan

Transmissions, constant-velocity joints, combination switches, meters

Toyota

Manual transmissions, air inlet/emission parts, pedals

Honda

Transmissions, axis propellersMitsubishi

TransmissionsIsuzu

Philippines

Steering links, radiators, engine computers, wiper arms

Toyota

Dashboards, constant-velocity joints, bumpers

Honda

Steering gears, suspensionsNissan

Gears, power steeringMitsubishi

Malaysia

(Reference) Prepared by JETRO based on materials provided by each

company

ASEANComplemen-tary system within the

region

Complementary system of automobile companies within the region

Percentage of

IL

Percentage of IL

Brunei 10,702 9,924 9,924 100.0% 8,472 85.4% 0 0 0 778 0 2002Indonesia 8,732 8,627 8,620 99.9% 6,900 80.0% 0 7 0 96 9 2007Malaysia 12,331 12,235 12,169 99.5% 10,112 82.6% 32 34 0 96 0 2007the Philippines 8,873 8,827 8,751 99.1% 7,321 82.9% 76 0 0 27 19 2007Singapore 8,298 8,298 8,298 100.0% 8,298 100.0% 0 0 0 0 0 2007Thailand 8,301 8,301 8,288 99.8% 6,643 80.0% 13 0 0 0 0 2007Total ofASEAN sixmembercountries 57,237 56,212 56,050 99.7% 47,746 84.9% 121 41 0 997 28Cambodia 10,689 10,454 6,682 63.9% 707 6.8% 3,772 0 0 181 54 2002Laos 8,298 7,878 7,878 100.0% 5,783 73.4% 0 0 0 221 199 2007Myanmar 10,689 10,615 10,611 100.0% 524 4.9% 4 0 0 51 23 2002Vietnam 8,300 8,099 8,009 98.9% 4,547 56.1% 90 0 0 201 0 2007Total of CLMVcountries 37,976 37,046 33,180 89.6% 11,561 31.2% 3,866 0 0 654 276

GeneralExceptionList (GEL)

Sensitive/Highly

SensitiveLists

(SL/HSL)

Reference(AHTN)

Tariff rate 5% or less Tariff rate 0%Over5%

Other

Totalnumber of

items

Inclusion List (IL)TemporaryExclusion

List (TEL)

Reduction of CEPT by ASEAN countriesTariff reduction in AFTA (as of August 2008)

7

(Note) (1) Inclusion list (list of items to reduce tariff rate) (2) Temporary exclusion list (items that are not ready for reduction)　　　 (3) General exception list (items exempted from tariff rate reduction <security items, items with academic value, etc.>) 　 (4) Sensitive list (items that are to be flexibly added to the inclusion list <unprocessed agricultural products>) (5) Highly

sensitive list <items related to rice>(Source) ASEAN Secretariat (Consolidated 2008 CEPT Package)

8

Thailand Malaysia Indonesiathe

Philippines Singapore Brunei Vietnam Laos Cambodia Myanmar

Overall average 10.0 8.4 6.9 6.3 0.0 3.6 16.8 9.7 14.2 5.6Agricultural products 22.0 11.7 8.6 9.6 0.1 7.9 24.2 19.5 18.1 8.7

Animal products 28.1 0.5 4.4 21.3 0.0 0.0 20.1 24.9 27.8 10.7Dairy products 15.8 3.4 5.5 3.9 0.0 0.0 21.9 8.5 25.8 3.4Fruits, vegetables, plants 27.6 4.2 5.9 9.4 0.0 0.0 30.6 30.3 14.0 11.5Coffee, tea 23.1 9.0 8.3 15.8 0.0 1.5 37.9 24.2 26.7 14.0Grains, grain-based products 19.4 5.1 6.3 10.9 0.0 0.1 27.4 9.2 19.8 8.7Rapeseed, fat, oil 19.1 1.7 4.0 5.6 0.0 0.0 13.4 12.0 9.1 1.7Sugar, confectionaries 32.3 2.8 10.4 16.0 0.0 0.0 17.7 12.5 7.0 5.4Beverages, tobacco 33.4 136.6 51.8 8.2 2.1 138.1 66.6 31.3 33.1 23.2Cotton 0.0 0.0 4.0 2.6 0.0 0.0 6.0 8.0 7.0 0.8Other agricultural products 10.3 0.6 4.3 3.4 0.0 0.0 7.8 9.8 15.5 3.1

Non-agricultural products 8.2 7.9 6.7 5.8 0.0 3.0 15.7 8.2 13.6 5.1Fish, fish products 14.5 2.2 5.8 8.0 0.0 0.0 31.3 12.7 18.9 8.2Minerals, metal 5.9 10.9 6.6 4.7 0.0 0.2 10.2 5.8 10.9 3.4Petroleum 9.4 1.1 0.5 2.9 0.0 0.3 17.5 14.9 14.8 1.8Chemical products 3.8 3.3 5.2 3.8 0.0 0.4 5.2 6.8 9.6 2.3Wood, paper, etc. 6.8 10.7 5.0 6.9 0.0 4.4 17.2 14.1 11.8 6.5Textile 8.1 10.5 9.3 9.3 0.0 0.9 30.4 8.9 9.6 8.4Clothes 24.5 16.0 14.4 14.9 0.0 0.0 49.3 10.0 28.5 17.2Leather, footwear, etc. 12.7 13.9 9.0 6.7 0.0 3.4 19.0 11.0 18.0 5.3Nonelectrical machinery 4.7 3.6 2.3 2.3 0.0 7.0 5.4 6.0 14.6 1.7Electrical machinery 8.3 6.5 5.8 3.8 0.0 14.4 12.8 6.8 24.2 4.3Transport machinery 20.7 11.4 11.6 9.0 0.0 10.0 22.2 13.5 16.3 4.2Other products 11.0 4.9 6.9 4.8 0.0 5.0 15.2 10.3 14.6 6.5

<Reference>3.6 4.7 4.0 4.2 0.0 5.1 12.7 - - -

(2006) (2006) (2005) (2006) (2006) (2006) (2005)Import-weighted average

tariff rates

ASEAN (early member countries) ASEAN (later joined countries)

Simple average tariff rates of ASEAN countries (2007)

Note: Data for Thailand are as of 2006.Reference: World Tariff Profiles 2008 (WTO)

Utilization rate of AFTA among exports from Thailand to ASEAN countries

(Reference) Prepared by Seiya Suekgawa,JETRO based on materials from Thai Ministry of Commerce and the World Trade Atlas 9


ASEAN: trying to intensify integration ASEAN: trying to intensify integration ASEAN+1 and the move to establish ASEAN+1 and the move to establish an extensive economic regionan extensive economic regionThe possibility of a sharp rise in The possibility of a sharp rise in imports from China due to the imports from China due to the deregulation of AFTA rules of originderegulation of AFTA rules of origin

10

“ASEAN+1” Free-trade area in East Asia achieved through FTA

11

Under negotiation

Concluded Under consideration/research

AFTA (ASEAN Free-Trade Area)(2010/2015)

ASEAN-India FTA(2012/2017)

* Philippines from 2016

ASEAN・EU FTA

* Under negotiation

ASEAN・CER (Australia-NZ) FTA

* Under negotiation

ASEAN-Japan CEP

ASEAN-South Korea FTA (2010/2018)

* Vietnam from 2016

ASEAN-China FTA(2010/2015)

ASEAN+6

* Remarks: Inside frames are the names of FTATariff elimination （early member countries/later joined countries)

USA・ASEAN FTA* Under

consideration

Agreed Aug. 2008Sign Dec. 2008

Agreed Aug. 2008Sign Dec. 2008

Effective from Dec. 2008

12

Premises (Note)By Jan. 1,

2004By Jan. 1,

2005By Jan. 1,

2006By Jan. 1,

2007By Jan. 1,

2009By Jan. 1,

2010By Jan. 1,

2012By Jan. 1,

2015By Jan. 1,

2018

Over 15% 10% 5%

More than 5% – 15% orless

5%

Less than 5%

－

20% or more － 12% 5%

15% or more – less than20% － 8% 5%

10% or more – less than15% － 8% 5%

Over 5% – less than10% － 5%

5% or less －

Sensitive List400 items (HS Code 6 digit)

and within 10% of grossimports

0-5%

HighlySensitive List

Whichever is less: 40% ofthe number of items on theSensitive List, or 100 items

Less than 50%

Eliminated

Current rate maintained



20% or less

20%

15%

10%

Eliminated

0-5% tariff rate for 40% oftotal items

0-5% tariff rate for 60% oftotal items

Eliminated

Completely eliminated

SensitiveTrack

Early Harvest(agricultural and fisheries

products)

Normal Track

Eliminated

Eliminated

5%

Eliminated(however, nomore than 150items will be

undermoratoriumuntil 2012)

(Note) MFN is based on the rate as of July 1, 2003. Reduction of Normal Track tariff in 2005 started on July 20.(Reference) Prepared by JETRO based on the “Goods Trade Agreement Under the China-ASEAN Comprehensive Economic

Cooperation Framework Agreement”

ASEAN-China FTA◇ Tariff reduction schedule of the original member countries

of ASEAN ◇Tariff rate as of July 1, 2003

13

No later thanJul. 1, 2006

No later thanJan. 1, 2007





No later than Jan. 1, 2016

0-5% tariff ratefor 50% of total

items

Eliminated formore than 90%of total items

0% (however,5% of items can

retain theirtariffs until

20 13 10 5 0

15 10 8 5 0

10 8 5 3 0

5 5 3 0 0

0 0

Sensitive List 20% or less 0-5%

Group A 50% or less

Group BReduce tariff rate by at least

20%

Group CReduce tariff rate by at least

50%

Group DAccording to AKFTA

Quarter Schedule

Group EExempted from tariff

reduction (40 items) * HSCode 6 digit

Within 10% of total items andwithin 10% of gross imports

Completely eliminatedNormal Track

10% or more – less than 15%

Over 5% – less than10%

5% or less Current rate maintained


SensitiveTrack

Either 200items or 3%,

and within 3%of grossimports

HighlySensitive List






Premises (Note)

20% or more

15% or more – less than 20%

(Note) MFN is based on the rate as of January 1, 2005. Reduction in 2006 started from July 1.Sensitive items are defined as within 10% of both the total number of items and imports (statistics of 2004).(Source) Prepared by JETRO based on various information

ASEAN-South Korea FTA◇ Tariff reduction schedule of the original member countries

of ASEAN ◇Tariff rate as of January 1, 2005

14

2005 2006 2007 First half of2008

Australia 67.3% 62.6% 66.2% 67.8%China 6.7% 12.3% 11.1% 11.2%India 17.6% 18.1% 14.0% 13.5%Japan - - 18.1% 20.4%[Note] Because the EPA with Japan became effective in November 2007, the usagerate for 2007 was calculated based on the data from November to December.[Reference] Prepared by Seiya Sukegawa,JETRO based on materials from theDepartment of Foreign Trade, Thai Ministry of Commerce and the World Trade

Thailand’s China trade and FTA utilization rate

2005 2006 2007

Australia 14.7% 13.8% 11.4%China 0.2% 0.7% 2.3%India 2.9% 2.8% 1.7%New Zealand 14.8% 38.5% 37.7%[Reference] Prepared by Seiya Sukegawa, JETRO based on materials from theDepartment of Foreign Trade, Thai Ministry of Commerce and the World Trade Atlas

<Export><Export>

<<輸入輸入>>

57.9

2.0

24.3

60.6

24.528.5 29.6

34.935.5

10.0

32.8

23.1

34.9 36.4

22.4

28.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2000 01 02 03 04 05 06 07

Exports to China

Import from China

（％）

（年）

<Import><Import>

[Top five items FTA is used in terms of value in export [Top five items FTA is used in terms of value in export to China] to China]

(1) cassava, (2) rubber, (3) kerosene, (4) polycarbonate, (4) bituminous oil, (5) fresh fruits

[Top five items FTA is used in terms of value in import [Top five items FTA is used in terms of value in import from China]from China]

(1) fruits, (2) ceramic tiles, (3) bags, (4) apples, (5) women’s clothing

Thailand’s Trade growth with China

15

33.4%

48.2%

39.6%

56.5%

18.9%14.9%

21.7% 22.6%

4.0%

19.1%18.5%

29.0%33.2%32.2%

13.4%

3.1%3.2%6.0%

9.1%

26.4%22.0%

0%

20%

40%

60%

TotalSingaporeMalaysiaThailandIndonesiathe Philippines

Vietnam

Q. ASEAN countries’ important future partner countries.

China Japan U.S.

Reference: Poll on Japan in Major Six ASEAN Countries (conducted Feb – Mar 2008)

Would a close relationship with China benefityour country?

Benefit Does notbenefit

ASEAN Laos 79 5 Singapore 75 4 Malaysia 74 1 Thailand 69 8 Vietnam 59 6 the Philippines 55 30 Indonesia 49 9 Cambodia 46 4

[Reference] The Gallup Organization, U.S.

Region/country

29.7%

57.8%

39.2%42.7%

12.8%8.6%

16.5%

28.0%

3.6%

25.8%25.3%

37.9%32.7%

42.7%

23.3%22.0%

10.6%13.0%

22.3%

45.0%

27.5%

0%

20%

40%

60%

80%

TotalSingaporeMalaysiaThailandIndonesiathe Philippines

Vietnam

Q. ASEAN countries’ currently important partner countries.

China Japan U.S.

View of ASEAN countries towards China


ASEAN: trying to intensify integration ASEAN: trying to intensify integration ASEAN+1 and the move to establish ASEAN+1 and the move to establish an extensive economic regionan extensive economic regionThe possibility of a sharp rise in The possibility of a sharp rise in imports from China due to the imports from China due to the deregulation of AFTA rules of originderegulation of AFTA rules of origin

16

Move towards the revision of AFTA rules of origin

Revision and increase in flexibility of AFTA/CEPT rules of origin

17

Changed the AFTA rules to either the Changed the AFTA rules to either the ““cumulative value added criteria cumulative value added criteria of 40% or change of the 4of 40% or change of the 4--digit tariff code (CTH)digit tariff code (CTH)””

[Introduction] Formulation of rules by items to be finished by t[Introduction] Formulation of rules by items to be finished by the end of 2007. Rules are to he end of 2007. Rules are to be changed from January 1, 2008be changed from January 1, 2008

““Rules of origin within the ASEAN region (CEPT) should have Rules of origin within the ASEAN region (CEPT) should have higher degree of freedom than the FTA with ASEAN dialogue higher degree of freedom than the FTA with ASEAN dialogue partners (ASSEAN+1s FTA)partners (ASSEAN+1s FTA)””

・ASEAN-South Korea FTA (AKFTA): Value added criteria (ASEAN-South Korea accumulated) 40% or Change of the 4-digit tariff code (CTH)

・ASEAN-Japan EPA (AJCEP): Value added criteria (ASEAN-Japan accumulated) 40% or Change of the 4-digit tariff code (CTH)・ASEAN-China FTA (ACFTA): Value added criteria 40% (ASEAN-China accumulated)・ASEAN Free-Trade Area (AFTA): Value added criteria 40% (ASEAN accumulated)　　* (1) Change in tariff classification can also be applied to wheat flour, wood products, aluminum products, iron and steel (from fall of

2005).　　* (2) Change in tariff classification can also be applied to items in the 11 prioritized areas of integration (from summer of 2007,

excluding Myanmar). ・ASEAN-India FTA (AIFTA): Value added criteria (ASEAN-India accumulated) 35% and Change of the 6-digit tariff code (CTSH)

TighteningTightening

[The 21st AFTA Council] August 2007[The 21st AFTA Council] August 2007

[Current conditions]

。。Put into effect in virtually all member countries on August 1, 2Put into effect in virtually all member countries on August 1, 2008008(Rules of origin include De (Rules of origin include De MinimisMinimis rule of 10% or less)rule of 10% or less)

[The 20th AFTA Council] August 2006[The 20th AFTA Council] August 2006

Implemented

18

Invest

Change in tariff classification (in the case of a 4-digit code)

((ChinaChina))Wooden casesHS ４４２１９０

(China)(China)Diodes

HS ８５４１１０

(China)(China)Cone units

HS ８５１８ 90(Domestic

procurement in Thailand)

Cone unitsHS ８５１８ 90

(1) applicable(1) applicable◎◎

(2) applicable (2) applicable ◎◎

(3) inapplicable(3) inapplicable××

Rising possibility of the inflow of Chinese Products in accordance with the increasing flexibility of AFTA rules of origin

Assembly plant of Chinese-affiliated Company A

SpeakersHS ８５１８ 22

AFTA-CEPTApply tariff rates

*: If assembly plant of Company A (Thai company) is approved as a promoted company by the Board of Investment (BOI) in Thailand, import tariff will not be applied for parts procured from China, or refund measures are applied under BIS Section 19. Exports from Thailand to ASEAN is available with AFTA-CEPT tariff rates.

Chinese-affiliated Company A

MFN: 10%AFTA: 5%

MFN: 20%AFTA: 5%

MFN: 15%AFTA: 0%

MFN: 10%AFTA: 0%

MFN: 0%AFTA: 0%

MFN: 10%AFTA: 1%MFN: 35%AFTA: 5%

MFN: 5%AFTA: 5%

MFN: 20%AFTA: 5%

(3)(3)’’ applicableapplicable◎◎

Tariff rates for home appliances in ASEAN6 Tariff rates for home appliances in ASEAN6 (TV set)(TV set)

19

[Note] China included the product in the Highly Sensitive List. Therefore, ASEAN actually does not need to grant the ACFTA preferential rate.

[Source] Prepared based on information from the World Tariff, Japan-Thailand EPA and implementation arrangements, ACFTA and AKFTA.

Japan Thailand Malaysia thePhilippines

Indonesia

Timing of tariffreduction April 1st April 1st January 1st April 1st January 1st

[Note] Tariff reduction date for each year differs by country.

Country Regular tariff rate Exported from 08 09 2010 11 12 13 14 15 16 17 18 RemarksThailand Within ASEAN 5 5 0

20% Japan (bilateral) 10 5 0Japan (AJCEP) 15 10 5 0China 20 20 20 20 20 20 20 20 20 20 5 SLSouth Korea (Same with regular tariff rates)

Malaysia Within ASEAN 030% Japan (bilateral) 18.75 15.63 12.50 9.38 6.25 3.13 0 25% B7

Japan (AJCEP) 27.27 24.55 21.82 19.09 16.36 13.64 10.91 8.18 5.45 2.73 0 B10China 12 5 0South Korea 30 30 30 30 20 20 20 20 5 5 5 SL

Indonesia Within ASEAN 5 5 015% Japan (bilateral) 12.5 10.0 7.5 5.0 2.5 0.0

Japan (AJCEP) 12.5 10.0 7.5 5.0 2.5 0.0China 15 15 15 15 15 15 15 15 15 15 5 SLSouth Korea 15 15 15 15 15 15 15 15 5 5 5 SL

the Philippines Within ASEAN 5 5 015% Japan (bilateral) 0

Japan (AJCEP) 0China 8 5 0South Korea 8 5 0 It is possible for

Chinese products to flow into ASEAN as “ASEAN products.”

Tariff rates for home appliances in CLMV Tariff rates for home appliances in CLMV (TV set)(TV set)

Country Regular tariff rate Exported from 8 9 2010 11 12 13 14 15 16 17 18 RemarksVietnam Within ASEAN 5 5 5 5 5 5 5 0

40% Japan (bilateral) (No bilateral EPA)Japan (AJCEP) 35.56 31.11 26.67 22.22 17.78 13.33 8.89 4.44 0China 40 40 40 40 40 40 40 40 40 40 40 HSLSouth Korea 40 40 40 40 40 40 40 40 40 40 40 HSL(B)

Cambodia Within ASEAN 5 5 5 5 5 5 5 015% Japan (bilateral) (No bilateral EPA)

Japan (AJCEP) (Same with regular tariff rates) X (exempted)

China (Same with regular tariff rates because the agreement has not gone into effect)South Korea 15 15 15 15 15 15 15 15 15 15 15 HSL(B)

Laos Within ASEAN 5 5 5 5 020% Japan (bilateral) (No bilateral EPA)

Japan (AJCEP) 20 20 20 20 20 20 15 15 15 15 15 BChina 15 15 15 10 10 5 5 0South Korea 20 20 20 20 20 20 20 20 20 20 20 SL

Myanmar Within ASEAN 5 5 5 5 5 5 5 015% Japan (bilateral) (No bilateral EPA)

Japan (AJCEP) 15 15 15 15 15 15 15 15 15 15 15 15％R(a)China 30 30 30 30 30South Korea 15 15 15 15 15 15 15 15 15 15 15 HSL(B)

Vietnam Myanmar Cambodia LaosTiming of tariffreduction April 1st April 1st April 1st April 1st

[Note] Tariff reduction date for every year is as follows.

20

[Note] Thailand has not signed AKFTA.China included the product in the Highly Sensitive List. Therefore, ASEAN actually does not need to grant ACFTA preferential rate.[Source] Prepared based on information from the World Tariff, Japan-Thailand EPA and implementation arrangements, ACFTA

and AKFTA.

21

Thank you very much for your attention.

fta strategies of asean and china’s advance...

Documents