AFTA,WTO ASEANAustraliaNewZealandFTA

Chanunya Bandhukul

ThailandsSugarExports(1701)
Countries Quantity(MTT) (20072009) Value (MillionsUSD) (20072009)

World Indonesia Japan Cambodia Taiwan India

3,622,612 1,294,759 737,825 319,971 281,028 118,024

703.1 174.4 97.4 62.2 39.3 21.2

BackgroundonAFTAandCEPT agreement
ASEANFreeTradeArea
establishedin1992 toenhanceintraregionaltradebyloweringtariffsthroughthe CommonEffectivePreferentialTariff(CEPT)SchemeforAFTA

CommonEffectivePreferentialTariffagreement(CEPT) Tariffliberalisation EliminationofNonTariffMeasure

Goal of ASEAN Free Trade Area on Tariff reduction

CLMV : 100% of all tariff lines to be 0 %
flexibility: not more than 7% of all tariff lines and all tariff lines to be 0% up to 2018

ASEAN 6: 100% of all tariff lines at 0 %

ASEAN 6: 80% of all tariff lines at 0 %

1992

2007

2010

2015

**except for products in SL and HSL

AEC Blueprint
NTBs

Free Flow of Goods

NTBs tranche 1

NTBs tranche 2

NTBs tranche 3

eliminated by 1 JAN 2008

eliminated by 1 JAN 2009

by 1 JAN 2010 Philippines by 1 JAN 2012 CLMV by 1 JAN 2015

ASEAN5

NTBs : Non-Tariff Barriers

TARIFFLIBERALISATION
CEPTImplementation
CurrentStatus

ProductsinIL(%) 2009

CEPTRatesin IL(2009) 05%

AverageCEPTRates 2008 0.79 3.69 1.95 2009 0.79 3.00 1.65

ASEAN6 CLMV ASEAN10

99.41 98.60 99.09

99.71 93.15 97.14

Sensitive list: 0-5%

Thailand Brunei
Cambodia

Coffee, Potatoes, Copra, Cut flowers Coffee, Tea Meat of poultry, Live fish, some edible vegetables and fruits and some plants
Live animal, Bovine, Swine, Poultry, Some Vegetables and fruits, Rice, Tobacco Some live animals, Meat of swine, Poultry, Birds Eggs, some plants, some fruits, Tobacco

Lao PDR Malaysia Myanmar

Philippines

Nuts, Coffee, Raw Sugar, Silk, Cotton

Vietnam

Live poultry, Meat of poultry, Birds Eggs, Other live plants, Citrus fruit, Rice, Other prepared / preserved mead, Raw sugar

Singapore & Indonesia

None

Highly Sensitive List: end rates subject to negotiations

SugartariffratesinASEAN
ASEANMemberStates (AMS)

Tariffrates(%) 0 5 30(HS1701.11)/40 05 0 (MFN:0.5) 38 0 0

Cane(05)1701.11/1701.99 Beet(5)

TargetedTariffrates(%)

Brunei Cambodia Indonesia(HSL) Laos Malaysia Myanmar(SL) Philippines(SL) Singapore Thailand Vietnam(SL)

0 0 5(HS1701.11)/10(2015) 0 0 0.5(2015) 5(2015) 0 0 05(2015/2018)

Delays.
ProtocoltoProvide SpecialConsideration toRiceandSugar Whorequestfor thewaiverunder thisProtocol? Indonesia Philippines

AllowMemberStatesto requestforwaiveronriceand sugar(consideredpolitically sensitive) Justificationforrequest Indicativemodalityfortariff reduction AnnualReview

Indonesiasflexibilities
Products
RawSugar 1701110010 170111 170112 170190 RefinedSugar

2010

2011

2012

2013

2014

2015

30% 40%

25% 35%

20% 30%

15% 25%

10% 20%

5% 10%

170199

40%

35%

30%

25%

20%

10%

1701110010: ICUMSA Minimal 1200

Philippines flexibilities
Products 2010
SUGAR

2011

2012

2013

2014

2015

38% 38%

28% 18%

10%

5%

ASEANTRADEINGOODSAGREEMENT:ATIGA

ATIGA was signed by the ASEAN Economic Minister during the ASEAN Summit on 26th February 2009 in Thailand

ATIGA
Comprehensivecoverage:
CEPT: Tariff liberalisation General provisions on NTM ATIGA: All critical elements of free flow of goods: Tariff liberalisation Non-Tariff Measures Rules of Origin Trade Facilitation Customs Standards and Conformance SPS Measures

AgricultureNegotiationsunder WTO
Tariffreduction:TieredFormula

Substantial improvement inMarketAccess

Flexibilities:
Sensitiveproducts:lessercut/quota expansion

Substantialreductions indomesticsupportforall products

Reductionintradedistorting support Amberbox Bluebox Deminimis Productspecificcap Amber Blue

Market Access

Specialproducts:lessercut /nocut SpecialSafeguardMechanism

Developing Countries only

Elimination ofallforms ofexportsubsidies

Domestic Support

Export Competition

Eliminationofexport subsidyby2013

GreenBox disciplines

Disciplineson Exportcredit not exceed180day Disciplineson FoodAid ExportingStateTrading Enterprises

14

TieredFormula
DraftModalities DevelopedCountries: ThresholdCut 020% 2050% DevelopingCountries:
ThresholdCut G20 030% 3180% 81130% 130%up 33.33% 38% 42.67% 46.67%
URRound Developed36% Developing24%

50% 57% 64% 70%

5075% 75%up

Thailand:HighestTariff ReductionforDCs

15

SensitiveProducts
SELECTION TREATMENT
PriorityforThailand: maximumquotaexpansion
TARIFF REDUCTION

DraftModalities
Deviation from Tiered Formula 2/3 1/2 1/3 QuotaExpansion (%ofDomesticConsumption) Developing Developed Countries Countries 4 3.5 3 2/3ofthatof developed countries

DraftModalities
DevelopedCountries:4% ofTariffLines(TLs) DevelopingCountries:5.33%ofTLs
deviationfrom coretariff reduction formula

compensatedby TRQexpansion

16

LowAmbition

SpecialProducts

Selection

Implication
RiceAndSugar DraftModalities

12%ofTLs selfdesignatedasSP 5%mayhavezerocut AverageCut11%

ProductsofThaiinterests canbeexemptedfromtariff cut MajorImporting Countries Indonesia Philippines China S.Korea Taiwan S.Africa 17 Nigeria

HighAmbition

SpecialSafeguardMechanism
Selection Everyproduct eligiblebutnomore than2.5%ofTLs PriceCrossCheck (inprinciple)
Imports Surge (%) remedy 120 %imports<140% 1/3 of Doha Bound or 8 percentage points over Doha Bound; whichever is higher 140%imports 1/2 of Doha Bound or 12 percentage points over Doha Bound; whichever is higher Duration: (4)or(8)monthsin12monthperiod ForSeasonalPerishableProducts: 2yearson,1 yearoffprovidedthatduringthefirsttwo years,SSMhasbeentriggeredformorethan12 months Review:Reviewwithnon binding recommendationafter3yearsofSSM application

Export Subsidies
(reduction elimination of both value and volume / Elimination Schedule)

Export Credits, insurance and guarantees

(ensure fair and commercialbase competition)

Export Competition

Food Aid
(avoid surplus disposal from some donors incl. tied food aid)

State Trading Enterprise

(ensure fair competition in the world market / elimination of monopoly power and government financing)
19

Eliminationofallformsofexportsubsidies
Developed Countries 50% reduction by 2010 Developing Countries

Equal reduction tozeroby 2016

Equal reduction to zero by 2013

POSSIBILITIES?For
DEVELOPING COUNTRIES

al pic ts Tro uc d Pro

AANZFTA
Signed: 27 FEB 2009 14th ASEAN Summit, Hua Hin, Thailand Entry into Force: AANZFTA By 12 March 2010 AANZFTA has been effective in 9 Countries Australia, New Zealand, Brunei, Myanmar, Malaysia, Philippines, Singapore, Vietnam and Thailand The Rest (Cambodia, Indonesia and Laos) 60 days after the date of notification

Scope of AANZFTA

Comprehensive
TariffReduction SPS Safeguard Investment IntellectualProperty RulesofOrigin Standard Services EconomicCooperation CompetitionPolicy

Thailands market access commitments

AANZFTA Trade in 12 MAR 2010 = Goods 72.29% (% of 1 JAN 2015 = 89.77% products 1 JAN 2020 = 98.80% that tariffs are (Exemption: Cut flowers eliminated to and TRQ products) zero
percent)

TAFTA 1 JAN 2010 = 93.28% 1 JAN 2015 = 99.00% 1 JAN 2020 = 99.60% 1 JAN 2025 = 100.00%

TNZCEP 1 JAN 2010 = 89.72% 1 JAN 2015 = 99.29% 1 JAN 2020 = 99.85% 1 JAN 2025 = 100.00%

Department of Trade Negotiations FTA Call Center: 0-2507-7555 http://www.thaifta.com Or http://www.dtn.go.th