Ultimate Target of AFTA: Elimination
of All Import Duties The ASEAN leaders have agreed to eliminate all import duties by 2010 for the six original members of ASEAN and by 2015 for the new members. Currently, 20,701 tariff lines (representing 38 percent of the Inclusion List) already have zero duties. By 2003, the first six members will each have at least 60 percent of their Inclusion Lists with zero duties. Viet Nam will have 35.37 percent of its Inclusion List with no tariffs in 2006 while Laos and Myanmar will abolish import duties on 87.6 percent and 3.9 percent, respectively, of their IL by 2008. Cambodia will eliminate duties on 7.64 percent of its IL in 2010.
Intra-ASEAN Trade Grows Faster than Extra-ASEAN Trade
Intra-ASEAN trade increased at a faster pace, with annual growth rate averaging 10.5%, as compared to either overall ASEAN trade (by 9.2%) or extra-ASEAN trade (by 8.9%) during the period 1993-2013. The share of intra-ASEAN trade in overall ASEAN trade has been on an increasing trend starting from 19.2% in 1993 to 22% in 2000 and 24.2% in 2013, and accounted for 25% of the region’s total GDP in 2013. ASEAN is a very important export market (with a share of 15% or higher) for most of the ASEAN Member States (AMSs), and a very important import supplier (with a share of 15% or higher) for all ten AMSs.