Although the ASEAN Secretariat claims that AFTA is now virtually established, this statement might somewhat disguise the truth. Rice, considered as a highly sensitive product for the region, is still excluded from the AFTA agreement. Moreover, several members are still very unresponsive when they have to lower tariffs on certain other critical product groups. Malaysia, for example, refused to comply with the AFTA deadlines and kept on levying tariffs on completely built up (CBUs) and completely knocked down (CKDs)automotive units. By doing so, Malaysia undoubtedly wanted to protect its state-controlled carmaker Proton. Only very recently, automotive CBUs and CKDs have finally been transferred to Malaysia’s Inclusion List. It goes without saying that Thailand, having a fast-growing automotive industry itself, was not really pleased with this significant delay in Malaysia’s liberalisation efforts.