MY2015/16 sugar exports are forecast to increase to 8.8 million metric tons, up 10 percent from MY2014/15 due to the advantage of Thai sugar in Asian market under the ASEAN Economic Community (AEC) Free Trade Agreement which will take effect on December 31, 2015 (postponed from January 1, 2015). The tariff rate on sugar will be reduced to 0-10 percent (compared to 5-40 percent) under the AEC. Sugar imports will be duty free in most ASEAN countries (including Thailand), except for the Philippines (5%), Indonesia (5-10%) and Myanmar (0-5%).