41. ASEAN, through the Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area (CEPT-AFTA) and now embodied in the ASEAN Trade in Goods Agreement (ATIGA), is well on the way to the elimination of tariffs within the ASEAN region, with deadlines of 2010 for ASEAN-6 and 2015 (with flexibility to 2018) for the newer ASEAN Member States (CLMV countries). Beginning 1 January 2010, ASEAN-6 countries achieved zero tariffs for 53,457 tariff lines covering 99.11 % of the total tariff lines traded under CEPT.
42. The way forward is to move beyond tariff reduction and increased productivity for a more sustainable growth. This is governed by ATIGA, which integrates all initiatives and measures related to trade in goods into one comprehensive framework. It focuses on non- tariff barriers, rules of origins (ROOs), customs, trade
facilitation, standards and conformance, and it is expected to enhance the rules-based system of trade in goods in ASEAN.
43. There has been a convergence towards more flexible and simpler ROOs under the CEPT-AFTA initiative. The utilisation rate of the CEPT-AFTA is, however, relatively low among the region’s firms. Moreover, there has been substantial variation in the
ROOs in ASEAN’s free trade agreements (FTAs) with its trading partners. This is clearly not favourable because of the ‘noodle-bowl’ effects it creates.
44. Meanwhile, the non-tariff barriers essentially lower the extent of trade openness across the ASEAN Member States. Some studies have indicated that the percentage premia of products restricted by non-tariff barriers is very high, ranging from 50 to 70 percent of the world competitive price.