TAR LAW: Preferential Trade Agreement

• Preferential Trade Agreements


  Agreements that grant tariff concessions
• Trade in Goods Agreement

  Primary agreement concerned with granting of tariff concessions
• Components of a Trade in Goods Agreement

  • Set of criteria to determine country of origin
  • Guidelines to determine eligibility for preferential tariff treatment
• ASEAN holds meetings known as the ASEAN Summit
• Heads of government of each Member State meet to discuss and resolve regional issues at the ASEAN Summit
• ASEAN Summits were held twice a year starting in 2007
• At the 9th ASEAN Summit in October 2003, ASEAN Leaders resolved to establish an ASEAN Community
• ASEAN Community Three Pillars

  • ASEAN Political-Security Community
  • ASEAN Economic Community
  • ASEAN Socio-Cultural Community
• The ASEAN Charter outlines the framework for the ASEAN Community
• The ASEAN Economic Community Blueprint 2025 outlines the goals for economic integration
• The ASEAN Free Trade Area (AFTA) aims to reduce tariffs among member countries
• Common Effective Preferential Tariff (CEPT) Scheme

  A scheme to reduce tariffs among ASEAN countries
• 1. ASEAN Framework Agreement


  A framework to promote e-commerce in ASEAN
• ASEAN Integration System of Preferences (AISP)

  A scheme for integrating priority sectors in ASEAN
• The Framework Agreement for the integration of priority sectors was signed on 30 November 2004 in Vientiane, Laos
• The Amended Framework Agreement was signed by ASEAN Economic Ministers on 08 December 2006 in Cebu
• ASEAN Harmonized Tariff Nomenclature (AHTN)


  A system for classifying goods for tariff purposes
• The ASEAN-China Free Trade Area (ACFTA) Framework Agreement was signed on 04 November 2002
• The ACFTA was created by 01 January 2010
• The ASEAN-Hong Kong, China Free Trade Area (AHKFTA) is a trade agreement between ASEAN and Hong Kong
• The ASEAN-India Free Trade Area (AIFTA) Agreement was signed on 08 October 2003 and entered into force on 01 July 2004
• The ASEAN-Japan Comprehensive Economic Partnership (AJCEP) Framework Agreement was signed on 08 October 2003 in Bali, Indonesia
• The ASEAN-Korea Free Trade Area (AKFTA) is a trade agreement between ASEAN and South Korea
• The Philippines-Japan Economic Partnership Agreement (PJEPA) is a trade agreement between the Philippines and Japan
• ASEAN Plus Three Cooperation involves ASEAN and three East Asian countries
• RCEP stands for Regional Comprehensive Economic Partnership