Import tariffs on around 400 items traded between Asean and China will be cut to 0-5%, starting from Jan 1, 2018, as part of the continuing stages of the Asean-China free trade agreement (FTA). The pact is expected to help double trade value between the two sides to US$1 trillion (32.7 trillion baht) by 2020.
Deputy Commerce Minister Chutima Bunyapraphasara said once the 400 items on the sensitive list are removed, the final stage of cutting tariffs for very sensitive items can begin.
Most of the goods on the sensitive list are agriculture products and major commodities that have been protected for a long time with high import tariffs to help local farmers from a flood of imports through the FTA.
“However, the upcoming tariff cut has been phased in gradually, allowing the two sides time to adjust. This new stage of the FTA will mean a sharp rise in trading value between Asean and China,” she said.
Asean and China started negotiations on an FTA in the early 2000s, reaching an agreement in 2004.
Import tariffs for around 90% of total goods, or 8,600 items, have already been slashed to 0-5%, she said.
Source: Kaplan Herald
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