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PRELIM SPECIAL AND DIFFERENTIAL TREATMENT

FOR LESS DEVELOPED MEMBERS


THE GENERAL AGREEMENTS ON TARIFFS AND Developing and least developing members face
TRADE (GATT) particular challenges when dealing with trade
Set up in 1947 as a Negotiating Forum on the liberalization; therefore, they are provided greater
reduction of trade barriers.
flexibility, given more time to adjust to the rules, and
A multilateral treaty which provides rules for
granted other special rights.
international trade.
An international court for the settlement of trade THE ORGANIZATIONAL STRUCTURE OF THE
disputes. WTO:
Consisted of 8 rounds (series of negotiations)
starting from the Geneva Round to the Uruguay The Ministerial Conference
Round. The highest decision-making body of the WTO;
The final act concluding the Uruguay Round and Meets at least once every two years to review the
officially establishing the WTO regime was signed on ongoing work, provide political guidance and direction
April 15, 1994, during the ministerial meeting at to that work, and set the agenda for further works as
Marrakesh, Morocco, and hence is known as the necessary.
Marrakesh Agreement.
The General Council
THE WORLD TRADE ORGANIZATION Composed of the representatives from all members:
A single, formal and permanent international trade usually Member’s Ambassadors or Permanent
organization dealing with the rules of trade between Representatives based in Geneva.
nations.
The GC meets as appropriate to adopt decisions, on
This is the successor of the GATT – a multilateral behalf of the MC, when the latter is not in session.
treaty which provides a code of agreed rules for
The GC has authority over the Trade Negotiation
international trade embodying rights and obligations
Committee which is in charge of the negotiations
of a legal character which entered into force on
mandated by the Doha Development Agenda.
January 1, 1948.
The GC also meets as:
Serves as a negotiating forum and trade dispute
o Dispute Settlement Body – establishes panels of
settlement body on trade problems between
independent experts to resolve the disputes, adopts
members.
the rulings of the panels and oversees the
As of July 2016, there are already 164 members
implementation of those rulings;
representing more than 97% of the world’s
o Trade Policy Review Body – administers trade
population.
policy reviews as mandated by the Trade Policy
Headed by Director
Review Mechanism of the WTO.
The Philippines is a member since January 1, 1995.
Councils and Subsidiary Bodies
OBJECTIVES OF THE WTO
- Council for Trade in Goods
To help trade flow as freely as possible;
Oversees all the issues related to the WTO Agreement
To achieve further liberalization of trade through on Trade in Goods. It supervises the work of various
negotiations; and committees responsible for specific matters.
To set up an impartial means of settling dispute. - Council for Trade in Services
Oversees all issues related to the General Agreement
FUNCTIONS OF THE WTO of Trade in Services (GATS).
1. Administration of trade agreements; - Council for Trade-Related Aspects of
2. Forum of trade negotiations and trade disputes; Intellectual Property
3. Monitor the national trade policies; Oversees all issues related to the Trade-Related
4. Technical assistance and training for developing Aspects of Intellectual Property Rights (TRIPS)
and least developed countries; and Agreement.
5. Cooperation with other international organizations.
How are decisions made at the WTO?
FUNDAMENTAL PRINCIPLES OF WTO The WTO continues GATT’s tradition of making
NON-DISCRIMINATION decisions not by voting but by consensus. Where
Members shall not discriminate between their trading consensus is not possible, the WTO Agreement allows
partners (MFN principle); or between national and for voting – a vote being won with a majority of the
foreign like products, services or nationals (national votes cast, unless otherwise provided in said
treatment principle). Agreement. At meetings of the MC and the GC, each
MORE OPEN TRADE WTO members shall have one vote.
Involves efforts in reducing or eliminating obstacles to
trade. In What Ways does the WTO Operate?
TRANSPARENCY AND PREDICTABILITY As a set of multilaterally-agreed rules governing the
Traders and members need to know trade rules trade behaviour of governments providing, in
around the world (transparency) and that trade essence, the rules of the road for trade;
measures will not be raised/introduced arbitrarily As a forum for trade negotiations in which the trade
(predictability). environment is liberalized and made more predictable
either through the opening of national markets or the FUNCTIONS OF THE WCO
reinforcement and extension of the rules themselves; To study all questions relating to cooperation in
As an international court where governments can customs matters;
resolve disputes with other WTO members. To examine the technical aspects, as well as the
economic factors related thereto, of customs systems
How does the WTO promote trade with a view to proposing to its members practical
liberalization? means of attaining the highest possible degree of
Through the conduct of multilateral trade negotiations harmony and uniformity;
known as “Rounds”, to remove or reduce barriers to To prepare draft conventions and amendments to
world trade. Conventions and to recommend their adoption by
interested governments;
THE URUGUAY ROUND To make recommendations to ensure the uniform
The UR was the eighth round of multilateral trade interpretation and application of the conventions
negotiations conducted within the framework of the concluded as a result of its work as well as those
GATT, spanning 1986 to 1994 and including 123 concerning the Nomenclature for the Classification of
countries as “contracting parties”. It covered areas Goods in Customs Tariffs and the Valuation of Goods
before integrated into GATT – agriculture, textiles and for Customs Purposes and, to this end, to perform
such functions as may be expressly assigned t it those
clothing, services, trade-related intellectual property
Conventions in accordance with the provision thereof;
rights, and trade-related investment measures. To make recommendations, in a conciliatory
capacity, for the settlement of disputes concerning
The UR transformed the GATT into the WTO which
the interpretation or application of the Conventions
was established in 1995. referred to in the above paragraph;
To ensure the circulation of information regarding
The Final Act embodying the 30 agreements and 22
customs regulations and procedures;
ministerial decisions resulting from the UR, and the On its own initiative or on request, to furnish
Agreement to establish the World Trade Organization, interested governments information or advice on
was signed on April 15, 1194 at Marrakesh, Morocco – customs matters within the general purposes of the
known as the Marrakesh Agreement. present convention and to make recommendations
thereon; and
THE THREE KEY RESULT AREAS OF THE To cooperate with other intergovernmental
URUGUAY ROUND organizations as regards matters within its
a. Market Access competence.
Includes negotiations in industrial tariffs, agriculture,
textiles and clothing and services. HOW DOES THE WCO OPERATES?
b. Rules and Disciplines The WCO is the only international organization
Negotiating topics ranged from trade measures dealing exclusively with customs matters. It provides
against unfair trade (such as anti-dumping and for a forum where delegates representing a large
countervailing measures), trade measures to protect a variety of members could tackle customs issues on
country against import surges and a deterioration of equal footing.
its balance-of-payments, trade restrictions, customs
valuation, subsidies, intellectual property rights and THE WORKING BODIES IN THE WCO:
investment measures.
c. Institutional Topics Council
Includes dispute settlement and ways by which to The highest body composed of the Directors-General
improve the conduct of the MTS, e.g. of Customs from all members and is assisted by the
trade policy review. Finance Committee (17 members) and by the Policy
Commission (24 members). The council meets once a
year with the aim of securing the highest degree of
WHAT IS THE WORLD CUSTOMS harmony and uniformity in the customs system of
ORGANIZATION? Member Governments.
Established in 1952 as the Customs Cooperation Policy Commission
Council (CCC), the WCO maintains the Harmonized Established to act as a dynamic steering group to the
Commodity Description and Coding System (HS), and council.
internationally accepted goods nomenclature and Finance Committee
administers technical aspects of the WTO Agreement Acts under the overall direction of the WCO Council
on Customs Valuation and Rules of Origin. It adopted with administrative support provided by the WCO
the informal working name “World Customs Secretariat.
Organization” in order to indicate more clearly its Tariff and Trade Affairs:
nature and world-wide status. However, the Harmonizes System Committee
Convention establishing the CCC has not been Administers the International Convention on the
amended, thus Customs Cooperation Council remains Harmonized System to ensure that the HS keeps
its official name. abreast of technical progress and international trade
To date, the WCO has a worldwide membership of developments; resolves specific classification
182 Customs Administration across the globe that problems; and acts as an arbitrator in customs
collectively process approximately 98% of the world disputes between countries and makes decisions
trade. It has its headquarter in Brussels, Belgium. regarding the tariff code applicable to goods.
Harmonized System Review Sub-Committee THE SECRETARY GENERAL
Acts under the overall direction of the HS Committee Dr. Kunio MIKURIYA
on the review and amendments of the HS having Dr. Kunio Mikuriya has been Secretary General of the
regard to the needs of the users and to changes in World Customs Organization (WCO) since 1 January
technology or in patterns of international trade, and 2009. He provides leadership and executive
on the preparation of consequential amendments to management for the global Customs community’s
the Explanatory Notes and Compendium of priorities, including developing global Customs
Classification Opinions. instruments, standards and tools; securing and
facilitating global trade; protecting taxable amounts
Scientific Sub-Committee through optimal revenue collection; building Customs-
Assists the HS Committee and the Review Sub- business partnerships; and delivering capacity
Committee in their technical work particularly on the building in support of Customs reform and
draft HS legal texts and Explanatory Notes involving modernization.
scientific issues, and with regard to questions Prior to joining the WCO, he worked for Japan's
involving the classification of chemical products and Ministry of Finance for 25 years. During his career
those involving scientific issues. with the Ministry, Dr. Mikuriya occupied a variety of
senior posts, which have given him broad experience
HS Working Party and knowledge in Customs, trade, development,
Under the overall direction of the HS Committee, budget, and financial policies. He served as Director
drafts the texts of possible amendments to the HS of Enforcement where he led efforts to fight illicit
Nomenclature, Explanatory Notes and Compendium of trade, then as Director of Research and International
Classification Opinions before their final adoption by Affairs, paving the way for the conclusion of Japan’s
the HS Committee. first regional trade agreement, and then as a
Counsellor in the Tariff and Customs Bureau. He also
Technical Committee on Rules of Origin served as Director of Salaries and Allowances to
Together with the WTO Committee on Rules of coordinate remuneration levels for the entire
Origin, is charged with the implementation of the government workforce, and as the Budget Controller
work program on the harmonization of rules of origin. for Foreign Affairs, Official Aid, International Trade
and Industry, in the Budget Bureau. In addition, he
Technical Committee on Customs Valuation spent time as a Counsellor at the Japanese Mission to
Responsible for matters pertaining to customs the WTO in Geneva and participated in the GATT
valuation; and prepares opinions, commentaries, Uruguay Round trade negotiations.
explanatory notes, case studies and surveys. Dr. Mikuriya has a degree in law from the University
of Tokyo (Japan) and a PhD in international relations
from the University of Kent (United Kingdom).
THE WORLD CUSTOMS ORGANIZATION
WORKING BODIES WCO MAJOR WORKING BODIES
The WCO Secretariat, which is based in Brussels,
Belgium, consists of more than 150 staffers
(Organization Chart - for Members only) from
around the world and runs the WCO’s day-to-day
operations under the leadership of a Secretary
General. Together with the WCO’s Committees, the
Secretariat implements the WCO Strategic Plan as
approved by the Council. The Secretariat supplies
technical, logistical and professional support to the
various working bodies established by the Council,
delivers capacity building, technical assistance, and
training, and develops and maintains international APEC
Customs instruments and tools. The WCO’s official What is the Asia-Pacific Economic
working languages are English and French. Cooperation?
APEC refers to the association created in 1989 for
economies that share the boundaries of the Pacific
Ocean. APEC Member economies work together to
reduce barriers to trade, ease the exchange of goods,
services, resources and technical know-how, and
strengthen economic and technical cooperation
between and among members.

THE FOUR OBJECTIVES OF APEC


Sustain the growth and development of the region
for the common good of its people thus contributing
to the growth of the world economy.
Enhance the gains of both the regional and world Committee on Trade and Investment
economies by encouraging the flow of gods, services, The Committee on Trade and Investment coordinates
capital and technology. APEC's work on the liberalization and facilitation of
Develop and strengthen the open multilateral trade and investment. The Committee on Trade and
trading system in the interest of the Asia-Pacific Investment also works to reduce impediments to
Member economies and all other economies. business activity through its Sub-Committees and
Reduce barriers to trade in goods and services, and Experts' Groups.
minimize hindrance to investment among its
participants in a manner consistent with GATT/WTO SOM Committee on Economic and Technical
principles, where applicable, and without detriment to Cooperation
other economies. The SOM Committee on Economic and Technical
Cooperation assists APEC Senior Officials in
THE THREE PILLARS OF APEC coordinating and managing APEC's economic and
Trade and Investment Liberalization technical cooperation agenda, as well as identifying
APEC members take actions to reduce tariff and non- initiatives for cooperative action by member
tariff barriers to trade and investment that boosts job economies.
creation, incomes and growth. Collaboration is guided
by APEC's Regional Economic Integration agenda and Economic Committee
includes the advancement of bilateral and regional The Economic Committee (EC) has a mandate to
trade agreements and the long-term goal of a Free promote structural reform within APEC by undertaking
Trade Area of the Asia-Pacific (FTAAP). policy analysis and action-oriented work. The EC
Business Facilitation progresses this mandate in close coordination with
APEC members pursue measures to reduce the time, other relevant APEC groups; for instance, the
cost and uncertainty of doing business in the region Competition Policy and Law Group (CPDG) and the
and open new economic opportunities including for Finance Ministers' Process (FMP)
small firms, women and youth. APEC's Structural
Reform agenda supports the development and Budget and Management Committee
harmonization of policies that improve market access The Budget and Management Committee advises the
and efficiency, and uphold public interest such as the SOM on budgetary, administrative and managerial
safeguarding of health and safety. issues. It also monitors and evaluates project
Economic and Technical Cooperation management aspects of the operations of Committees
ECOTECH builds the technical capacity of APEC's and Working Groups and makes recommendations to
diverse members to promote trade, investment and SOM for improved efficiency and effectiveness.
robust, secure and sustainable economic growth that
widely benefits the region's people. Priorities include ACTION PLANS
strengthening anti-corruption, cross-border education In order to meet APEC's Bogor Goals for free and
and skills training, emergency preparedness, energy open trade and investment in Asia-Pacific, APEC
security, environmental protection, defense against member economies follow the strategic roadmap as
pandemics and infrastructure development, among agreed by APEC Economic Leaders in Osaka, Japan in
others. 1995. This roadmap is known as the Osaka Action
Agenda.
APEC WORKING LEVEL APEC member economies report progress towards
APEC's working level activities and projects are guided achieving free and open trade and investment goals
by APEC Senior Officials from the 21 APEC member through Individual Action Plans (IAPs) and Collective
economies. These activities and projects are carried Action Plans (CAPs), submitted to APEC on an annual
out by four high level committees: basis. Individual and Collective Action Plans are
1. Committee on Trade and Investment; available through the dedicated e-IAP website. This
2. Senior Official’s Meeting Committee on Economic site provides the ability to search individual APEC
and Technical Cooperation; member economy IAPs, compare IAPs across years
3. Economic Committee; and and view CAPs.
4. Budget and Management Committee.
OSAKA ACTION AGENDA
Sub-Committees, Experts' Groups, Working Groups The Osaka Action Agenda provides a framework for
meeting the Bogor Goals through trade and
and Task Forces all support the activities and projects
investment liberalisation, business facilitation and
led by these four high level committees. sectoral activities, underpinned by policy dialogues
and economic and technical cooperation. As part of
Senior Official’s Meeting (SOM) this framework, General Principles have been defined
Working under direction from APEC Ministers, Senior for APEC member economies as they proceed through
Officials guide the activities of the Committees, the APEC liberalisation and facilitation process.
Working Groups and Task Forces. Senior Officials The following General Principles are provided in the
develop recommendations for APEC Ministers and Osaka Action Agenda and are applied to the entire
APEC Economic Leaders. Senior Officials' Meetings are APEC liberalisation and facilitation process:
held three to four times a year with the chair from the Comprehensiveness - addressing all impediments to
host economy. achieving the long-term goal of free and open trade.
WTO-consistency - measures undertaken in the
What are the Committees, Working Groups and
context of the APEC Action Agenda are consistent
SOM Task Groups?
with the principles of the World Trade Organization business and thereby facilitating intra-APEC trade and
(WTO). investment;
Comparability - APEC member economies To encourage members to focus on policy issues
endeavour to have comparable trade and investment which need to be addressed to achieve the Bogor
liberalisation and facilitation, taking into account the goals through annual reporting and a peer review
general levels achieved by each APEC economy. process;
Non-discrimination - reductions in barriers to trade To maintain and demonstrate the momentum of
achieved through APEC are available to all APEC APEC trade and investment efforts, thereby
Member Economies and non-APEC economies. encouraging liberalization in non-APEC economies
Transparency - the laws, regulations and through WTO processes; and
administrative procedures in all APEC member To enable members to learn from the liberalization
economies which affect the flow of goods, services and facilitation experiences of others.
and capital among APEC member economies are
transparent. ENVIRONMENTAL GOODS AND SERVICES
Standstill - APEC Member Economies do not take The term Environmental Goods and Services (EGS)
measures which have the effect of increasing levels of refers to the industry sector devoted to solving,
protection. limiting or preventing environmental problems. EGS
Simultaneous start, continuous process and companies may be involved in manufacturing and/or
differentiated timetables - APEC member economies services related to water or air pollution, waste
began simultaneously the process of liberalisation, management, recycling, renewable energy,
facilitation and cooperation and continuously monitoring and analysis and assessment.
contribute to the long-term goal of free and open
trade and investment. WHAT ARE THE COVERAGE OF THE APEC
Flexibility - APEC member economies deal with the ENVIRONMENTAL GOODS LIST?
liberalisation and facilitation process in a flexible Renewable and clean energy technologies such as
manner, taking into account differing levels of solar panels, gas and wind turbines;
economic development. Wastewater treatment technologies such as filters
Cooperation - Economic and technical cooperation and ultraviolet disinfection equipment;
contributing to liberalisation and facilitation is actively Air pollution control technologies such as soot
pursued. removers and catalytic converters;
Solid and hazardous waste treatment technologies
INDIVIDUAL ACTION PLANS such as waste incinerators and crushing and sorting
Individual Action Plans are annual reports that record machinery; and
the unilateral steps taken by members to meet the Environmental monitoring and assessment
Bogor Goals. These are prepared for each of the 15 equipment such as air and water quality monitors,
policy action areas of the Osaka Action Agenda. and manometers to measure pressure and water
APEC member economies regularly submit their delivery systems.
Individual Action Plans (IAPs). This is a record of
actions taken to meet its stated goals for free and WHAT IS THE PHILIPPINES’ ENVIRONMENTAL
open trade and investment. APEC member economies GOODS SCHEDULE?
set their own timelines and goals, and undertake On June 26, 2015, EO 185 was issued, modifying the
these actions on a voluntary and non-binding basis. MFN rate of certain environmental goods, in
As specified in the Osaka Action Agenda, reporting is
compliance with the Philippines’ commitment. Items
based on the following areas including:
subjected to 5% MFN rates included condensers for
 Tariffs
 Non-tariff measures stream or other
 Services
 Investment MIDTERM
 Standards and conformance WHAT IS THE ASSOCIATION OF SOUTHEAST
 Customs procedures ASIAN NATIONS?
 Intellectual property rights The Association of Southeast Asian Nations was
 Competition policy established in August 8, 1967 through the Bangkok
 Government procurement Declaration and is a regional stability among the
 Deregulation/regulatory review countries in the Southeast Asian Region.
 WTO Obligations (including rules of origin)
 Dispute mediation Who are the founding members?
 Mobility of business people Indonesia;
 Information gathering and analysis Malaysia;
 Transparency Philippines;
 Regional Trade Agreements / Free Trade
Singapore; and
Agreements (RTAs/FTAs)

Thailand
WHY DO MEMBERS NEED TO SUBMIT Brunei Darussalam joined on January 7, 1984, Viet
INDIVIDUAL ACTION PLAN? Nam on July 28, 1995, Lao PDR and Myanmar on
To improve the transparency of trade and July 23, 1997 and Cambodia on April 30, 1999.
investment regimes, providing valuable information to ASEAN’s main objectives are to accelerate
economic growth, enhance social progress and
cultural development and to promote regional What will happen to unresolved disputes?
peace and stability in the region. After the application of the preceding provisions, the
dispute shall be referred to the ASEAN Summit, for its
FUNDAMENTAL PRINCIPLES OF THE ASEAN decision.
The following are the fundamental principles as
contained on the Treaty of Amity and Cooperation THE ASEAN SUMMIT
in Southeast Asia of 1976: The organization holds meeting known as the
Mutual respect for the independence, “ASEAN Summit”, where heads of the state or
sovereignty, equality, territorial integrity and government of each member states meet to
national identity of all nations; discuss and resolve regional issues, as well as meet
Right of every state to lead its national existence with other countries outside of the bloc with the
free from external interference, subversion and intention of promoting external relations.
coercion; (Please refer to the Primer on Developments in
Non-interference in the internal affairs of one Tariff and Trade Policy)
another; The ASEAN Summit also appoints the Secretary-
Settlement of differences or disputes by peaceful General of ASEAN.
manner; The meetings are held twice annually, and hosted
Renunciation of the threat or use of force; and by the Member State holding the ASEAN
Effective cooperation among each other. Chairmanship; and convened , whenever
necessary, as special or ad hoc meetings chaired by
THE ASEAN CHARTER the Member State holding the ASEAN
The ASEAN Charter refers to the legal document Chairmanship, at venues to be agreed upon by the
that provides the legal status and institutional AMS.
framework for cooperation within the ASEAN region
and towards the formulation of the ASEAN THE BODIES COMPRISING THE ASEAN
Community. This also codifies the norms, rules and SUMMIT:
values; sets clear targets for ASEAN; and presents
accountability and compliance. ASEAN Coordinating Council
The Charter was signed by the government of the - Comprises the ASEAN Foreign Ministers and
10 AMS on November 20, 2007 and entered into meets at least twice a year.
force on December 15, 2008. - Prepare the meetings of the ASEAN Summit;
- Coordinate the implementation of agreements
PROCEDURES FOR APPLICATION AND and decisions of the ASEAN Summit;
ADMISSION OF NEW MEMBERS - Coordinate with the ASEAN Community Councils
a. The procedure for application and admission to to enhance policy coherence, efficiency and
ASEAN shall be prescribed by the ASEAN cooperation among them;
Coordinating Council. - Coordinate the reports of the ASEAN Community
b. Admission shall be based on the following Councils to the ASEAN Summit;
criteria: - Consider the annual report of the Secretary-
Location in the recognized geographical region General on the work of ASEAN;
of Southeast Asia; - Consider the report of the Secretary-General on
Recognition by all AMS; the functions and operations of the ASEAN
Agreement to be bound and abide by the Secretariat and other relevant bodies;
ASEAN Charter; and - Approve the appointment and termination of the
Ability and willingness to carry out the Deputy Secretaries-General upon recommendation
obligations of membership. of the Secretary-General; and
c. Admission shall be decided by consensus by the - Undertake other tasks provided for or such other
ASEAN Summit, upon the recommendation of the functions as me be assigned by the ASEAN Summit.
ACC.
d. An applicant shall be admitted to ASEAN upon ASEAN Community Councils
signing an Instrument of Accession to the Charter. - Comprises the three pillars of the ASEAN
Community: ASEAN Political-Security Community
GENERAL PRINCIPLES FOR THE SETTLEMENT Council, ASEAN Economic Community Council and
OF DISPUTES ASEAN Socio-Cultural Community Council.
Member States shall endeavour to resolve - Ensure the implementation of the relevant
peacefully all disputes in a timely manner through decisions of the ASEAN Summit;
dialogue, consultation and negotiation. - Coordinate the work of the different sectors under
ASEAN shall maintain and establish dispute its purview, and on issues which cut across the
settlement mechanisms in all fields of ASEAN other Community Councils; and
cooperation. - Submit reports and recommendations to the
ASEAN Summit on matters under its purview.
ASEAN Sectoral Ministerial Bodies economic integration of the region towards the
- Implement the agreements and decisions of the realization of the AEC by 2015.
ASEAN Summit under their respective purview. (Please refer to Primer)

THE SECRETARY-GENERAL ADDITIONAL REVIEW ON MIDTERM:


The ASEAN Summit appoints the Secretary-General READ THE OPERATIONAL CERTIFICATION
of ASEAN, with the rank and status of a Minister, PROCEDURE FOR THE RULES OF ORIGIN
who will serve with the confidence and at the FOR ALL ASEAN MS.
pleasure of the ASEAN Heads of State or
Government upon recommendation of the ASEAN
Foreign Ministers Meeting.
He/She is appointed for a non-renewable term of
office of five years, selected from among nationals
of the AMS based on alphabetical rotation with due
consideration to integrity, capability professional
experience and gender equality.
The Secretary-General’s mandate is to initiate,
advise, coordinate and implement ASEAN activities.
He chairs the meetings of the ASEAN Standing
Committee on behalf of the ASEAN Standing
Committee Chairman, except the first and the last.

DETERMINATION OF THE ASEAN


CHAIRMANSHIP
The chairmanship of ASEAN shall rotate annually,
based on the alphabetical order of the English
names of the member states.

THE ASEAN COMMUNITY (please refer to the


primer)

THE ASEAN FREE TRADE AREA (AFTA)


The AFTA is a trade bloc agreement which seeks to
remove obstacles to freer trade among AMS through
the abolition of tariffs on traded goods and the
scrapping of quantitative restrictions and other non-
tariff barriers that limit the entry of imports. The ASEAN
Heads of Government agreed the establishment of
AFTA by the year 2008 at the 4th ASEAN Summit held in
Singapore on January 28, 1992.

THE COMMON EFFECTIVE PREFERENTIAL


TARIFF SCHEME
The CEPT is the main implementing mechanism of
the AFTA. This means that AMS shall have common
effective tariffs among themselves in AFTA but the
level of tariffs vis-à-vis non-ASEAN countries shall
continue to be determined individually.

THE ASEAN TRADE IN GOODS AGREEMENT


(ATIGA)
An improvement over the CEPT-AFTA Scheme, the
ATIGA consolidates into one comprehensive
agreement the existing initiatives, obligations and
commitments by the AMS with regard to both trade
in goods and non-tariff elements. The ATIGA was
signed on February 2009 and entered into force on
May 17, 2010 upon notification of the ratification of
all AMS.

What is the objective of the ATIGA?


ATIGA seeks to achieve free flow of goods in
ASEAN as one of the principal means to establish a
single market and production base for the deeper

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