ASEAN-6 have agreed to a zero tariff agreement for the member countries of Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore and Thailand to be able to import and export of almost all goods crossing their borders without tariffs.
Based on a press release, the implementation of the agreement will begin as of January 1, and additional tariffs for the ASEAN member countries-6 Abolition of tariffs will be eliminated by the ASEAN-6 affirmed ASEAN’s commitment to eliminate tariffs and maintaining an open trade intra-ASEAN, it also serves as catalyst for the development of the single market and production base that is projected by the blueprint of ASEAN Economic Community (AEC).
The impact of the large number of real and final installment will be translated into savings for consumers who depend on market dynamics of each country of ASEAN-6. Secretary-General of ASEAN Surin Pitsuwan said that ASEAN is hoped that all parties will act to ensure that all people can benefit from this tariff reduction.
As for the business community, especially the downstream producers, Dr Surin said that they too can fight for profits, “costs are lower income will allow the business community has a choice of a broader, and in the process of the process, they will move toward a more globally competitive , as described in the AEC Blueprint. Common Effective Preferential Tariffs for the ASEAN Free Trade Area (CEPT-AFTA) which covers the entire range of products traded by member countries of ASEAN and to provide for the gradual reduction of tariffs of their products, which have taken place since 1993.
Based on the CEPT tariff reduction schedule, AFTA, each ASEAN member countries are allowed to place their products in the normal path, which has committed to reduce their trade tariffs to zero percent by 2010 for ASEAN-6 and 2015 for the remaining four countries, namely, Cambodia, Laos, Myanmar and Vietnam. In 2010, four countries will also see the reduction of tariffs under the CEPT-AFTA commitment by five percent, where the average tariff will decline three percent in 2009 to 2.61 percent.
irrespective of the above agreement, of course, we as a society in Indonesia hopes the government, so that the application of AFTA can bring positive change for people, especially business people and not vice versa, even kill them.