Asean ministers ink revised deal on goods

The Association of Southeast Asian Nations has signed the first protocol to amend the ASEAN Trade in Goods Agreement (ATIGA) to help businesses take advantage of zero tariffs under the bloc’s free trade agreement.

ASEAN economic ministers also signed the protocol to implement the 10th Package of Commitments under the Asean Framework Agreement on Services (AFAS) which is expected to provide preferential markets for Filipinos engaged in export services such as information technology business process outsourcing, tourism, and logistic sectors when doing business across the nine other Asean member states.

The Protocol and the AWSC are expected to be implemented by all ASEAN member states Philippines, Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, Singapore, Thailand, and Vietnam by the first semester next year.

“The AWSC will minimize burdens associated with administrative compliance and decrease transaction costs. Overall, the scheme is expected to improve the ease of doing business, thereby making it easier for Philippine companies to use the preferential tariff treatment under the ATIGA,” DTI Secretary Ramon Lopez said.

In place since 2010, the ATIGA calls for the elimination of import duties for 98.7 percent of the product lines of ASEAN member states.

With the AWSC, exporters may apply for certified exporter (CE) status.

This may be used as an alternative to the Certificate of Origin (CO) form D which exporters currently have to apply for, for every shipment for exports to enjoy ATIGA benefits.

CO form D must be applied manually which can only be done on regular work days.

“This will be good for businesses, especially our micro, small and medium enterprises

(MSMEs). It will make it easier for them to use the FTA, as well as enjoy zero tariffs when they sell to other Asean countries,” Lopez said.

He said using the FTA would make exports more competitive as exporters would no longer have to pay import duties.

AWSC is one of the priority requests of the Asean Business Advisory Council.

This as businesses still have a hard time availing of benefits under the ATIGA due to complicated procedures.

Lopez also said the signing of the 10th AFAS package is expected to support export service providers including MSMEs.

First signed in December 1995, the AFAS pushed for succeeding liberalization packages as part of efforts to reduce barriers to the service sector in the region.

The latest AFAS package allows market access and export to a range of new sectors such as communication services (export of Filipino soap operas), health services (medical tourism), distribution services (franchising), education services, construction, and transport.

Last year, the country’s merchandise trade with ASEAN reached $10 billion and accounted for 14.7 percent of total Philippine exports.

Philippines’ total service exports also continued to increase in recent years, rising by 17.5 percent to $9.34 billion in the first quarter.