ASEAN: Regional Trends in Economic Integration, Export ... - USITC

TABLE 5.8 ASEAN country tariffs for engineered and laminate wood flooring, 2004, 2008, and 2010 (ad valorem
percent)
ASEAN members 2004 2008 2010 a
Imports from
other ASEAN
countries
Imports from non-
ASEAN countries
(MFN)
Imports from
other ASEAN
countries
Imports from
non-ASEAN
countries (MFN)
Imports from
other ASEAN
countries
Brunei 0–5 0–20 0 0–20 0
Burma 3–5 3–5 3–5 3–5 3–5
Cambodia
(b)
(b)
10 15 5
Indonesia 0 5–10 0 5–10 0
Laos 10 20 1–5 20–30 1–5
Malaysia 5 20 0 20 0
Philippines 0–5 5–15 0 5–15 0
Singapore 0 0 0 0 0
Thailand 5 12.5–20 0–5 5–30 0
Vietnam 5 5–10 0 3–8 0
Source: Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area,
Consolidated Package of Tariff Reductions for 2008; Royal Malaysia Customs Department, HS-Explorer (accessed
April 10, 2010); World Trade Organization, Tariff Analysis Online (accessed April 2010).
a 2010 MFN rates for ASEAN imports from non-ASEAN countries are not available to USITC staff for every
ASEAN member country.
b Not available.
ASEAN has entered into free trade agreements (FTAs) with China, Japan, the Republic
of Korea, Australia-New Zealand, and India that either have or will effectively lower
tariff barriers in those markets, although hardwood plywood and flooring products are
typically listed as “sensitive” sectors and are thus subject to gradual staging of tariff
reductions. Under the ASEAN-China FTA, for example, final reductions for tariff lines
on the “highly sensitive” lists, which include China’s plywood and flooring imports, will
not occur until 2018. 65
The full effects of the CEPT tariff reductions and the various FTAs on plywood and
flooring trade patterns both within ASEAN and between ASEAN countries and other
FTA partners are uncertain. 66 In general, Malaysia and Singapore are expected to be most
advantaged by the ASEAN-China FTA because of their English-Chinese language
facility and already well-established trading relationships. 67 In contrast, the ASEAN-
China FTA sparked protests in Indonesia earlier this year from groups fearful of the
impact from Chinese imports. 68
Inbound Investment
Data specific to foreign direct investment (FDI) in hardwood plywood and flooring are
not available, but industry sources indicate that there is not much FDI in hardwood
plywood and flooring manufacturing in ASEAN countries. 69 Some specific examples of
65 ASEAN China Free Trade Area. Annex 2, App. 1, 99.
66 Industry representatives, interview by USITC staff, Kuala Lumpur, March 12, 2010.
67 Industry representative, interview by USITC staff, Bangkok, March 15, 2010. China is currently a
major purchaser of Malaysian logs (from Sarawak and Sabah).
68 Jakarta Post, “Thousands Rally Against Free Trade Treaty,” January 21, 2010.
69 Industry representative, interview by USITC staff, Kuala Lumpur, March 11, 2010.
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