ASEAN: Regional Trends in Economic Integration, Export ... - USITC
ASEAN: Regional Trends in Economic Integration, Export ... - USITC
ASEAN: Regional Trends in Economic Integration, Export ... - USITC
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BOX 2.4 What is ATIGA?<br />
ATIGA builds on the commitments under the follow<strong>in</strong>g <strong>ASEAN</strong> economic <strong>in</strong>itiatives: the Agreement on <strong>ASEAN</strong><br />
Preferential Trad<strong>in</strong>g Arrangements (1977), the Agreement on the Common Effective Preferential Tariff Scheme for<br />
the <strong>ASEAN</strong> Free Trade Area (1992), the <strong>ASEAN</strong> Agreement on Customs (1987), the <strong>ASEAN</strong> Framework Agreement<br />
on Mutual Recognition Arrangements (1998), the e-<strong>ASEAN</strong> Framework Agreement (2000), the Protocol Govern<strong>in</strong>g<br />
the Implementation of the <strong>ASEAN</strong> Harmonized Tariff Nomenclature (2003), the <strong>ASEAN</strong> Framework Agreement for<br />
the <strong>Integration</strong> of Priority Sectors (2004), and the Agreement to Establish and Implement the <strong>ASEAN</strong> S<strong>in</strong>gle W<strong>in</strong>dow<br />
(2005). Member states are to agree on the list of agreements to be superseded by ATIGA with<strong>in</strong> six months from the<br />
date of ATIGA’s entry <strong>in</strong>to force (by November 17, 2010).<br />
Among the provisions of ATIGA are those cover<strong>in</strong>g tariff liberalization schedules and commitments, rules of orig<strong>in</strong><br />
(which require regional value content of 40 percent or a change <strong>in</strong> tariff head<strong>in</strong>g), a NTMs, trade facilitation, customs<br />
procedures, standards and conformance, sanitary and phytosanitary measures, and trade remedy measures (as<br />
provided for <strong>in</strong> the WTO). To improve transparency, ATIGA requires member state notification of actions and<br />
measures they <strong>in</strong>tend to take with respect to tariffs, NTMs, standards, SPS, and other measures; b requires publication<br />
of trade laws, regulations, and judicial decisions <strong>in</strong> accordance with article X of GATT 1994; and establishes a trade<br />
repository, which will publish on the Internet all member state trade and customs laws, measures, and procedures,<br />
<strong>in</strong>clud<strong>in</strong>g tariff schedules. The trade repository will <strong>in</strong>clude a database of NTMs, with a view to identify<strong>in</strong>g NTMs for<br />
elim<strong>in</strong>ation. c Relevant <strong>ASEAN</strong> bodies are required to review any NTM notified or reported by any other member state<br />
or by the private sector with a view to determ<strong>in</strong><strong>in</strong>g whether the measure constitutes a nontariff barrier. ATIGA<br />
specifies deadl<strong>in</strong>es for the elim<strong>in</strong>ation of identified nontariff barriers: by 2010 for the <strong>ASEAN</strong>-5, 2012 for the<br />
Philipp<strong>in</strong>es, and 2015 (with flexibilities to 2018) for the <strong>ASEAN</strong>-4. ATIGA also seeks to prevent member states from<br />
<strong>in</strong>troduc<strong>in</strong>g new NTMs that are <strong>in</strong>consistent with WTO obligations. d<br />
ATIGA provides guidance on the development and application of standards, technical regulations, and conformity<br />
assessment procedures, which are to be transparent and consistent with <strong>in</strong>ternational standards and practice. It also<br />
directs member states to develop and implement sectoral Mutual Recognition Arrangements (MRAs) and harmonized<br />
regulatory regimes. ATIGA <strong>in</strong>cludes an MRA on conformity assessment with respect to electrical and electronic<br />
equipment, and two agreements on harmonized regulatory regimes (for electrical equipment and cosmetics). e<br />
a ATIGA, 22.<br />
b See ATIGA, Annex 1.<br />
c Accord<strong>in</strong>g to the Secretariat, there is an outdated list of NTMs, which currently conta<strong>in</strong>s 7,378 NTMs, of which 43.9 percent<br />
are non-automatic licenses. Other categories are automatic licenses, quotas, prohibitions and quantitative restrictions, and tariff-rate<br />
quotas. Government official, <strong>in</strong>terview by <strong>USITC</strong> staff, S<strong>in</strong>gapore, March 1, 2010. The database can be found at<br />
http://www.aseansec.org/16355.htm.<br />
d ATIGA, articles 40–42.<br />
e <strong>ASEAN</strong> economic m<strong>in</strong>isters signed an MRA for pharmaceutical products <strong>in</strong> 2009.<br />
Intra-<strong>ASEAN</strong> trade trends<br />
Two measures are typically cited to show trends <strong>in</strong> regional trade <strong>in</strong>tegration—the<br />
<strong>in</strong>traregional trade share and the <strong>in</strong>traregional trade <strong>in</strong>tensity. 33 The <strong>in</strong>traregional trade<br />
share for <strong>ASEAN</strong> shows the share of total <strong>ASEAN</strong> trade that is accounted for by <strong>in</strong>tra-<br />
<strong>ASEAN</strong> trade. 34 As shown <strong>in</strong> figure 2.1, <strong>in</strong>tra-<strong>ASEAN</strong> trade decreased slightly as a share<br />
of total <strong>ASEAN</strong> trade between 2005 and 2009, decl<strong>in</strong><strong>in</strong>g from 25 to 24 percent. It<br />
rema<strong>in</strong>s smaller than that of other regional groups, such as the EU-15, the members of the<br />
North American Free Trade Agreement (NAFTA), and broader East Asia group<strong>in</strong>gs that<br />
33 Capannelli, Lee, and Petri, “Develop<strong>in</strong>g Indicators for <strong>Regional</strong> <strong>Economic</strong> <strong>Integration</strong> and<br />
Cooperation,” September 2009, 5; Plummer and Chia, “Assess<strong>in</strong>g the <strong>Economic</strong>s of the <strong>ASEAN</strong> <strong>Economic</strong><br />
Community: Introduction,” 2009, 8.<br />
34 Intraregional trade shares are upward biased because of double count<strong>in</strong>g, which results from both<br />
S<strong>in</strong>gapore’s entrepot role and production fragmentation.<br />
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