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Asean & Global Updates
POSTED | 11:27 AM | 05-04-2015

Lower tariffs expand ASEAN trade: OECD

ASEAN has made notable achievements in trade and investment facilitation as part of regional integration, according to a recent report by the Organization for Economic Cooperation and Development (OECD).

In its report Economic Outlook for Southeast Asia, China and India 2015, the OECD said tariff reduction is one of the key factors that helped expand trade in ASEAN.

Tariffs imposed on inter-ASEAN goods going to Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand under the Common Effective Preferential Tariffs (CEPT) are essentially at zero per cent.

In Cambodia, Myanmar, Laos and Vietnam, tariffs under the CEPT agreement were reduced to 2.6 per cent.
The OECD also cited the electronic trade mechanism, known as National Single Windows, which promoted one-stop trade facilitation.

The OECD said Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam are in the advance stage of National Single Window implementation. These countries are integrating these platforms towards a single platform for electronic trade in ASEAN.

But the OECD said there’s still a wide disparity within ASEAN in terms of trade facilitation initiatives.

“For example, according to the World Bank’s Trading Across Borders database, a wide gap exists across the region in the number of days needed to comply with all procedures required to export and import goods,” the OECD said in its report.

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