Committee on Regional Trade Agreements - ASEAN Trade in Goods Agreement (ATIGA) - Note on the meeting of 8 April 2024 - Chair: Ambassador H.E. Ms. Clare Kelly (New Zealand)

ASEAN Trade in Goods Agreement (ATIGA)

Note on the Meeting of 8 april 2024

Chair: Ambassador H.E. Ms. Clare KELLY (New Zealand)

1.1.  The 109th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the "Committee") was convened in Airgram _WTO/AIR/RTA/34/Rev.1 dated 28 March 2024.

1.2.  Under Agenda Item 8.1, the CRTA considered the Agreement establishing an ASEAN Trade in Goods Agreement (ATIGA), (hereinafter "the Agreement"). The Chair stated that the Factual Presentation had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements (document _WT/L/671).

1.3.  The Agreement, which superseded earlier ASEAN agreements and built upon the Common Effective Preferential Tariff Agreement, had entered into force on 17 May 2010. It had been notified to the WTO by the Parties on 31 August 2021 under Articles XXIV:7(a) of the GATT 1994 as "providing the legal framework for ASEAN to realise free flow of goods in the region" (document _WT/REG457/N/1). A notification of changes concerning rules of origin followed (document _WT/REG457/N/1/Add.1). In September 2021, the Parties circulated a "Summary Fact Sheet" on the Agreement. The text of the Agreement, together with its Annexes, was available on the Parties' official websites and in the WTO RTA database. The Factual Presentation, document _WT/REG457/2, and questions and replies, documents _WT/REG457/3 and _RD/RTA/63, had been distributed.

1.4.  The representative of the Lao PDR, on behalf of the Parties, extended sincere appreciation to the WTO Secretariat for the preparation of a comprehensive factual presentation on the Agreement. The Agreement had evolved from ASEAN's earlier trade agreements. The Common Effective Preferential Tariff Scheme (CEPT), signed in 1992, had been the direct predecessor of the Agreement, which had entered into force in 2010. The Agreement built on the CEPT's objectives of establishing ASEAN as a single market and production base characterised by the free flow of goods, services, investment, skilled labour, and capital. It provided comprehensive trade measures – such as tariff liberalisation, rules of origin, non-tariff measures, trade facilitation, and customs procedures in order to enhance economic cooperation among the Parties. The Agreement's significant outcome had been the reduction of intra-ASEAN trade tariff to zero for almost all types of goods. To date, more than 98% of all tariff lines had zero rates.

1.5.  The Agreement also instituted a variety of trade facilitative measures. The ASEAN Single Window, for example, enabled seamless electronic exchange of trade documents, such as Certificates of Origin and Customs Declarations, for all ten Parties. Another example was the ASEAN Trade Repository, which served as a single information source on tariffs, regulations, and administrative procedures. These measures had contributed to ASEAN trade growth. Between 2010 and 2022, intra-ASEAN trade had increased from approximately USD 500 billion to USD 850 billion in 2022, making up about 22% of its total trade. ASEAN's share of world trade had continuously increased from around 6% in 2010 to 7.6% in 2022, indicating the region's trade strength and reflecting the outward-looking nature of ASEAN integration. The Agreement stood as a cornerstone of ASEAN's economic integration efforts, fostering intra-regional trade, enhancing competitiveness, and driving economic growth within the region.

1.6.  In conclusion, the Parties thanked WTO Members for their keen interest in the Agreement. They acknowledged written questions from some Members and anticipated that they would be able to circulate the answers from the ASEAN Secretariat soon. They looked forward to a productive meeting while welcoming any further comments and questions from Members.

1.7.  The representative of the United States thanked the Parties for the notification.

1.8.  The representative of the European Union also thanked Lao PDR for the presentation on the Agreement and wished the Parties success in its implementation.

1.9.  The Chair noted the consideration of the goods aspects of the ASEAN Trade in Goods Agreement (ATIGA), had allowed the Committee to clarify a number of questions and conclude oral discussion of the RTA in accordance with paragraph 11 of the Transparency Mechanism. Any delegations wishing to ask follow-up questions were invited to forward submissions in writing to the Secretariat by 15 April 2024 and the Parties were asked to submit replies in writing by no later than 29 April 2024. In accordance with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of the meeting would be circulated promptly, in all WTO official languages, and made available in the WTO database on RTAs.

1.10.  The Committee took note of the comments made.

__________