OPENING REMARKS BY MINISTER CHAN CHUN SING AT THE 50th AEM-32nd AFTA COUNCIL MEETING ON WEDNESDAY 29 AUGUST 2018, 10:45AM AT SHANGRI-LA HOTEL SINGAPORE
Your Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,
1. Good morning. I would like to extend a warm welcome to all of you to Singapore, and to the 50th ASEAN Economic Ministers (AEM)-32nd ASEAN Free Trade Area (AFTA) Council Meeting.
2. Since the establishment of the AFTA in 1992, steady progress has been made in realising the goal to establish ASEAN as a single market and production base. This has been made possible through ASEAN Member States’ implementation of commitments under the ASEAN Trade in Goods Agreement (ATIGA) as well as the ASEAN Economic Community (AEC) Blueprints 2015 and 2025.
3. Today, under the ATIGA, virtually all tariffs have been liberalized with 98.6 per cent of tariffs eliminated.
4. While tariffs have decreased, intra-ASEAN trade remains low, constituting only 23.4 per cent (USD 521 billion) of ASEAN’s total trade in 2017. In order to boost intra-trade, ASEAN must tackle Non-Tariff Measures (NTMs) and trade facilitation meaningfully. ASEAN’s continued efforts to harmonise standards and regulatory regimes across Member States are equally important to promoting a more conducive trading environment in the region.
5. Following past AFTA Councils’ guidance and decisions of the Senior Economic Officials Meeting (SEOM), the ASEAN Trade Facilitation Joint Consultative Committee (ATF-JCC), the Coordinating Committee on the Implementation of the ATIGA (CCA) and various other subsidiary bodies, we have achieved good outcomes on a number longstanding initiatives, that enhance intra-ASEAN trade and lower trade costs.
6. In particular, commendable progress has been made with the finalisation of the First Protocol to Amend the ATIGA to Allow Implementation of the ASEAN-wide Self-Certification Scheme, which we will be signing later this evening.
7. Separately, I am also pleased to see that the Guidelines for the Implementation of ASEAN Commitments on NTMs on Goods, have been finalised for our endorsement. These NTM Guidelines provide a concrete step towards addressing NTMs through five key principles, namely transparency, consultations, non-discrimination, necessity and proportionality, and sun-setting.
8. The development of the ASEAN Seamless Trade Facilitation also allows ASEAN to better assess its effectiveness to address NTMs, facilitate trade and reduce trade transaction costs.
9. While steady progress has been made so far, our collective work does not stop here. In our discussions at today’s AEM-AFTA Council Meeting, we will be apprised of issues that remain outstanding.
10. I look forward to constructive discussions on the way forward, and to Ministers providing guidance to the SEOM, ATF-JCC, CCA and subsidiary bodies to resolve these outstanding issues expeditiously.
11. Thank you.