( ) Page: 1/60 FACTUAL PRESENTATION FREE TRADE AGREEMENT BETWEEN THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) AND INDIA (GOODS)

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1 WT/COTD/RTA/8/1 14 December 216 ( ) Page: 1/6 Committee on Trade and Development Dedicated Session on Regional Trade Agreements FACTUAL PRESENTATION FREE TRADE AGREEENT BETWEEN THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) AND INDIA (GOODS) Report by the Secretariat This report, prepared for the consideration of the Free Trade Agreement between the Association of Southeast ASEAN Nations (ASEAN) and India has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency echanism for Regional Trade Agreements (WT/L/671). Any technical questions arising from this report may be addressed to Rohini Acharya (tel: ); any statistical questions arising from this report may be addressed to Rowena Cabos (tel: ).

2 WT/COTD/RTA/8/1-2 - TABLE OF CONTENTS Page 1 TRADE ENVIRONENT CHARACTERISTIC ELEENTS OF THE AGREEENT Background Information PROVISIONS ON TRADE IN GOODS Import duties and charges, and quantitative restrictions General provisions Liberalization of trade and Liberalization schedule ASEAN ember States Tariff rate quotas Rules of origin Export duties and charges, and quantitative restrictions Regulatory Provisions of the Agreement Standards Sanitary and phytosanitary measures Technical barriers to trade Safeguard mechanisms Global safeguards Bilateral safeguards Agricultural safeguards Safeguards for balance of payments reasons Anti-dumping and countervailing measures Subsidies and State-aid Customs-related procedures Other regulations Sector-Specific Provisions of the Agreement GENERAL PROVISIONS OF THE AGREEENT Transparency Current payments and capital movements Exceptions Accession and Withdrawal Institutional framework Dispute settlement Relationship with other agreements concluded by the Parties Government procurement Intellectual Property Rights...39 ANNEX ANNEX

3 GDP US $ billion WT/COTD/RTA/8/1-3 - Key Facts Parties to the Agreement: ASEAN member states and India Date of Signature: 13 August 29 Date of Entry into Force: 1 January 21 for India, alaysia, Singapore and Thailand; 1 June 21 for Brunei Darussalam, yanmar and Viet Nam; 1 October 21 for Indonesia, 1 January 211 for Lao PDR, 17 ay 211 for the Philippines; and 15 July 211 for Cambodia Date of Notification: 19 August 21; revised 31 ay 212 Full implementation: 31 December TRADE ENVIRONENT The Trade in Goods Agreement (henceforth "the Agreement") between the members of the Association of Southeast Asian Nations (ASEAN) and India, is ASEAN's seventh regional trade agreement (RTA) and India's 13 th RTA as notified to the WTO The ASEAN countries' ranking in world merchandise exports and imports ranged from 9 th largest exporter and 1 th largest importer of goods for Singapore, to 11 and 115 respectively for Lao PDR in 214. (excluding intra-eu trade). In the same year India's ranking in world exports was 13 th and 8 th for imports (Table 1.1). India's exports and imports are dominated by manufactures (68.4% and 47.8% of exports and imports) and fuels and minerals (15.7% and 33.1% of exports and imports in 215). The ASEAN countries' exports and imports are dominated by manufactured products (as high as 81.4% of exports for Viet Nam and 66.1% of exports for Cambodia and 69.4% of Viet Nam's imports and 75% of Brunei's imports) although fuels and minerals play an important role for some members, notably in exports for Brunei (89.6% of total exports) and for yanmar (43.8% of exports) and in imports for Singapore (23.5% of its total imports). 3 Table 1.1 ASEAN member states and India's merchandise trade profiles in 214 Population (million) Value (billion US$) Exports Share in World Total Rank Value (billion US$) Imports Share in World Total Rank Trade to GDP ratio ( ) ASEAN Brunei Darussalam Cambodia Indonesia Lao PDR alaysia yanmar Philippines Singapore Thailand Unless otherwise indicated, the data in this section are based on the WTO and trade profiles and the UNSD Comtrade Database. 2 Prior to notifying this Agreement, ASEAN notified agreements with Korea, China, Japan, Australia and New Zealand, as well as the General System of Trade preferences (GSTP) and the ASEAN Free Trade Area (AFTA). India's previous notifications are of agreements with Sri Lanka, Singapore, Bhutan, Chile, ERCOSUR, Afghanistan, Korea, Nepal, as well as the GSTP, the South Asian Preferential Trade Agreement (SAPTA), the South Asian Free Trade Agreement (SAFTA) and the Asia-Pacific Trade Agreement (APTA). 3 No information on the breakdown of trade by broad sector was available for Lao PDR.

4 GDP US $ billion WT/COTD/RTA/8/1-4 - Population (million) Value (billion US$) Exports Share in World Total Rank Value (billion US$) Imports Share in World Total Rank Trade to GDP ratio ( ) Viet Nam India 1, , Note: Rank excludes intra-eu trade. Source: WTO Statistics Database, Trade Profiles (September 215) The Parties' recent trends in global and bilateral exports and imports are shown in Charts 1.1 and 1.2 below. While Brunei Darussalam, Cambodia, Indonesia, alaysia, the Philippines and Singapore maintained an overall steady surplus in their global trade during this period due to continuous growth in both exports and imports except for a decline in both during the 28 economic crisis, merchandise trade for Lao PDR and yanmar has been more volatiie during this period, with a recent increase in their trade deficits. Viet Nam had a smaller deficit while Thailand's global merchandise position has been balanced for much of this period. India's trade deficit has broadened since 24 mainly as global imports have outpaced exports In their bilateral trade which grew steadily during this period, all ASEAN countries maintained a trade surplus with India except Cambodia, Thailand and Viet Nam which had trade deficits. India's largest ASEAN trading partners during this period were Singapore, Indonesia, alaysia and Viet Nam for its exports and Indonesia, alaysia, Singapore and Thailand for imports Chart 1.3 shows the Parties's bilateral and global trade by broad HS section categories. India's four largest global exports are minerals, precious stones, chemicals, and textiles, which accounted for 67% of its total exports. Of these products, minerals, chemicals and textiles are also important imports from India by Cambodia (accounting for 77.9% of its total imports from India) while minerals and chemicals, along with base metals, machinery and prepared food imports accounted for 77.8% of Indonesia's imports from India. Chemicals and minerals are also key imports for alaysia from India, which along with base metals and vegetables account for 64.7% of alaysia's imports from India. Chemicals and base metals account for almost 6% of the Philippines' imports from India which also imports machinery and vehicles while minerals account for almost 6% of Singapore's imports from India followed by precious stones and machinery. Of India's main exports, precious stones and chemicals, along with base metals are the three most important imports by Thailand from India (52.7%) while Viet Nam mainly imports prepared foods, chemicals, machinery and base metals (75.2% of total imports) from India There is significant similarity in ASEAN global exports and India's main imports from these countries. achinery is an important global export for several ASEAN countries, most notably Philippines, Singapore, alaysia and Thailand, and machinery is also an important import from these countries for India. Similarly minerals are important exports for Indonesia and Viet Nam and also form an important share of Indian imports from these countries. inerals are also an important Indian import from alaysia whose global exports of minerals account for 16% of alaysia's total exports, while they account for almost 9% of India's imports from Brunei. Finally vegetable oils are also an important import from Indonesia and especially Cambodia although Cambodia's global exports are dominated by textiles.

5 WT/COTD/RTA/8/1-5 - Chart 1.1 ASEAN member states' trade with India and world, Brunei Darussalam (US$ billion) Cambodia (US$ billion) Indonesia (US$ billion) Lao PDR (US$ billion) alaysia (US$ billion) yanmar (US$ billion) Philippines (US$ billion) Singapore (US$ billion) Thailand (US$ billion) Viet Nam (US$ billion) Exports to India Imports from India Total exports Total imports Note: Source: irror data for Brunei Darussalam, Lao PDR and yanmar's bilateral trade with India. UNSD, Comtrade database, and WTO Statistics database.

6 Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import Export Import WT/COTD/RTA/8/1-6 - Chart 1.2 India, trade with ASEAN member states and world, Brunei Darussalam Cambodia Indonesia Lao PDR alaysia yanmar Philippines Singapore Thailand Viet Nam Total exports Total imports Source: UNSD, Comtrade database. Chart 1.3 ASEAN and India: Percentage share of imports with bilateral partners and global trade, Note: Source: Coverage period: for Cambodia and Philippines and for Indonesia, alaysia, Singapore, Thailand and Viet Nam. No data for Brunei Darussalam, Lao PDR and yanmar by HS section. UNSD, Comtrade database.

7 WT/COTD/RTA/8/ CHARACTERISTIC ELEENTS OF THE AGREEENT 2.1 Background Information 2.1. The Agreement forms part of the Framework Agreement on Comprehensive Economic Cooperation, originally signed on 8 October 23 and in force since 1 July 24 and which also includes at present an Agreement on a Dispute Settlement echanism, a Protocol to Amend the Framework Agreement and an Understanding on Article 4 of the Agreement on Trade in Goods. The Agreement along with the Protocol to Amend the Framework Agreement on Comprehensive Economic Co-operation was signed on 13 August 29. The main amendments made by the Protocol include changes to the periods for reduction and elimination of applied FN rates among the Parties, and a decision to discontinue the early harvest programme. 4 The Agreement entered into force for India, alaysia, Singapore and Thailand on 1 January 21; for Brunei Darussalam, yanmar and Viet Nam on 1 June 21; Indonesia on 1 October 21; Lao PDR on 1 January 211; for the Philippines on 17 ay 211; and for Cambodia on 15 July 211. The Agreement was notified under paragraph 4(a) of the Enabling Clause on 19 August 21 and subsequently revised on 31 ay The text of the Agreement is available, along with its Annexes at the following websites: ASEAN: India: The Agreement is composed of 24 Articles and two annexes on the schedule of commitments and rules of origin as described below. Box 2.1: Structure of Trade in Goods Agreement Article 1 Article 2 Article 3 Article 4 Article 5 Article 6 Article 7 Article 8 Article 9 Article 1 Article 11 Article 12 Article 13 Article 14 Article 15 Article 16 Definitions Scope National Treatment on Internal Taxation and Regulations Tariff reduction and elimination Transparency Administrative Fees and Formalities Rules of origin Non- easures odification of Concessions Safeguard easures easures to safeguard the balance of payments General Exceptions Security Exceptions Customs Procedures Regional and Local Governments Relation to other Agreements 4 The Early Harvest Programme envisaged progressive reductions in s beginning 1 November 24, with elimination to be completed by India and the ASEAN-6 on 31 October 27 and the new ASEAN members (Cambodia, Lao PDR, yanmar and Viet Nam) by 31 October 21. Under the programme 15 products at the HS 6-digit level (in Annex A) were due to be phased out by all the parties while India was to provide additional preferences to the new ASEAN members as listed in Annex B which had 111 products at the HS 6-digit level. In addition, certain products were subject to reductions between the Parties but not elimination, as detailed in Article 3 (Framework Agreement on Comprehensive Economic Co-operation between the Republic of India and the Association of Southeast Asian Nations, viewed at 5 WTO document WT/COTD/N/35, 23 August 21; and WT/COTD/N/35/Add.1, 31 ay 212.

8 WT/COTD/RTA/8/1-8 - Article 17 Article 18 Article 19 Article 2 Article 21 Article 22 Article 23 Article 24 Annex 1 Annex 2 Joint Committee Dispute Settlement Review Annexes and Future Legal Instruments Amendments Depository Entry into force Termination Schedules of Tariff Commitments Rules of Origin for the ASEAN-India Free Trade Area Protocol to Amend the Framework Agreement on Comprehensive Economic Co-operation Agreement on Dispute Settlement echanism under the Framework Agreement on Comprehensive Economic Co-operation Understanding on Article 4 of the Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Cooperation Source: The Agreement In addition, the Agreement on Dispute Settlement echanism under the Framework Agreement on Comprehensive Economic Cooperation, the Protocol to Amend the Framework Agreement on Comprehensive Economic Co-operation as well as the Understanding on Article 4 of the Trade in Goods Agreement under the Framework Agreement on Comprehensive Economic Co-operation between the Parties form integral parts of the Agreement. 3 PROVISIONS ON TRADE IN GOODS 3.1 Import duties and charges, and quantitative restrictions General provisions 3.1. The Agreement applies to trade in goods and all other matters relating thereto as envisaged in the Framework Agreement (as indicated above). According to the Preamble, the Parties commit to establish the ASEAN-India Free Trade Area covering trade in goods by 213 for Brunei Darussalam, Indonesia, alaysia, Singapore and Thailand and India; by 218 for the Philippines and India; and by 218 for Cambodia, Lao PDR, yanmar and Viet Nam The Parties agree to provide national treatment to each others' goods, in accordance with Article III of GATT 1994, which shall apply mutatis mutandis to the Agreement (Article 3). Tariffs are to be gradually liberalized where applicable according to the schedule of commitments as set out in Annex 1 to the Agreement (Article 4). The base rates from which s are to be reduced and/or eliminated are the applied on 1 July 27 (FN rate for WTO embers at the time and rates applied for imports from India by non WTO ASEAN members) (Article 1). The Parties may also unilaterally accelerate reduction and/or elimination of applied FN s on originating goods as set out in Annex 1 (Article 4). If the FN of any of the Parties is lower than the preferential rates under the Agreement it shall be applied to all Parties (Annex I) As detailed in Annex I to the Agreement, the Parties will reduce and/or eliminate their s under a Normal Track (divided into Normal Tracks 1 and 2), a Sensitive Track, Special Products, Highly Sensitive lists and Exclusion lists. Under Normal Track 1, s will be reduced and eventually eliminated between 1 January 21 and 31 December 213 for Brunei Darussalam, Indonesia, alaysia, Singapore and Thailand and India; 1 January 21 to 31 December 218 for the Philippines and India; and 1 January 21 to 31 December 213 for India and 1 January 21 to 31 December 218 for Cambodia, Lao PDR, yanmar and Viet Nam. Under Normal Track 2, s will be reduced and eventually eliminated between 1 January 21 and 31 December 216 for Brunei Darussalam, Indonesia, alaysia, Singapore and Thailand and India; 1 January 21 to 31 December 219 for the Philippines and India; and 1 January 21 to 31 December 216 for India and between 1 January 21 and 31 December 221 for Cambodia, Lao PDR, yanmar and

9 WT/COTD/RTA/8/1-9 - Viet Nam. For products in the Sensitive Track, s above 5% will be reduced to 5% for up to 5 ; for the remaining products subject to 5% duty, the rate will be reduced to 4.5% at entry into force of the Agreement for the ASEAN 6 and five years from entry into force for the other ASEAN members and finally reduced to 4% by the end of their respective implementation periods. Furthermore applied s on 4% of the in the Sensitive Track will be eliminated according to the schedule in Annex I. The Special products list which is maintained only by India (crude and refined palm oil, coffee, black tea and pepper) will be subject to reductions. Products in the highly sensitive lists will also be subject to reductions as scheduled in Annex I, while exclusion lists will be subject to annual review with a view to improving market access. According to the Parties no such reviews have taken place to date The Parties may not institute or maintain any non- measures on imports of goods from (or exports to or sale for export to) the other Parties, except in accordance with its WTO rights and obligations or other provisions in the Agreement. Furthermore, for permitted non- measures they will ensure the transparency of these measures and their full compliance with obligations under the WTO Agreement with a view to minimizing possible distortions to trade to the maximum extent possible (Article 8). Article 9 further permits the Parties to modify or withdraw their concessions under the Agreement but only through negotiation and agreement with any other Parties towards which the concessions have been made. In such negotiations and agreement, which may include the provision of compensatory adjustment with respect to other goods, the Parties concerned shall maintain a general level of reciprocal and mutually advantageous concessions that are not less favourable to trade than that provided under the Agreement With regard to administrative fees and formalities, the Parties reaffirm their commitments under Article VIII.1 of GATT 1994 (Article 6) Liberalization of trade and 3.6. Tables 3.1 and 3.2 below show elimination and reduction commitments made by ASEAN and India respectively. With respect to ASEAN members, in 21 when the Agreement entered into force for Brunei Darussalam, 75.4% of its was duty free on an FN basis, under which 91.8% of its average imports from India during 27-9 were carried out. 7 Between 1 January 213 and 31 December 219 Brunei Darussalam will eliminate s on a further 7.3% of its, corresponding to.5% of its imports from India, with the remaining 17.4% of the (1,443 ) remaining dutiable once implementation is complete. In addition to elimination, Brunei commits to reduce its duties on 1,15 (13.3% of the ) for imports from India relating to 2.5% of its imports from India In 211 when the Agreement entered into force for Cambodia, 13.7% of its was duty free on an FN basis, corresponding to 36.8% of its imports from India during Cambodia will eliminate its s under the Agreement on 31 December 218, when 67.8% of its corresponding to 5.7% of its imports from India, and on 31 December 221 when 3.7% of its, corresponding to 2% of its imports from India will be liberalized. At the end of implementation in 221 1,229 (14.8% of the ), corresponding to 1.6% of its imports from India will remain dutiable. Under the Agreement Cambodia will also reduce rates on 84.2% of the, relating to 58.9% of its imports from India Around 24% of Indonesia's FN applied was duty free in 21, corresponding to 64.8% of its imports from India during Under the Agreement Indonesia commited to liberalize s in 213 (1,58 on 1 January and 51 on 31 December), on 31 December Under Article VIII.1, all fees for import and export are to be limited in amount to the approximate cost of services rendered and not represent an indirect protection to domestic products or a tax on imports or exports for fiscal purposes; the contracting parties recognize the need for reducing the number and diversity of such fees and charges; and they also recognize the need for minimizing the incidence and complexity of import and export formalities and for decreasing and simplifying import and export documentation requirements. 7 In 21 Brunei Darussalam's FN applied was composed of 8,3 at the HS eight-digit level, 99.37% of which had ad valorem rates. The non ad valorem rates on 52 were all specific. 8 In 211 Cambodia's FN applied was composed of 8,3 at the HS eight-digit level, all of which had ad valorem rates of duty. 9 In 21 Indonesia's FN applied was composed of 8,738 at the HS ten-digit level of which 99.69% had ad valorem rates of duty. Of the remainder 17 had specific rates of duty and 1 were prohibited.

10 WT/COTD/RTA/8/1-1 - (384 ) and 31 December 219 (292 ). As a result, by the end of implementation 4,48 (5.4% of the ) are to be liberalized, corresponding to 69.4% of its imports from India during Under the Agreement Indonesia also agrees to reduce s on 67.6% of its, relating to 3.4% of its imports from India In 211 none of Lao PDR's FN applied was duty free. 1 Lao PDR will start eliminating s on 31 December 218 (5,711 ) corresponding to 1.7% of its imports from India. Further elimination will take place on 1 January (53 ) and 31 January 221 (666 ). At the end of implementation, Lao PDR will maintain s on 1,87 (22.5% of the ), corresponding to 1.1% of its imports from India. In addition to eliminating s, Lao PDR will reduce duties on 95.7% of its s, which relate to 79% of its imports from India Some 63.8% of alaysia's applied FN was duty free in 21 corresponding to 86.2% of its imports from India during It liberalized 18 on 1 January 21 when the Agreement entered into force. Another 444 were liberalized on 1 January 213 to be followed by 597 and 887 respectively on 31 December 213 and 31 December 216. At the end of implementation alaysia will maintain duties on 1,818 (17.5% of its ) corresponding to 6.9% of its imports from India during In addition, alaysia will also reduce duties on 26.6% of its, related to 8.7% of its imports from India yanmar provided duty free access on an FN basis for 355 (4.1% of the ) in 21 when the Agreement entered into force. 12 It will liberalize duties on a further 5,411 on 31 December 218, corresponding to 77.4% of its imports from India, and 583 on 31 December 221. At the end of implementation it will retain duties on 2,278 (26.4% of the ) corresponding to 6.9% of its imports from India. yanmar will also reduce duties on some 72.3% of its, relating to 8.6% of its imports from India In % of the Philippines' applied FN was duty free, corresponding to 5.4% of its imports from India during As a result of the Agreement, the Philippines will liberalize a further 55.6% of the on 31 December 218, corresponding to 41.5% of its imports from India. A further 1,453 (17.5%), corresponding to 25.5% of its imports from India are to be liberalized on 31 December 219. At the end of liberalization 1,81 (21.7%) are to remain dutiable, related to 79.2% of the Philippines' imports from India Singapore liberalized its six dutiable at entry into force of the Agreement in In 21 1,522 of Thailand's FN applied were duty free. 15 Twelve were liberalized upon entry into force of the Agreement on 1 January 21. A further 2,388 were liberalized on 1 January 213 with 1,621 to be liberalized on 31 December of 213; these correspond to respectively 14.4% and 4.4% of its imports from India during Two and 736 are to be liberalized in 217 and 218 respectively. At the end of liberalization 2,19 (24.3%) are to remain subject to duties, corresponding to 22.9% of its imports from India. Thailand will also reduce duties on 66.8% of the, related to 41.8% of its imports from India In % of Viet Nam's FN applied was duty free, corresponding to 66% of its imports from India during It liberalized s on two additional on 1 January 21 1 In 211 Lao PDR's applied was composed of 8,3 at the HS eight-digit level, 99.82% of which had ad valorem rates of duty; 15 were prohibited for import. 11 In 21 alaysia's FN applied was composed of 1,389 at the HS nine-digit level. Of these, 99.27% had ad valorem rates of duty, while 39 had specific rates, 35 compound rates and 2 had mixed rates of duty. 12 In 21 yanmar's applied FN consisted of 8,627 at the HS eight-digit level all of which had ad valorem rates of duty. 13 In 211, the Philippines' applied FN consisted of 8,298 at the HS eight-digit level all of which had ad valorem rates of duty. 14 In 21 Singapore's applied FN consisted of 8,294 at the HS eight-digit level, of which 6 carried specific rates of duty. 15 In 21 Thailand's applied FN consisted of 8,3 at the HS eight-digit level, of which 9.75% was subject to ad valorem rates of duty; 695 had mixed rates of duty, 37 specific and 36 other rates of duty. 16 In 21 Viet Nam's applied FN consisted of 9,186 at the HS ten-digit level, all of which had ad valorem rates of duty.

11 Lao PDR Indonesia Cambodia Brunei Darussalam ASEAN embers Number of Number of WT/COTD/RTA/8/ for imports from India. The bulk of its elimination (3,196 ) will take place on 31 December 218, corresponding to 17.8% of its imports from India, followed by 528 (5.7%) on 31 December 221 which correspond to 1.4% of its imports from India. At the end of implementation Viet Nam will retain duties on 2,449 (26.7% of the ), corresponding to 14.8% of its imports from India during Viet Nam will also reduce duties on 49.6% of the by the end of implementation. Table 3.1 ASEAN: Tariff elimination and reduction commitments under the Agreement and corresponding average trade with India Value in million US$ Duty phase-out period Duty Liberalization % of total in the schedule Average imports from India (27-29) Value of imports in million US$ % imports FN duty free (21) 6, Duty Reduction % of total in the schedule Average imports from India (27-29) Value of imports in million US$ % imports 1-Jan-1 1, Jan Dec Dec Dec Remain dutiable 1, Total 8, , FN duty free (211) 1, Jan-11 3, Jan-13 2, Jan Jan Jan Dec-18 5, Jan Jan Dec Remain Dutiable 1, Total 8, , FN duty free (21) 2, , Jan-1 5, Jan Jan Jan-13 1, Dec Jan Jan Dec Jan Jan Jan Dec Remain dutiable 4, Total 8, , , Duty free applied.... (211) 1-Jan-11 7, Jan Jan Jan Jan Dec-18 5, Jan Jan Dec Remain dutiable 1, Total 8, ,

12 Viet Nam Thailand Singapore The Philippines yanmar alaysia ASEAN embers Number of Number of WT/COTD/RTA/8/ Duty phase-out period Duty Liberalization % of total in the schedule Average imports from India (27-29) Value of imports in million US$ % imports Duty Reduction % of total in the schedule Average imports from India (27-29) Value of imports in million US$ % imports FN duty free (21) 6, , Jan , Jan Jan Jan Dec Jan Jan Jan Dec Dec Remain dutiable 1, Total 1, , , FN duty free( 21) Jan-11 1, Jan Jan Jan Jan Jan Dec-18 5, , Jan Dec Remain dutiable 2, Total 8, , FN duty free (211) Jan-11 2, Jan Jan-14 1, Jan Jan Dec-18 4, , Jan Dec-19 1, Remain Dutiable 1, Total 8, , FN duty free (21) 8, , Jan Total 8,3 1. 6, FN duty free (21) 1, Jan , Jan Jan Jan-13 2, Dec-13 1, Jan Jan Jan Dec Jan Jan Remain dutiable 2, Total 8,3 1. 2, , FN duty free (21) 3, , Jan , Jan Jan Jan Jan Jan Jan

13 ASEAN embers Number of Number of WT/COTD/RTA/8/ Duty phase-out period Duty Liberalization % of total in the schedule Average imports from India (27-29) Value of imports in million US$ % imports Duty Reduction % of total in the schedule Average imports from India (27-29) Value of imports in million US$ % imports 1-Jan Jan Dec-18 3, Dec Jan Jan Dec Jan Jan Jan Remain dutiable 2, Total 9, , , * Only for Cambodia, Lao and the Philippines. Note: Source: For alaysia, the Philippines and Viet Nam: Tariff subject to in-quota rates are excluded in the computation. For the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included. Based on the HS 27 nomenclature. WTO estimates based on data provided by ASEAN Secretariat, UNSD Comtrade database (Viet Nam's imports from India for 27 to 28) and WTO-IDB India's liberalization schedule for ASEAN members is shown in Table 3.2. Its schedule is the same for all ASEAN members except for Brunei Darussalam (one additional line was liberalized on 1 January 213) and the Philippines. In 21, when the Agreement entered into force for India, 3.2% of its applied FN was duty free, corresponding to a range of between 2.1% of India's imports from Cambodia during 27-9 to 37.3% of its imports from Lao PDR. 17 On 1 January 21 a further.2% of the (26 ) were liberalized for all ASEAN members followed by 6.1% of for all ASEAN members except the Philippines on 1 January 213. The bulk of its liberalization, a further 56.1% of s (6,325 ) is to take place on 31 December 213 for all ASEAN members except the Philippines, corresponding to 27-9 imports ranging from between 1.6% from Brunei Darussalam to 65.2% from yanmar. With regard to the Philippines, 7,12 and 1,65 respectively will be liberalized on 31 December 218 and 1 January 221, corresponding to 44.1% and 6% respectively of its imports from the Philippines. A the end of implementation, 25% of India's (2,816 for imports from Brunei and 2,817 from other ASEAN members) will remain subject to duties, corresponding to imports ranging from.1% of India's 27-9 imports from Brunei Darussalam to 61.1% from Cambodia. In addition to liberalization, India will reduce duties on 85.5% of its for imports from ASEAN (9,648 for Brunei Darussalam, 9,64 for the Philippines and 9,645 for the rest of ASEAN). 17 In 21 when the Agreement entered into force, India's applied FN consisted of 11,277 at the HS eight-digit level, 93.95% of which have ad valorem rates of duty. Of the remainder, 533 have mixed rates of duty, 5 have specific rates and 144 have other rates of duty.

14 FN 21 1-Jan-1 1-Jan Dec Dec Dec-18 1-Jan-21 Remain Dutiable Total 1-Jan-1 1-Jan-11 1-Jan-12 1-Jan Dec-13 1-Jan-14 1-Jan-15 1-Jan-16 1-Jan Dec-18 1-Jan Dec-19 Total WT/COTD/RTA/8/ Table 3.2 India: Tariff elimination and reduction commitments under the Agreement and corresponding average Value in million US$ (average imports of India from ASEAN partners from 27 to 29) Duty Liberalization Duty phase-out period Duty Reduction Duty phase-out period Partners Brunei Philippines Tariff Schedule No of ,325 1,68 2,816 11,279 8, ,648 % share No of ,817 11,279 8, ,64 % share Rest of ASEAN a No of ,325 1,68 2,817 11,279 8, ,645 % share Brunei Cambodia Indonesia Lao PDR alaysia yanmar Philippines Singapore Thailand Viet Nam Average of imports (27-29) Value ,442 7,936 7,936 % share Value % share Value ,482 2,636 67, ,512 15, , ,58 % share Value % share Value ,263 6,21 1,866 17,934 58, , ,995 % share Value , ,142 22,451 22,451 % share Value ,35 5,926 2, ,36 % share Value ,599 7,222 59, ,85 7, ,142 7, ,379 % share Value ,544 7,61 21,9 58,785 37, , ,389 % share Value , ,881 8,112 6, ,313 % share a Note: Source: Cambodia, Indonesia, Lao PDR, alaysia, yanmar, Singapore, Thailand and Viet Nam. For the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included. Based on HS 27 nomenclature. WTO estimates based on data provided by India and the WTO-IDB.

15 HS Section 1-Jan Dec Dec Dec-19 WT/COTD/RTA/8/ Liberalization schedule ASEAN ember States Further details of liberalization by HS Section are given in Table 3.3(a-j) and by HS Chapter in Chart 3.1(A-I) for ASEAN and in Table 3.4 and Chart 3.2 for India Brunei Darussalam will maintain s in all HS Sections except HS I, III, X, XVII, XIX and XXI once the Agreement is fully implemented. The largest number of products remaining subject to duty are found in HS Sections XVI (machinery and mechanical appliances), XVIII (optical and photographic instruments), VI (chemicals) and XI (textiles). The average on products remaining dutiable will range from 4.4% in Section XIV (precious metals) to 2% in Section XV (base metals); specific duties are found in HS Sections II and V. Table 3.3a Brunei Darussalam: Tariff elimination under the Agreement, by HS Section Duty-free under the Agreement FN average % No. of No. of duty-free in FN 21 Remain dutiable Avg. Final Tariff (Dutiable) I II /kg III IV V /dal VI.6 1, VII VIII IX X XI XII XIII XIV XV XVI 1.1 1, XVII XVIII XIX XX XXI. 1 1 Total 3.5 8,3 6, , Note: Source: For the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included. Based on HS 27 nomenclature. WTO estimates based on data provided by ASEAN Secretariat and WTO-IDB Cambodia will retain s in all HS Sections except XIX and XXI with the largest number of products remaining subject to duty in HS XVI (machinery and mechanical appliances), XI (textiles), VI (chemicals) and XVII (vehicles). The average on products remaining dutiable once the Agreement is implemented will range from 5% in HS III, VIII, IX, and XII-XIV to 19.5% in HS I (live animals).

16 HS Section 1-Jan Dec Dec Dec Dec Dec- 21 WT/COTD/RTA/8/ Table 3.3b Cambodia: Tariff elimination under the Agreement, by HS Section HS Section FN average% No. of No. of dutyfree in FN 211 Duty-free under the Agreement Remain dutiable Avg. Final Tariff (Dutiable) I II III IV V VI 8.4 1, VII VIII IX X XI XII XIII XIV XV XVI , XVII XVIII XIX XX XXI. 1 1 Total ,3 1,136 5, , Note: Source: Based on the HS 27 nomenclature. WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB Once the Agreement is implemented Indonesia will maintain s on imports from India across all HS Sections. The largest number of remaining subject to duty are in HS Sections XI (textiles), XV (base metals), XVI (machinery), VI (chemicals) and VII (plastics and rubber). The average final s for these products range from 4.3% in Section XIII (articles of stone and plaster) to 5.2% in Section III (animal or vegetable fats). Table 3.3c Indonesia: Tariff elimination under the Agreement, by HS Section Duty-free under the Agreement FN average % No. of No. of duty-free in FN 21 Remain dutiable Avg. Final Tariff (Dutiable) I II III IV V VI 4.7 1, VII VIII IX X XI XII XIII XIV XV XVI 3.6 1,

17 HS Section 1-Jan Dec Dec-16 HS Section 1-Jan Dec Dec Dec-19 WT/COTD/RTA/8/ Duty-free under the Agreement FN average % No. of No. of duty-free in FN 21 Remain dutiable Avg. Final Tariff (Dutiable) XVII XVIII XIX XX XXI Total 7.6 8,738 2,11 1, , Note: Source: For the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included. Based on the HS 27 nomenclature. WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB Lao PDR will maintain s across all Sections except XIV once the Agreement is fully implemented. The largest number of remaining are found in HS Sections XVII (vehicles), II (vegetables), and IV (prepared foods). The average final s on remaining subject to duty range from 5% in most sections to 3% (XIX - arms and ammunition) Table 3.3d Lao PDR: Tariff elimination under the Agreement, by HS Section FN average % No. of Duty-free under the Agreement Remain dutiable Avg. Final Tariff (Dutiable) I II III IV V VI 7.7 1, VII VIII IX X XI XII XIII XIV XV XVI 7. 1, XVII XVIII XIX XX XXI Total 1.3 8,3 5, , Note: Source: For the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included. Based on HS 27 nomenclature. WTO estimates based on data provided by ASEAN Secretariat and WTO-IDB alaysia will retain s in all HS Sections except III, VIII, IX, XIV, XVIII and XXI. The largest number of remaining subject to duty once the Agreement is fully implemented are found in HS Sections VII (plastics and rubber), XV (base metals), XI (textiles) and XVII

18 HS Section HS Section 1-Jan Dec Dec- 16 WT/COTD/RTA/8/ (vehicles). The average final of the remaining subject to duty range from 4.7% in Section XII to 21.8% in Section XVII (vehicles). Table 3.3e alaysia: Tariff elimination under the Agreement, by HS Section FN average % No. of No. of dutyfree in FN 21 Duty-free under the Agreement Remain dutiable Avg. Final Tariff (Dutiable) I II III IV V VI 1.9 1, VII VIII IX X XI XII XIII XIV XV XVI 5.4 1, XVII XVIII XIX XX XXI Total 6. 1,389 6, , Note: Source: Tariff subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included. Based on the HS 27 nomenclature. WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB yanmar will maintain s across all HS Sections once the Agreement is fully implemented. The largest number of remaining are found in HS XVI (machinery and mechanical appliances), VI (chemicals), and XV (base metals). The average final on remaining subject to duty range from 1.6% in HS Section V to 17.8 in HS IV (prepared foods). Table 3.3f yanmar: Tariff elimination under the Agreement, by HS Section FN average % No. of No. of dutyfree in FN 21 Duty-free under the Agreement 31-Dec Dec-19 Remain dutiable Avg. Final Tariff (Dutiable) I II III IV V VI 2.7 1, VII VIII IX X XI XII XIII XIV XV XVI 2.7 1,

19 HS Section HS Section WT/COTD/RTA/8/ FN average % No. of No. of dutyfree in FN 21 Duty-free under the Agreement 31-Dec Dec-19 Remain dutiable Avg. Final Tariff (Dutiable) XVII XVIII XIX XX XXI Total 5.5 8, , , Note: Source: Based on the HS 27 nomenclature. WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB The Philippines will retain s across all HS Sections except HS V, XIV, XIX and XXI once the Agreement is fully implemented. The largest number of remaining subject to duty are found in HS XVII, IV, XVI, II and XV. The average final of the products remaining subject to duty range from 2.4% in XVIII to 17.6% in HS XVII (vehicles). Table 3.3g Philippines: Tariff elimination under the Agreement, by HS Section FN average % No. of No. of duty-free in FN 211 Duty-free under the Agreement 31-Dec Dec-19 Remain dutiable Avg. Final Tariff (Dutiable) I II III IV V VI 3.3 1, VII VIII IX X XI XII XIII XIV XV XVI 2.9 1, XVII XVIII XIX XX XXI Total 6.4 8, ,617 1,453 1, Note: Source: Tariff subject to in-quota rates are excluded in the computation. Based on the HS 27 nomenclature. WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB Singapore eliminates the remaining six found in Section IV upon entry into force of the Agreement. Table 3.3h Singapore: Tariff elimination under the Agreement, by HS Section HS Section FN average % No. of No. of duty-free in FN 21 Duty-free under the Agreement I II III IV $11.5 /lt. of alcohol

20 HS Section 1-Jan- 1 1-Jan Dec Jan Jan- 18 HS Section FN average % No. of WT/COTD/RTA/8/1-2 - No. of duty-free in FN 21 Duty-free under the Agreement V VI 1,98 1,98 VII VIII IX X XI XII XIII XIV XV XVI 1,85 1,85 XVII XVIII XIX XX XXI 1 1 Total 8,3 8,294 6 Note: Source: Based on the HS 27 nomenclature. WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB Thailand will maintain duties across all HS Sections except HS IX, XIX and XXI once the Agreement is implemented. The largest number of remaining subject to duty are found in HS XV, XI, XVII, IV and I. The average final of remaining subject to duty will range from 4.1% in HS XVIII to 43.3% in HS XVII (vehicles). Table 3.3i Thailand: Tariff elimination under the Agreement, by HS Section FN average % No. of No. of duty-free in FN 21 Duty-free under the Agreement Remain dutiable Avg. Final Tariff (Dutiable) I II III IV V VI 3.5 1, VII VIII IX X XI XII XIII XIV XV XVI 5.1 1, XVII XVIII XIX XX XXI Total ,3 1, ,388 1, , Note: Source: Tariff subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates are excluded and the ad valorem parts of alternate rates are included. Based on the HS 27 nomenclature. WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB Viet Nam will retain s across all HS Sections except IX, XVIII, and XXI once the Agreement is fully implemented. The largest number of remaining subject to duty are found

21 HS Section 1-Jan Dec Dec- 21 WT/COTD/RTA/8/ in HS Sections XVI (machinery and mechanical appliances), XVII (vehicles), XV (base metals), and IV (prepared foodstuffs). The average final on products remaining subject to duty range from 5% in HS III to 28.1% in HS XIX (arms and ammunition). Table 3.3j Viet Nam: Tariff elimination under the Agreement, by HS Section FN average % No. of No. of dutyfree in FN 21 Duty-free under the Agreement Remain dutiable Avg. Final Tariff (Dutiable) I II III IV V VI 3.7 1, VII VIII IX X XI XII XIII XIV XV XVI 6.6 2, XVII XVIII XIX XX XXI Total 1.5 9,186 3,11 2 3, , Note: Source: Based on the HS 27 nomenclature. WTO estimates based on data provided by the ASEAN Secretariat and WTO-IDB Charts 3.1(A-I) show the remaining subject to duty in ASEAN Parties by HS Chapter once the Agreement is implemented. Brunei Darussalam retains s mainly on industrial products (HS 25-97) with Chapters 9 and 21 also remaining subject to duties. The s range from 4.1% in HS 91 (optical instruments) to 2% in HS 36 (explosives) and 73 (iron and steel articles). any final average preferential s are equivalent to the corresponding FN average but there are Chapters for which preferential rates which are lower than the FN rate are offered. Thus in Chapters 33, 34, 43, 44, 57, 64, 7, 71, 84, 85, 9-92, and additional preferential reductions are offered by Brunei to India Cambodia retains s across a number of HS Chapters (except 29 Chapters: HS 4, 14, 17-19, 23, 26, 3-31, 43, 45-47, 56, 6, 65-66, 69, 75-81, 86, 89, 91-93). However, the average preferential is lower than the corresponding FN average (except for Chapters 1, 34, and 49) thus providing additional preferential access for imports under most HS Chapters for imports from India Similarly, while Lao PDR retains s across many HS Chapters once the Agreement is implemented (except HS 11, 18, 23, 25-26, 31, 35, 37-38, 45, 47, 51, 53-55, 57-62, 64, 68, 7-71, 74-75, 77-78, 81, and 86) the average preferential rate is lower than the corresponding FN average for most Chapters (except for in Chapters 1, 28, 29, 72, 73, 76, 82, 93 and 97 where it is equivalent to the FN average for corresponding ) thus providing additional preferential access for imports from India.