ASEAN TARIFF REDUCTION SCHEME

The Association of South-East Asian Nations is to introduce a Common Effective Preferential Tariffs scheme, which it is hoped will lead to tariffs on pharmaceuticals and other products being almost totally abolished within the next 15 years, reports the Bernama news agency of Malaysia.

Under the CEPT scheme, countries which currently charge tariffs of above 20% will have to reduce them to below that figure within five to eight years, while countries which currently charge tariffs of below 20% will have to reduce them to 0%-5% over the same period. It is hoped that tariffs of 0%-5% on imports of pharmaceuticals will be charged within the next 15 years among ASEAN member states.