Overview of ASEAN Trade in Goods Agreement
ATIGA’s Trade Partnership Structure
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Step 1
- Economic Partnership
- ATIGA’s Trade Partnership Structure In this initial stage, ASEAN member states agree to reduce tariffs and address trade barriers, fostering cooperation in trade facilitation and market access.
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Step 2
- Economic Integration Partnership
- This stage signifies deeper economies, with ASEAN members committed to harmonizing trade regulations, aligning customs procedures, and advancing preferential tariff schemes.
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Step 3
- Comprehensive Strategic Partnership
- The final stage focuses on creating a fully integrated regional economy by strengthening collaboration in trade facilitation, investment, digital trade, and the broader ASEAN Economic Community (AEC).
Key Achievements Under ATIGA
- 1. Tariff Elimination
- A commitment to eliminate tariffs on 99% of traded goods, promoting free trade and economic growth across ASEAN.
- 2. ASEAN Common Effective Preferential Tariff (CEPT) Scheme
- This ensures that trade in goods is supported by a unified regional tariff reduction mechanism, boosting competitiveness and simplifying cross-border trade.
- 3. Streamlined Customs Procedures Elimination
- Automation and digitization of customs documentation and processing across member states, including electronic systems for clearance to expedite cargo movements.
Supplementary Measures and Regulatory Alignment
The Philippines, as a founding ASEAN member, has taken proactive steps to align its trade policies with ATIGA’s goals. Below are key supplementary measures
The Philippines reduced tariffs on various goods in compliance with ATIGA, aligning with ASEAN’s Common Effective Preferential Tariff(CEPT).
The Bureau of Customs enhanced trade facilitation by adopting electronic documentation, improving cargo processing times, and aligning regulatory frameworks to regional standards.
Efforts to harmonize technical standards across ASEAN have helped the Philippines reduce technical barriers to trade, improving ease of business transactions regionally.
Korea-ASEAN Think Tank Dialogue
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Supervision
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Department of Trade and Industry (DTI)
Bureau of Customs (BOC)
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Execution
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Philippine Institute for Development Studies (PIDS)
Other research agencies
Joint Research and Consultation Engagement with trade experts, research institutions, and the private sector to continuously assess the impacts of ATIGA and propose adjustments.
Forum and Seminars Organization of forums and capacity-building workshops to educate businesses on ATIGA’s opportunities and compliance requirements.
Developments and Updates on ATIGA
ATIGA has undergone various updates since its inception, with the Philippines playing an active role in
Periodic reviews and adjustments of tariff schedules to reflect current economic needs.
The Philippines supported the development of streamlined Rules of Origin to facilitate preferential tariffs on intro-ASEAN trade.
As part of ongoing digital economy initiatives, new provisions have been introduced to accommodate e-commerce, aligning regional policies with global trends.
Protection Measures for Domestic Industries
To safeguard local businesses, the Philippines implements various protection measures under ATIGA
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1.Safeguard Measures
Temporary restrictions or tariffs imposed on imported goods that cause harm to domestic industries.
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2.Anti-Dumping Duties
Imposition of additional duties on products sold below fair market value to protect local manufacturers.
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3.Countervailing Duties
Measures against subsidized imports that harm local producers, ensuring fair competition.
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4.Technical Barriers to Trade (TBT)
Enforcement of product standards to ensure imported goods meet safety and quality requirements, protecting consumers and domestic industries.
The Philippines has outlined several key focus areas to maximize the benefits of ATIGA:
Continued modernization of customs processes, expansion of electronic systems, and reduction of non-tariff barriers.
Development of policies supporting digital trade, focusing on regulatory frameworks for online transactions and cyber-security.
Empowering local industries with training and support to help them compete effectively within the ASEAN Economic Community.
Ongoing reviews of tariff commitments to ensure alignment with regional economic strategies and domestic industry needs.
Continuous engagement in regional trade discussions to advocate for new trade provisions, particularly in services and investment.