Tariffs cut on Asian imports under APTA

Tariffs cut on Asian imports under APTA

News:

1. The Centre has implemented the tariff concessions under the Asia Pacific Trade Agreement.

Important facts:

2. India has agreed to provide tariff concessions on 3,142 products to Asia Pacific Trade Agreement (APTA) members, including Bangladesh and Sri Lanka, from July 1

3. However, these duty concessions will be more for least developed countries (LDCs) and less for developing nations.

4. The results of the fourth round of negotiations under the Asia Pacific Trade Agreement (APTA), have been implemented with effect from July 1.

5. With the implementation of this decision, the coverage of preferences of total tariff lines for each member would come of 10,677 products, up from 4,270 items at the conclusion of the third round.

6. The average Margin of Preference (MoP) being provided under the agreement is 31.52 per cent. But LDC members are entitled to greater concessions on 1,249 items with an average MoP of 81 per cent.

7. APTA:

• APTA is an initiative under the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) for trade expansion through exchange of tariff concessions among developing country members of the Asia Pacific Region.
• It is in place since 1975.
• It is a preferential trade agreement (PTA), under which the basket of items as well as extent of tariff concessions are enlarged during the trade negotiating rounds which are launched from time to time.
• Under a free trade agreement, countries cut or eliminate duties on most number of goods traded between them besides liberalising norms to promote services trade and investments. But under a PTA, duties are eliminated on a certain number of identified items.
• It is previously known as Bangkok Agreement,
• It consists six countries namely, Bangladesh, China, India, Lao PDR, Republic of Korea and Sri Lanka.
• APTA is a preferential trade agreement, under which the basket of items as well as the extent of tariff concessions are enlarged during the trade negotiating rounds that are conducted periodically.
• The fourth round of trade negotiations under the agreement was conducted on January 13, 2017.
• India is a founding member of APTA.
• APTA is the oldest preferential trade agreement between countries in the Asia-Pacific region.