Does the CEPT-AFTA create a regional trade bloc?
No, it will not turn ASEAN into a regional trade bloc. In fact, the CEPT encourages not just intra-ASEAN trade liberalization, but also liberalization on an MFN basis. This is done through a unique provision in the CEPT Agreement which allows Member States that reduce their tariffs to 0-5%, even on a Most-Favored Nation Basis (MFN), to enjoy the CEPT concessions from other ASEAN Member States. Q16. Is the CEPT Scheme consistent with GATT principles? CEPT- AFTA is consistent with the GATT and is an outward-looking arrangement. The CEPT Scheme seeks to establish a common effective preferential tariff within the region and does not raise trade barriers against non-ASEAN economies. Q17. What is the status of the CEPT-AFTA notification ir7 the GATT? ASEAN has notified GATT of its CEPT-AFIFA in accordance with the Article IV on Trade and Development. Q18. What is the relationship between the CEPT Scheme and the AIJV Scheme? The CEPT Scheme takes precedence over the ASEAN Industrial Joint Ven
