Why do non-tariff barriers need to be removed?
Non-tariff barriers are not merely quotas and regulations designated to forbid imports that are easy to discover. They are also measures to prevent anti-dumping and to reduce the distortion of geographical origins. Viet Nam began reducing nearly 10,000 import taxes in 1996 after the Common Effective Preferential Tariff (CEPT) scheme, a preferential tariff agreement which applied to goods originating from ASEAN member states, was signed. Yet, CEPT had certain shortcomings. The ASEAN bloc has not yet developed to its full potential. Absolute value in trade has increased at a slower rate than the growth of total regional trade. CEPT also caused a big gap between enterprises of ASEAN countries, partially because they lacked information to participate in the scheme. ASEAN is trying to address these difficulties by creating favourable conditions for enterprises through the removal of non-tariff barriers. This means economic co-operation in ASEAN is not only required to reduce taxes to 0-5 pe
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