Developing Eight
(D-8) Preferential Tariff Agreement (PTA)
Background
-
The Group of Developing
Eight (D-8) comprises eight Islamic countries, namely, Bangladesh, Indonesia,
Iran, Malaysia, Egypt, Nigeria, Pakistan and Turkey.
-
The D-8 Preferential
Tariff Agreement (PTA) is designed to gradually reduce tariffs and other
barriers to trade on specific goods in order to promote intra-trade among D-8
members.
-
All eight (8) member
countries signed the D-8 PTA at the Fifth D8 Summit on 13 May 2006 in Bali,
Indonesia .
-
Malaysia ratified the
D-8 PTA on 20 July 2006.
Objective
-
To strengthen trade
relations among members through:
-
Reduction of tariffs
and elimination of non-tariff barriers and para-tariffs;
-
Promotion and expansion
of trade, contributing towards the harmonious development of economic relations
among Members;
-
Creation of enabling
conditions for fair competition among Members;
-
Facilitation of mutual
trade and contribution towards expansion of world trade;
-
Creation of a more
predictable and secure environment for sustainable growth of trade among
Members; and
- Facilitation of the
diversification of commercial exchanges among Members.
Scope
The D-8
PTA shall apply to trade in goods, contained in the national tariff schedules of
concessions and originating in the territories of the Members.
Modalities
-
Upon entry into force
of the D-8 PTA, Members shall:
-
not increase applied
tariff rates on imports of the products covered under D-8 PTA without approval
of Supervisory Committee;
-
notify one another
their respective applied tariff rates; and
- reduce applied tariff
rates of goods specified in their national schedules, according to the
modalities.
-
D-8 PTA covers 8 per
cent of all goods with tariff rates above 10 per cent. Tariff reduction for
these goods are as follows:
-
above 25 per cent to be
reduced to 25 per cent;
-
between 15-25 per cent
to be reduced to 15 per cent; and
- between 10-15 per cent
to be reduced to 10 per cent.
-
Tariff reduction will
be implemented in:
-
8 annual installments
for the LDCs; and
- 4 annual installments
for other Members.
-
The D-8 PTA provides
for:
-
longer transition
period of 3 years for LDCs to eliminate their para-tariffs and non-tariff
barriers;
-
safeguard measures such
as anti-dumping, subsidies, countervailing measures; and
- a set of rules of
origin used to grant concessions which is still under discussion.
Members
shall review tariffs three years after entry into force of the D8 PTA with the
objective of expanding product coverage, deepening concessions and shortening
time frame.
-
The D8 PTA will be :
-
implemented once it is
signed and ratified by at least four Members; and
- operational once the
D-8 PTA Rules of Origin (RoO) is concluded.
Status
-
The negotiations on
draft text of D8 PTA RoO provided by Pakistan commenced on 18-19 December 2006
at the 7 th D8 High Level Trade Officials in Islamabad, Pakistan. To date, two
meetings have been held, the last meeting on 3-4 May 2007 in Islamabad,
Pakistan.
- The third meeting (9 th
High Level Trade Officials Meeting) to finalise the D8 PTA RoO is scheduled on
27 – 29 March 2008 in Islamabad, Pakistan.
Benefits
The
implementation of D-8 PTA would enable Malaysian exporters to enjoy preferential
tariff treatment for selected products in the market of the participating
members and enable exporters to gain competitive advantage over similar products
originating from non-participating countries. |
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Last Updated 2015-05-14 12:01:02 by admin2