Minister Nguyen Hong Dien believes that the upgraded ATIGA will become a modern agreement, oriented towards the future and providing better support for businesses.
ASEAN prioritizes negotiations to upgrade the ATIGA Agreement
According to information from the Ministry of Industry and Trade, in the process of ASEAN economic integration, Vietnam has completed many important commitment roadmaps, contributing to the common goals of ASEAN, helping to enhance Vietnam's position and voice in the international arena.
Regarding the ASEAN Trade in Goods Agreement (ATIGA), since the agreement was put into effect, by 2018, Vietnam has reduced import tax to 0% for 98% of tariff schedules.
Along with that, in the process of implementing the agreement, Vietnam has worked with ASEAN countries to promote commitments and initiatives on trade facilitation and transparency such as: Building the ASEAN Trade Database (ATR), exchanging Certificates of Origin Form D through the ASEAN Single Window (ASW), building a Consultation Mechanism for businesses through the ASSIST platform...
However, according to the commitment of the ATIGA Agreement, ASEAN countries have eliminated tariffs at a rate of nearly 99%, so the opportunity for member countries to take advantage of and exploit the agreement is no longer available.
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| During the implementation of the ATIGA Agreement, Vietnam, together with ASEAN countries, has promoted commitments and initiatives on trade facilitation and transparency. |
Therefore, with the aim of facilitating businesses in applying regulations on rules of origin to effectively take advantage of the incentives of the ATIGA agreement, and at the same time resolving existing problems in the process of granting and checking the origin of goods, at the 28th ASEAN Economic Ministers' Retreat (AEMR28) held on March 16, 2022, ASEAN countries agreed to officially launch negotiations to upgrade the ATIGA Agreement to further promote intra-bloc trade and develop regional supply chains.
Since 2022, the negotiation to upgrade the ATIGA Agreement has been one of ASEAN's most important priorities. Therefore, ASEAN countries agreed to allocate resources to promote and basically complete the negotiation to upgrade this agreement according to the roadmap set by the end of 2024.
Notably, according to the Multilateral Trade Policy Department, since the start of negotiations in 2022 until the end of November 2024, the Ministry of Industry and Trade has chaired and coordinated with relevant ministries and branches to develop plans and participate in 12 upgraded negotiation sessions, focusing on traditional trade issues such as: Transparency, handling non-tariff barriers, trade facilitation to further promote intra-ASEAN trade, as well as emerging issues to ensure the agreement becomes a modern, future-oriented trade agreement, responding to new regional and global situations.
Up to now, after 12 negotiation sessions, the countries have completed most of the negotiation work, including the conclusion of negotiations on 03 Chapters: (i) Chapter on Micro, Small and Medium Enterprises (MSME); (ii) Chapter on Economic and Technical Cooperation (ECOTECH); (iii) Chapter on General Exceptions and Security Exceptions. In addition, 3 Chapters have basically concluded negotiations, including: (i) Chapter on Customs Procedures and Trade Facilitation, (ii) Chapter on Trade and Environment, (iii) Chapter on Standards, Regulations and Conformity Assessment Procedures.
Building ATIGA into a modern, future-oriented agreement
According to assessments from experts and the business community, timely upgrading of the ATIGA Agreement is necessary to respond to and stay ahead of global changes, while also being in line with ASEAN's transformative agenda.
The upgraded ATIGA will further simplify rules of origin, expand the use of digital trade and documentation technologies, and harmonize technical regulations and standards.
The ATIGA upgrade will also facilitate trade for micro, small and medium-sized enterprises, address sustainability and circularity concerns, and promote digital trade.
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Minister Nguyen Hong Dien attended the online meeting of the Special ASEAN Economic Ministers' Meeting on the negotiation of upgrading the ATIGA Agreement on the afternoon of February 7. |
During the online meeting of the Special ASEAN Economic Ministers' Meeting on the negotiation to upgrade the ASEAN Trade in Goods Agreement (ATIGA) held on the afternoon of February 7, participating online from the headquarters of the Ministry of Industry and Trade, Minister Nguyen Hong Dien emphasized the urgency of amending and upgrading the ATIGA.
Minister Nguyen Hong Dien said that with ATIGA, ASEAN countries have eliminated tariffs on nearly 99% of total tariff lines on goods. Therefore, the possibility of increasing trade turnover between ASEAN countries is very difficult.
Therefore, in the online meeting, Minister Nguyen Hong Dien hoped that ASEAN Economic Ministers would soon reach consensus on outstanding issues to conclude negotiations on upgrading the ATIGA Agreement in March 2025, moving towards signing a Protocol amending the ATIGA Agreement this year.
Minister Nguyen Hong Dien believes that after being upgraded, the ATIGA Agreement will become a modern, future-oriented agreement, responding to new regional and global situations.
The upgraded and forward-looking ATIGA will have significant impacts on businesses and stakeholders. The upgraded ATIGA will help businesses better take advantage of the Agreement’s benefits through reduced compliance costs and enhanced trade facilitation measures.
Not only that, after being upgraded, the ATIGA Agreement will also contribute to reducing trade costs, reducing legal barriers, resolving logistical bottlenecks and putting ASEAN on the path of more sustainable and inclusive economic growth.
| The upgraded ATIGA will contribute to enhancing ASEAN's position in the global supply chain, a golden opportunity for ASEAN to strengthen its position in a changing world. |
Source: https://congthuong.vn/nang-cap-atiga-thanh-hiep-dinh-hien-dai-ho-tro-tot-cho-doanh-nghiep-372814.html
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