ASEAN nations to eliminate more tariffs

Korean companies are expected to be exempted from the burden of tariffs when they export automotives and various kinds of related component products to the six major countries in ASEAN as early as next year. This is because the Korean government and ASEAN’s six nations recently agreed to massively abolish the exception items of the Korea-ASEAN free trade agreement (FTA).

The government through the summit with presidents of ASEAN held last month scored a notable accomplishment focusing on elevating the utilization of the Korea-ASEAN FTA. Korea and 10 ASEAN nations have so far been subject to the MFN, so high tariffs on Korea’s major export items including autos existed under the FTA, which was effectuated in 2009.

As much as 38 percent of low utilization of the FTA among those nations is attributable to the compromise. But, six ASEAN nations mutually agreed to eliminate the MFN. Korea was also determined to participate in such movement.

 
 
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