Preferential Trade Agreements and Trade Liberalization Efforts in the OIC Member States
With Special Emphasis on the TPS-OIC
105
Table 16: Simple Average MFN and Preferential Tariffs Applied by ASEAN’s OIC Members and
China
Reporter Partner 2000 2005 2010
Brunei Darussalam China
World 3.16 2.14 3.02
Indonesia China 8.25 6.99 1.32
World (MFN) 8.43 6.95 6.7
World (applied tariff) 8.43 5.71 4.18
Malaysia China 7.82
World (MFN) 8.34 (2001) 7.43 4.91 (2009)
World (applied tariff) 7.39 (2001) 7.43 6.95 (2009)
China ASEAN 16.9 9.2 0.7
World (MFN) 17 9.8 9.6
Source: WITS (TRAINS database - aggregated from 6 digit data).
The ASEAN-China FTA uses 40% RVC rule of origin with product-specific transformation rules
especially for textiles and apparel, products of plastic footwear, iron and steel, palm oil, and
jewellery products. The CTC rule is not used, despite being available in ATIGA (see above) and
most of the other ASEAN agreements. Cumulation is allowed across partners provided each
satisfies the RVC rule.
Intra-RTA imports increased significantly between early 1990s and late 2000s. For Indonesia,
the share of imports from ASEAN and China quadrupled during this period and in the case of
Malaysia the share doubled during this period. On the exports side there was no significant
change, apart from for Indonesia. Despite this major relative increase of both exports and
imports the sectoral structure of trade between Indonesia and ASEAN-China did not change
significantly over this period.