In the same meeting, the committee also approved the proposal to reduce to zero the tariff on all capital equipment and raw material imports that were not locally available.
According to Trade Secretary Manuel Roxas II, who is also the chairman of the committee, the group approved the inclusion of about 320 tariff lines in the country’s 2001 CEPT commitment, including 29 unprocessed agricultural products.
Under the so-called bold measures undertaken by the government, 85 percent of the country’s tariff lines was supposed to have been reduced to zero-five percent by 2000.
By the year 2001, the tariff on 90 percent of all products traded within the region should already have been reduced to zero-five percent and further up to 100 percent by 2002.
The Asean agreement covered all products traded within the region, Roxas explained. As of 2000, the Philippines’ compliance with its commitment was at 70 percent.
Roxas said the Philippines was about a year late in its commitment but the inclusion of the 320 tariff lines would bring it closer to the schedule, liberalizing about 290 industrial products such as soap, detergent bars, handbags, belts and textiles.
According to Roxas, the committee based its decision on three criteria. The first consideration, he said, was that the product should not be locally available; second, there should be minimal or negligible importation of the product from the Asean and third, the prevailing rate in 2000 should already be below 10 percent.
Roxas also said the TRM committee approved the transfer of about 11 tariff lines from the general exclusion list to the inclusion list but he did not identify which products were covered by the tariff lines.
On the other hand, Roxas said the tariff on capital equipment and raw materials would be reduced to zero percent, pending the decision on how the government would cover the administrative costs for imports.