Economic Planning Secretary Dante Canlas said yesterday the CTRM has also agreed on a selective reduction on Most Favored Nations (MFN) tariff rates based on a review of products not locally produced and locally produced but not in sufficient quantity.
Canlas said the Philippines is abiding by its commitment to its ASEAN neighbors and would proceed with the tariff cuts.
Earlier, ASEAN Secretary General Rodolfo Severino said that ASEAN nations must work harder to scrap non-tariff barriers as part of their efforts to integrate their economies more closely.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Under the AFTA/CEPT, ASEAN member-countries are committed to bring down their tariff wall for almost all products between zero to five percent by January 2003, except for certain products placed under an exclusion list.
The CTRM decision on MFN rates, which are also supposed to come down next year and by 2004 would be more selective.
The CTRM agreed that for products not locally produced, it could recommend compliance, but a further review would be required for products locally produced but not in sufficient quantity.
Government has decided to allow a selective liberalization of the petrochemical industry following a request from industry players to further discuss the issue.
"The more contentious request by the petrochem industry was deferred for further discussion with the various downstream, mid-stream and upstream players," Canlas said.
The CTRM is an inter-agency committee that reviews the country’s tariff and trade policies. Other members of the CTRM include the Department of Budget and Management, Department of Agriculture and Department of Foreign Affairs.