Trade in Goods  
     
 

The Framework Agreement on Trade in goods was signed in 2004 and implemented in 1 July 2005 by the ASEAN countries and 20 July 2005 by China.

Under the Trade in Goods agreement, participating countries are committed to reduce and / or eliminate tariff under five different schedules. These products are organised into five different lists:

i. Early Harvest Programme (EHP)
ii. Normal Track which is further subdivided into
a. Normal Track 1
b. Normal Track 2
iii. Sensitive Track which is further subdivided into
a. Sensitive List
b. Highly Sensitive List

As part of the Framework Agreement, the EHP was negotiated. This programme allowed for the accelerated reduction of tariffs on certain products before the onset of the FTA. The programme reduced tariffs on these products over 3 years: to 10% by 2004, to 5% by 2005 and zero tariffs by 2006. 

For Singapore exports to China, the EHP covers products from Chapters 1-8 of the HS code (Harmonised System) as well as 75 specific manufactured goods. A list of the additional 75 goods can be found in Annex 2 of the Framework Agreement.

Under the Trade in Goods Agreement, the 6 original ASEAN members and China have to eliminate tariffs on 90% of their products by 2010. The remaining ASEAN countries, Cambodia, Lao PDR, Myanmar and Vietnam, have until 2015 to do so. The remaining 10% are deemed sensitive by parties and will be reduced at a slower pace. There is no physical list for products under Normal Track 1, in another words, for products that are not found in Normal Track 2, Sensitive List, and Highly Sensitive List, it will automatically fall under Normal Track 1.