(a) Product Coverage
(i) All products in the_ following chapters at the 8/9
digit level (HS Code) shall be covered by the Early
Harvest Programme, unfess otherwise excluded by
a Party in its Exclusion List as set out in Annex 1 of this Agreement, in which case these products
shall be exempted for that Party:
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(ii) A Party which has placed products in the Exclusion
List'may, at any time, amend the Exclusion List to
place one or more of these products under the Early
Harvest Programme.
(iii) The specific products set out in Annex 2 of this
Agreement shall be covered by the Early Harvest Programme and the tariff concessions shall apply only to the parties indicated in Annex 2. These
I parties must have extended the tariff concessions
on these products to each other.
(iv) For those parties which are unable to complete the
appropriate product lists in Annex 1 or Annex 2,
the lists may still be drawn up no later than 1 March
2003 by mutual agreement.
(b) Tariff Reduction and Elimination
(i) All products covered under the Early Harvest
Programme shall be divided into 3 product categories for tariff reduction and elimination.as
defined and to be implemented in accordance with
the timeframes set out in Annex 3 _to this
Agreement. This paragraph shall not prevent any
Party from accelerating its tariff reduction or
elimination if it so wishes.
(ii) All products where the applied MFN tariff rates are
at 0%i shall remain at 0%.
(iii) Where, the implemented tariff rates _are reduced to
0%, they shall remain at 0%.
(iv) A Party shall enjoy the tariff concessions of all the other parties for a product covered under paragraph
3(a)(i) above so long as the same product of that
Party remains in the Early Harvest Programme
under paragraph 3(a)(i) above.
(c) Interim Rules of Origin
The Interim Rules of Origin applicable to the products covered under the Early Harvest Programme shall be
negotiated and completed by July 2003. The Interim -Rules of Origin shall be superseded and replaced by the
Rules of Origin to be negotiated and implemented by the
Parties under Article 3(8)(b) of this Agreement.
(d) Application of WTO provisions
The WTO provisions governing modification of
commitments, safeguard actions, emergency measures and
other . trade remedies, including anti-dumping and
subsidies and countervailing measures, shall, in the
interim, be applicable to the products covered under the
Early Harvest Programme and shall be superseded and
replaced by the relevant disciplines negotiated and agreed
to by the Parties under Article 3(8) of this Agreement
once these-disciplines are .implemented.
4.In addition to the Early Harvest Programme for trade in goods as
provided for in the preceding paragraphs of this Article, the Parties will, explore the feasibility of an early harvest
programme for trade in services in early 2003.
5.With a view to promoting economic co-operation between the
Parties, the activities set out in Annex 4 of this Agreement shall be undertaken or implemented on an accelerated basis, as the
case may be.
PART 2
ARTICLE 7
Other Areas Of Economic Co-operation
1. The Parties agree to strengthen their co-operation in 5 priority
sectors as follows:
(a) agriculture;
(b) information and communications technology;
(c) human resources development;
(d) investment; and
(e)Mekong River basin development.
2.Co-operation shall be extended to other areas, including, but not limited to, banking, finance, tourism, industrial co-operation,
transport, telecommunications, intellectual property rights, small
and medium enterprises (SMEs), environment, bio-technology,
fishery, forestry and forestry products, mining, energy and subregional
development.
3.Measures to strengthen co-operation shall include, but shall not
be limited to:
(a) promotion and facilitation-of trade in goods and services,
and investment, such as:
(i) standards and conformity assessment;
(ii) technical barriers to trade/non-tariff measures; and
(iii) customs co-operation;
(b) increasing the competitiveness of SMEs;
(c) promotion of electronic commerce;
(d) capacity building; and
(e) technology transfer.
4. The Parties agree to implement capacity building programmes
and-technical assistance, particularly for the newer ASEAN
Member States, in order to adjust their economic structure and expand their trade and investment with China.
PAJRT3
ARTICLE 8
Timeframes
1.For trade in goods, the negotiations on the agreement for tariff
reduction or elimination and other matters as set out in Article 3
of this Agreement shall commence in early 2003' and be
concluded by 30 June 2004 in order to establish the ASEANChina
FTA covering trade in goods by 2010 for Brunei:, China,
Indonesia, Malaysia; the Philippines, Singapore and Thailand,
and by 2015 for the newer ASEAN Member States.
2.The negotiations on the Rules of Origin for trade in goods under
Article 3 of this Agreement shall be completed no later than
December 2003.
3.For trade in services and investments, the negotiations on the
respective agreements shall commence in 2003 and be
concluded as expeditiously as possible for implementation in
accordance with "the timeframes to.be mutually agreed: (a) taking into account the sensitive sectors of the Parties; and (b)
with special" and differential treatment and flexibility for the
newer ASEAN Member States.
4.For other areas-of economic co-operation under Part 2 of this
Agreement, the Parties shall continue to build upon existing or
agreed programmes set out in Article 7 of this Agreement,
develop new economic co-operation programmes and conclude
agreements on the various areas of economic co-operation. The
Parties shall do so expeditiously for early implementation irt a
mann&f; and at a pace acceptable to all the parties concerned.
Tlfe agreements shall include timeframes for the implementation
of the commitments therein.
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