EU Trade Area Starts &Nbsp; Textile Industry Tariff Is Still Limited.

According to the framework agreement of China ASEAN Free Trade Area, more than 90% of the products of China and ASEAN 6 old member countries (Brunei, Philippines, Indonesia, Malaysia, Thailand and Singapore) will be subject to zero tariff.

China's average tariffs on ASEAN will be reduced from 9.8% to 0.1%. ASEAN's 6 old member countries will have an average tariff of 12.8% from China to 0.6%.

ASEAN's 4 new members (Vietnam, Laos, Kampuchea and Burma) will also achieve zero tariffs on products by 90% in 2015.

However, some sensitive products that are set up in China and ten ASEAN countries do not know whether the enterprises are aware of them. The final tax rate of these products is not zero.

According to the national conditions of the country, there are 10% products that are not more than 400 (ASEAN 6 old countries) and 500 (ASEAN new 4 countries) products as protected sensitive products.

In terms of the list of sensitive products put forward by ASEAN countries to China, textiles and clothing are not only "famous" but also limited.

Taking Indonesia as an example, the Indonesian industry minister has said that although Indonesia will not attempt to renegotiate the free trade agreement reached, it has requested to postpone the cancellation of import tariffs on 314 products of 8 industries, involving 87 items in the textile industry.

Textile industry is the most restricted industry except steel industry.

In addition, Thailand also classified 28 products as synthetic cotton blouses, women's trousers, men's shirts, cotton nightwear, cotton and chemical fiber bathrobes, baby garments, pantyhose and socks, etc. according to the plan, the import tariff rate of these products dropped to 20% from 2012 to 5% in 2018.

There are various indications that most clothing products are difficult to achieve "zero tariff" according to the normal process, but this provides sufficient preparation time for garment enterprises that are not yet ready.

First of all, garment enterprises should keep abreast of the timetable for China and ASEAN to open up the market, know which products are zero tariffs, and understand the timetable, which will help seize business opportunities.

Secondly, we should pay close attention to the economic policy changes and industrial orientation of ASEAN countries, and we can use some specialized agencies to get business information about ASEAN.

Furthermore, the level of economic development and market characteristics of ASEAN countries are different. Clothing enterprises should do research before entering the market and develop markets for different countries.