The Asia-Pacific Trade Agreement (APTA) is a preferential trade agreement (PTA) between countries in the Asia-Pacific region, which aims to promote trade and economic integration. One of the key features of this agreement is the preferential tariff, which is levied on products traded between member countries.
The preferential tariff is a reduced tariff rate compared to the regular rate, which is applied to non-PTA countries. This means that products traded between member countries are subject to lower tariffs, making them more competitive and affordable in the market.
Under APTA, member countries can negotiate and agree on tariff reductions for specific products, allowing for greater market access and increased trade. These tariff reductions are granted on a reciprocal basis, meaning that all member countries benefit from reduced tariffs.
The preferential tariff under APTA has led to increased intra-regional trade, as member countries have become more competitive in each other’s markets. This has also helped to diversify trade for some member countries, reducing their reliance on traditional trading partners outside the region.
Currently, APTA has seven member countries: Bangladesh, China, India, Laos, South Korea, Sri Lanka, and Mongolia. Negotiations are also ongoing to include other countries in the region, such as Indonesia, Thailand, and the Philippines.
The APTA preferential tariff has greatly benefited member countries, allowing for increased trade and economic integration. As negotiations continue to expand the membership of APTA, we can expect to see even greater benefits for the Asia-Pacific region as a whole.