The Melanesian Spearhead Group (MSG) Trade

Transcript:The Melanesian Spearhead Group (MSG) Trade:
The Melanesian Spearhead Group (MSG) Trade Agreement (MSGTA2) Technical Workshop on International Merchandise Trade Statistics Workshop Suva, Fiji; 26 Feb-02 Mar 2018 Overview of Presentation Background Information Objectives of the MSG Trade Agreement (MSGTA) Scope and Coverage Qualification Criteria for Preferential Treatment Towards the Melanesian Free Trade Agreement (MFTA) Parties Fiji Papua New Guinea Solomon Islands Vanuatu Background Information 1993: Original MSGTA entered into force (PNG, Solomon Islands and Vanuatu. Fiji joined in 1996) 2005: MSGTA2 was adopted and still in force MSGTA1 positive list; MSGTA2 negative list Members (except Solomon Islands) agreed to an 8-year tariff liberalization schedule→ Fiji & Vanuatu without a negative list but PNG exceptions mackerel, salt & sugar Solomon Islands: liberalization schedule by 2017, given ramifications of 1998-2002 socio-economic events Objectives of the MSGTA2 To enhance intra-regional trade and contribute to the deepening of MSG integration through the gradual liberalization of tariffs on goods imported from other MSG countries To contribute to the harmonious development and expansion of world trade through the gradual reduction and/or elimination of other protectionist mechanisms To promote fairness and competition in trade Preferential Treatment Accorded Goods are eligible for preferential treatment if they originate from MSGTA2 Parties i.e. “originating goods” Rules of Origin criteria is therefore key Article 13 and Annex III set out conditions for goods to qualify as “originating” Rules of Origin – Article 13 and Annex III Article 13 – Preferential Treatment states: “1. For the purpose of this Agreement, goods and services shall be accepted as eligible or preferential treatment, if such trade- (a) originate in the Parties in accordance with the rules of origin applicable to this Agreement as set forth in Annex III; or (b) as specified in Schedule II to this Agreement” Preferential Treatment- Product Coverage All originating Goods not under the Negative List or excluded under Article 9.5 Article 9.5 provides for the exclusion of the following goods from receiving preferential treatment Chapter 22- Beverages, Spirits and Vinegar except products falling under HS Codes 2201, 2202 & 2209 Chapter 24 – Tobacco and manufactured tobacco substitute Chapter 27 – Mineral fuel, mineral oils and products of their distillation; bituminous mineral waxes and Cane sugar HS Code 1701 1100 How to Determine Origin – Qualifications Criteria OR A. Wholly Produced or Obtained Goods Paragraph 1 of Annex I describes “Wholly produced or obtained goods” as goods that contain no materials imported from outside