SINGAPORE- Dre 31 Shiga-pore said on Friday ii will abolish ail import tariffs on ASEAN goods from January 1 in an attempt to give impetus to a Soiitlieast Asian free trade area rftie to come into effect in 2003. reports AFP

The small but affluent city-state, the strongest economy in the Association of Southeast Asian Nations, said it will remove import tariffs for goods under the Common Effective Preferential Tariff ICEPT) scheme of the ASEAN Free Trade Area (AFTA).

Under the AFTA schedule

tarrifs within ASEAN will fall to zero to five per cent within the region at the start of 2002.

"With effect from 1 January 2(K)I. Singa|x>re will accord tariff-free access for all ASEAN goods under the CEPT scheme lor AFTA," the Ministry of Trade and Industry said hi a statement.

“Reciprocally. Singapore companies will also be able to enjoy preferential tariffs on their exports to ASEAN under the CEPT scheme for AFTA." it added

Singapore, which has been criticised lor seeking free trade

agreements with a host of other countries outside ASEAN, said it had reviewed its AFTA tariff commitments "with the view to catalyse free and open trade tn the region".

It sealed a free trade ar-rangeincnt with New Zealand earlier this year, is negotiating a similar pact with the United States and hopes to start talks with Japan next year.

ASEAN hopes lo complete the AFTA process by the end of 2002 for six of Its more developed members -- Brunei. Indonesia. Malaysia, the Philippines. Singapore and Thailand -

and at a later date for Cambodia. Laos. Myanmar and Vietnam

Under the AFTA timetable. ASEAN slashed tariffs to between zero and five per cent for 85 per cent of products in Its "inc Inslon list" this year.

This will be raised to 90 per cent in 2001 and 100 per cent In 2002 but with some flexibility for countries wanting longer protection for key products.

Average CEPT tariff rates this year fell to 4.43 per cent from 12.76 per cent in 1993 when AFfA was launched.