PRETAS deals with reducing tariffs under the Scheme as well as para-tariff and non-tariff barriers.

PRETAS covers 7 per cent of the total tariff lines with tariffs above 10 per cent, and:

• under the tariff reduction modality (normal track - NT), products with tariffs:

  • above 25 per cent to be reduced to 25 per cent;

  • between 15-25 per cent to be reduced to 15 per cent; and

  • between 10-15 per cent to be reduced to 10 per cent.

• tariff reduction under the NT involves reduction of tariffs that will be implemented in:

  • four annual instalments for developing countries; and

  • six annual instalments for LDCs.

The Protocol also provides for voluntary acceleration of tariff reduction/elimination commitments under the Voluntary Fast Track Tariff Reduction Schedule:

• covers all products except :

  • products in the negative list; and

  • products with tariffs up to 10 per cent for countries with average tariffs above 15 per cent.

• offers Margin of Preference (MoP) of 50 per cent in 5 instalments for developing countries and 7 instalments for LDCs;

• developing countries to apply MoP for LDCs in 3 installments;

• the negative list :

  • 25 per cent of total HS lines if average tariff is 20 per cent and above;

  • 20 per cent if average tariff is between 15 and 20 per cent;

  • 15 per cent if average is below 15 per cent; and

  • 30 per cent for LDCs. 

• Participating States enter into negotiations to widen product coverage and deepen concessions at the end of the 5 th year after the Protocol on the Preferential Tariff Scheme takes effect or earlier.

The PRETAS also ensures:

• longer transition period of three years for LDCs to eliminate their para-tariffs and non-tariff barriers;

• safeguard measures such as anti-dumping, subsidies, countervailing measures are consistent with relevant WTO rules;

• a harmonised set of rules of origin as agreed under the Framework Agreement are used to grant concessions, until the new set of rules of origin are adopted by the TNC.