(a) Normal Track: Products listed in the Normal Track by a Party on its own accord shall:

(i) have their respective applied MFN tariff rates gradually reduced or eliminated in accordance with specified schedules and rates (to be mutually agreed by the Parties) over a period from 1 January 2005 to 2010 for ASEAN 6 and China, and in the case of the newer ASEAN Member States, the period shall be from 1 January 2005 to 2015 with higher starting tariff rates and different staging; and

(ii) in respect of those tariffs which have been reduced but have not been eliminated under paragraph 4(a)(i) above, they shall be progressively eliminated within timefxames to be mutually agreed between the Parties.

(b) Sensitive Track: Products listed in the Sensitive Track by a Party on its own accord shall:

(i) have their respective applied MFN tariff rates reduced in accordance with the mutually agreed end rates and end dates; "and

(ii) where applicable, have their respective applied MFN tariff rates progressively eliminated within timeframe_s to be mutually agreed between the Parties.

5. The number of products listed in the Sensitive Track shall be subject to a maximum ceiling to be mutually agreed among the Parties.

6. The commitments undertaken by the Parries under this Article and Article 6 of this Agreement shall fulfil the WTO
requirements to eliminate tariffs on substantially all the trade between the Parties.

7. The specified tariff rates to be mutually agreed between the Parties pursuant to this Article shall set out only the limits of the applicable tariff rates or range for the specified year of

implementation by the Parties and shall not prevent any Party from accelerating its tariff reduction or elimination if it so wishes to.

8. The negotiations between the Parties to establish the ASEANChina FTA covering-trade in goods shall also include, but not be limited to the following:

(a) other detailed rules governing the tariff reduction, or elimination programme for the Normal Track and the
Sensitive Track as.well as any other related matters, including principles governing reciprocal commitments,
not provided for in the preceding paragraphs of this Article;

(b) Rules of Origin;.

(c) treatment of out-of-quota rates;

(d) modification of" a Party's commitments under the agreement on trade in goods based on Article XXVIII of
the GATT;

(e) non-tariff measures imposed on any products covered under this Article or Article 6 of this Agreement,
including, but not limited to quantitative restrictions or prohibition on the importation of any product or on the
export or sale for export of any product, as well as scientifically unjustifiable sanitary and phytosanitary
measures and technical barriers to trade;

(f) safeguards based on the GATT principles, including, but not limited to the following elements: transparency,
coverage, objective criteria for action, including the concept of serious injury or threat thereof, and temporary
nature;

(g) disciplines on subsidies and countervailing measures and anti-dumping measures based on the existing GATT
disciplines; and

(h) facilitation and promotion of effective and adequate protection of trade-related aspects of intellectual property
rights based on existing WTO, World Intellectual Property Organization (WIPO) and other relevant disciplines.

ARTICLE 4
Trade In Services

With a view to expediting the expansion of trade in services, the Parties agree to enter into negotiations to progressively liberalise trade in services with substantial sectoral coverage. Such negotiations shall be directed to:

(a). progressive elimination of substantially all discrimination between or among the Parties and/or prohibition of new
or more discriminatory measures with respect to trade in services between the Parties, except for measures permitted under Article V(l)(b) of the WTO General Agreement on Trade in Services (GATS);

(b) expansion,in the depth and scope of liberalisation of trade in services beyond those undertaken by ASEAN Member States and China under the GATS; and

(c) enhanced co-operation in services between the Parties in order to improve efficiency and competitiveness, as well as to diversify the supply and distribution of services of the respective service suppliers of the Parties.

AJRTICLE 5
Investment

To promote investments and to create a liberal, facilitative,:transparent; and competitive investment regime, the Parties agree to:

(a) enter into negotiations in order to progressively liberalise the investment regime;

(b) strengthen co-operation in investment, facilitate investment and improve transparency of investment rules and regulations; and

(c) provide for the protection of investments.

ARTICLE 6
Early Harvest

1. With a view to accelerating the implementation of this Agreement, the Parties agree to implement an Early Harvest
Programme (which is an integral part of the ASEAN-China FTA) for products covered under paragraph 3(a) below and which will commence and end in accordance .with the timeframes set out in this Article.

2. For the purposes of this Article, the following definitions shall apply unless the context otherwise requires:

(a)"ASEAN. 6" refers to Brunei, Indonesia; Malaysia, Philippines, Singapore and Thailand;

(b)"applied MFN tariff rates" shall include in-quota rates, and shall:"

(i) in the case of ASEAN Member States (which are WTO members as of I July 2003) and China, refer to their respective applied rate's as of 1 July 2003; and

(ii) in the case of ASEAN Member States (which are non-WTO members as of 1 July 2003), refer to the
tariff rates as applied to China as of 1 July 2003.

3. The product coverage, tariff reduction and elimination, implementation timeframes, rules of origin, trade remedies and emergency measures applicable to the Early Harvest Programme shall be as follows:

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