The ASEAN Industrial Cooperation (AICO) Scheme, which has been introduced since 1996, aims to promote resource-sharing and increase the competitive position of ASEAN’s manufacturing industries by means of production integration across borders facilitated by a tariff preferential rate of no more than 5 percent. As of the beginning of the year 2004, 172 applications were received, of which 118 applications have been approved.
At the 43rd ASEAN Economic Ministers Meeting (AEM) in 2011, following the entry into force of the ASEAN Trade in Goods Agreement (ATIGA) in 2010, the Ministers agreed to terminate the AICO arrangement and included in the list of superseded agreements under Article 91(2) of ATIGA. The ATIGA consolidates all commitments related to trade in goods and facilitates trade by simplifying processes and procedures thereby reducing transaction time and cost of doing business.
Figure 1: Summary of AICO Application Approval by Participating Countries
(As of 20 January 2004)