PUBLIC FINANCEBBEP 6003

Effect of AFTA in agriculture in Brunei

Lecture: Miss Nurnaddia Norddin Presented by: Roswahida Shubeli

INTRODUCTION

Brunei BrieflyHead of State His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin

Waddaulah Population 406,000 Language Malay (official)

English (widely spoken) Religion Islam Government Absolute Monarchy Judiciary English Common Law

Islamic Syariah LawLand area 5,765 sq persegi

• Forms of Tariff Reduction under the CEPTThere are two programs of tariff reduction under the CEPT Scheme: the Fast Track (or accelerated) Program and the Normal Track Program.

• 1. The Fast Track ProgramTariffs above 20% will be reduced to 0-5% within 10 years (i.e., by 1 January 2003).Tariffs at 20% and below will be reduced to 0-5% within 7 years (i.e. by 1 January 2000). The Fast Track Program covers 15 products groups identified for accelerated tariff reduction at the

Fourth ASEAN Summit. They are:

• Vegetable Oils >Fertilizer• Leather Products >Ceramics and Glass Products• Cement >Plastics• Pulp and Paper >Gems and Jewelry Products• Chemicals >Rubber Products• Textiles >Copper Cathodes• Pharmaceuticals• Wooden and Rattan Furniture

• 2. The Normal Track Program• Tariffs above 20% will be reduced in two

stages: - first, to 20% within 5 to 8 years (by 1 January 2001); and – subsequently, to 0-5% in 7 years according to an agreed schedule ending on 1 January 2008)

• Tariffs of 20% and below will be reduced to 0-5% within 10 years (i.e. , by 1 January 2003).

Comparative advantage(1997)

No Description Brunei Malaysia

1 Live animal 0.0 1.8

2 Meat and Preparation 0.0 0.0

3 Dairy products and eggs 0.0 0.0

4 Fruit and vegetables 0.0 0.2

5 Cereals and preparation 0.1 0.2

EFFECT ON AGRICULTURE PRODUCTION1961 1991 1994 2000 2008

Agricultural machinery tractors

5 72 72 72 72

Crop production index (1999-2001 = 100)

83 63 68 104 decrease

Food production index (1999-2001 = 100)

17 36 52 99

Economically active population in agriculture (number)

2000 2000 1000 1000

EFFECT ON LAND USE1961 1991 1994 2000 2007

Agricultural land (sq. km)

210 110 110 100 114

Agricultural land (% of land area)

3.98482 2.08729 2.08729 1.89753 2.16319

Permanent cropland (% of land area)

2.08729 0.759013 0.759013 0.759013 0.948767

Agricultural irrigated land (% of total agricultural land)

0.877193

EFFECT ON IMPORTS1962 1991 1994 2001 2006

Agricultural raw materials imports (% of merchandise imports)

1.04125 0.445529 0.765231 0.260160 0.179289

Food imports (% of merchandise imports)

35.1484 15.6668 14.3702 17.8542 17.0231

EFFECT ON EXPORT1962 1991 1994 2001 20006

Agricultural raw materials exports (% of merchandise exports)

1.69255 0.00643189 0.00525681 0.00402497 0.00458589

Food exports (% of merchandise exports)

0.0785492 0.000655989 0.0103344 0.0889034

EFFECT ON TARIFFS1961 1992 1996 2001 2007

Tariff rate applied simple mean primary products (%)

0.820000 1.32000 0.940000

Tariff rate most favored nation simple mean primary products (%)

1.59000 5.67000 5.26000

1962 1992 1996 2001 2007

Tariff rate applied weighted mean primary products (%)

3.97000 4.92000 13.2100

Tariff rate most favored nation weighted mean primary products (%)

3.97000 4.94000 13.1100

Agricultural Development Area (by Districts)

• BRUNEI MUARA DISTRICT• TUTONG DISTRICT• TEMBURONG DISTRICT

Project agriculture

1.Brunei has project betweenYulin Municipal Government, Guangxi, The People’s Republic of China– Start on 15 Mac 2010– At Padi Batong, Kampong Batong, Mukim

Pengakalan Batu, Daerah Brunei Muara.– expected can produces between 7 – 10

metric ton per hectares.

Industry of agriculture in brunei

• Egg Industry• Beef Industry • Goat Industry • Dairy Industry • Vegetable Industry • Fruits Industry • Rice Industry • Cut Flower Industry • Processing Industry