Common Effective Preferential Tariff

The Common Effective Preferential Tariff (CEPT) is a trade agreement among countries, primarily in Southeast Asia, aimed at reducing tariffs, or taxes on imports, to promote economic cooperation and integration. Under CEPT, member countries agree to lower or eliminate tariffs on a wide range of products, making it cheaper for businesses to trade with each other. This encourages trade growth and helps member countries improve their economies by providing access to larger markets and fostering competition. The CEPT is part of broader efforts by regional organizations, like the Association of Southeast Asian Nations (ASEAN), to enhance trade relations.