Non-Tariff Measures in ASEAN: A Simple Proposal

While tariffs have been reduced, the number of non-tariff measures (NTMs) is increasing, and is often blamed as one source of the lack of integration in ASEAN. Unlike tariffs which could be reduced to the zero level, it is hard to see a world without NTMs as they can play a role of check and balance of a quality of goods. A country with a relatively higher number of NTMs does not mean it is more protectionist that others. A country with relatively higher number of NTM coverage does not mean it will have a relatively lower trade compared to the others. However, not all NTMs are benign; some NTMs could complicate business but not achieve the main goals. To improve the trade environment and make NTMs work for the common good, ASEAN should break from the 'trade negotiation' approach and strive instead for three approaches: (i) regional transparency, (ii) further cooperation in conformity assessment procedures, and (iii) dynamic disciplines. Such dynamic deep integration would largely eliminate NTMs that are highly visible yet riddled with political friction, are poorly designed, or are captured by special interests. This report provides the most comprehensive data and descriptive analyses on NTMs in the 10 ASEAN countries--Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam--based on the recently developed 2015 ASEAN-ERIA-UNCTAD database. This is ASEAN's initiative, as it takes the lead to improve transparency of their trade regulations. The report is available at ERIA and UNCTAD's website. The NTM database is publicly available at http://asean.i-tip.org and the national trade repository.