About the report
This joint ITC- ESCAP (Economic and Social Commission for Asia and the Pacific) publication reveals that the integration efforts led by countries in the region have brought down tariffs, increased connectivity and helped achieve regulatory harmonisation, boosting intra- and extra-regional trade. Yet, many non-tariff obstacles to trade persist, posing challenges to exporters and importers in the region.
According to the report, 55% of interviewed firms report difficulties with non-tariff measures (NTMs). The main hurdles are:
• Conformity assessments (product certification and testing).
• Technical requirements applied by partner countries.
• Procedural obstacles at home.
The publication shows that almost half (47%) of the regional technical non-tariff measures (NTMs) that exporters find challenging to comply with. Other important markets can also impose difficulties for Asian companies, including the European Union and the United States, accounting for 26% and 14% of the cases, respectively.
“We obtain certifications for our product from the domestic laboratory. However, at the destination market in Europe, the authorities are not satisfied with the certificate we present and ask us to get the product tested again in European laboratories”, regrets a shoe exporter in the region.
Domestic solutions to regional problems
Trade regulations are considered challenging by exporters in the Asia-Pacific region because of domestic procedural obstacles. Therefore, streamlining trade procedures at home is a necessary step to enhance exporters’ access to neighbouring markets. “Asia-Pacific economies should look inwards to identify domestic opportunities for trade facilitation reform at an institutional level”, recommends the report.
At the regional level, the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific (FA-CPT) is another important initiative. “Its full implementation will not only reduce transaction time and costs but also increase regulatory compliance and enable the more direct engagement of small and medium-sized enterprises in international trade and cross-border e-commerce”, highlights the ITC-ESCAP publication.
Greater coordination among the regional partners is another tool to overcome the ongoing barriers to trade. For instance, the endorsement of Mutual Recognition Agreements and adherence to international standards.
This cooperation should also be extended to other areas, such as hard infrastructure. “ESCAP members should also explore avenues to facilitate greater access to quality infrastructure within the region, taking into account the development level and sizes of some of the countries. Collaboration among all neighbouring economies – small or big, especially those that share borders, should be encouraged, particularly for such initiatives as shared services facilities.”
The report is largely based on data from the NTM Business Surveys conducted in eleven Asia-Pacific countries: Cambodia, Indonesia, Thailand, Viet Nam, the Philippines, Kazakhstan, Pakistan, Kyrgyzstan, Bangladesh, Nepal, and Sri Lanka.
Related Events
Company Perspectives on Non-Tariff Measures in Asia-Pacific
Launch of a joint ITC - ESCAP report "Making Regional Integration Work. Company Perspectives on Non-Tariff Measures in Asia Pacific".
23 February 2023, Bangkok.