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TRANSCRIPT
Beyond Tariff: Protectionism through Non-Tariff Barriers in IORA Countries
DR KHONDAKER G MOAZZEM
ADDITIONAL RESEARCH DIRECTOR
CENTRE FOR POLICY DIALOGUE (CPD)
BANGLADESH
22 March, 2015
Contents
1. Introduction
2. Structure of Trade of IORA countries
3. Non-Tariff Barriers (NTBs) in IORA Countries
4. Addressing NTBs by IORA Countries
5. Possible Institutional Mechanism to Address NTBs
1. Introduction
• IORA countries are at different stages of development
• Indicate countries’ structure of production and trade, infrastructure and
logistics and quality and standards
• Trade is increasingly becoming important for IORA countries
• Trade-openness has been increasing for most of the IORA countries
• IORA countries are geographically located in different regions across the Indian
Ocean
• South East Asia, South Asia, East Africa, Eastern and Southern Africa, Australia
and Gulf region
• Bilateral trade has been influenced by geographical proximity, preferential trade
agreement and other reasons
1. Introduction
Country Name Per Capita GNI, 2013Industry VA (% of
GDP), 2013
Australia 65390 26.8
Singapore 54040 25.1
Seychelles 13210 11.3
Malaysia 10430 40.5
Mauritius 9290 24.3
South Africa 7190 27.6
Iran, Islamic Rep. 5780
Thailand 5340 42.5
Indonesia 3580 45.7
Sri Lanka 3170 32.5
India 1570 24.8
Yemen, Rep. 1330
Kenya 1160 19.8
Bangladesh 1010 27.6
Comoros 840 12.5
Tanzania 630 24.4
Mozambique 610 20.8
Madagascar 440 16.1
Oman .. 67.3
UAE .. 59.0
Country Name 2000 2005 2010 2013
Australia 41 39 40 41
Bangladesh 33 40 38 46
Comoros 49 51 70 78
India 26 41 48 53
Indonesia 71 64 47 49
Iran, Islamic Rep. 40 58 .. ..
Kenya 53 64 54 51
Madagascar 69 74 68 73
Malaysia 220 204 170 154
Mauritius 123 126 116 121
Mozambique 53 76 69 71
Oman 80 89 90 ..
Seychelles 157 179 194 164
South Africa 53 55 56 65
Singapore 366 422 372 358
Sri Lanka 89 74 53 54
Tanzania 33 51 66 67
Thailand 125 148 135 144
United Arab Emirates .. 120 151 176
Yemen, Rep. 75 77 .. ..
Economic Development of IORA Countries
Trade-Openness of IORA Countries
Source: WDISource: WDI
2. Structure of Trade
Export and Import 2001 2005 2010 2013
As Exporter
Total global export of IORA countries (bil. US$) 514.9 930.1 1582.6 1979.8
Intra-IORA export (bil. US$) 170.8 319.9 544.4 670.4
Intra-IORA export as % of total global export 33.2 34.4 34.4 33.9
As Importer
Total global import of IORA countries (bil. US$) 470.2 977.6 1749.0 2039.8
Intra-IORA import (bil. US$) 122.2 216.5 455.9 583.6
Intra-IORA import as % of total global import 26.0 22.1 26.1 28.6
• Global export of IORA countries has increased over
the years (3.8 times between 2001-13)
• Intra-IORA export has increased during the same time
• Share of IORA region did not increase much
• Global import of IORA countries has increased at a
much faster rate (4.3 times between 2001-13)
• Intra-IORA import comprises less share than that of
intra-IORA export
• While share in global trade has made considerable
progress, share of intra-IORA trade did not increase
much
• Regional trade is playing important role for a number
of IORA countries
• Indonesia, Malaysia, Thailand, Singapore
• Tanzania, Mozambique, Kenya
• India, Bangladesh
Export and Import of IORA Countries
Source: ITC Trademap
2. Structure of Trade
Importer 2001 2005 2010 2013
Australia 14.7 17.1 20.0 19.3
Bangladesh 34.3 27.7 37.7 53.7
Comoros 40.2 61.1 47.3
India 15.9 17.2 27.2 22.4
Indonesia 25.6 33.7 33.7 33.1
Malaysia 24.7 26.3 29.1 30.8
Mauritus 39.5 32.6 44.9 44.5
Madagascar 25.4 27.9 28.1 42.1
Mozambique 41.1 51.4 47.2 55.0
Oman 39.8 37.9 41.5 46.1
Singapore 27.7 28.5 27.8 27.4
South Africa 12.0 13.9 16.7 16.3
Tanzania 44.3 36.7 44.9 44.3
Sri Lanka 38.6 45.4 51.8 48.3
Thailand 21.3 26.0 23.8 24.7
UAE 19.7 20.1
Yeman 21.2 22.9 27.7 31.4
Iran 18.8 25.4 35.8 31.5
Kenya 32.3 36.3 39.4 42.6
Seycheles 19.4 27.0 44.8
Exporters 2001 2005 2010 2013
Australia 17.0 18.7 18.0 12.4
Bangladesh 4.5 5.5 5.1 5.8
India 20.1 26.1 30.2 30.5
Indonesia 22.6 24.7 29.6 31.0
Malaysia 28.8 32.3 32.6 35.9
Mauritus 9.0 17.5 16.8 21.9
Madagascar 15.8 8.7 19.0 14.1
Mozambique 16.7 19.0 25.1 45.9
Oman 13.5 26.7 27.4 16.5
Singapore 29.1 36.0 35.0 35.6
South Africa 12.0 14.5 13.3 13.2
Tanzania 21.0 34.5 29.5 46.0
Sri Lanka 9.1 16.6 17.9 15.3
Thailand 19.8 22.9 24.8 26.1
UAE
Yeman 33.2 55.2 37.6
Comoros
Iran 4.0 4.0 7.8 7.5
Kenya 16.0 15.0 19.1 18.1
Seycheles 3.1 2.4 2.3
Intra-regional Export of IORA Countries
(Share of Total Export)
Intra-regional Import of IORA
Countries (Share of Total Import)
Source: ITC Trademap Source: ITC Trademap
2. Structure of Trade• Major trading partners of IORA
countries mainly comprises non-
regional countries
• Among the IORA countries, few
countries dominate as export
destination and import source for most
of the IORA countries
• India, Malaysia, Thailand,
Singapore, UAE
Exporter Major importers from IORA
Australia India, Singapore, Thailand, Malaysia, Indonesia
Banglades
hIndia, Australia, United Arab Emirates , Singapore, Iran
IndiaUnited Arab emirates, Singapore, Bangladesh, South Africa,
Indonesia
Indonesia Singapore, India, Malaysia, Thailand, Australia
Malaysia Singapore, Thailand, Indonesia, Australia, India
Mauritius Madagascar, United Arab, Emirates, Singapore, India
Mozambiq
ueSouth Africa, India, Tanzania, united Arab Emirates, Singapore
OmanUnited Arab emirates, India, Tanzania, South Africa,
Mozambique
Singapore Malaysia, Indonesia, Australia, Thailand, India
South
Africa
India , Mozambique, United Arab emirates, Singapore, Australia,
Kenya
Sri Lanka India, united Arab emirates, Iran, Australia, Singapore
Thailand Malaysia, Singapore, Indonesia, Australia, India
Yemen Thailand, India, United Arab Emirates, Singapore, Malaysia
Comoros India, Madagascar, Malaysia, Mauritius, Singapore
Iran United Arab Emirates, India, Singapore, Indonesia, Malaysia
KenyaTanzania, united Arab Emirates, South Africa, Indonesia,
Thailand
Seychelles Sri Lanka, Mauritius, Madagascar, South Africa, Singapore
UAE India, Iran, Oman, Yemen, Thailand
TanzaniaSouth Africa, India, United Arab Emirates, Mozambique,
Singapore
2. Structure of Trade• Major trading partners of IORA
countries mainly comprises non-
regional countries
• Among the IORA countries, few
countries dominate as importers and
exporters
• India, Malaysia, Thailand, Singapore, UAE
Importer Major exporters from IORA
Australia Singapore, Thailand, Malaysia, Indonesia, UAE
Bangladesh Thailand, India, Indonesia, Singapore, Malaysia
India United Arab emirates, Indonesia, Australia, Iran, Malaysia
Indonesia Singapore, Malaysia, Thailand, Australia, India
Malaysia Singapore, Thailand, Indonesia, Australia, India
MadagascarUnited Arab Emirates, India, South Africa, Mauritius,
Thailand
Mauritius India, South Africa, Australia, Malaysia, Thailand
MozambiqueSouth Africa, United Arab Emirates, Singapore, India,
Thailand
Oman United Arab Emirates, India, Thailand, Iran, Australia
Singapore Malaysia, Indonesia, United Arab Emirates, Thailand, India
South Africa India, Thailand, Singapore, Australia, Mozambique
Sri Lanka India, Singapore, United Arab Emirates, Oman, Malaysia
ThailandUnited Arab Emirates, Malaysia, Singapore, Indonesia,
Australia
Yemen United Arab Emirates, India, Australia, Thailand, Malaysia
Comoros UAE, South Africa, India, Thailand, Mauritius
Iran United Arab Emirates, India, Singapore, Malaysia, Thailand
KenyaUnited Arab emirates , India, South Africa, Indonesia,
Singapore
SeychellesUnited Arab Emirates, Singapore, South Africa, Mauritius,
Malaysia
UAE India, Malaysia, South Africa, Australia, Thailand
TanzaniaIndia, United Arab Emirates, South Africa, Kenya,
Singapore
2. Structure of Trade• Major export products include minerals, agricultural products, manufacturing
goods
• Major import products include fuels, machinery, electrical equipment,
processed agricultural products
• A part of regional trade is taking place under regional value chain
• Electrical and machinery, agricultural products
• Regional value chain is operational where favourable tariff structure and trade
infrastructure are available.
• Not all countries are part of those regional value chain
• Bilateral trade is influenced by geographical proximity, preferential tariff and
operation of regional value chain
2. Structure of TradeExporters Top 5 exported products
Australia Ores, slag and ash; 2. Mineral fuels, oils; 3. Pearls, precious stones; 4. Meat and edible meat offal; 5. Cereals
BangladeshArticles of apparel, accessories, knit or crochet, 2. Articles of apparel, accessories, not knit or crochet, 3. Other made textile articles, sets, worn clothing etc, 4. Fish, crustaceans, molluscs, aquatic invertebrates
nes,5. Vegetable textile fibres nes, paper yarn, woven fabric
ComorosCoffee, tea, mate and spices, 2. Ships, boats and other floating structures, 3. Essential oils, perfumes, cosmetics, toiletries, 4. Fish, crustaceans, molluscs, aquatic invertebrates nes, 5. Iron and steel
India Mineral fuels, oils, distillation products, etc, 2. Pearls, precious stones, metals, coins, etc, 3. Vehicles other than railway, tramway, 4. Organic chemicals, 5. Machinery, nuclear reactors, boilers, etc
Indonesia Mineral fuels, oils, distillation products, etc, 2. Animal, vegetable fats and oils, cleavage products, etc, 3. Electrical, electronic equipment, 4. Rubber and articles thereof, 5. Ores, slag and ash
IranMineral fuels, oils, distillation products, etc, 2. Plastics and articles thereof, 3. Organic chemicals, 4. Ores, slag and ash, 5. Edible fruit, nuts, peel of citrus fruit, melons
MadagascarNickel and articles thereof, 2. Coffee, tea, mate and spices,3. Articles of apparel, accessories, not knit or crochet, 4. Articles of apparel, accessories, knit or crochet,5. Fish, crustaceans, molluscs, aquatic
invertebrates nes
MalaysiaElectrical, electronic equipment, 2. Mineral fuels, oils, distillation products, etc, 3. Machinery, nuclear reactors, boilers, etc, 4. Animal, vegetable fats and oils, cleavage products, etc, 5. Plastics and articles
thereof
MauritiusArticles of apparel, accessories, knit or crochet, 2. Meat, fish and seafood food preparations nes, 3. Articles of apparel, accessories, not knit or crochet, 4. Sugars and sugar confectionery, 5. Sugars and sugar
confectionery
Mozambique Mineral fuels, oils, distillation products, etc, 2. Aluminium and articles thereof, 3. Miscellaneous chemical products, 4. Tobacco and manufactured tobacco substitutes, 5. Ores, slag and ash
Oman Mineral fuels, oils, distillation products, etc, 2. Mineral fuels, oils, distillation products, etc, 3. Ores, slag and ash, 4. Organic chemicals, 5. Fertilizers
Singapore Electrical, electronic equipment, 2. Mineral fuels, oils, distillation products, etc, 3. Machinery, nuclear reactors, boilers, etc, 4. Commodities not elsewhere specified, 5. Organic chemicals
South Africa Pearls, precious stones, metals, coins, etc, 2. Ores, slag and ash, 3. Mineral fuels, oils, distillation products, etc, 4. Vehicles other than railway, tramway, 5. Iron and steel
Sri Lanka Articles of apparel, accessories, knit or crochet, 2. Articles of apparel, accessories, not knit or crochet, 3. Coffee, tea, mate and spices, 4. Rubber and articles thereof, 5. Pearls, precious stones, metals, coins, etc
Thailand Machinery, nuclear reactors, boilers, etc, 2. Electrical, electronic equipment, 3. Vehicles other than railway, tramway, 4. Rubber and articles thereof, 5. Plastics and articles thereof
YemenMineral fuels, oils, distillation products, etc, 2. Fish, crustaceans, molluscs, aquatic invertebrates nes, 3. Iron and steel, 4. Edible fruit, nuts, peel of citrus fruit, melons, 5. Dairy products, eggs, honey, edible animal
product nes
KenyaCoffee, tea, mate and spices, 2. Mineral fuels, oils, distillation products, etc,3. Live trees, plants, bulbs, roots, cut flowers etc, 4. Edible vegetables and certain roots and tubers, 5. Articles of apparel,
accessories, knit or crochet
SeychellesMeat, fish and seafood food preparations nes, 2. Fish, crustaceans, molluscs, aquatic invertebrates nes, 3. Salt, sulphur, earth, stone, plaster, lime and cement, 4. Optical, photo, technical, medical, etc
apparatus, 5. Machinery, nuclear reactors, boilers, etc
United Arab
EmiratesMineral fuels, oils, distillation products, etc, 2. Pearls, precious stones, metals, coins, etc, 3. Aluminium and articles thereof, 4. Plastics and articles thereof, 5. Machinery, nuclear reactors, boilers, etc
Tanzania Pearls, precious stones, metals, coins, etc, 2. Ores, slag and ash, 3. Coffee, tea, mate and spices, 4. Edible fruit, nuts, peel of citrus fruit, melons, 5. Oil seed, oleagic fruits, grain, seed, fruit, etc, nes
2. Structure of TradeImporters Top 5 imported products
Australia Mineral fuels, oils, distillation products, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Vehicles other than railway, tramway, 4. Electrical, electronic equipment, 5. Pharmaceutical products
Bangladesh Cotton, 2. Machinery, nuclear reactors, boilers, etc, 3. Mineral fuels, oils, distillation products, etc, 4. Electrical, electronic equipment, 5. Iron and steel
ComorosMeat and edible meat offal, 2. Cereals, 3. Machinery, nuclear reactors, boilers, etc, 4. Electrical, electronic equipment, 5. Salt, sulphur, earth, stone, plaster, lime and cement
India Mineral fuels, oils, distillation products, etc, 2. Pearls, precious stones, metals, coins, etc, 3. Machinery, nuclear reactors, boilers, etc, 4. Electrical, electronic equipment, 5. Organic chemicals
Indonesia Mineral fuels, oils, distillation products, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Electrical, electronic equipment, 4. Iron and steel, 5 . Vehicles other than railway, tramway
Iran Machinery, nuclear reactors, boilers, etc, 2. Cereals, 3. Electrical, electronic equipment, 4. Cocoa and cocoa preparations, 5. Iron and steel
Madagascar Mineral fuels, oils, distillation products, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Vehicles other than railway, tramway, 4. Cereals, 5. Electrical, electronic equipment
Malaysia Electrical, electronic equipment, 2. Mineral fuels, oils, distillation products, etc, 3. Machinery, nuclear reactors, boilers, etc, 4. Plastics and articles thereof, 5. Vehicles other than railway, tramway
MauritiusMineral fuels, oils, distillation products, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Fish, crustaceans, molluscs, aquatic invertebrates nes, 4. Electrical, electronic equipment, 5. Vehicles other than
railway, tramway
Mozambique Mineral fuels, oils, distillation products, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Vehicles other than railway, tramway, 4. Electrical, electronic equipment, 5. Aluminium and articles thereof
Oman Mineral fuels, oils, distillation products, etc, 2. Vehicles other than railway, tramway, 3. Machinery, nuclear reactors, boilers, etc, 4. Electrical, electronic equipment, 5. Articles of iron or steel
SingaporeMineral fuels, oils, distillation products, etc, 2. Electrical, electronic equipment, 3. Machinery, nuclear reactors, boilers, etc, 4. Optical, photo, technical, medical, etc apparatus, 5. Pearls, precious stones,
metals, coins, etc
South AfricaMineral fuels, oils, distillation products, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Electrical, electronic equipment, 4. Vehicles other than railway, tramway, 5. Commodities not elsewhere
specified
Sri Lanka Mineral fuels, oils, distillation products, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Vehicles other than railway, tramway, 4. Electrical, electronic equipment, 5. Knitted or crocheted fabric
Thailand Mineral fuels, oils, distillation products, etc, 2. Electrical, electronic equipment, 3. Machinery, nuclear reactors, boilers, etc, 4. Iron and steel, 5. Pearls, precious stones, metals, coins, etc
Yemen Mineral fuels, oils, distillation products, etc, 2. Cereals, 3. Vehicles other than railway, tramway, 4. Machinery, nuclear reactors, boilers, etc, 5. Iron and steel
Kenya Mineral fuels, oils, distillation products, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Vehicles other than railway, tramway, 4. Electrical, electronic equipment, 5. Iron and steel
SeychellesFish, crustaceans, molluscs, aquatic invertebrates nes, 2. Machinery, nuclear reactors, boilers, etc, 3. Ships, boats and other floating structures, 4. Electrical, electronic equipment, 5. ircraft, spacecraft,
and parts thereof
UAEPearls, precious stones, metals, coins, etc, 2. Machinery, nuclear reactors, boilers, etc, 3. Electrical, electronic equipment, 4. Vehicles other than railway, tramway, 5. Mineral fuels, oils, distillation
products, etc
Tanzania Mineral fuels, oils, distillation products, etc, 2. Vehicles other than railway, tramway, 3. Machinery, nuclear reactors, boilers, etc, 4. Electrical, electronic equipment, 5. Iron and steel
3. Non-Tariff Barriers• Non-tariff barriers are major concerns for most of the IORA countries
• IORA countries belong to South Asia are found to apply para-tariff, port
restrictions, pre-shipment inspections, SPS and TBT restrictions and quality
standards.
• Affect trade of different kinds of agricultural products, processed foods, raw
materials and manufactured goods
• Countries in South East Asia practice import customs surcharge, technical
measures, product characteristic requirement, licensing requirement, quality
control, technical regulation on quality and labelling, standard requirement,
inspection requirement and tariff rate quota.
• Affect trade of different kinds of minerals, electrical appliances and
machinery
3. Non-Tariff Barriers
Afghanistan Bangladesh India
1. Port Access Limitations
2. Licensing and Registration
Requirements
3. SPS and TBT Restrictions
4. Para-Tariffs
5. Miscellaneous Payment
Requirement
1. Para-Tariffs
2. Port Restrictions
3. Pre-Shipment Inspection
Requirement
4. SPS Restrictions
5. TBT Restrictions
6. Fluctuating Standards
and Procedural Steps
1. Port Restrictions
2. SPS Restrictions
3. TBT Restrictions
4. Fluctuating Standards
and Procedural Steps
Sri Lanka
1. Para-Tariffs
2. Licensing Requirements
3. SPS Restrictions
4. TBT Restrictions
5. Quality Standards
6. Quantitative Restrictions for
Exports
NTBs used by South Asian Countries
Non-tariff Barrier Number of Tariff Line Affected
Customs surcharges 2,683
Additional Charges 126
Single Channel for Imports 65
State-trading Administration 10
Technical Measures 568
Product Characteristic
Requirement
407
Marketing Requirements 3
Technical Regulations 3
3. Non-Tariff Barriers
Non-Tariff Barriers in South East Asian Countries
Source: ASEAN Secretariat website
3. Non-Tariff Barriers
• Countries in East Africa practice import restriction, procedural delay, non-recognition
of SPS certificates and differentiated port procedures.
• Procedural complexities/weaknesses affect trade
• Countries in the Gulf region practice anti-dumping measures and delay in providing
clearances.
• Countries in different regions are confronting with different kinds of NTBs in case of
trading with major partners.
NTB Summary Description
1. Non-implementation of EAC harmonized documents.
2. Lack of harmonized procedures manual
3. Delays in transit bonds cancellation
4. Numerous institutions involved in testing goods
5. Existence od several weighbridge station in the central and North ear corridors
6. Uganda ban on beef & beef products from Kenya
7. Several policy roadblocks along Northern and Central corridors, estimated at 36 between Mombasa-kigali and 30 between Dar EsSalaam to Rusumo
border
8. Lengthy procedures for issuing of work permits vary among EAC partner States
9. Charges a plant import permit(PIP) at Malaba on Ugandan tea destined for auction at Mombasa
10. Non recognition by Kenya for SPS certificates issued by Uganda for tea destined for Mombasa action.
11. Lack of interface within the customs’ systems in the Revenue Authorities in Partner States.
12. Lack of harmonized port procedures manual.
13. Border management institutions’ working hours are not harmonized.
14. Inadequate Police Escort mechanism.
15. Inadequate quality of infrastructural services.
16. Corruption along the Northern and Central Corridors (police roadblocks, weighbridge and border gates).
17. Lack of Verification sheds and parking yards at border posts
18. Charges by Container Freight Stations vary from port charges
19. Exports of plastic products from Kenya are subjected to 10% and 25% CET rate.
20. Visa charges of US$ 250 for businessmen.
21. No movements of Cargo Trucks beyond 6:00 pm within Tanzania
22. RA has introduced check points in the Central Corridor with timeframes and imposed charges for the delays to reach the destinations
23. Kenya Import levy of Kshs 2 per Kg on Agricultural Products from Tanzania
3. Non-Tariff BarriersNTBs Used by East African Countries
NTB summary Description
1. Requirement for OTS (Open Tender System) for bulk Fuel Procurement System
2. Reduction of grace period for transit cargo at Dar es Salaam Port from 30 to 14 days
3. Congestion in the Ports
4. Non-harmonized road user charges / road tolls
5. Weighing of empty trucks in Tanzania
6. Delays in issuing bonds at Kenya border with Uganda for tea meant for auction in Mombasa
7. Delays at Malaba border for trucks driving to Uganda
8. Kenya has introduced Cash Bond on used clothes and shoes / other items considered of high value
9. Kenya has introduced Customs warehouse rent that starts after the release of cargo manifest
10. Requirement by KRA for transporters to have introductory letters from URA on certain products / consignments, e.g.
tyres and spirits
11. Cut-flower from Tanzania for reexports to Europe and Russia blocked by Kenya
12. Lack of recognition of CTH criteria in the EAC ROO for motor vehicles
13. Kenyan Trucks entering into Tanzania are charged a levy of US$ 200 each
14. Lack of availability of simplified certificate of origin issued by Tanzania
15. Cigarettes manufactured in Kenya exported to Tanzania required to have a local 75% tobacco content
16. Kenya tourist vans are not allowed to enter Tanzania. They are required to off load tourists to Tanzania registered
vans.
NTBs Used by East African Countries
3. Non-Tariff Barriers
4. Addressing NTBs
• Most IORA countries discussed about NTBs both at bilateral and regional levels.
• Since measures that act as NTBs tend to vary greatly in their nature, NTB-elimination
will mean a different thing depending on the measure concerned.
• Technical regulations cannot be done away with because there are valid
reasons for maintaining them
• The elimination of these measures as NTBs might mean harmonizing product
standards or developing mutual recognition of standards across Member
Countries.
• The idea is to limit the trade-hampering effects of technical regulations or
measures
4. Addressing NTBs
• IORA countries being member of different RTAs have been undertaken different
measures on NTBs
• ASEAN member countries are now in the process of verifying the list of NTBs and
products covered by these measures compiled by the ASEAN Secretariat.
• Several criteria have already been considered by the Interim Technical Working
Group on CEPT for AFTA (ITWG) to identify which products/measures have to be dealt
with first.
• These criteria are (a) number of private sector complaints, (b) difference between domestic
and world prices, and (c) trade value.
• These criteria can be used singly or in combination with each other to set priorities.
4. Addressing NTBsOther ASEAN-wide Activities bearing on NTBs
• ASEAN Consultative Committee for Standards and Quality (ACCSQ) has already set up a Task
Force to deal with NTB elimination.
• It can convene the expert panels or expert groups that will be involved in assessing how far
ASEAN can go in harmonising technical standards or developing mutual recognition
agreements.
• There is also some work along these lines currently being done on Sanitary and Phytosanitary (SPS)
measures for agricultural products.
• Under the Senior Officials of the ASEAN Ministers of Agriculture and Forestry (SOM AMAF) the
Working Group on SPS measures have come up with action plans on NTB elimination in the
areas of crops, livestock and fisheries.
• The action plans involve compiling information on technical measures in ASEAN countries
covering agricultural products
• Looking into how greater transparency, mutual recognition and harmonisation of SPS
standards can further liberalise intra-ASEAN trade in agricultural products.
4. Addressing NTBs• EAC has undertaken a time-bound initiative to eliminate NTBs
• Identified countries and agencies responsible for NTBs
• Possible impact on businesses
• Necessary action to be taken; major bottlenecks for success
• Timeframe for implementation
• EAC countries have initiated study to implement legally binding enforcement
mechanism on elimination of identified NTBs.
• South Asian countries have discussed about NTBs
• Initiated a process to identify NTBs
• Still it is at early stage
• Gulf countries have discussed about the importance of elimination of NTBs
4. Addressing NTBs
• All regional initiatives did not make same level of progress.
• Because of MFN nature, eliminating NTBs at regional level is supposed to benefit
both member and non-member countries.
• In contrast, IORA countries which are not part of any of those regional initiatives
need to take under new initiative to address NTBs
5. Possible Institutional Mechanism
under IORA to Address NTBs
• Focus of lORA is on trade facilitation through trade policy coordination,
harmonization and simplification of procedures and dissemination of information
through appropriate arrangements.
• IORA as per its mandate should identify an effective mechanism to address NTBs
applied by member countries.
• An institutional arrangement could be considered to undertake initiatives to
address NTBs.
• Working group on trade and investment need to specifically put responsibility for NTBs
5. Possible Institutional Mechanism
under IORA to Address NTBs
• A committee could be set up which will acknowledge different regional initiatives
on NTBs, thereby harmonise its activities and will identify new activities.
• Taking support from business community, the committee could create a database
on NTBs which could be used for discussion in appropriate fora for taking decision
on their elimination.