MANILA, Philippines — More than 50 percent of exporters in Asia Pacific consider non-tariff measures (NTMs) as key impediments to trade, according to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
In its report titled “Making regional integration work: company perspectives on non-tariff measures in Asia Pacific,” ESCAP said 55 percent of companies reported facing difficulties with NTMs from domestic or foreign regulations, based on the NTM Business Surveys conducted under the International Trade Center program.
The NTM Business Surveys were conducted in the following Asia Pacific countries: the Philippines, Cambodia, Indonesia, Thailand, Vietnam, Kazakhstan, Pakistan, Kyrgyzstan, Bangladesh, Nepal and Sri Lanka.
ESCAP said 80 percent of the burdensome NTMs faced by exporters in Asia-Pacific arise from foreign regulations, with a large share of these regulations being regional.
It said conformity assessment requirements to prove compliance with technical barriers to trade or sanitary and phytosanitary measures, such as product certification and product testing were among the most burdensome technical measures, applied within the region, accounting for 73 percent of all technical measures.
“While conformity assessments are difficult to comply with because of accompanying procedural obstacles, most technical requirements are deemed burdensome because they are simply too complex or difficult to comply with,” ESCAP said.
It said product certification is associated with delays and, in some instances, the use of informal payments to speed up processing time.
As for product testing, this is considered difficult due to lack of access to accredited facilities, leading to delays and high costs.
ESCAP said domestic regulations are considered a hurdle too, with almost half or 46 percent of burdensome local NTMs related to export certification, inspection and licensing requirements.
“Procedural obstacles in home countries are the primary reason why NTMs are deemed to be burdensome,” the ESCAP said, citing time delays, the need to make informal payments or high fees and charges as the most common impediments.
Other procedural obstacles faced in the domestic market include lack of accreditation, lack of appropriate testing facilities, and difficulties obtaining trade and NTM-related information.
To boost trade, the ESCAP said streamlining trade procedures at home is key.
“Asia Pacific economies should look inwards to identify domestic opportunities for trade facilitation reform at an institutional level,” ESCAP said.
It said a regional review of NTM prevalence and related institutional roles would provide clarity on what administrative streamlining efforts are needed both within and across trade-regulating government agencies.
Aside from streamlining, ESCAP cited higher implementation of trade facilitation measures, especially paperless trade as this correlates to fewer concerns on NTMs and higher export shares.