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.

Thank You.