• The EU-ASEAN Business Council & ASEAN
  Business Advisory Council today launched a report on Non-Tariff Barriers in
  ASEAN that they jointly commissioned.
• The report identifies the existence of a
  large number of Non-Tariff Barriers (NTBs) in the region in the Automotive,
  Agri-Food and Healthcare sectors. �
• It also sets out a number of recommendations
  for ASEAN to follow if the region is to accelerate the process of NTB removal
  as set out in the AEC Blueprints.
• Both Organisations encourage faster movement on
  achieving ASEAN's objectives linked to the ASEAN Economic Community, particularly
  on the removal of trade distorting Non-Tariff Barriers.
• The
  business groups continue to have concerns over the slow progress in achieving
  the objectives of the AEC, particularly on NTB removal, and the continued
  impact this has on holding back intra-ASEAN trade and achieving the full
  benefits of economic integration.

SINGAPORE -�Media OutReach�-�24
June 2019 -�In line with ASEAN's 2019 theme of "Advancing Partnership for
Sustainability", the EU-ASEAN Business Council (EU-ABC) and ASEAN Business
Advisory Council (ASEAN BAC) today launched a joint report " Non-Tariff Barriers (NTBs) in ASEAN and their
elimination from a business perspective" which examines the prevalence of NTBs to trade in
three key industrial sectors in ASEAN -- Automotive, Agri-Food, and
Healthcare. � The aim of the report is to
highlight the need for faster action in removing NTBs in the region to help
ASEAN achieve its objectives as set out in the two ASEAN Economic Community
Blueprints, and the subsequent targets of reducing the cost of trade transaction
by 10% by 2020 and doubling intra-ASEAN trade by 2025 as agreed by the ASEAN
Leaders in 2017.

EU-ASEAN Business Dialogue roundtable
discussion and launch of the report on "Non-tariff barriers in ASEAN and their
elimination" on 22 June 2019 in Bangkok.

The report sets out a number of
recommendations to ASEAN, aimed at helping the region accelerate the removal of
NTBs.

The Counsellor of the EU Delegation in Thailand,
Mrs Isabelle De Stobbeleir, opened the event by stating that: "The
European Union is a strong supporter of the ASEAN economic integration and the
facilitation of regional trade. Through the Enhanced Regional EU-ASEAN Dialogue
Instrument (E-READI), the EU strives to facilitate EU-ASEAN policy dialogues
across all three ASEAN pillars. Thanks to the active engagement of the ASEAN
Business Advisory Council and the EU-ASEAN Business Council, business
communities from the EU and ASEAN are involved in a constructive exchange. Together,
we join forces to promote the economic integration of ASEAN, strengthen
business cooperation and bring forth the perspectives of the private sector."

Commenting on the report, Mr Donald Kanak,
Chairman of the EU-ABC, said: "ASEAN has made excellent progress on removing
tariffs for intra-ASEAN trade, but Non-Tariff Measures (NTMs) have increased
markedly despite the commitments made under the ASEAN Economic Community (AEC)
to reduce them. This report by the Asian Trade Centre highlights the extent of
the problem in three sectors within ASEAN. �
Reducing NTMs and removing NTBs will foster intra-ASEAN trade, increase
innovation, and lead to lower costs for businesses and for consumers. It should
also create intra-ASEAN trading opportunities for MSMEs."

Speaking at
the launch event in Bangkok, Chairman of ASEAN BAC, Mr Arin Jira, said: "As we
cross over the 10th year anniversary of the ASEAN Trade in Goods Agreement (ATIGA),
we are very pleased to launch this joint research undertaking by ASEAN BAC and
EU-ABC which only affirms the private business sector's commitment to help
address NTBs. While it's only the start of a long tedious process, we're
hopeful that with ASEAN's support and cooperation, we now have a clear starting
point in prioritising which NTBs to address based on the results of the
research as initiated on three sectors: Agri-food, Healthcare and Automotive.
We are now moving from talk mode to action mode."

Executive Director of the
EU-ASEAN Business Council, Chris Humphrey, added: "ASEAN is at risk of failing
to fulfil its potential, unless faster and more proactive action is taken on
its own economic integration programme. 2019 marks ten years since ATIGA was
signed but yet some elements of that Agreement have still not been implemented.
ASEAN is still a long way from being the single market and production base that
the AEC envisaged. Unfortunately, this means that intra-ASEAN trade remains
low, and extremely unlikely to hit the goal of doubling intra-ASEAN trade by 2025
set when the Philippines was in the Chair of ASEAN in 2017. � Taking faster and clearer action on the
removal of NTBs is vital to both hitting those targets, and to enhancing
business confidence in the AEC process."

The report concludes that
"absent a much clearer, more
sustained and tighter focus on reducing the number and scope of existing NTMs
and eliminating NTBs, ASEAN will not accomplish the objectives of the AEC and
it will fail to meet the targets contained in the AEC Blueprint 2025. Growth
will not be as high as ASEAN Member States could have achieved and much of the
promise embedded in the ASEAN exercise will have been lost."

The report was prepared by the Asian Trade Centre,
commissioned by the EU-ASEAN Business Council and by the ASEAN Business Advisory
Council, and funded by the EU's Enhanced Regional EU-ASEAN Dialogue Instrument
( E-READI ).

Notes to editors:

�

1.� ��About the
EU-ASEAN Business Council

�

The EU-ASEAN Business Council (EU-ABC) is the sole voice for European
business within the ASEAN region. It is recognised by the European Commission, and
by the ASEAN Secretariat as an Entity associated with ASEAN under Annex 2 of
the ASEAN Charter. Independent of both bodies, the Council has been established
to help promote the interests of European businesses operating within ASEAN and
to advocate for changes in policies and regulations which would help promote
trade and investment between Europe and the ASEAN region. As such, the Council
works on a sectorial and cross-industry basis to help improve the investment
and trading conditions for European Businesses in the ASEAN region through
influencing policy and decision makers throughout the region and in the EU, as
well as acting as a platform for the exchange of information and ideas amongst
its members and regional players within the ASEAN region.

The EU-ABC's membership consists of large European Multi-National
Corporations and the eight European Chambers of Commerce from around South East
Asia. As such, the EU-ABC represents a diverse range of European industries
cutting across almost every commercial sphere from car manufacturing through to
financial services and including FMCG and high-end electronics and
communications. Our members all have a common interest in enhancing trade,
commerce and investment between Europe and ASEAN.

2.� �About the ASEAN Business Advisory
Council

The ASEAN Business Advisory Council (ASEAN-BAC) was
established by the ASEAN Heads of State and Government (HOSGs) at the 7^thASEAN
Summit in November 2001 in Bandar Seri Begawan, Brunei Darussalam. Launched in
April 2003, ASEAN-BAC was set up with the mandate to provide private sector
feedback and guidance to boost ASEAN's efforts towards economic integration.
Aside from providing private sector feedback on the implementation of ASEAN
economic cooperation, the Council also identifies priority areas for
consideration of the ASEAN Leaders. Accordingly, ASEAN-BAC's activities are
primarily focused on reviewing and identifying issues to facilitate and promote
economic cooperation and integration.

3.� �Key Recommendations of the
report:

The report provides a range of recommendations to improve the scope of
ASEAN's work on NTMs and NTBs and significantly strengthen the institutional
capacity of the organization to address the former and eliminate the latter.
The final section of the report provides additional details, but in brief,
these recommendations include the following:

1: Create improved systems to effectively identify and collect
information on both NTMs and NTBs

1.1: Promote transparency in NTMs through an open database system

1.2: Quickly follow and implement ASEAN's 2018 NTM Guidelines

1.3: Allow for ASEAN member state response to NTMs

1.4: Streamline NTMs

1.5: Ensure appropriate and effective mechanisms to allow firms to notify
ASEAN about probable NTBs

2: Effectively manage identified NTMs and reduce NTBs

2.1: Ensure that ASEAN has appropriate institutional body in place to
address NTM and NTB issues

2.2: Craft targeted, time-bound NTB reduction commitments

2.3: Set principles for regulatory reform based on international best
practices

3: Develop clear procedures and institutional frameworks for tracking the
elimination of NTBs

3.1: Ensure that the review body has the capacity to track the
elimination of NTBs

3.2: Ensure that the review body has the mandate and resources to develop
work plans and support the elimination of identified NTBs

4: Continue to ensure the harmonization of standards and build capacity
of ASEAN Member States and firms to meet those standards

4.1: Continue to effectively implement programs using international standards;
MRAs especially for conformity assessment; and accreditation of testing
facilities

4.2: Include appropriate follow-up mechanisms to ensure compliance

4.3: Ensure process in place to engage and hold accountable non-compliant
members

5: Strengthen work with the private sector to identify, eliminate and
conduct compliance reviews of NTBs across the region

5.1: Invite the private sector to participate in ASEAN working committees

5.2: Work with the private sector to identify areas of most significant
cost to help prioritize efforts

Note that these recommendations need not be followed sequentially. In
other words, it is not necessary to have identified every single NTM or NTB
before taking steps to remove unnecessary NTMs or eliminate NTBs. Instead, ASEAN
must proceed in parallel -- identifying existing arrangements, limiting new
obstacles, while working to streamline and remove barriers that impede trade.

4.� �About the
Authors :

The Asian Trade Centre (ATC) is the premier regional thought leader,
advocate and educator for trade in Asia. We work with businesses and
governments across the Asia Pacific to make better trade policy.

Its activities include:

• Increasing
  capacities and knowledge of government and business leaders through training,
  workshops and seminars;
• Building bridges
  between government and business to foster the growth of trade in the region;
• Leading world-class
  research projects; and
• Conducting outreach
  to the media, business, NGOs and the interested public on trade issues.
• ATC is also the Secretariat
  to the Asia Business Trade Association (ABTA) and the Asia Pacific MSME Trade
  Coalition (AMTC)

5.� ��About
EREADI

The Enhanced Regional EU-ASEAN Dialogue Instrument (E-READI) is an
EU-funded development cooperation programme that facilitates dialogue forums
between the EU and ASEAN in priority policy areas of joint interest across all
three ASEAN Community pillars:

• Political and
  Security
• Economic
• Socio-Cultural

The overall objective of the E-READI is to support ASEAN integration aiming
at poverty reduction through inclusive and sustainable growth, while the
specific objective is to support the implementation of the ASEAN Community
blueprints, drawing on European experience and know how through sectoral policy
dialogues. It is a follow-up of the READI and READI Human Rights programmes.

The potential areas for dialogue consist of human rights, maritime
cooperation, peace and reconciliation, science and technology, ICT, energy,
forestry, trade related aspects not covered by other EU-ASEAN projects, and climate
change, disaster management, environment, education, working toward achieving
sustainable development goals, as well as capacity building. However, other
areas may emerge during the implementation period of the facility. �

For
more information, please see: https://eeas.europa.eu/headquarters/headquarters-homepage_en/49815/Enhanced%20Regional%20EU-ASEAN%20Dialogue%20Instrument%20(E-READI)