Summary of General Discussion on “Streamlining Non-Tariff Measures in ASEAN: The Way Forward”

Abstract

The general discussion focused on the difficulty of measuring non-tariff measures (NTMs) and determining which NTMs may be non-tariff barriers (i.e., measures that reduce trade intentionally). As an example, Jayant Menon suggested anti-dumping actions, which are NTMs that have been used as non-tariff barriers. Dumping is a situation of international price discrimination, where the price of a product when sold in an importing country is lower than the price of that product in the market of the exporting country. An import-competing firm that is losing market share may claim that dumping is hurting the country's industry to have countervailing measures imposed. Such measures typically remain in place until a dispute has been settled, which in some cases can take years. Moreover, Menon noted that monitoring the incidence of non-tariff measures can be difficult as many non-tariff measures are easily implemented. He gave the example of two countries, where a comprehensive free trade agreement had led to growing trade until one country imposed a requirement for imports to arrive at a designated port.Somkiat Tangkitvanich cautioned that the authors’ conclusion regarding the incidence of NTMs was relatively low in ASEAN as it was not supported by other evidence. Bhanupong Nidhipraba pointed out that the incidence of NTMs is large in certain industries in Thailand. He also noted, however, that many of these NTMs are quality measures to meet the high product standards in export markets. He continued that consumers benefit from NTMs if they increase the quality of products or reduce negative externalities. Furthermore, the imposition of NTMs may have long-run effects on the supply and demand of products that are likely to be different from the short run.