Trade Facilitation in ASEAN Members - A Focus on Logistics Policies Toward ASEAN Economic Community

Abstract

This paper studies the effectiveness of the implementation of trade facilitation measures in ASEAN member countries in comparison with these measures in other regional organizations. We evaluate trade facilitation performance and indicate trade facilitation priorities and needs that are different between ASEAN members. More specifically, we examine logistics-related costs in ASEAN and figure out how the current level of logistics-related costs could be a burden or an advantage for ASEAN countries. Then, we identify some critical barriers which have impacts on logistics services which are related to foreign investment, customs and mode-specific across ASEAN. Although most of the barriers are based on logistics unfriendly practice, “specific policy measures would help member countries to reduce the impact of these barriers to logistics services.” (Gupta et al, 2011) The ultimate goal of this research is to propose implications and recommendations for harmonization of logistics policies in ASEAN countries toward AEC.Studies on trade facilitation have been conducted for the Asia-Pacific in general. However, no such specific research has been conducted for ASEAN. Per se, this research aims to find out the factors that promote trade facilitation and assess several costs for logistics services in ASEAN. The research also examines the main inhibitors to trade liberalization in ASEAN, and hence, carries practical implications for ASEAN. The critical barriers to trade liberalization as examined in this paper are valuable for ASEAN for implementing and fine-tuning appropriate policies toward the AEC.