ASEAN moving toward nontariff measures

NOW THAT the Association of Southeast Asian Nations (ASEAN) has largely met its goal of eliminating tariffs in preparation for economic integration by 2015, the focus should now shift to at-border and behind-the-border issues affecting the flow of goods across the region.

The ASEAN is a “success story” in trade facilitation and liberalization, but there are still urgent items in the agenda, such as the implementation of the a National Single Window (NSW) aimed at speeding up the processing of licenses and permits for customs transactions, said Erlinda Medalla, senior research fellow at the Philippine Institute for Development Studies (PIDS), in the September 12 seminar-workshop titled “AEC 2015: Development Challenges for the Philippines”.

The Philippines is at 82-percent completion stage, and ranks fourth among ASEAN members in terms of implementation. The single-submission system is up and running for 38 government agencies and allows electronic submission of application forms, viewing of the status of applications via a “dashboard”, and notification through email of the status of applications.

The NSW portal is now implemented in major seaports and airports, and coverage for all is targeted by 2015. Fifty government agencies will be linked to the portal by 2015.

But the second phase of the NSW—which should lead to an ASEAN Single Window (ASW) with a turnaround time of just 30 minutes—is stalled. Phase 2 involves declaration processing, rationalization, simplification, and harmonization; it links the NSW to the e2m system of the Bureau of Customs, and facilitates ASW integration including manifest processing.

“There is a need to strengthen the mandate and legislation of the NSW,” said Medalla.

Medalla also said behind-the-border measures, such as standards and conformance, mutual recognition agreements, and accreditation of testing laboratories should be addressed as well.

Standards and conformance initiatives of the ASEAN have influenced and continue to drive change in policies on standards in the Philippines, noted Veredigna Ledda, PIDS supervising research specialist.

Among ASEAN priority sectors, the local cosmetics and pharmaceutical sectors lead in terms of adopting technical regulations, as a result of industry support, Ledda said. But implementation scores remain very low for prepared foodstuff and the traditional medicine and health supplements sectors, while there is a lack of technical infrastructure and capability in the automotive and rubber sectors.

“The way forward lies in capacity building and institutional development. There’s also a need for more robust infrastructure and greater technical expertise,” she said during the forum.

Medalla pointed out that ASEAN integration efforts have resulted in trade creation.

“The direction of Philippine trade has shifted away from the US and EU to Asia, that is, ASEAN in particular, during the past 30 years, with ASEAN accounting for 22 percent of Philippine exports in 2010 from only 2.7 percent in 1975,” Medalla said.

There has also been simultaneous growth in intra- and extra-ASEAN trade, she added. (PIDS)