654 
About Documents
Currently, the ASEAN economy faces both significant opportunities and challenges due to the rapidly changing trade environment, particularly within the context of global trade liberalization driven by international agreements. However, a prominent ongoing challenge is the increasing role of Non-Tariff Measures (NTMs), which significantly impact trade regulation within the ASEAN region and directly affect entrepreneurs in member countries.
According to the World Tariff Profiles 2025 report by WTO, ITC, and UNCTAD, ASEAN member states apply NTMs on average to approximately 27.4% of product lines. Specifically, Thailand and Indonesia exhibit the highest usage rates of NTMs in ASEAN, at approximately 37.8% and 13.3%, respectively. Conversely, Singapore has the lowest NTM usage rate at just 0.4%.
Non-Tariff Measures have become crucial tools for countries to control imports and exports. These measures include product standards regulations, sanitary requirements, quality inspection and certification processes, increasingly complex licensing requirements, and climate-change-related measures, such as environmental standards, greenhouse gas emission reductions, and environmentally friendly product standards.
The implementation of NTMs leads to additional average costs for ASEAN entrepreneurs, ranging from 5% to 15%, due to compliance with complex regulations, including stringent sanitary standards in Indonesia or Thailand, complicated import inspection procedures in Vietnam, or specific sanitary requirements in Singapore.
In contrast, countries with lower NTM usage, such as Singapore, facilitate freer and more efficient trade. The European Union (EU), another example of low NTM utilization, focuses on common product standards that significantly reduce trade barriers among member states. This harmonization lowers business operating costs and enhances competitiveness among member countries.
For instance, the EU’s implementation of eco-labelling within its common market, with clearly defined and mutually recognized certification criteria, simplifies consumer choices and supports products with lower environmental impacts.
Although NTMs aim to ensure safety and consumer protection, they sometimes function as hidden barriers affecting the free movement of goods within the region. Therefore, ASEAN entrepreneurs must understand and adapt to this evolving environment to support sustainable economic development.
The report recommends that entrepreneurs increase investments in innovation and environmentally friendly technologies to better comply with environmental regulations. Additionally, they should leverage information provided by international organizations to proactively address NTMs.
Furthermore, ASEAN member states should collaborate on developing common certification standards related to reducing climate impacts, enhancing product competitiveness, and reliability in global markets.
Effectively addressing NTMs will strengthen ASEAN’s regional economy, ultimately leading to increased trade opportunities, enhanced entrepreneurial competitiveness, and sustained economic growth in the future.
——————–
Tag: Non-Tariff Measures, NTMs, Challenges, ASEAN, Free Trade
Author:
Ms. Namphueng Tassanaipitukkul
Senior Researcher
International Institute for Trade and Development (Public Organization)
www.itd.or.th
Publication: Bangkok BIZ Newspaper
Section: First Section/World Beat
Volume: 38 Issue: 12951
Date: Wednesday, Jul. 23, 2025
Page: 8 (left)Column: “Asean Insight”
