Give Asean Secretariat More Clout To Get Countries To Rescind Non-Tariff Barriers -- Nazir Razak
By Mikhail Raj Abdullah
KUALA LUMPUR, Feb 26 (Bernama) -- The Jakarta-based ASEAN Secretariat should be given more clout to flag countries that resort to non-tariff barriers (NTBs).
In making the call, Tan Sri Nazir Razak, chairman of the ASEAN Business Advisory Council (ASEAN-BAC), said these NTBs need to be flagged and “someone needs to get countries to rescind them.”
“The issue is who is that someone. We need to give some teeth to the ASEAN Secretariat,” he told Bernama ahead of the ASEAN Economic Ministers (AEM) Retreat on Friday in Desaru, Johor.
In what is surely an unprecedented move to empower the ASEAN Secretariat, Nazir said it would reduce obstacles to trade and private sector growth and strengthen economic integration in Southeast Asia.
Currently, the ASEAN Secretariat functions as a coordinator to facilitate effective decision-making within and among ASEAN bodies.
“Despite 99 per cent of intra-ASEAN tariffs being eliminated, NTBs continue to increase, with over 6,000 measures recorded,” said Nazir, who is also Chairman of ASEAN-BAC Malaysia.
He said NTBs can take the form of complex customs procedures, licensing requirements and import restrictions, among others.
“To state the obvious, ASEAN must further harmonise regulations, improve transparency and reduce compliance costs,” he said.
Nazir reiterated that the real key, though, is in “execution”, whereby these NTBs need to be flagged, and someone needs to get countries to rescind them.”
He opined that ministers should prioritise the execution of plans to drive regional integration and liberalise trade by tackling persistent challenges, including such barriers to trade.
“Execution, execution, execution!” Execution must take precedence over merely generating ideas,” said Nazir.
In the ASEAN context, progress is often hindered by prolonged discussions and consensus-building without concrete action, he said, adding that “to truly realise the ASEAN Economic Community (AEC) vision, we must prioritise execution.”
ASEAN-BAC feels that the ASEAN Business Entity (ABE) idea being pursued also moves the dial on trade and investment by making it easier for companies to scale and optimise their supply chains.
The Malaysia chapter of ASEAN-BAC is proposing, among other initiatives, that ASEAN countries recognise a category called the ASEAN Business Entity (ABE) to foster companies that are neither strictly local nor global to be accorded some privileges in efforts to encourage more regional business.
Once certified as an ABE, a company can enjoy incentives and privileges granted by member states, including greater market access and undertake business activities, including back-office outsourcing such as information technology (IT) operations in another ASEAN country.
Nazir also said the ASEAN way should embrace a results-driven approach where consensus is followed through with active implementation and intervention.
“ASEAN-BAC has been preparing for our (Malaysia’s) chairmanship year for 18 months now, so our priorities and initiatives are well supported by analysis and execution plans.”
“We hope to get AEM to endorse them so that we can finalise all the necessary details for presentation to national governments and ASEAN leaders over the course of the year,” he added.
The retreat, organised by the Ministry of Investment, Trade and Industry (MITI), will be chaired by Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.
Nazir said the first AEM is usually the stage-setting session for the chairmanship year to come, where ASEAN-BAC will formally present its priorities and initiatives, as will other agencies.
“ASEAN-BAC has submitted its proposals for regional integration to the ASEAN Secretariat and is actively collaborating with them to execute this year or ensure continuity beyond our (Malaysia’s) chairmanship.
“Our goal is to institutionalise these initiatives so that they remain actionable and drive long-term economic integration across ASEAN, rather than being limited to a single chairmanship term,” he said.
Asked about the imposition of American tariffs on China, which is a major trading partner and significant investor in almost all ASEAN countries, Nazir acknowledged that “the recent actual and threatened US tariffs on China pose risks to ASEAN economies.”
This is because China is ASEAN’s largest trading partner, with bilateral trade exceeding US$900 billion (US$1 = RM4.42) in 2023.
As such, Nazir said supply chain disruptions and trade diversions are likely consequences.
However, he said this brings both challenges and opportunities for ASEAN.
“When more walls are being erected around us, we should enlarge our negotiating tables. ASEAN must further diversify its economic partners.
“There is more urgency to completing free trade agreements (FTAs) with Europe and Canada,” he added.
Against such a scenario, Nazir said the plan to host the first ASEAN-GCC (Gulf Cooperation Council)-China Summit in May in KL is a fantastic initiative.
He said businesses must take advantage of the gathering of top government and leaders from GCC and China to do more business with these two regions.
-- BERNAMA