ASEAN Initiatives to Mitigate Non-Tariff Barriers for Trade Growth

On June 30, 2025, the Association of Southeast Asian Nations (ASEAN) is intensifying its focus on reducing non-tariff barriers (NTBs) to enhance intra-regional trade, particularly as Vietnam seeks to expand its exports within the bloc. The 47th ASEAN Summit, scheduled for November in Malaysia, is expected to result in an upgrade to the ASEAN Trade in Goods Agreement, aiming to streamline trade processes and reduce the regulatory burdens on businesses across member states.

Despite ASEAN's collective efforts, intra-ASEAN trade only constituted 21.2% of the region's total trade last year, significantly lagging behind the European Union, where intra-regional trade accounts for approximately 60%. This disparity highlights the urgent need for ASEAN to bolster its trade relations amidst rising tariffs imposed by external powers, notably the United States, which have raised concerns about trade policy uncertainties affecting regional economic stability.

The World Bank recently identified nine primary types of NTBs impacting trade within ASEAN, including sanitary and phytosanitary measures and technical barriers to trade, which collectively hinder trade efficiency and add costs. A study conducted by the Global Trade Analysis Project at Purdue University estimated that a mere 10% reduction in costs associated with NTBs could yield a trade growth of 3-4%, equating to tens of billions of dollars for the region.

As ASEAN member states pursue tariff liberalization, they are increasingly directed toward addressing NTMs, which encompass a variety of regulatory measures that can inhibit trade beyond mere tariffs. Notably, these measures include complex customs procedures, quantitative restrictions, and varying national standards that complicate the trading environment.

To facilitate these changes, ASEAN has initiated several collective measures aimed at enhancing transparency regarding NTMs. Each member state is now required to notify the bloc of newly adopted NTMs and amendments to existing measures. A comprehensive database is in development, which will catalog these regulations and align them with international standards. This initiative is expected to bolster trade flow by ensuring that businesses are well-informed about the regulatory landscape.

However, challenges remain. Nazmi Idrus, head of research at CGS International Securities Malaysia, highlighted internal policies such as Malaysia's Bumiputera policy that may restrict trade, indicating that member states are not yet fully prepared to eliminate such barriers to foster regional trade. Furthermore, the divergence in national standards, particularly in certification and testing, exacerbates the issue, as indicated by Arief Ramayandi, a senior research fellow at the Asian Development Bank Institute.

For Vietnam, the significance of enhancing trade with ASEAN is underscored by its trade statistics, with bilateral trade reaching $83.9 billion in 2024, despite experiencing a trade deficit. Prime Minister Pham Minh Chinh's recent directive emphasizes the need for Vietnam to navigate these challenges by adopting sustainable agricultural standards and ensuring compliance with international norms to mitigate the impacts of NTBs.

In conclusion, while ASEAN's initiatives to address non-tariff barriers represent a crucial step towards enhancing intra-regional trade, the success of these measures will depend on the collective willingness of member states to harmonize regulations and eliminate restrictive policies. As external trade pressures continue to mount, fostering a cohesive intra-ASEAN trading environment will be vital for economic growth and stability in the region moving forward.