TACKLE ISSUE OF NON-TRADE BARRIERS, ASEAN TOLD

KUALA LUMPUR, July 9 (Bernama) -- The 10-member Association of South-East
Asian Nations (Asean) should get its act together to tackle the issue of
non-trade barriers to spur trade and investments with Japan.

Federation of Japanese Chambers of Commerce and Industry in Asean (FJCCIA)
president, Takashi Hibi, said the flow of trade and investment could have been
better if Asean could improve its harmonisation in areas such as Customs
procedures and standards.

"There are (still) some technical issues such as the need to simplify
Customs procedures, Asean free trade agreement (Afta) documentation and
harmonisation of product standards," he told reporters after the fourth dialogue
session held Friday.

Trade between Asean and Japan in 2010 rose to US$220 billion from US$160.9
billion in 2009.

Japan, an active dialogue partner of Asean, has always been the top-ranked
source of foreign direct investments to the region, pouring in US$5.2 billion in
2009.

FJCCIA held a meeting with Asean secretary-general, Dr Surin Pitsuwan, and
brought up some non-trade barriers issues faced by Japanese firms in
Asean as well as those involved in trading.

"Most Japanese companies in Asean recognised the grouping as one big market
and a strategic global manufacturing hub.

"Therefore, it is crucial for us that Asean ensures free flow of goods,
human resources, as well as capital," he said.

Hibi said to ensure the free flow of trade and investments, Japan may ask
Asean countries to also develop its 'hard' infrastructure.

"(We may also want) Asean to prepare rules and regulations to buck up
liberalisation," he said.

Others included further enhancement for the protection of intellectual
property rights in the region, and the early ratification of the Asean+1 free
trade agreement.

"We have also made requests for the liberalisation and rule-making on
services and investment, as well as enhancement of both maritime and road
security," he said.

Japanese External Trade Organisation chairman, Yasuo Hayashi, said research
has shown that more than 'hard' infrastructure, trade facilitation was important
to enhance investments.

"While Asean countries encourage investments, it is a bit difficult to
understand (why) difficult regulations are imposed," he said.

Asean deputy secretary-general, Pushpanathan Sundram, said it was of utmost
importance for businesses to see greater trade facilitation and standardised
Customs procedures and Asean recognised them.

He said the grouping would create a database to constantly monitor all
non-trade measures and make sure they were not become a barrier to free flow of
goods.

Under the Asean single window, Customs procedures were also being
streamlined as they would be a digitalised format, the processing time would be
be shorter and easier.

Asean has harmonised standards for electric and electronic components, and
cosmetics while it is in the process to do so for pharmaceuticals.

"Asean has to go through that direction, as the aim is to make the grouping
a single market and a single production base," he said.

He said physical connectivity was also important to further integrate the
Asean countries in terms of high quality infrastrucutre and transport linkages.

"Energy supply is going to be another bottleneck that we need to tackle
because if we want more industries to invest in Asean, we have to make sure that
there is enough energy supply for their operations.

"This is one real problem the Japanese investors are facing here," he said.

Measures such as harmonisation of standards of goods, Customs procedures and
the Asean single window have to be in place before Asean leapfrogs towards its
next phase of growth under the Asean Economic Community in 2015.