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ASEAN discusses removing barriers on regional auto parts trading
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Delegates at the 23rd ASEAN Consultative Committee for Standards and Quality (ACCSQ) Automotive Product Working Group (APWG) meeting Wednesday. (The Brunei Times/ANN/Koo Jin Shen)
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SEAN is one of the largest automotive markets in the world and an initiative by the grouping to reduce non-tariff barriers is seen to make it easier and less costly to export components and systems to other members within the region.
Reducing non-tariff barriers when trading auto parts in ASEAN is being discussed at an ongoing meeting at the Centrepoint Hotel Gadong, Bandar Seri Begawan.
The meeting for the 23rd ASEAN Consultative Committee for Standards and Quality (ACCSQ) Automotive Product Working Group (APWG) was officially launched Wednesday and will conclude Thursday.
The APWG was formed in 2005 with the goal of eliminating technical barriers to trade in the Automotive Sector in ASEAN through the exchange of information on standards, regulations, procedures and mandatory requirements in ASEAN member states.
The working group is also tasked to identify areas for possible harmonization and Mutual Recognition Arrangements (MRA).
In an address to representatives from both regulatory and private sector areas in the ASEAN automotive industry, Acting Permanent Secretary at the Ministry of Communications Pg Hj Mohd Zain Pg Hj Abdul Razak outlined that ASEAN is reported to be one of the largest automotive markets in the world.
“It will continue to gain in importance as a production base for the world’s biggest car manufacturers, especially from Asia, the United S,tates and the European Union.”
He said that with the combined third largest population in the world, just after India and China, ASEAN is anticipated to continue to grow rapidly as a consumer market for vehicles.
Pg Hj Mohd Zain said that while the ASEAN Economic Community, which was established last year, had substantially impacted the automotive sector, non-tariff barriers have remained a challenge.
One major item that is set to be completed this year is the ASEAN MRA (Mutual Recognition Arrangement) on Type Approval for Automotive Products.
He said that the main objective of the MRA is to ensure that once a regulated automotive product is tested by a listed testing lab and/or inspected by the listed inspection body in an ASEAN country, the product can be imported and sold inside another ASEAN country without being subjected to further testing or inspection.
“With the successful implementation of the MRA, producers will find it easier and less costly to export their automotive components and systems to other members of ASEAN, thus greatly contributing to the realization of the AEC.”
Pg Hj Mohd Zain said that the MRA is targeted to be submitted to the ASEAN consultative committee for standards and quality for endorsement by June 2016 and then endorsed by Senior Economic Officials and subsequently signed by ASEAN Economic Officials by fourth quarter of 2016.
