Non-Tariff Measures: Impacts and Challenges on ASEAN

Non-tariff measures (NTMs) are becoming increasingly prominent in global trade, with the European Union applying stringent requirements covering product standards, sustainability, and environmental compliance. These measures are raising compliance and production costs across ASEAN supply chains, with exposure varying by export dependence and product composition. Vietnam faces the highest overall exposure, while Indonesia is particularly vulnerable to CBAM and EUDR due to its metal, palm oil, and timber exports. ASEAN economies are responding through investment promotion, regulatory adjustments, clean-energy development, and industrial upgrading to strengthen resilience and maintain long-term trade competitiveness.

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