JAKARTA, 13 NOVEMBER 2020 – A memorandum of understanding (MoU) signed earlier by the ASEAN Economic Ministers to ensure smooth flow of essential goods and prevent supplies disruption during the COVID-19 pandemic enters into force today.
The MOU is part of the Hanoi Action Plan on strengthening supply chain connectivity adopted in June 2020. It commits ASEAN Member States (AMS) to refrain from imposing restrictive trade measures on essential goods and supplies except for public health emergencies.
AMS also aim to unilaterally rollback all non-tariff measures on essential goods that are not in conformity with the WTO Agreement. In cases where complete rollback of NTMs on essential goods are not feasible, AMS will discuss an appropriate modality to address the NTMs’ trade distorting effects, if any.
Secretary-General of ASEAN Dato Lim Jock Hoi said, “once enforced, the MOU proves ASEAN’s unanimous cooperation to facilitate the smooth and seamless flow of essential goods in the region.”
“It will play a vital role in mitigating the economic impact of the COVID-19 to ASEAN, strengthen the supply chain connectivity, and reduce administrative burden on businesses during this trying time,” he further added.
The MOU includes a list of 152 essential goods, consisting mostly of medical goods such as test kits and equipment. The list is based on a joint list by the World Trade Organization and World Health Organization.
The MOU can be found here.
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