Overview

Overview

Trade facilitation as a key driver of economic development and regional integration is crucial in the realisation of ASEAN as a single market and production base. 

During the 38th Meeting of ASEAN Economic Ministers (AEM) on 22 August 2016 in Kuala Lumpur, the Ministers agreed to establish ASEAN Trade Facilitation Joint Consultative Committee (ATF-JCC) to give more emphasis on trade facilitation. This strategy enables ASEAN to reduce trade transaction costs, enhance its competitiveness, contribute towards the goal of integrating ASEAN into one seamless market for goods, services and investment and encouraging the establishment of more production network in the region. As part of the initiative to streamline sectoral bodies under purview of Senior Economic Officials Meeting (SEOM) and as per decision of SEOM 3/42 in 2011, ATF-JCC was deferred and pending issues of ATF-JCC were taken up by the Coordinating Committee on the Implementation of ATIGA (CCA).

 

However, ATF-JCC was revived by the 21st AEM Retreat in 2015 to support the ASEAN Trade Facilitation Framework (ATFF). ATFF is a tool to foster greater trade facilitation initiatives and renewed impetus towards trade facilitation within the ASEAN region. It provides a coordinated effort to work towards the twin goals of reducing trade transaction costs by 10% by 2020 and doubling intra-ASEAN trade between 2017 and 2025. Moreover, ATFJCC also covers the key following areas:  

 

  1. Coordinate with relevant ASEAN sectoral bodies playing a role vis-à-vis trade facilitation and its implementation; 

  2. Engage with relevant stakeholders including private sector, academic institutions, international organisations, and other relevant development partners to promote the exchange of information and generate feedback, inputs or proposals on ASEAN trade facilitation measures;

  3. Monitor the implementation of ATFF and trade facilitation measures/initiatives undertaken by the relevant sectoral bodies with ASEAN trade facilitation indicators against which the performance of trade facilitation implementation at national and regional levels can be measured and improved; and

  4. Support the acceleration and deepening of the implementation of trade facilitation measures in the AMSs

 

The ATF-JCC also serves as a focal point to strengthen regional cooperation by promoting, coordinating and collaborating on policies, recommendations, and action plans with respect to the implementation of trade facilitation mechanisms. These initiatives contribute to reduced trade transaction costs and increased time efficiency, while also ensuring the effective achievement of trade policy objectives in ASEAN.


Key Areas of Cooperation

 

1. Non-Tariff Measures

 

1.1. NTM Cost-Effectiveness Toolkit

The NTM Cost-Effectiveness Toolkit is a key initiative for streamlining NTMs in the ASEAN region. The Toolkit is designed to provide a systematic approach in evaluating the effectiveness of NTMs, offering guidance and relevant tools for Member States to review the design, implementation processes, and compliance costs associated with these measures. Indonesia is currently conducting the pilot implementation of the NTM Toolkit, in collaboration with the Economic Research Institute for ASEAN and East Asia (ERIA).

 

1.2. Notifications of draft NTMs

In accordance with Article 11 (Notification Procedures) of the ASEAN Trade in Goods Agreement (ATIGA), AMS shall notify the ASEAN Secretariat and SEOM of any draft measures which may directly or indirectly impair any benefit to other AMS under the Agreement. Article 83 (Notification under Emergency Situation) of the ATIGA also stipulates the notification of draft measures under emergency situations (e.g., food safety crisis, pest or disease outbreaks), as well as provisional sanitary and phytosanitary (SPS) measures necessary to protect human, animal or plant life or health. As of 8 October 2025, AMS have notified 232 measures to SEOM since 1 January 2021, as required under Article 11 (Notification Procedures) of the ATIGA.

 

AMS have also continued to monitor measures notified under emergency situations. Since the 37th AFTA Council Meeting, eight (8) emergency measures have been notified to the World Trade Organisation (WTO). Of these, one (1) emergency measure, under SPS measures, was notified to the ASEAN Secretariat in accordance with Article 83 of the ATIGA.

 

1.3. Resolution of cases under the Matrix of Actual Cases (MAC)

The Matrix of the Actual Cases (MAC) records NTMs that have been identified as potential non-tariff barriers (NTBs). Under this mechanism, AMS may submit a case on NTMs that potentially pose trade barriers to them. The Guidelines for the MAC serve as the basis for addressing, resolving, and removing identified NTBs.

Since the 38th AFTA Council Meeting in September 2024, one (1) case has been resolved, bringing the total number of resolved cases to 83, while ten (10) cases remain unresolved.

 

2. Development of the ASEAN Trade Facilitation Strategic Action Plan (ATF-SAP) 2026–2030

The ATF-SAP 2026–2030 is under development and expected to be finalised in 2025. The ATF-SAP 2026–2030 aims to enhance existing frameworks and integrate emerging trends, such as the circular economy, remanufactured goods, supply chain connectivity, trade and environment, trade in humanitarian crises, trade digitalisation, alternative dispute resolution, and sustainability, among others. By incorporating those crucial elements, the ATF-SAP 2026-2030 will bolster intra-ASEAN trade and ensure that the region’s trade facilitation initiatives are modern, relevant, and fit-for-purpose. This will also enable ASEAN to effectively address the multifaceted challenges facing its post-2025 trade ecosystems.

 

3. Development of the 2025 Report on Digital and Sustainable Trade Facilitation in ASEAN

The ASEAN Secretariat and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) jointly developed the 2025 Report on the Digital and Sustainable Trade Facilitation in ASEAN, which was published in October 2025. Based on the results of the 2025 UN Global Survey, the Report assesses the implementation of trade facilitation measures in the ASEAN region and provides relevant recommendations. It covers not only measures specified in the World Trade Organization Trade Facilitation Agreement (WTO TFA), but also WTO TFA-Plus measures, such as cross-border paperless trade and sustainable measures. The sustainable measures focus on the agricultural sector, Micro, Small, and Medium Enterprises (MSMEs), women traders, trade finance, e-commerce, and preparedness for emergencies.

 

The findings of the 2025 Report indicate that ASEAN’s trade facilitation performance rate has reached an impressive 83 per cent, exceeding the global average (70.4 per cent) and the Asia-Pacific regional average (70 per cent). The region’s consistent improvement in trade facilitation performance—from implementation rates of 79 per cent in 2021 and 81 per cent in 2023—further demonstrates its progress in eliminating trade barriers, advancing digital trade, and fostering a conducive trade and investment environment. The 2025 Report on the Digital and Sustainable Trade Facilitation in ASEAN serves as a vital resource, with evidence-based policy insights, to help policymakers measure progress on their trade facilitation reforms, identify policy, legal or technical obstacles and areas requiring capacity‑building, and benchmark progress against other countries and regions.

 

The 2021, 2023, and 2025 Reports on Digital and Sustainable Trade Facilitation in ASEAN can be accessed through the following links:

 

Digital and Sustainable Trade Facilitation in the Association of Southeast Asian Nations (ASEAN) 2021

Digital and Sustainable Trade Facilitation in the Association of Southeast Asian Nations (ASEAN) 2023

Digital and Sustainable Trade Facilitation in the Association of Southeast Asian Nations (ASEAN) 2025

 

4. The Organisation for Economic Co-operation and Development (OECD) Trade Facilitation Indicators (TFI)

The ATF-JCC is currently collaborating with the OECD to develop an ASEAN-focused TFI Report, utilising data from the 2024 OECD TFI, which is expected to be finalised by November 2025. The OECD TFI provides an internationally recognised tool for measuring the efficiency of border procedures. The tool serves as a basis for assessing progress in the trade facilitation policies and provides actionable recommendations for future reforms.

 

The OECD TFI will provide a comprehensive assessment of AMS in implementing trade facilitation reforms, including digital and sustainability dimensions. It will also identify trade facilitation challenges and opportunities unique to ASEAN, offering recommendations for potential areas for action based on best practices from other economies and regions.

 

5. ASEAN Seamless Trade Facilitation Indicators (ASTFI)

The ASTFI is a set of ASEAN-specific indicators for evaluating progress in trade facilitation implementation across the region. It was developed by ERIA, in collaboration with the ASEAN Secretariat and the ATF-JCC, to support initiatives aimed at achieving convergence in trade facilitation regimes among AMS, promoting the adoption of global best practices, and reducing trade transaction costs. Its initial purpose was to help achieve the target set during the 23rd ASEAN Economic Ministers (AEM) Retreat in 2017: reducing trade transaction costs by 10 per cent by 2020. The ASTFI provides a systematic and robust approach to monitoring the accomplishment of trade facilitation objectives. It also serves as a guide for AMS in designing and implementing trade facilitation policies, regulations, and procedures.

 

The ASTFI consists of measures on transparency and private sector engagement; clearance and release formalities; export and import formalities and coordination; and transit, transport, and e-commerce facilitation. The ASTFI Baseline Study report, published in July 2021, presents the results of the first round of the ASTFI survey in 2018. The findings reveal that AMS generally performed well in measures related to transparency of regulation and private sector engagement. In contrast, AMS exhibited more modest performance in the other ASTFI components. Nonetheless, the narrowing gap in trade facilitation performance among AMS presents an opportunity for deeper regional integration.

 

A follow-up ASTFI (ASTFI II) survey was conducted in 2020–2021, which assessed the progress in trade facilitation made by AMS since the baseline survey in 2018. The implications of notable global and regional developments since 2018, such as the COVID-19 pandemic and the entry into force of the Regional Comprehensive Economic Partnership (RCEP) agreement, were taken into account in the ASTFI II. The follow-up report, published in October 2023, noted the consistent improvement of the trade environment in ASEAN, with all AMS making substantial progress since 2018. However, the improvements varied among AMS, with Cambodia and Myanmar exhibiting the greatest progress, while Brunei Darussalam and Lao PDR made the slowest progress. Singapore, which was a mid-tier performer in 2018, significantly improved its trade facilitation implementation, becoming one of the top performers in the ASTFI II. While conducting further rounds of the ASTFI would be crucial in continuing the enhancement of trade facilitation in the region, issues such as resource limitations led to the discontinuation of the ASTFI. It was subsequently replaced with the OECD TFI.

 

The Baseline Study and Follow-up ASTFI reports can be accessed through the following links:

Follow-up ASEAN Seamless Trade Facilitation Indicators

Towards Seamless Trade Facilitation in ASEAN: Results from the ASEAN Seamless Trade Facilitation Indicators (ASTFI) Baseline Study

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