The AEC aims to establish ASEAN as a single market and production base with free flow of goods.
Tariff rates have been progressively reduced over the past two decades, non-tariff barriers, both at the border and beyond the border, have yet to be seriously addressed.
These include NTMs that are discriminatory, diverse product standards, weak enforcement of government regulations, and the “logistics gap” among the economies. All these comprise a substantial portion of the total costs of trade in the region.