The highest number of import regulations surrounding ASEAN… Export and investment company’warning lights’

Input 2021.01.12 11:00

Trade Association, New Survey on Trade Relief Measures in 2020
ASEAN → 83 cases in the world… World → ASEAN 48 cases

Last year, import regulations surrounding ASEAN were reported to have increased the most in history, and it was argued that Korean companies should understand the status of system operation and prepare proactively.

According to the report “Export and Investment Enterprise Risk Based on ASEAN’s Trade Remedy Status” released on the 12th by the Institute for International Trade of the Korea International Trade Association, the ASEAN region has emerged as a production base and consumption market replacing China after the US-China trade dispute. Accordingly, it began investigating new trade relief measures targeting ASEAN countries, mainly in advanced countries. From January to October last year, 83 cases were launched, the highest ever.

By country, India was the largest with 24 cases, followed by △U.S. 17 △Australia 8 △Canadian 5 cases. By item, steel and non-ferrous metals accounted for the most with 39 cases. Then, △13 cases of fiber, △9 cases of petrochemical, △6 cases of plastic and rubber, △6 cases of wood and paper, etc.

In the case of the United States and the European Union (EU), investigations into attempts to circumvent trade relief measures by assembling, completing and exporting products in ASEAN have become active. In addition, the US is tightening import regulations as Vietnam’s exports to the United States increase after many Chinese companies moved to Vietnam due to trade disputes between the United States and China.

In a report, the Korea International Trade Association said, “When establishing business plans and raw materials and parts procurement plans, even Korean companies entering into ASEAN must prepare in advance for risks that may be subject to investigation.” In the case of Vietnam, the US considers it a non-market economy, so it is highly likely to be imposed higher anti-dumping tariffs than market economies.”

ASEAN countries’ protective trade measures are also being strengthened. From January to November 2020, there were 48 new investigations on trade relief measures such as anti-dumping by ASEAN countries. It is the most common since 33 cases in 2012. China (10 cases) and Korea (5 cases) received a lot of survey targets.

Not only the number of cases has increased, but the trade relief system is being operated in various ways by country. Vietnam and Thailand launched a detour investigation in 2018 and last year, respectively, and Vietnam was the first to investigate countervailing tariffs in the ASEAN region in September last year. Cambodia and Laos also revised related regulations from 2017 to introduce trade relief systems, and in Myanmar, the import protection law, including the trade relief provisions, will take effect on July 1.

The Korea International Trade Association said, “ASEAN countries mainly use anti-dumping and safeguards among the trade relief systems, and Indonesia, Malaysia, Thailand, and Vietnam have particularly high use of anti-dumping. Most of them comply with the procedural requirements set by the World Trade Organization (WTO). It guarantees the defense rights of the exporters, but it is necessary to understand and deal with them in advance because the practices of each country are different in the process of calculating the dumping margin.”

The Korea International Trade Association predicted that as exports and investments in ASEAN countries continue to expand, trade relief measures surrounding ASEAN will increase further. Kim Gyeong-hwa, a senior researcher at the International Trade Association, advised, “It is essential for Korean companies to properly understand the current status of the ASEAN domestic and foreign trade relief in order to use the ASEAN market as a high-potential consumer and production base.”