Regulatory Fragmentation and Non-Tariff Barriers (NTBs)
One of the most persistent and complex challenges lies in the prevalence of non-tariff barriers (NTBs). While tariffs have gradually declined over the years, regulatory divergence has emerged as a critical bottleneck in food trade across the region.
Each economy operates within its own regulatory framework, encompassing food safety standards, certification protocols, labelling requirements, quarantine measures, and inspection procedures. In the absence of harmonisation or mutual recognition agreements, exporters are often required to comply with multiple, and sometimes conflicting, sets of rules for the same product.
More critically, the lack of transparency in regulatory requirements and processes creates uncertainty for both exporters and importers. Without clear, real-time visibility into compliance pathways, businesses are forced to operate conservatively, limiting market access and reducing the overall efficiency of regional food trade.
Duplicative testing and certification processes, increasing time and cost burdens
Lengthy and unpredictable approval timelines, reducing supply chain efficiency
Higher compliance costs, particularly impacting SMEs and emerging market players
Border delays and administrative bottlenecks, disrupting just-in-time logistics