The Asia-Pacific Economic Cooperation (APEC) has adopted new guidelines aimed at preventing non-tariff measures from becoming unnecessary barriers to trade, as increasingly complex regulations raise costs and disrupt supply chains across the region.

The new framework calls on APEC economies to make regulations more transparent, predictable and consistent with World Trade Organization rules while ensuring that compliance requirements are no more restrictive than necessary.

NTMs affect 80% of trade across APEC

Non-tariff measures, which include regulations and requirements other than tariffs, affect about 80 percent of trade across the APEC region, according to APEC Policy Support Unit researchers Sylwyn Calizo Jr. and Chang Yan Rong.

While such measures are commonly used to protect consumers, ensure safety and pursue other public policy goals, poorly coordinated rules can delay shipments, disrupt supply chains and raise costs for businesses and consumers, the researchers said.

Additional guidelines needed

“As trade and regulatory environments grow more complex, additional guidance becomes needed. Ensuring that these principles are applied consistently and effectively reduces the extent to which NTMs act as unintended barriers to trade,” Calizo and Chang said in a blog.

The new trade policy tool, the Best Practice Guidelines to Apply the APEC Cross-cutting Principles on NTMs, is built around six principles: transparency, compliance with WTO commitments, avoiding unnecessary trade restrictions, use of international standards, non-arbitrary treatment and support for innovation.

The guidelines urge governments to conduct regulatory impact assessments, consider less restrictive alternatives and reduce compliance costs. They also encourage phased implementation when businesses have different capacities to adjust.

Regular reviews, cross-agency coordination

APEC further recommends consultations with businesses and other stakeholders, regular reviews and cross-agency coordination to improve regulatory predictability and prevent trade disputes.

On innovation, the guidelines call for technology-friendly rules and pilot programs that allow new technologies to develop without imposing unnecessary regulatory burdens.

The researchers said the framework provides policymakers with a structured set of questions to assess how trade-related regulations are designed and implemented.