ASEAN: Regional Trends in Economic Integration, Export ... - USITC

TABLE 7.4 Certain motor vehicle parts: ASEAN exports to selected markets, by value, 2004–08
Country 2004 2005 2006 2007 2008
% change,
2004–08
thousand $
Japan 1,559,410 1,825,210 2,352,678 2,797,953 3,265,143 109
United States 991,669 994,112 1,236,321 1,479,077 1,399,823 41
EU-27 314,467 368,167 464,996 671,189 740,260 135
China 97,225 100,495 170,942 171,656 134,683 39
Subtotal 2,962,771 3,287,984 4,224,938 5,119,874 5,539,909 87
All other 641,588 967,723 1,201,655 1,550,397 1,898,432 196
Total 3,604,359 4,255,707 5,426,593 6,670,271 7,438,342 106
Source: WITS, Integrated Data Warehouse (accessed January 5, 2010).
Note: Data are based on ASEAN partner country imports because Brunei, Burma, Cambodia, Laos, the
Philippines, and Vietnam do not report trade data in all years. "All other" export value excludes intra-ASEAN trade.
Although no direct evidence points to the implementation of new NTMs that could
restrict trade, several industry sources have expressed some concern that as duties fall,
new NTMs may be imposed to protect local manufacturing from the effects of production
specialization. 73 In addition, as certain countries protect their industries, others may try to
follow with similar protectionist policies. 74 One global automaker was aware of proposals
for new NTMs, but acknowledged that none had been implemented. This firm expressed
concern that ASEAN countries may enact measures that are not compliant with
ASEAN’s integration efforts, in part because the ASEAN countries do not seem to
widely support the AEC 2015 agenda, which calls for progressively removing NTMs and
a halt to new measures. 75 The U.S. Chamber of Commerce also noted that some
governments have considered enacting domestic tax exemptions or reductions for locally
manufactured vehicles or niche products over imported vehicles or parts. 76
Ongoing efforts in the region to improve product quality and establish standards and
certification systems highlight their importance to ASEAN’s export competitiveness. The
government of Malaysia, for example, recently announced its interest in increasing the
number of export-oriented Tier One parts producers in the industry. The government
plans on encouraging the local auto parts industry to export, but recognizes that these
firms need to have the quality required for export markets. 77 In Indonesia, the industry is
considering product and process standardization and the development of evaluation and
certification systems to help local parts makers become more competitive and improve
their access to international markets. 78
73 ECORYS, “Trade Sustainability Impact Assessment,” April 3, 2009, 125; USITC hearing transcript,
February 3, 2010, 45.
74 Industry official, interview by USITC staff, Bangkok, March 15, 2010.
75 Ibid.
76 U.S. Chamber of Commerce, written submission to the USITC, March 12, 2010, 12.
77 AutomotiveWorld.com, “Malaysia: Govt wants more parts companies to be Tier 1,” April 22, 2010.
78 Embassy of the United States, Jakarta, “Indonesia’s Automotive Industry,” February 12, 2009.
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