Laos to face non tariff barriers on goods exports
Laos to face non tariff barriers on goods exports
Laos will face a number of challenges to export its goods to the world market despite trading partners reducing import tariffs for goods from WTO members.
Laos became a member of the WTO a year ago, creating opportunities for enterprises in the landlocked country to export its goods to international markets more easily as they will no longer face high tariffs, one of the main trade barriers.
The establishment of the Asean Free Trade Area in 2015 will also reduce tariffs in the region and transform the economic block of 600 million people into a single market and production base.
An official involved in helping Laos to join the WTO, Mr Santisouk Phounesavath said in a media workshop at Lao Press in Foreign Languages recently that despite the reduction and abolishment of tariffs, Laos will face a number of non-tariff barriers.
The workshop aimed to provide local journalists with knowledge on the WTO so as they can make professional reports on the issue.
The non-tariff barriers Laos will have to face are a number of measures which trading partners will impose on Lao products including measures to ensure that imported goods must be clean and free from diseases and chemical substances, as part of efforts to protect the health of their people. With goods control measures, Laos will need to improve the quality its products to meet international standards so trading partners will allow the import of the goods. The United States, Japan and other developed nations consider hygiene and the safety of goods as one of their priorities.
At present most Lao people, in particular farmers, produce goods for their own consumption and not for sale. They do not have goods packing and logistic systems, one of the key processes which goods producers must have so they can take their goods to sell on international markets.
Director General of Department of Small and Medium Enterprises (SME)Promotion Mr Somdy Inmixai said not only did those in the private sector need to improve themselves but also state agencies as well, before Laos can benefit from being a member of World Trade Organisation.
He said that some developed nations have imposed a number of requirements on trading partners to follow before it can accept the import of the goods. For example, the authorities must certify that goods meet international hygiene standards.
Some developed countries have other rigourous requirements. For instance, goods producers must not employ child labourers. To address the challenges, the state agencies must not only establish laws to protect children from being exploited in factories but also enforce the laws.
The Lao government has been aware of the challenges and has made strong political commitments to improve the business environment in the country so as to attract foreign investment; in particular in the non-resource sector to boost GDP growth.
The government has already opened more than 10 special economic zones, hoping to establish the country as a production base after Laos acceded to the WTO and the coming establishment of the Asean Economic Community in 2015.
vientiane times
