Annual Report 2020

MATRADE Annual Report 2020 130 Among challenges faced by exporters are trade barriers in terms of tariffs and non-tariffs imposed by other countries. Tariff barriers are a form of barriers in importing countries that will result in higher import costs than the cost of goods produced in that country, while non-tariff barriers are in the form of rules and guidelines that must be complied with to access markets of the importing country. Both types of barriers increase cost of Malaysianmade goods, which makes them less competitive. ANALYSIS OF TRADE BARRIERS TO FACILITATE MARKET ACCESS Tariff barriers are imposed equally by importing countries and can be addressed via bilateral trade agreements such as Free Trade Agreements, while non-tariff barriers vary according to the individual regulations of importing countries. Non-tariff barriers on Malaysian goods are categorised as common barriers, such as product labeling, entry requirements, food and beverage ingredients, sanitary and phytosanitary agro-based products as well as restrictions for meat-based products. Specific barriers are those imposed on goods from certain categories such as electrical goods, chemicals and halal products. The COVID-19 pandemic also resulted in several barriers to the importation of goods in certain countries such as stricter cross-border regulations. Taking cognisance of the various barriers that can hinder market access and exports, through this analysis, MATRADE is able to advise Malaysian exporters on regulations in certain countries to equip them with precise knowledge before exporting.

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