“The introduction of the AEC will change the way the industry thinks about business across the 10 member countries,” says Dr Alain Khaiat of Seers Consulting, president of the CTFA of Singapore, who will lead the debate.
“While each member will retain its own cultural identity and heritage, greater economic homogeny means brands will be able to transcend borders more easily, with the AEC potentially becoming similar to the European Economic Integration in the way it is perceived – and treated.“
The benefits of the harmonisation are that tariffs will be reduced and some technical barriers to trade will be eliminated.
However, as with any regulatory change, there come challenges as it will be vital to understand how the changes will affect ingredient regulation and formulation, brand value, and customs and trade.
“For the industry, one of the positives is that customs procedures will be simplified, easing trade between member states and allowing them to tap into new markets,” continues Dr Khaiat.
“Similarly, it will be easier to make investments across the region encouraging both suppliers and manufacturers to begin to look at expanding their operations, and Intellectual Property protection will be reinforced. With this in mind it is easy to see how the cosmetics landscape could change across Asia Pacific with the AEC increasing its competitiveness and influence.”
Khaiat will be joined in the debate by Le Chau Giang, Senior Director, Head of Regulatory and Medical Affairs at Johnson & Johnson; Dr Lim Hong Hin, Deputy Secretary-General of ASEAN for AEC; and Rishabh Pande, Regional Director, Personal Care, Asia at DSM Nutritional Products.
“Manufacturers and suppliers will need to ensure they are fully aware of everything the AEC entails so they are not caught out or do not miss any opportunities,” adds Khaiat.
“At in-cosmetics Asia we’ll be debating the full repercussions of the AEC and these are just a few of the topics that will be covered.”
There will be further discussions at the event about the AEC and how it will affect business. Dr Lim Hong Hin will also be explaining what the industry has to expect.
The debate takes place on 5 November, 16:00, at in-cosmetics Asia in Bangkok.