Implementation of trade facilitation reduces costs
COUNTRIES of the Asia-Pacific region that fully implement trade facilitation and paperless trade measures stand to gain substantially from lower trade costs.
Such potential gain from trade facilitation was highlighted by a study authored by Tengfei Wang and Yann Duval, Economic Affairs Officer and Chief of Trade Facilitation, Trade and Investment Division at United Nations Economic and Social Commission for Asia and the Pacific (Escap).
Citing result of a survey data, the study suggested that full implementation of trade facilitation measures could lower direct trade costs for containerized goods in the region by 20 percent on average.
According to the World Trade Organization (WTO), trade facilitation refers to the simplification and harmonization of international trade procedures.
The survey results indicated that countries have reportedly made good progress in implementing a number of the trade facilitation measures under the WTO Trade Facilitation Agreement (TFA), such as publication of trade regulations and risk management.
The paper revealed that most countries surveyed prioritized trade facilitation measures related to automation and paperless trade for implementation, including establishment of national electronic single window, over the past year.
Wang and Duval said the implementation of all other trade facilitation measures will be beneficial if these result in reduction in trade transaction time and costs for small and large enterprises.