Trade Facilitation

Desde los principios del siglo XX a la actualidad se han elaborado distintos instrumentos internacionales de la facilitación del comercio, por lo que en este artículo se propone un acceso a la clasificación de los instrumentos internacionales de facilitación del comercio que se base en un criterio funcional. Esta clasificación incluye las reglas de la facilitación del comercio en el formato común y el uso de tecnologías de información para la facilitación del comercio exterior.

Container shipping plays an important role for many supply chain systems through its ability to add spatial value to the cargo. Embedded within the container shipping system are competitive elements as well as complementary aspects in inter-container port relationships. The ...

This paper presents findings from an initial analysis of new non-tariff trade cost estimates and their determinants, based on a bilateral database of comprehensive trade cost maintained by ESCAP. Results of the non-tariff policy-related trade costs modeling exercise strongly suggest that improving port efficiency (liner shipping connectivity) and access to information and communication technology facilities is essential to reducing trade costs.

Using objective measures of investor protections in 170 countries, I establish that the level of investor protection matters for cross-country differences in GDP growth: countries with stronger protections tend to grow faster than those with poor investor protections.

Summary Although the concept of aid for trade has quickly gained prominence among aid donors as well as aid recipients, relatively little is known about its impact on trade-related performance. We use data on a large subset of developing countries for recent years to examine the extent to which various types of aid for trade have helped recipient countries' trade

This book will take you through the past, the present and into the future of the flagship institution of the international customs community: the World Customs Organization (WCO).

Our purpose is to present to you, in a comprehensive, orderly and synthetic manner, the enormous contributions that this prestigious and recognized institution has been making to the secure growth of world foreign trade.

In the development of the text, special consideration has been given to the instruments relevant to day-to-day customs work and which constitute the flagships of the WCO (the Harmonized System Convention, the Revised Kyoto Convention, the SAFE Framework of Standards, among many others), as well as to those issues which are currently of particular relevance to the WCO, to those issues that are currently of special interest to the world Customs community (Cross Border Electronic Trade, Trade Facilitation, the Future Customs Agenda, to mention but a few), trying to reconcile the various practical aspects of Customs operations with their theoretical underpinnings.

In short, these pages will be of great interest to all foreign trade operators, in particular to customs officials, customs brokers, carriers and international forwarding agents, managers of importing and exporting companies, as well as to all those (professionals and students) who wish to deepen their knowledge of the exciting world of Customs and International Trade.

SUMARIO: I.- Introducción. II.- El Acuerdo de Facilitación del Comercio. Antecedentes históricos. Evolución. III.- Principales aspectos. IV.- El rol de las Aduanas en su desarrollo e implementación. V.- Beneficios. VI.- La Facilitación del Comercio en el MERCOSUR. VII.- El Acuerdo de Facilitación del Comercio en cada Estado Parte del MERCOSUR. VIII.-  Conclusiones.
Comenzó la cuenta regresiva para que entre en vigencia el Acuerdo de Facilitación del Comercio (AFC) suscripto por los países miembros de la Organización Mundial de Comercio (OMC) en la ciudad de Bali (Indonesia) en el mes de diciembre de 2013. Los cuatro Estados Parte fundadores del MERCOSUR han presentado su voluntad de adherir en la denominada Categoría A.
El Acuerdo contiene disposiciones para agilizar los despachos aduaneros y el flujo internacional de mercaderías, transparencia y difusión de los regímenes aduaneros, cooperación entre todos los organismos nacionales que intervienen en los procesos de importación y exportación de bienes y pautas sobre asistencia técnica y creación de capacidades, entre otras cuestiones. ...

The international practice proved that in order to efficiently facilitate and secure trade countries should seek guidance from available trade facilitation instruments, which include international conventions, regional or bilateral agreements, standards and recommendations developed by international organizations, associations or regional bodies, as well as best practices and case studies

The paper establishes the need for the on-going economic partnership agreements (EPA) negotiation between the European Union’s (EU) and the Economic Community of West African States (ECOWAS) to stimulate a competitive trade environment in the latter. The new partnership initiative under the EPA emerges as an unprecedented deviation from Lome provisions and the Everything But Arms (EBA) agreements, by suggesting the need for domestic industries in developing countries to prepare to compete on equal terms with the EU. The negotiations notably aim at establishing a ‘timetable for the progressive removal of barriers to trade between the Parties’. The paper compares regional integration in EU and West Africa. Based on the EU and other global experiences, the paper demonstrates the remarkable economic performance and trade expansion associated with adoption and full commitment to regional integration arrangements (RIAs). However, low commitment to protocols in ECOWAS has been found to con...

Customs Risk Management (CRM) aims to put balance between the growing need for global trade facilitation and, security and control obligations by customs authorities. In this study, Enterprise Risk Management (ERM) framework is used to devise a tentative model for CRM at theoretical level. The researcher reviewed literature on ERM and CRM. The literature included academic publications, various guidelines, and practical business sources. Since CRM literature is scarce, ERM literature was used to identify the commonalities of two concepts. By incorporating the terminologies of both concepts, a model for CRM will be tired to be established. Although ERM is based on a " portfolio " (holistic) view of risk, the CRM approach is mostly focused on " silo " (individualistic) view of risk management. This suggests that risks are managed case-by-case. The comparison between ERM and CRM has been argued at only at a theoretical level. The basic process steps of both approaches are examined and some ERM concepts are tried to be incorporated into CRM methodology. Hence, empirical evidence is still needed to prove that ERM is a convenient tool to address to risk management challenges of modern Customs Administrations. The paper provides customs practitioners around the world with a framework ready to adapt to establish their own " strategic CRM agenda. ". Furthermore, the findings of this study contribute to ease the design/application of ERM solutions in public sector. Applying the well established ERM approach on customs administrations to analyze the risk management maturity level opens a new research avenue and practical implication to further develop and improve customs procedures and operations.

This research examines whether trade facilitation (TF) measures may contribute to a
loss of customs control or revenue. A survey was conducted to collect TF practices
in the customs context worldwide. Responses were obtained from key stakeholders
from 40 countries. We then obtained information related to tax revenues generated
by Customs. The results reveal there is no direct relationship between the likelihood
of observing TF practices and the extent to which a government depends on revenue
generated by Customs. The result identified from this research is that it is possible to
implement TF practices without diminishing customs revenues or weakening controls.

This research asks how best Nigeria can improve the value of its export of cashew nuts. It argues that although there are many approaches, the one here that will be highly effective and least costly is to transform the certification of export-oriented cashews to meet international agricultural product standards. Using the qualitative Grounded Theory methodology as well as the Semi-Structured Interview (SSI) approach, this study draws on interviews conducted with both local and international stakeholders. This project focuses on economic, political and social obstacles to raising standards. The arguments supporting high-quality status of Nigerian cashews underscore the point of view of writings in academic literature and by industry experts. In sum, Nigeria is Africa’s biggest producer of raw cashews, although discrepancies in cashew production volumes indicate that data available on this subject is at best inadequate.

The study detailed in this paper identifies general barriers to competent quality control and standards regulation such as violence and insurgency, and farm gate encroachment by foreign buyers. Others include weak institutional capacity, geopolitics, economic policy variables (such as government spending on agriculture), and the changing dynamics of the global market. The project, therefore, emphasizes institutional and infrastructural weaknesses as the most critical barriers to the improvement of cashew quality in Nigeria. Apart from the general barriers, specifically, this reflects poor access to compliance resources, along with scientific and technical expertise, information and finance. Broadly, the call to improve governance regimes for quality management and export standardization is not peculiar to the cashew value chain.

In compliance with SPS measures, the project explains the significance of encouraging a sense of “ownership” for developing economies like Nigeria. While pointing to the recent establishment of a National Quality System, the project argues that more executive authority in support of standards with new legislation, sustainable funding, and human resources are critical for the advancement of the System and implementing compliance with SPS measures.

The objective of this paper is to establish through empirical evidence the economic development indicators that contribute to the growth of the manufacturing sector in Liberia. The study used a modified Story (1980) model to do the analysis, with time series data from 1981 to 2016.
To induce normality, the study employed the use of the logarithmic transformation of all the variables contained in the model. To avoid the pitfall of using non-stationary time series data, the study employed the use of the ADF unit root test. The unit root test results revealed that inflation was stationary at levels while per capita GDP was stationary at second difference. All of the remaining variables were stationary at first difference.

Thus a linear model with stationary variables was estimated in which the results show that there is positive relationship between manufacturing value added and each of the following regressors (access to finance, foreign direct investment, real effective exchange rate, and the per capita GDP). On the other hand, a negative relationship was shown between manufacturing value added and the following regressors (inflation and infrastructure). Additionally, all of the estimated parameters, individually (t-test) and jointly (F test) are not statistically significant thereby compromising the predictive accuracy of the model. This can be attributed to the inadequacy of data availability due to years of political instability and the smallness of the sample size as a result of the logarithmic transformation and the differencing to instill stationarity in the model.

Innovations in the digital economy can reduce the costs of engaging in trade and facilitate the physical delivery of traded goods, making trade potentially more inclusive. This chapter examines the opportunities and challenges brought about by digital connectivity and digital trade along the trading chain. It highlights that digital trade for development requires addressing, in addition to digital connectivity, new and old constraints to market integration and physical connectivity. It underscores the importance of efficient trade logistics services and emphasises the need to coordinate investments within regions and across hard and soft infrastructure. It then examines progress in cross-border connectivity and gives an update on the implementation of the WTO Trade Facilitation Agreement. Finally, while many opportunities to reduce trade costs arise from digitalisation, the paper highlights that the ability to adapt to the requirements and characteristics of digital trade flows, can influence the ability to realise the full potential for development.

The objectives of this research were to understand how a country's 'nation brand' influences investor decision-making; to provide a list of variables that countries, particularly in the three sub-Saharan African focus countries, could consider in designing messages aimed attracting foreign investors; and finally, to produce a framework for investment promotion programme and reputation management plans to attract sizeable investments from Italy in particular, and developed economies in general. The research report opens with an introduction in which, as background, information was looked on the economies of the three sub-Saharan African countries that are beneficiaries of investments from Italy. The section has also looked at Italy's internationalisation initiatives. A section on theoretical framework provides various theoretical perspectives, and identifies the tools of nation brand analysis. After identifying the appropriate methodology for data collection, the report presents the data analysis, with conclusions drawn and a set of recommendations. This research has succeeded in producing a table of 40 ranked elements of a nation brand, in terms of significance and relevance, that have an impact on investment decision-making. It also shows how wrong investment promotion agencies are in understanding and cascading in terms of importance, what factors investors consider and value in deciding their investment destination. After evaluating critically the investment marketing collaterals, the report concludes with an attempt at developing guidelines on how investment promotion agencies could enhance their global marketing initiatives.

International trade has been a major engine for economic growth and development in Asia and the Pacific. However, overall trade costs remain excessively high in many developing countries of the region. Part I of this publication provides an overview of trade costs in Asia and the Pacific, based on the most recent update of the ESCAP-World Bank Trade Cost Database. Policies and factors affecting international trade costs are identified. Key findings and implications from a micro-level analysis of trade procedures in a wide range of Asia- Pacific developing economies are also presented, along with highlights and recommendations from some of the most recent ESCAP studies on trade facilitation and trade costs in Asia-Pacific. Part II features abbreviated and updated versions of five of these studies, analyzing issues ranging from obstacles faced by SMEs in participating in international trade, to transit facilitation practices in existing trade and transport agreements, to agricultural trade costs, the impact of trade costs on foreign direct investment (FDI), and the potential export gains from implementation of paperless trade facilitation.

Saggu, A., and Duval, Y. (2015). Reducing Trade Costs in Asia and The Pacific: Key Findings and The Way Forward. Reducing Trade Costs in Asia-Pacific Developing Countries. Bangkok, Thailand: United Nations ESCAP, 1-27.

Ravallion and Jalan(1996) propose that theories of economic growth offer some clues as to why some areas are persistently poor over a long period, whereas others have escaped the spatial poverty trap. For this reason we start our literature review by looking at the mainstream economic growth theories, including the standard Solow-Swan ―Exogenous‖ growth model and a somewhat richer set of explanations for poor areas, which according to Ravallion and Jalan(1996) can be found in the more recent ―endogenous growth models.‖ Sala-I-Martin(1997) finds that of the 62 (59) growth determinants found in the cross-country regression empirical growth literature 22 regressors appear to be ―significant.‖ Although the influential study by Barro(1990) triggered an avalanche of macroeconometric studies of the long-run effects of public infrastructure investment on macroeconomic performance, the empirical estimates of the productivity impact are inconclusive, ranging from no effect to rates of return in excess of 100% per annum. In the end the cross-country regressions don‘t seem to be the best tools for analyzing the problem of understanding this linkage.
Micro-level studies have also led to doubt about the benefits to the poor of the assets created through Public Works Programmes. This doubt could according to Van de Walle( 2002) be explained by the existing methods of project appraisal for rural roads don‘t properly reflect the potential benefits to the poor. The methodological framework used in public projects evaluation has been rehabilitated considerably thanks to the recent introduction of propensity score matching techniques developed by Rosenbaum and Rubin(1983), which has been incorporated to the analysis of social and economic impact deriving from rural roads rehabilitation and maintenance projects.
Estache(2010) concludes based on the most recent survey of the impact of infrastructure that not all infrastructure interventions are suitable for impact evaluations based on experiments or quasi experiments. For those unsuitable cases, there are other ways of generating robust quantitative evaluation of the effectiveness of infrastructure interventions which can be just as effective in increasing accountability for intervention selection, implementation and sustainability.

International trade has been a major engine for economic growth and development in Asia and the Pacific. However, overall trade costs remain excessively high in many developing countries of the region. Part I of this publication provides an overview of trade costs in Asia and the Pacific, based on the most recent update of the ESCAP-World Bank Trade Cost Database. Policies and factors affecting international trade costs are identified. Key findings and implications from a micro-level analysis of trade procedures in a wide range of Asia- Pacific developing economies are also presented, along with highlights and recommendations from some of the most recent ESCAP studies on trade facilitation and trade costs in Asia-Pacific. Part II features abbreviated and updated versions of five of these studies, analyzing issues ranging from obstacles faced by SMEs in participating in international trade, to transit facilitation practices in existing trade and transport agreements, to agricultural trade costs, the impact of trade costs on foreign direct investment (FDI), and the potential export gains from implementation of paperless trade facilitation.

Duval, Y., Saggu, A., and Utoktham, A. (2015). Reducing Trade Costs in Asia-Pacific Developing Countries. Studies in Trade and Investment 84(1), 1-55.

The Internet’s potential to enable micro, small, and medium-sized enterprises  (MSMEs)  to conduct international commercial transactions has yet to be fully realized. Small enterprises, especially MSMEs based in developing countries, continue to face substantial obstacles to their participation in trade.  While ‘International Economic Law’ has evolved amidst rapid globalisation and technological change, developing countries’ MSMEs are frequently unable to achieve the benefits associated with trade liberalisation. As ‘new generation’ agreements introduce further legal complexity in both the number and scope of trade rules, this article investigates Chile’s application of information and communications technology (ICT) to improve the accessibility and functionality of commercial policies.  With an emphasis on computational approaches to trade policy design and delivery,  the  Undersecretary of  International Economic  Relations (SUBREI) of the Ministry of Foreign Affairs of  Chile has launched a pilot programme to contribute to an open repository of rules in a digital form: ‘An Internet of Rules’ (IoR). Along with reference data, the computational expression and online publication of rules, that may be ‘in effect’ or ‘applicable’ to cross-border transactions, can improve access and use by people and machines alike. Against the backdrop of the country’s history of reform and membership in the World Trade Organization (WTO), the Comprehensive and Progressive Trans-Pacific Partnership  Agreement (CPTPP), and the Digital Economy  Partnership  Agreement (DEPA), the investigation articulates Chile’s ongoing contribution to an  IoR as well as the alignment of its policy digitalisation efforts with national development strategies.

Social structures embed technologies, which people use in the implementation of national single window digital platforms. We argue that stakeholder interests determine digital transformation – with people being the key to understanding how digital platforms change or do not change the environments into which they are introduced. In our multicase studies based in the port of Tema, Ghana, stakeholders
have divergent opinions about technology, which causes conflicts. Our empirical findings reflect the interpretive flexibility that moderates the traditional dichotomy between technological determinism and social constructivism. By employing the theory of sociotechnical systems, we identify the frictions and interlinkages of non‑technological factors.

The Northern Sea Route (NSR) passes through international waters. The NSR therefore is subjected to multifold international regimes which encroach upon the governance of the NSR and on regulatory sovereignty of states having stakes in the Arctic, primarily Russia. These commitments among others cover freedom and safety of navigation, delimitation of exclusive economic zones. They also cover obligations related to sustainability such as marine pollution, conservation of fisheries, or protection of indigenous peoples. As to freedom of navigation, Russia’s/Soviet historical claims to a full sovereignty over the navigation and straits along the NSR have largely been substantiated after the adoption of the United Nations Convention on the Law of the Sea (UNCLOS). The UNCLOS expressly allowed coastal states to take unilateral regulatory actions against marine pollution in ice-covered areas in the wake of US-Canada controversy over the Northwest Passage which had set a precedent. Such special regulatory rights come, however, in tandem with the responsibility to provide public goods such as piloting, icebreaking and rescue services by the Russian authorities and state-owned enterprises. The issue of rights to natural resources along the NSR will not be completely settled until a conclusive decision on the Russian claims to extended continental shelf filed under the UNCLOS. Sustainability issues are least controversial and subject to unhindered intergovernmental co-operation.

This research analyses the impact in Kenya of the use of the Kenya National Electronic Single Window System by trade stakeholders.
The study investigates the role that the establishment of the Single Window System (SWS) plays in improving the efficiency of the cargo clearance process. It also analyses the benefits and challenges that the trade stakeholders have experienced from the onset of the SWS roll-out.

This research highlights relevant issues related to trade facilitation and presents an overview on the SWS as one of the tools for trade facilitation. A review of the background of trade facilitation and the relevant international regulatory frameworks on the trade facilitation agreements is presented. A brief discussion on the types and models of SWS is presented along with their characteristics, benefits, challenges from all stakeholder perspectives.

The principal objective of the study is to identify and evaluate the underlying issues in the implementation of SWS. The study therefore focuses on the Critical Success Factors (CSF) for the implementation of SWS, the importance of concrete policy and regulatory frameworks backing the SWS operations and the effects of the implementation of SWS on stakeholder business processes and operations.
The successful establishment of SWS is highly dependent on the alignment of business and ICT strategy with policy and regulatory frameworks in place relating to international trade and customs.
The policy frameworks will determine the technical operations of the SWS and financial model needed to sustain the operating agency.

Keywords: Single Window System, Trade Facilitation, Business Process Reengineering, Change Management, Partner/Government Agency, Critical Success Factors

In the highly competitive economy, logistics performance measurement is a primary concern among practitioners and academia. The World Bank Logistics Performance Index (LPI) has produced the benchmark for more than 100 countries covering six main components that are related to the trade facilitation in the context of the logistics supply chain. However, the output of the index is based on logistics service providers, thus measuring the performance from the perspective of users , which does not only serve as a comparison study, but also remains as the ultimate study to prove the friendliness of logistics and trade facilitation involved in import and export processes. In the present work, six (6) components were used to assess logistics performance including environmental friendly. Results revealed that trade friendliness by the logistics services is improved and requires further analysis, according to the central hub of each sector in M alaysia. It attracts future development for the manufacturing industry by hav ing excellent logistics services facilities.

The fact that the Asia-Pacific region hosts both the most and least efficient economies in conducting international trade transactions is generally well-known. However, information on the actual implementation of specific trade facilitation reforms in the Asia-Pacific developing economies is generally lacking. This paper presents the results of an expert survey on the progress 26 Asian countries have made in implementing

This article analyzed the role of competitive intelligence in trade facilitation in Zimbabwe, whose economy depends largely on exports of unprocessed minerals and tobacco among others to international markets. This study has been carried out when the country is facing persistent trade deficits as well as a number of trade complexities.This article was informed by both deductive and inductive approaches with an econometric model being developed to analyse the relationship between economic growth (GDP) and trade. A multiple regression analysis was used to measure this phenomenon using secondary data that was extracted from World Bank`s databases for the period 1975-2015. This analysis was then followed by a literature review of some identified peer-reviewed, published articles and documents that necessitated the development of a conceptual framework. The framework complemented the findings of the regression model.The special role of trade in economic development was analyzed using an econometric model with a positive correlation of 0.8045 obtained. An F-value equal to 34.86 was also obtained which is much greater than 1 thereby suggesting that the hypothesis H0 is false. This was also confirmed by the p-value of 0.000000002526< 0.05. The coefficient of determination R 2 , also known as the multiple R 2 , expresses the proportion of total variance explained by the independent variables and in this case an R 2 of 0.647224 shows that the model was able to explain approximately 64.72% of the variation embedded in GDP. Competitive intelligence has been identified as a critical component in trade facilitation with positive effects on growth of trade, economy growth and development. It was also found that competitive intelligence enhances trade facilitation and hence its role cannot be overemphasized. This article is, however, of great significance to policy-makers, researchers and the academia.

The new WTO Trade Facilitation Agreement (TFA) is a significant step forward for the international trading regime, representing new hope for the relevance of the WTO.

The TFA is the first multilateral agreement since the creation of the WTO in 1995 and includes novel measures to help developing countries build capacity, while also taking into consideration regulatory concerns of WTO members through the application of the general GATT exceptions to the new agreement. While the TFA may appear narrow in scope, with regards to goods it is arguably the broadest WTO Agreement besides the GATT, since all goods that cross national borders find themselves subject to trade facilitation measures. If the TFA is properly interpreted, the combination of capacity-building measures, a focus on technological improvements and the judicious invocation of Article XX could result in a win-win situation wherein routine positive trade is streamlined, reducing time required to cross borders, while negative trade is more easily controlled and regulated at the border.

Despite regulatory questions concerning implementation, it is likely that the TFA will reduce the cost of trading across borders, while improving trade for developing countries and allowing WTO members to better control trade flows, through a combination of procedural streamlining and regulatory
discretion.

This paper examines the Single Window concept and its developments in practice over the last 10 years and provides an analysis of its development over time. An overview of the emerging information technology that would impact its future development is also presented. The paper also examines regional trends in Single Window implementation, based on a survey of tenders documents issued by various countries in the recent years. Finally, it offers an outlook on its future development and provides a number of recommendations.

This paper aims to provide an insight into the efficacious use and development of Pakistani ports located along the China-Pakistan Economic corridor. The main objective of this paper is to understand how the physical infrastructure, logistics su-prastructure and value-added services contribute in the en-hancing port efficiency in the wake of CPEC operationaliza-tion. A sample of 15 well-experienced respondents from the domains of supply chain management, logistics, trade and public sector were selected. The study concluded that physical infrastructure, logistics suprastructure and logistics services at a port play a vital role in improving port efficiency. The study further pointed out that adequate port structure and value-added services would significantly contribute to port ef-ficiency and facilitate the smooth clearance of CPEC cargo.