Next-generation Trade Facilitation for Asian Integration: Cross-border Paperless Trade

Abstract

Reducing trade costs is essential to achieve Asian integration. Trade costs in the Asian and the Pacific region remain high, in particular, between different Asian subregions. Significant progress has been made in implementation of trade facilitation measures between 2015 and 2017, particularly those included in the World Trade Organization (WTO) Trade Facilitation Agreement (TFA). However, progress in implementing of next-generation digital trade facilitation measures, such as cross-border paperless trade measures, has been more limited. Simulation results suggest that full implementation of such measures could nearly double trade costs reductions expected from WTO TFA implementation. A new regional United Nations (UN) treaty, the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific, may accelerate progress in this area.

Critical Success Factors for Data Governance of Cross-border e-Trade Data Among ASEAN Member States

“…The perpetual challenge is to affordably and successfully digitise and harmonise the complex maze of cross-border trade processes among all business and government entities to effectuate a single paperless customs process and electronic trade market (UNESCAP, 2012a). According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), data harmonisation of digital data and documents in electronic form can potentially produce a regional savings of 25% or US$ 600 billion annually in Asia and the Pacific (Duval et al, 2019; UNESCAP, 2019b). In addition, this harmonisation could increase the annual exports of the region by US$ 250 billion (Duval et al, 2019; UNESCAP, 2019b).…”

“…According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), data harmonisation of digital data and documents in electronic form can potentially produce a regional savings of 25% or US$ 600 billion annually in Asia and the Pacific (Duval et al, 2019; UNESCAP, 2019b). In addition, this harmonisation could increase the annual exports of the region by US$ 250 billion (Duval et al, 2019; UNESCAP, 2019b). In support of the ASW trade facilitation protocol and cross-border data harmonisation, the Framework Agreement for the Facilitation of Cross-Border Paperless Trade in Asia and the Pacific was decisively adopted by numerous Asia-Pacific economies on 19 May 2016 as the newest UN Treaty dedicated to the digitalisation of trade processes and mutual recognition of digital trade data (Duval et al, 2019; UNESCAP, 2019b; United Nations Treaty Collection, 2020).…”

“…In addition, this harmonisation could increase the annual exports of the region by US$ 250 billion (Duval et al, 2019; UNESCAP, 2019b). In support of the ASW trade facilitation protocol and cross-border data harmonisation, the Framework Agreement for the Facilitation of Cross-Border Paperless Trade in Asia and the Pacific was decisively adopted by numerous Asia-Pacific economies on 19 May 2016 as the newest UN Treaty dedicated to the digitalisation of trade processes and mutual recognition of digital trade data (Duval et al, 2019; UNESCAP, 2019b; United Nations Treaty Collection, 2020). This treaty is now potentially accessible to more than 25 Asia-Pacific economies and 53 members of the UNESCAP and will enter into force after five member states ratify it (Duval et al, 2019; UNESCAP, 2019b).…”

“…This highlights the opportunity of electronic trade data governance and its role in increasing digital trade through pragmatic and harmonised solutions such as mutual recognition and increased capacity support (UNESCAP, 2019a). This article seeks to identify critical success factors (CSFs) related to data governance intended to best actualise successful cross-border electronic data exchanges and meet the new requirements of digital economies (Aaronson, 2019; Duval et al, 2019). The next section will outline the research methodology employed in this article.…”

Climate Change and Trade Facilitation: Estimating Greenhouse Gas Emission Savings from Implementation of Cross-Border Paperless Trade in Asia and the Pacific

“…The Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific entered into force in February 2021. It has been estimated that full implementation of this United Nations (UN) treaty could help reduce trade costs by 10%-30% across the region (Duval et al, 2019;ESCAP, 2017). But, while the economic benefits associated with paperless trade facilitation are well known, little attention has been paid to measuring potential environmental benefits.…”