Abstract
With falling tariff levels, it is probably not surprising that the non-tariff area and trade facilitation, in particular, are receiving growing attention. Apart from the World Trade Organization (WTO), trade facilitation is a subject of substance within a wide range of international organizations including several United Nations (UN)-type bodies, the World Customs Organization (WCO) as well as those concerned with economic development, supply chain security, and sector-specific issues such as international transport and logistics. The resulting body of international trade facilitation instruments and initiatives, which include conventions as well as detailed technical recommendations, is extensive. This article provides a general review of key elements and topics that are associated with trade facilitation and sets them against underlying challenges and obstacles in practice as well as for research. While much of the current effort in trade facilitation begins with a top-down premise – whereby governments seek to implement international conventions and recommendations nationally – the author argues that trade facilitation is inherently an operations-focused topic and deserves to be approached from a bottom-up approach, too. Such approach not only provides a strong case for an interdisciplinary research agenda, it also brings into question whether current institutions concerned with trade facilitation have the necessary capabilities to apply themselves to the more operational aspects associated with international trade.
Highlights
The last few decades have witnessed an exponential growth in trade and a considerable reduction in tariff levels
Trade facilitation has come to particular prominence at the World Trade Organization (WTO) – where it was first formally raised at the 1996 ministerial meeting in Singapore
Studies referenced by the OECD in their review include: United States’ National Council on International Trade Development (US-NCITD),[54] Swedish Trade Procedures Council (SWEPRO),[55] Ernest and Whinney,[56] European Commission,[57] United Nations Conference on Trade and Development (UNCTAD),[58] Ministry of Economics Trade and Industry (METI),[59] Haralambides and Londono-Kent,[60] and Japan External Trade Organization (JETRO).[61]
Summary
The last few decades have witnessed an exponential growth in trade and a considerable reduction in tariff levels. While associated Singapore issues such as transparency in government procurement, trade and investment, and competition policy have been dropped, trade facilitation remains a strong agenda item with considerable momentum This can be observed within the Doha trade round[1] and in ongoing aid-for-trade and trade facilitation-specific capacity building programmes,[2] Economic Partnership Agreements, as well as in the area of supply chain security and border. Traditional frontier checks, visually symbolized by the boom barrier, seem outdated and inefficient when tackling such escalating trade volumes Trade facilitation, in this context, is about being able to apply controls more effectively without disrupting trade flows and freeing up enforcement resources to focus on clandestine border movements. This article aims to inform debate and stimulate much needed academic enquiry while providing a high-level introduction to this very current and pressing topic
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