Trade Facilitation Results
Trade facilitation focuses on removing barriers to the international movement of goods to lower trade costs, at and around the borders, and along the supply chain, to make countries more competitive in regional and global markets. In the SASEC subregion, bottlenecks in trade facilitation are the leading non-tariff barriers that constrain intraregional trade. SASEC initiatives in trade facilitation aims to make cross-border trade and transport in the subregion faster, cheaper, and more predictable, while maintaining the security of the supply chain and ensuring the effectiveness and efficiency of the institutions involved.
TRANSPORT REGIONAL & INTERNATIONAL
REPORTS
total items: 82
The northeast of India is shares international borders with Bangladesh, Bhutan, Nepal, and Myanmar and acts as a bridge for India's participation in global forums through the Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation and the South Asia Subregional Economic Cooperation program. This paper highlights challenges in global trade and suggests ways for improving trade with other countries in South Asia and Southeast Asia.
The BIMSTEC Trade Facilitation Strategic Framework 2030 suggests a structured pathway approach for enhancing the environment for trade facilitation among BIMSTEC member states. This framework outlines development of various soft infrastructure, hard infrastructure, and capacity-building strategies. It has also identified seven principles to guide implementation of the BIMSTEC Trade Facilitation Strategy, namely, (i) country ownership, (ii) results-orientation combined with pragmatism, (iii) flexibility and responsiveness to country needs, (iv) reform and modernization, (v) active participation and involvement of the private sector, (iv)partnerships with development partners, and (vii) mutual cooperation.
Source: Asian Development Bank
Platforms for regional and subregional cooperation helped spur collective action to help Asia and the Pacific build back resiliency from the coronavirus disease (COVID-19) pandemic. Regional cooperation platforms such as the South Asia Subregional Economic Cooperation program helped countries respond to the COVID-19 emergency. In South Asia, partners will have the opportunities to support regional market development through transport corridors, trade facilitation, and cross-border energy trade post-COVID-19.
Source: Asian Development Bank
This report reviews economic cooperation and integration in Asia and the Pacific. As of the end of 2019, ADB had committed a total of $13.77 billion to 60 projects under the South Asia Subregional Economic Cooperation (SASEC) partnership, including projects for improving transport connectivity, trade facilitation, and power transmission. In 2019, SASEC members revamped the SASEC Operational Plan 2016–2025 to prioritize narrowing gaps in the subregion’s transport and energy networks. The SASEC program focused on expanding multimodal connectivity to include maritime and inland water transport. Subregional health cooperation was strengthened in 2020 to improve access to health services in Asia and the Pacific.
Source: Asian Development Bank
Governments, border agencies, logistics companies, and traders have been studying how trade and transport facilitation measures may be used to maintain the flow of goods across borders. In South Asia, the South Asia Subregional Economic Cooperation (SASEC) Trade Facilitation Working Group and the SASEC Customs Subgroup, through SASEC’s Trade Facilitation Strategic Framework, have helped develop separate lanes for handling and releasing medicines and other critical goods. A SASEC technical assistance project is also being implemented to modernize cross-border e-commerce for micro, small and medium enterprises.
Source: United Nations Economic and Social Commission for Asia and the Pacific
This publication looks at Central Asia Regional Economic Cooperation (CAREC) corridors, drawing lessons for the Bangladesh, Bhutan, India, Nepal (BBIN) subregion. It also looks at the potential for multimodal connectivity between CAREC and BBIN countries. BBIN countries formed the South Asian Growth Quadrangle in 1996 and, with help from the Asian Development Bank, formed the South Asia Subregional Economic Cooperation (SASEC) program in 2001 to promote regional cooperation in transport and trade. The SASEC partnership later grew to include Maldives, Sri Lanka, and Myanmar.
Source: CUTS International
Cross-border trade—through the printing, processing, exchange, and discarding of paper documents—tends to place burdens on the environment. For example, 68 documents (including copies) are required to process the export of garments from Bangladesh to India. This paper from the Asia-Pacific Research and Training Network on Trade contends that implementing paperless trade in Asia and the Pacific could reduce greenhouse gases, driven by the projected gains in efficiency in handling digital data.
Source: Yann Duval and Simon Hardy
The brief focuses on developing logistics in India's northeastern region and Bangladesh. To facilitate seamless transshipment movement through Chattogram port, this brief presents a framework to promote sustainable development and suggests ways to address infrastructure and regulatory gaps.
Trade and tourism along transboundary rivers bring socioeconomic opportunities in India and Bangladesh. This report for the webinar "Public Private Dialogue on India-Bangladesh Cross-border Tourism and Cruise Operations" suggests that easing security, customs, and immigration protocols while strengthening safety measures would help ensure that cruise operations are inclusive and sustainable.
Source: CUTS International
World Trade Statistical Review 2020 presents the latest developments in world trade, with analysis of recent trends for trade in goods and services. The report examines the impact of the coronavirus disease (COVID-19) pandemic on international trade, and provides data on trade in least developed countries as well as in countries under the South Asian Free Trade Area.
Source: World Trade Organization
This study looks at the digitization of port call operations and the tensions and opportunities this digitization creates in the global maritime sector. One of the solutions being used to improve coordination of port call operations is Port Collaborative Decision Making (PortCDM), an international, independent system for near real-time digital data sharing. PortCDN technical guidelines, which can be adapted to regional and local needs, make processes more efficient by furnishing predictable port call timings and operations.
E-commerce is changing how transactions are made for goods and services. E-commerce facilitates international trade by reducing transaction costs. It also has the potential to be more inclusive of women, small businesses, and rural entrepreneurs. This report considers how e-commerce can be improved to deepen intraregional trade in South Asia. It looks at digital transacting models that reduce transaction costs and gives recommendations for regulatory reforms that could expand global participation by South Asian firms.
Source: Sanjay Kathuria, Arti Grover, Viviana Maria Eugenia Perego, Aaditya Mattoo, and Pritam Banerjee
This report embodies the strategic objectives and updated operational priorities of the South Asia Subregional Economic Cooperation (SASEC) Program operational plan for 2016–2025. It reflects the changes resulting from a rigorous vetting process and identifies priority projects based on preparedness and their roles in filling network gaps. This Update also defines SASEC transport and energy networks and presents adjusted estimates of funding needs to help meet SASEC’s goals of multimodal connectivity, energy market development, and increased intraregional and interregional trade.
Source: Asian Development Bank
Both soft and hard infrastructure are needed to successfully implement the Bangladesh, Bhutan, India, and Nepal Motor Vehicles Agreement (BBIN MVA) and other connectivity initiatives. This field survey report identifies infrastructural gaps in India and suggests possible remedies to help improve flow of goods among the BBIN economies.
Source: CUTS International
The Asian Development Bank (ADB) supports cross-border infrastructure to help foster regional cooperation and integration. It is transforming transport corridors into economic corridors, allowing South Asian countries to participate in regional and global value chains and promote agriculture trade. In 2018, ADB committed $150 million to upgrade sections of South Asia Subregional Economic Cooperation (SASEC) road corridors in India and Nepal. The investments aim to improve connectivity between Manipur (in India) and Myanmar; build an India–Nepal international bridge; and improve the safety of Nepal’s East–West Highway. ADB also approved a technical assistance project to build institutional capacity and improve expertise of trade facilitation officials in SASEC member countries.
Source: Asian Development Bank
Most South Asia Subregional Economic Cooperation (SASEC) countries rely on maritime transport for international trade. Stronger maritime relations are crucial to achieve the economic growth potential for the subregion. This report looks at how countries can strengthen international trade by improving maritime cooperation among the SASEC countries, comprised of Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka. It gives an overview of the SASEC maritime sector and identifies collaboration initiatives that could address key challenges.
Source: Asian Development Bank
This report reviews economic cooperation and integration in Asia and the Pacific. It reports that in 2018, the South Asia Subregional Economic Cooperation (SASEC) focused on reducing gaps in multimodal connectivity among its member countries. By the end of 2018, 52 ADB-financed projects worth $11.36 billion had been committed to SASEC projects, with an additional $106.44 million in 81 technical assistance grants. SASEC nodal officials and working groups met in Singapore in March 2018 to update the SASEC operational plan. The operational plan identified 77 projects ($45.6 billion) to be financed by SASEC members, ADB, and development partners. A holistic approach under the operational plan will build transport links with Southeast Asia and East Asia and expand regional trade markets.
Source: Asian Development Bank
Integrated Check-Posts (ICPs) are designed to be one-stop solutions that house all regulatory agencies, including immigration, customs, and border security. India is in the process of establishing ICPs to efficiently manage crossings along its land borders. The country has identified 20 checkpoints for development as ICPs, including 10 that are on the India–Bangladesh border. This report studies the impact of the ICPs on activities along the India-Bangladesh border and suggests ways to improve efficiency of ICPs.
Source: Joyeeta Bhattacharjee
This paper measures the potential impacts of the World Trade Organization’s Trade Facilitation Agreement (TFA). It suggests that full implementation of the TFA could strengthen global trade by $344 billion. Implementation could also help develop global value chains and would promote a shift of production from final goods to intermediate goods in developing countries. Developing economies should implement the TFA as much as possible to benefit from increased trade and real output.
Source: Utsav Kumar and Ben Shepherd
This report reviews the progress of trade facilitation in Asia and the Pacific. It looks at recent trends in paperless trade and transit facilitation and the impact of trade facilitation initiatives on trade costs. The Global Survey on Digital and Sustainable Trade Facilitation shows significant progress toward streamlining trade procedures in the Asia and the Pacific. In South Asia, the average implementation rate of trade facilitation procedures in 2019 is at 55.4%. The report features a special chapter on how trade finance gaps—especially prevalent for small and medium-sized enterprises—can be bridged by technology.
Source: Asian Development Bank and United Nations Economic and Social Commission for Asia and the Pacific
Infrastructure development in India and connectivity agreements with Bangladesh help unlock the economic potential of India’s northeast region. This report analyzes value chains of fruits and vegetables, spices, bamboo and related products, and medical tourism, and identifies how Bangladesh can benefit from northeast India’s increasing connectivity and growth prospects.
This policy brief explores these two corridors in Myanmar: the Myawaddy-Yangon-Mandalay-Tamu corridor to India and the Pyarpon-Bogalay-Yangon-Sittwe-Maungdaw corridor to Bangladesh. It identifies possible infrastructure development that would help integrate Myanmar with Bangladesh and India.
Source: CUTS International
A record 314 reforms were undertaken around the world, serving to improve business climate in the past year. South Asian economies carried out 19 reforms, many of which focused on improving starting a business, access to credit, paying taxes, and resolving insolvency. South Asia scored the highest for trading across borders. India continued its reform agenda and advanced 23 slots to 77th place in the global ranking, making it South Asia’s top-ranked economy. Bhutan introduced an online platform for filling corporate and personal income tax. Sri Lanka climbed to 100th place after instituting reforms on paying taxes and enforcing contracts.
Source: World Bank Group
This report tracks the progress of regional cooperation and integration in Asia. It shows how intraregional trade grew in South Asia, Southeast Asia, and the Pacific. In South Asia, the South Asia Subregional Economic Cooperation (SASEC) has been focused on building multimodal connectivity to facilitate trade as one of its priorities. Its operational plan is being reviewed to better reflect regional project priorities in the region. SASEC is also studying how Myanmar, its newest member, is to be integrated as a vital link between South Asia, Southeast Asia, and East Asia. The chapter "Toward Optimal Provision of Regional Public Goods in Asia and the Pacific" looks at how collective action among countries can help find solutions for such transnational challenges as infrastructure connectivity, environmental degradation, and transnational health threats.
Source: Asian Development Bank
East Asia and Pacific (EAP) grew slightly faster than anticipated in 2017, with growth in Myanmar rebounding slightly at 6.4% due to strong exports. Amid risks to macroeconomic stability, EAP countries must enhance trade facilitation and integration, improve education systems, and upgrade capabilities of workers and managers.
Source: World Bank
Time Release Study is a special tool developed by the World Customs Organization to measure effectiveness of operational procedures carried out by Customs, other regulatory agencies and private sector stakeholders in the standard processing of imports, exports, cross border and transit movements. A key activity identified in Nepal's Customs Reform and Modernization Strategies and Action Plan 2013-2017, it identifies the average time taken for clearance of consignments from entry to exit in the Customs area, enabling possible corrective measures to improve performance. This Study was undertaken to support trade facilitation measures being introduced by the Nepal Department of Customs to reduce bottlenecks to faster Customs clearance, and promote seamless movement of cargo traffic to and from the Country.
The Mekong-Ganga Cooperation (MGC) promotes intra-regional collaboration among Cambodia, India, Lao PDR, Myanmar, Thailand and Vietnam in the areas of trade, tourism, culture, education, and transport and communications. This book reviews how MGC cooperation has grown since MGC's inception in 2000, including expansion of their economic and cultural relations. Under India's Act East Policy, MGC has gained further momentum – endorsing a Plan of Action 2016-2018, and planning extended connectivity of the India-Myanmar-Thailand Trilateral Highway to Cambodia, Laos, and Vietnam. This report outlines important discussion points on trade, regional value chains, foreign direct investment, physical and digital connectivity, border connectivity, and cultural relations, to strengthen India and the Association of Southeast Asian Nation linkages through MGC.
Source: Research and Information System for Developing Countries and ASEAN-India Centre
This outlook report on the Sustainable Development Goals (SDG) offers an overview of the issues confronting the Asia and the Pacific region in eradicating poverty. Calling for greater synergies and collaboration, this report underscores that climate change and growth policies, including initiatives to improve access to energy and other forms of infrastructure, must also correspond to poverty-reduction strategies. The first knowledge product under a renewed partnership between the Economic and Social Commission for Asia and the Pacific, the Asian Development Bank, and the United Nations Development Programme, this report brings together experts and practitioners in the hope of inspiring new ideas to achieve the 2030 agenda.
Basic Statistics 2017 contains development indicators for 45 economies in the Asia and Pacific Region, including the seven SASEC countries, Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka. It includes selected indicators of the Sustainable Development Goals (SDGs) such as the proportion of population living below $1.90 (PPP) a day, proportion of population with access to electricity, renewable energy share in the total final energy consumption, unemployment rate, total official flows for infrastructure, and trade balance.
Source: Asian Development Bank
This business process analysis report on the import of light motor vehicles (LMVs) from third countries to Bhutan via Kolkata Port is the first report of a series of a six-part study on Trade and Transport Facilitation Monitoring Mechanism (TTFMM) in Bhutan. Study findings reveal it takes 28.5 days to import LMVs from the Republic of Korea, with costs amounting to around $1,289 to complete the import procedures, not including the applicable duty and taxes payable in Bhutan. 39 documents are needed to complete the import process, with 12 documents requiring extra copies. Specific recommendations are given to improve trade in this commodity.
Source: United Nations Economic and Social Commission for Asia and the Pacific
This business process analysis report on the export of Cardamom from Bhutan to Bangladesh via Phuentsholing-Jaigaon-Changrabandha-Burimari is the fourth of a six-part study on Trade and Transport Facilitation Monitoring Mechanism (TTFMM) in Bhutan. According to the study, it takes 29 days to complete all export procedures for new traders. The process is reduced to 26.5 days without the first time procedures. Total cost to export a typical truckload of two metric tons of cardamom is around $654, with one-time procedures amounting around $308. 24 documents are needed to complete the export process, with some documents requiring extra copies, numbering to as much as 71. Specific recommendations are given to improve trade in this commodity.
Source: United Nations Economic and Social Commission for Asia and the Pacific
This Time Release Study report undertaken at Phuentsholing Land Border Crossing Station in Bhutan is the fifth of a six-part study on Trade and Transport Facilitation Monitoring Mechanism (TTFMM) in Bhutan. According to the study, the average time taken for clearance of import goods from India is 58 minutes for taxable goods and 28 minutes for non-taxable/exempted goods. Imports from third countries take around 16 hours for taxable goods and 7 hours for non-taxable/exempted goods. Export of goods to India and third countries follow the same procedure, with around 13 minutes on the average needed to clear export goods. Specific recommendations are given to further enhance the efficiency of clearance of goods at the borders, including conducting the TRS on a regular basis.
Source: United Nations Economic and Social Commission for Asia and the Pacific
This report on performance and monitoring of two corridors, the Kolkata-Phuentsholing corridor and the Burimari-Phuentsholing corridor is the sixth of a six-part study on Trade and Transport Facilitation Monitoring Mechanism (TTFMM) in Bhutan. The study finds that average speed along the corridor is very low. Along the Kolkata-Phuentsholing corridor, average speed with delays is 9 kilometers per hour (km/h) and without delays is 15 km/h. Along the Burimari-Phuentsholing corridor, average speed with delays is about 5 km/h and without delays is 16 km/h. The challenges to ensuring efficient transport along the corridor remain significant, yet the study sees tremendous opportunities for improvement, and raises the importance of continuous and effective monitoring to observe whether trade and transport performance along the corridor improve over time.
Source: United Nations Economic and Social Commission for Asia and the Pacific
This report gives an overview of assessments from the 2017 global survey on trade facilitation and paperless trade in Asia and the Pacific. It looks at the implementation of trade facilitation and paperless trade measures in 44 countries in Asia and the Pacific, including how the South Asia Subregional Economic Cooperation Trade Facilitation Strategic Framework promotes development by deepening regional cooperation. The Framework covers national and subregional projects in Customs harmonization, improving cross-border facilities, and transport facilitation. The Framework also supports regulatory reforms and the development of the National Single Window Customs management system in Bangladesh, Bhutan, Maldives, and Nepal.
Source: Asian Development Bank and United Nations Economic and Social Commission for Asia and the Pacific
This report investigates the evolution of trade costs, examines trade facilitation and paperless trade implementation, and highlights key initiatives in South Asia, including efforts by members of the South Asia Subregional Economic Cooperation (SASEC). The SASEC Trade Facilitation and Transport Working Group agreed to expand assistance to trade facilitation through technical assistance to support more efficient, transparent, secure, and service-oriented processing of cross-border trade across South Asia. Through 2025, the SASEC connectivity agenda will be better aligned with the frameworks of South Asian Association for Regional Cooperation and the Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation. To help establish a trade and transport facilitation monitoring mechanism, Bangladesh, Bhutan, and Nepal conducted studies that reviewed trade and transport procedures, analyzed bottlenecks, and gave recommendations on trade and transport facilitation.
Source: Asian Development Bank and United Nations Economic and Social Commission for Asia and the Pacific
This report synthesizes the business process analysis conducted on import of light motor vehicles from third countries to Bhutan via Kolkata Port, import of plastic kitchenware and tableware (melamine products) from Bangladesh to Bhutan, export of ferrosilicon from Bhutan to third countries through Kolkata Port, and export of cardamom from Bhutan to Bangladesh. It also measures the performance of trade corridors and border crossings in Bhutan, to quantify current trade and transport facilitation and provide recommendations. Findings of the study reveal bottlenecks to trade, including numerous procedures needed to complete import/export, and low speed along the trade corridors. The report includes specific short-term and long-term policies to improve Bhutan’s trade and transport facilitation.
Source: Asian Development Bank and United Nations Economic and Social Commission for Asia and the Pacific
This report synthesizes the business process analysis conducted on import of wool through Kolkata-Birgunj-Kathmandu, export of wool carpet from Kathmandu-Birgunj-Kolkata, and import of fabrics from Bangladesh to Nepal through Dhaka-Banglabandha-Fulbari-Panitanki-Kakarbhitta-Kathmandu. It also measures the performance of trade corridors and border crossings in Nepal, to quantify current trade and transport facilitation and provide recommendations. Findings of the study reveal bottlenecks to trade, including procedures needed to complete import/export, compounded by requirements for transiting trade through India, which further prolongs the trade process and increases the cost. The report includes specific short-term and long-term policies to improve Nepal’s trade and transport facilitation.
Source: Asian Development Bank and United Nations Economic and Social Commission for Asia and the Pacific
Regional cooperation and integration (RCI) is a valuable means for attaining national development goals. This report reviews ADB’s progress in implementing its Operational Plan for Regional Cooperation and Integration, 2016–2020, and identifies areas for improvement. It takes a close look at progress in connectivity, competitiveness, and regional public goods and collective action through projects such as the Nepal: SASEC Customs Reform and Modernization for Trade Facilitation Program.
Source: Asian Development Bank
The 2017 Asian Economic Integration Report introduces the Asia-Pacific Regional Cooperation and Integration Index (ARCII), a composite index constructed from 26 socioeconomic indicators grouped into six dimensions: (i) trade and investment, (ii) money and finance, (iii) regional value chains, (iv) infrastructure and connectivity, (v) movement of people, and (vi) institutional and social integration. It helps capture the diversity of regional cooperation and integration, allowing Asian economies to keep track of their progress in regional integration. Within the region, ARCII shows RCI is highest in East Asia and Southeast Asia, but remains low in South Asia and Central Asia owing to gaps in infrastructure and connectivity. It is also low in the Pacific due to weak institutional and social integration. In subregional cooperation, SASEC comes third to the ASEAN and GMS. The publication highlights that regional integration can be improved through institutional and social dimensions, including efforts to remove national barriers to regional integration, adopt regional standards, and institutionalize regional frameworks, and narrowing gaps in regional connectivity and infrastructure.
Source: Asian Development Bank
Bangladesh exporters are burdened by various non-tariff measures, as well as regulatory and procedural obstacles to trade. They face long waiting times and administrative hurdles, which include difficulties involving border clearance and shipment inspection. This report recommends upgrading domestic infrastructure and streamlining procedures, enhancing enterprise competitiveness, and improving transparency in trade and trade facilitation.
Source: International Trade Centre
The East Coast Economic Corridor (ECEC)—India’s first coastal corridor—is an integrated economic development initiative that is expected to help pursue industrialization and integrate domestic companies into the global value chains of Southeast Asia and East Asia. Its development will start with Vizag–Chennai Industrial Corridor (VCIC), which covers about 800 kilometers and includes several ports and major industrial centers. This paper discusses strategies to consider when trying to improve shipping and air connectivity in the ECEC and Vizag–Chennai Industrial Corridor (VCIC). It stresses the importance of infrastructure development and regulatory reforms that facilitate increased connectivity.
Source: Pritam Banerjee
Governments including that of India have relied on Doing Business to provide insights into good practices worldwide. Doing Business 2017: Equal Opportunity for All presents quantitative indicators on business regulations that can be compared across 190 economies. It shows how South Asia can work to improve certain areas, including removing restrictions on women’s right to work. It also shows how South Asia has been the most successful region in terms of trading across borders. Bhutan, with a global ranking of 73, ranks highest among South Asian countries.
Source: World Bank Group
This paper evaluates the prospects of least developed countries (LDCs) in Asia-Pacific in meeting the target set for LDCs to double their share of global exports by 2020, in Goal 17 of the Sustainable Development Goals (SDG). The paper notes that most Asia-Pacific LDCs have reported strong GDP growth turnout in recent years and are expected to grow by an average of 5.8% in 2016; difficulties faced by individual LDCs vary – Nepal, as an example, would need expansion at the average rate of 19% per year; LDCs can use national SDG strategies and go for longer-term goals—beyond the goals of export expansion—such as aiming to reach targets on trade cost reductions and trade facilitation.
Source: Adam Heal, Miso Kim, Juliette Perche, Rajan Sudesh Ratna, and Pakkaporn Visetsilpanon
Sanitary and phytosanitary (SPS) measures are important to ensure food safety standards and prevent diseases and pests in plants and animals. With agricultural products making up a substantial portion of the CAREC countries’ imports and exports, SPS measures can be a barrier to trade growth. This report focuses on the learning opportunity workshop held in Mongolia, and highlights insights shared by experts Latvia and Lithuania on the modernization of SPS measures and the impact of SPS modernization on trade.
Source: Asian Development Bank
These contributions from participants of the World Trade Organization (WTO) Chairs Programme—which supports trade-related activities by academic institutions in developing countries—offer insightful research on opportunities that open up for developing countries when trade costs are reduced. Analyzing the potential impact of the WTO Trade Facilitation Agreement implementation in various developing regions of the world, this publication offers detailed country-level analysis on benefits of trade facilitation, including export diversification, greater global value chain participation, insertion of SMEs into international trade, the attraction of more foreign direct investments, and better governance.
Source: Robert Teh, Maarten Smeets, Mustapha Sadni Jallab and Fatima Chaudhri, editors
The Global Enabling Trade Report has been created to provide insight into trade policy and practice. It includes the Enabling Trade Index (ETI), which assesses the extent to which economies have in place institutions, policies, infrastructures and services facilitating the free flow of goods over borders and to their destination. This edition highlights that while an increasingly globalized trading system has been lifting millions out of poverty, trade barriers and costs are still preventing millions of people around the world from engaging in international trade. It reports that all South Asian economies have improved their ETI score over the past two years, with Bhutan as the most improved country in the region, jumping 12 places to 92, followed by India at 102, Sri Lanka at 103, Nepal at 108, Pakistan at 122, and Bangladesh at 123, yet the region remains the most closed worldwide. While South Asia has improved its access to foreign markets and adoption of ICTs, it needs to improve access to its domestic market – on average, South Asian countries impose a tariff of 16.7% on imported products – and enhance its transport infrastructure, particularly in Bhutan and Nepal.
Source: Global Alliance for Trade Facilitation and the World Economic Forum
The Asia-Pacific Trade and Investment Report 2016 reports that the Asia-Pacific region is still the largest exporter of goods globally, with a share of 40%. Its share in commercial services trade is also on the rise, while restrictiveness of services trade has not increased. Foreign direct investment (FDI) inflows is also growing at a much faster pace compared to the global average, with special economic zones being used as one of the modalities to attract FDI. India, in particular, has been attracting an increasing portion of FDI inflows, both from outside and inside the region. While economies in Asia and the Pacific continue to make progress toward trade facilitation, there are still huge gaps among subregional economies, with much needing to be done to reduce trade costs. Furthermore, efforts undertaken to reduce trade costs through trade facilitation have been partially offset by imposition of a large number of new trade distortive measures globally and regionally, with most of these new measures falling under the non-tariff category.
Source: United Nations Economic and Social Commission for Asia and the Pacific
The 2016 Asian Economic Integration Report reviews regional economic cooperation and integration in Asia and the Pacific, amidst the rising global uncertainty following the United Kingdom’s referendum on leaving the European Union and the U.S. election, slower-than-expected global economic recovery, and ongoing economic restructuring in the People’s Republic of China and growth moderation. Asia faces heightened uncertainty–trade growth decelerated in 2015, falling to 2.3% in 2015; subregional trade linkages continue to strengthen, but inter-subregional trade linkages weakened; and non-tariff measures have become major obstacles to trade. In South Asia, SASEC cooperation has improved access to key markets in smaller economies, reduced real trade costs and behind-the-border barriers to stimulate investment; and enabled cross-border power exchanges to ensure power supply affordability, reliability, and overall grid stability. However, the SASEC agenda needs to be framed within wider integration processes taking place in Asia in the next decade to enhance economic linkages, and harness the full potential of Asian integration.
Source: Asian Development Bank
This Asian Development Bank report explores the potential of the digital economy to improve the inclusiveness of Aid for Trade (AfT). It uses the review of AfT as a springboard to explore new ways of thinking and how to address issues such as high trade costs in some regions. In particular, it considers how to build on information and communications technology and infrastructure connectivity from established AfT spending. The report also highlights the experience of exporters to illustrate the unique challenges and opportunities for trade-driven growth in a region where high trade costs are structural.
This report presents data on trade facilitation and paperless trade implementation from 44 economies across the Asia-Pacific region, covering 5 different subregions. It lays out key findings on implementation levels of general trade facilitation measures and ICT-based trade facilitation measures across the region, and provides empirical evidence for advancing trade facilitation. Findings suggest that there is still significant room for progress. In South Asia, regional average trade implementation comes a little above 40%. The report also noted that cross-border paperless trade facilitation is the least implemented of all groups of measures.
Source: United Nations Economic and Social Commission for Asia and the Pacific
This paper discusses the benefits of strengthening physical connectivity in the Bangladesh-Bhutan-India-Nepal (BBIN) subregion through a Motor Vehicle Agreement (MVA). Through a framework that envisions transforming transport corridors into economic corridors and with its pipeline of 30 priority transport connectivity projects estimated at $8 billion, the MVA aims to increase intraregional trade in South Asia by almost 60%. This publication provides a concise background on the BBIN MVA, examining the circumstances leading to its signing, the role of the Asian Development Bank (ADB) and the ADB-supported SASEC Program initiative to enhance interconnectivity, challenges that require careful consideration, and its wider implications for the South Asian region.
Source: Anasua Basu Ray Chaudhury, Pratnashree Basu, and Mihir Bhonsale
The Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement (BBIN MVA) is expected to reduce trade transaction costs and be an effective tool to realize trade and investment potential in the subregion by generating new economic opportunities, particularly in the border areas. While it has put in place a good framework for facilitating transit and transport within BBIN, gaps remain in terms of interpretation and application of various procedures, and need for further policy harmonization among the contracting parties. This discussion paper analyzes operation issues and proposes solutions for cross-border movement of vehicles and Customs procedures.
Source: Pritam Banerjee
This Report features results of the first UNRCs Joint Survey on Trade Facilitation and Paperless Trade Implementation, providing an overview of the current state of trade facilitation implementation in 119 economies across 8 regions worldwide. Though this Joint Survey finds that global average implementation rate of trade facilitation measures considered in the report stands at 52.9%, South Asia ranks below 40%. In the authorized operators and establishment and publication of average release times - categorized under the formalities measures - South Asia ranks below 10%. However, the region fares better in the institutional and cooperation measures, in particular with the recommendation to establish National Trade Facilitation Committees, with this measure most implemented in South Asia. The Report ranks India as the region's top performer in implementation of trade facilitation measures.
This special issue of the South Asia Economic Journal contains papers presented at the 7th South Asia Economic Summit. With South Asia moving toward a South Asia Economic Union (SAEU), several major challenges remain, including reduction in the sensitive list, removal of Non-Tariff Barriers, effective and faster implementation of the South Asian Agreement on Trade in Services, effective regional investment cooperation, promotion of trade facilitation measures, promotion of regional value chains, cross-border energy cooperation. The articles in this volume tackle these critical issues to develop a way forward and generate ideas on policy priorities. A paper by Mr. Nagesh Kumar, UNESCAP-SSWA, on 'Potential and Prospects of Strengthening Transport Connectivity for Regional Economic Integration in Southern Asia' also discusses how two planned extended transport corridors can only facilitate trade and draw South Asia closer to its potential to become a hub of Asia–Europe trade.
Source: Prabir De, editor
Landlocked least developed countries are often hugely disadvantaged from a lack of effective transit options, which raise transportation costs and decrease their effective participation in international trade. This study examines trade barriers that impede the trade flow of Bhutan and Nepal through India's gateway ports of Haldia and Kolkata, under the overarching research theme of the impact of regional infrastructure for trade facilitation on growth and poverty reduction. It analyzes the impact of transit regulations and agreements on the cost of services required to transit goods between the ports and Bhutan or Nepal, to identify how the two landlocked countries are affected by the cost of transit services, which trade costs vary most significantly, and how firms are affected by the cost of transit services.
Source: Prabir De, editor
This research aims to provide evidence on the effects of regional infrastructure and associated trade cost reduction on growth and poverty reduction of economic actors, including households and firms, around the border. Data shows that investment in regional integration for trade facilitation (RITF) promotes economic activity, supports activity of informal traders, and facilitates integration into global value chains and international production networks. The report highlights that new hard infrastructure benefits economic actors more when complementary regulations that allow for efficient trade logistic services are also put in place. It recommends that policymakers account for the impact of RITF on reducing constraints to connectivity in their evaluations and policy decisions.
The World Trade Organization (WTO) Annual Report 2015 provides an overview of WTO activities in 2014 and early 2015. It presents a timeline of two decades of the WTO -- from its origins succeeding the General Agreement on Tariffs and Trade to its current role in the multilateral trading system. It presents a chapter on how WTO helps developing countries build trade capacity and allows them to implement trade agreements. WTO training courses are organized for officials from developing countries each year.
Source: World Trade Organization
World Trade Organization (WTO) Trade Facilitation Agreement (TFA) provisions notified under Category A are those that WTO Member States have already implemented or have committed to implement by the time the Agreement enters into force or, in the case of the least-developed countries (LDCs), within a year of its entry into force. Provisions not included under this category are those which will require capacity building and technical assistance, or presumably take longer to implement. This trade insight paper analyzes Category A notifications of 15 economies in the Asia-Pacific region, contrasting the results with findings from an earlier ESCAP Survey on Implementation of Trade Facilitation and Paperless Trade (SITFAP) 2013/14 in order to examine some of the most challenging WTO TFA provisions, and gain insights on regional priorities for cooperation and capacity building.
Source: Yann Duval and Pamela Bayona
This report reviews key industrial policy issue areas being negotiated in mega-regional free-trade agreements—in particular, the Trans-Pacific Partnership—and evaluates how possible outcomes will impact the international trading system. Reviewing areas where the mega-regionals may impose systemic constraints, including border measures, technical barriers to trade, sanitary and phytosanitary measures, and e-commerce measures, the report discusses a possible future framework for industrial policy that integrates the additional policy constraints and changes introduced by these agreements.
Source: Dan Ciuriak and Harsha V. Singh
This publication is a contribution by the United Nations Economic and Social Commission for Asia and the Pacific to deliberations at the Second United Nations Conference on Landlocked Developing Countries (LLDCs) in Vienna, Austria, 3-5 November 2014. It shows regional connectivity as an unfinished agenda and bridging infrastructure gaps as a complex challenge for LLDCs. While physical infrastructure is a priority, this report argues that deeper regional integration – through regionally cohesive and terrestrial networks – is key to effectively linking Asian LLDCs to the region’s infrastructure networks.
Source: United Nations Economic and Social Commission for Asia and the Pacific
This promotional brochure for the SASEC website features the web portal as a one-stop shop for information on SASEC activities, events, projects, and knowledge materials. The SASEC website seeks to build a dynamic discussion platform and repository of data on regional cooperation.
Source: Asian Development Bank
This annual publication highlights the relationship between trade and development, including changes since the start of the millennium. It identifies four key trends that altered the way trade affects development outcomes – accelerated economic growth in developing countries, expansion of global value chains, increase in agricultural and natural resource prices, and global nature of macroeconomic shocks. This report also explores how these trends have reshaped the role of trade in facilitating development and how recent development gains allow developing countries to adapt and mitigate risks.
Source: World Trade Organization
Freedom of transit is an issue critical to landlocked developing countries whose lack of direct access to the sea has increased costs and lessened their competitiveness in international trade. To meet challenges arising from transit barriers, member states of the United Nations Economic and Social Commission for Asia and the Pacific recommend transit facilitation as part of an integrated approach to trade facilitation. This working paper analyzes freedom of transit and transit facilitation in the context of trade and transport agreements in the Asia Pacific region, identifying good practices and weighing in on the extent to which existing agreements meet the provisions on transit facilitation stated in the draft text of the World Trade Organization Agreement on Trade Facilitation.
Source: Louis Cousin and Yann Duval
This article appeared in the special issue of My Republica published on the occasion of the 18th SAARC Summit. Mr. Ronald Antonio Q. Butiong, Unit head of the South Asia Subregional Economic Cooperation (SASEC) Regional Cooperation and Operations Coordination Division of the Asian Development Bank (ADB), traces the blueprints of SASEC projects to the South Asian Association for Regional Cooperation (SAARC) Regional Multimodal Transport Study (2006) and SAARC Regional Energy Trade Study (2010); two studies supported by ADB and endorsed by SAARC member states. Highlighting the SASEC focus to promote economic cooperation in the subregion by developing cross-border connectivity and facilitating intra-regional trade in South Asia through its priority sectors—energy, transport, and trade facilitation—Mr. Butiong explains how ADB is providing assistance to sections of Bangladesh, Bhutan, India, and Nepal along SAARC corridors through SASEC. Featuring a brief discussion of key SASEC projects and technical assistance (since 2001, 33 projects implemented, worth over US$6 billion) alongside institution and capacity-building support, the article shows how the SASEC connectivity agenda is part of achieving SAARC development objectives.
Source: Ronald Antonio Q. Butiong
This promotional brochure is a concise introduction to the South Asia Subregional Economic Cooperation (SASEC) Program, highlighting the main areas of regional cooperation and activity. It includes facts and figures about SASEC projects in transport, trade facilitation, energy, and ICT.
Source: Asian Development Bank
Recognizing India as an outlier in development of international production networks with the lowest participation among Asian countries, this study investigates the reason for India’s lackluster participation in production-sharing networks. Using desk work, field surveys, and interviews, an analysis is adopted with three comparator countries in the region that have been successful in production-sharing arrangements as well as industrial growth – China, Malaysia, and Thailand. It further describes foreign direct investment inflows into India, analyzes behind-the-border investment environment, and provides recommendations to improve investment climate and hasten the pace of manufacturing development in India.
This Asia-Pacific Trade and Investment Report 2014 provides an analysis of recent regional trends and developments in: (a) intraregional trade in goods and services; (b) foreign direct investment (FDI); (c) trade facilitation measures; (d) trade policy measures; and (e) preferential trade agreements. According to this report, South and South West Asia’s FDI inflow improved, registering a 6% increase, with India holding the largest FDI share. However, performance in key trade and investment indicators was weak in 2013, with merchandise exports decreasing by 0.2%, around 71% of exports going to destinations outside the Asia-Pacific region, and around 64% of merchandise being imported from extra-regional sources. This publication also provides a preliminary regional assessment of the implementation of trade facilitation measures included in the TFA. This section concludes by identifying areas that countries need to focus on in order to further advance trade facilitation in the region.
Source: UNESCAP
This report presents an overview of implementation challenges for realizing trade facilitation reforms. It consolidates results of 26 national trade facilitation implementation plans in 26 countries, comprising least developed countries, middle-income developing countries, landlocked countries, and small island economies in Africa, Asia, the Caribbean and Latin America. In the 26 countries surveyed, the level of implementation of trade facilitation measures in the World Trade Organization (WTO) is considerably lower in least developed countries (LDCs) than in developing countries. Since trade facilitation still remains a major challenge for developing countries and LDCs, an international legal regime with special and differential treatment will help developing WTO members achieve further progress.
Cross-border paperless trade is trade that occurs on the basis of electronic communications and has been part of customs reform efforts in a variety of countries. Increased implementation of cross-border paperless trade is high on the trade facilitation agenda in Asia-Pacific. This report considers six measures to calculate estimates of possible economic benefits of cross-border paperless trade through counterfactual simulations using 2013 data and simple econometric models. Simulation results reveal that this new generation of trade facilitation can significantly reduce trade costs and boost intra- and extra-regional trade in the region. Partial implementation of these measures can lead to an export increase of $36 billion annually. Total direct cost savings across all trade is about $1 billion per annum for partial reform, and $7 billion for full implementation.
Source: United Nations Economic and Social Commission for Asia and the Pacific
WCO News is a biannual newsletter of the World Customs Organization (WCO). This issue, released in June 2014, focuses on the World Trade Organization's (WTO) Agreement on Trade Facilitation. WCO's commitment to its implementation is highlighted and linkages between articles of the Agreement and WCO instruments and tools are explored. Also included is a feature on the benefits Authorized Economic Operator programmes bring supply chain companies.
Source: World Customs Organization
This Asia-Pacific Research and Training Network on Trade (ARTNeT) Working Paper uses firm-level data on developing countries to investigate whether large firms benefit from trade facilitation. The findings show that firms of all sizes export more in response to improved trade facilitation. Trade facilitation can be beneficial to countries, including those engaged as suppliers in value chains.
Source: Bernard Hoekman and Ben Shepherd
This study assesses the potential impact of trade facilitation on poverty reduction in the region under SAARC Corridor 1, which is one of the leading corridors in South Asia and handles overland trade between Bangladesh, India and Pakistan. Poverty reduction depends on decreasing trade barriers through better trade facilitation and improved infrastructure.
ADB's third Regional Cooperation Operations Business Plan (RCOBP) 2014-2016 for South Asia under its South Asia Regional Cooperation Strategy (RCS) 2011-2015 details a cumulative indicative lending program of $3.3 billion and maintains focus on improved regional connectivity, increased cross-border trade, and strengthened regional economic cooperation.
Source: Asian Development Bank
This publication showcases how Asian Development Bank (ADB) has been working closely with the Government of India to improve the overall design, delivery, and development effectiveness of ADB's India program.
Source: Asian Development Bank
ADB's Bangladesh program evolved over time in close alignment with the country's priorities of attaining rapid economic growth and poverty reduction
Source: Asian Development Bank
Aid for Trade (AfT) came to prominence just over a decade ago at the launch of the World Trade Organization's Doha Round. With its focus on helping least developed countries and economies escape the poverty trap, it aims to strengthen their capabilities to meet market demand and to reduce supply-side constraints such as a lack of trade infrastructure.
Source: Asian Development Bank
This paper assesses the contribution of key institutions of regional cooperation and integration (RCI) in South Asia, and suggests ways in which the Asian Development Bank and other development partners can strengthen their support. It attempts to enhance understanding on the interplay between politics and RCI, including how good bilateral political relations or improvements have advanced RCI. With the overall political environment growing increasingly open to RCI, the paper suggests the time has come for the South Asian Association for Regional Cooperation (SAARC) to consider strengthening the capacity of the SAARC Secretariat to meet the growing challenges and work load of managing the anticipated increase in RCI.
Source: Prabhu Ghate
This study aims to showcase the benefits of regional integration and recommends strategies for overcoming the many hurdles.
Source: Shahid Kardar
Sector roadmaps with result frameworks for transport, energy, and trade facilitation.
Source: Asian Development Bank
This paper examines the benefits of regional cooperation and integration, focusing on the cost of neglecting to address the binding constraints to regional cooperation and integration. Component papers in this volume analyze the current state of play, and identifies the binding constraints to achieving more efficient transport corridors, regional energy trade and trade facilitation in the region.
Source: Gilberto M. Llanto
This report reviews the provision of high priority regional public goods (RPGs) selected for the South Asia subregion, and proposes areas of cooperation for improving the provisioning of RPGs in South Asia. It highlights the issues in cross border management of infrastructure projects and best practices in the provisioning of RPGs relevant for South Asia, evaluates ADB’s contributions to providing RPGs in the subregion, and concludes with recommendations on ADB’s South Asia Regional Department’s role in the provision of RPGs in the subregion.
Source: Khaja Moinuddin
This report proposes that improving border coordination and relationships will further increase the existing intraregional trade among SASEC countries. Several non-trade barriers are tackled in the context of trade promotion, with the view that addressing non-trade barriers would also lead to resolving issues on non-tariff barriers.
Source: Florian A. Alburo