40 An exploration of the need for and cost of selected trade facilitation measures in Asia and the Pacific in the context of the WTO negotiations
While, according to a review of existing legislations/regulations and on-going
projects and programmes often supplemented by interviews with Government officials,
many of the trade facilitation measures being discussed at the WTO Negotiating Group on
Trade Facilitation (NGTF) have been implemented, the domestic private sector in these
countries generally point to a need for improvement in many areas. For example, the
private sector often acknowledge that relevant trade information is published and available
but points to the need to make the information more easily available, in particular information
on new or amended rules.
Elimination of bribery and other corrupt practices of officials involved in the clearance
and release of imported goods is given top priority by the private sector in all the countries.
Improvement of coordination between relevant agencies, particularly on documentation
requirements, e.g., through the establishment of a single window for one-time submission
and collection of trade documents, is also given very high priority in all the countries.
Timely and comprehensive publication and dissemination of trade rules and regulations
(e.g., through the Internet) is the highest priority in Indonesia and Nepal, while reduction
and simplification of the documentation requirements for import/export is the highest priority
in Bangladesh. Customs valuation, which is not part of the current WTO trade facilitation
negotiation agenda, was the most problematic trade facilitation related area identified by
private sectors in the five countries.
In addition to the need and priorities of private sector stakeholders, the costs and
benefits to governments of implementing trade facilitation measures will also be considered
when selecting measures to be included in the agreement. The trade research and policy
literature has dwelled extensively on the benefits associated with trade facilitation.
Unfortunately, very little information is available on the cost of implementing selected trade
facilitation measures discussed at the WTO, an issue included in the agenda of work of
the WTO NGTF. Four of the five country case studies on which this report is based do
provide some, albeit very partial, information on the cost associated with trade facilitation
programmes and efforts at the national level. The numbers and cost estimates available
from the individual studies are, at best, very preliminary. However, they are generally
relatively low, partly because some of the costs of implementing trade facilitation measures
are seen as coming from regular (routine) budget of Customs and other relevant agencies
- as well as from the continuation of technical assistance projects by major donors or
international organizations.
While regulatory and institutional costs are expected to be small because of the
rather extensive trade facilitation related reforms that have been undertaken in most of the
countries, training costs may be significant as some countries lack the human resources
necessary to effectively implement some of the measures (e.g., risk management and
post-clearance audit). Interestingly, most studies point to the need to upgrade infrastructure
as part of implementing a meaningful trade facilitation programme. These costs are not
limited to computerization and information and communication technology (ICT) systems,
but include the costs of container scanners or the setup of testing facilities/laboratories at
selected border crossings, for example. In terms of facilitating transit trade, the country