Latin America and the Caribbean (LAC) has made "considerable" improvements in its commitment to the Trade Facilitation Agreement, as well as in the implementation of measures to facilitate digital cross-border trade, the UN's fifth global survey, covering 05.07.2023-2021, revealed on Wednesday (2023/XNUMX/XNUMX).
In that period after the pandemic, which strongly affected global trade flows, "the 71% of the countries in the region implemented the Trade Facilitation Agreement, a relatively high percentage compared to the 68,7% of the world average of 161 countries," said Sebastián Herrero, Economic Affairs Officer of the Trade and Integration Division of the United Nations ECLAC.
In this regard, he stressed that, "Mexico, as in previous editions of the surveys, leads the range with an average of 88%, then we have a large number of countries, mostly South American - there are also Central American ones - with implementation rates around 80%."
However, Herrero said that there are still "a number of countries below the regional average, most of them in the Caribbean" (see chart).
Regarding the good result, he stressed that it is the implementation of a basic set of 31 central measures -«not the 60»- of the Trade Facilitation Agreement.
According to the specialist, it is auspicious that most of the progress has been seen in measures related to formalities (84%) and transparency (76%). Paperless trade (72%) is followed by an end to cross-border e-commerce (56%). This latter pattern is the same across all three subregions: South America, Central America and Mexico plus the Caribbean. (See chart).
Along these lines, the 2023 survey revealed that the weakest performance in the region is in paperless trade; in addition, the Caribbean continues to lag behind in some key procedures and transparency measures.
The implementation of paperless trade measures in Latin America (26 of 33 countries) includes: application and issuance of export and import permits (62%), electronic single window (53%), electronic exchange of certificates of origin (49%), electronic exchange of sanitary and phytosanitary certificates (46%), customs declarations (42%), among others.
The 2023 UN survey highlighted the progress of LAC in commitments to the TFA and other measures to facilitate digital cross-border trade, considering that it has been a region highly affected by the Covid-19 pandemic.
Also highlighted promising initiatives at the regional and subregional levels such as the Regional Mutual Recognition Agreement for Authorized Economic Operator programs eleven customs with a clear manifestation of other countries to join. Likewise, the increase in the cross-border electronic exchange of documents, for example: certificates of origin, customs declarations between regional integration groups (Central America, Pacific Alliance, Mercosur and Andean Community).
Despite this specific information, the UN showed that the progress remains uneven in Latin America and the Caribbean. There is much room for improvement in paperless trade. In this regard, the Organization said that the Caribbean is lagging in all areas, so the faster implementation of trade facilitation measures such as the electronic single window is crucial to diversify exports, increase the internationalization of SMEs, the agricultural sector and women traders, as well as to attract foreign direct investments for nearshoring.
It is clear that knowing how the export and import procedures are simplified, modernized and harmonized is essential for making decisions in our countries, and in the regional context where bureaucratic delays and cumbersome procedures represent a high burden for traders involved in cross-border trade in goods.
For this reason, the authorities consider that International collaboration is necessary agreed. Armida Salsiah Alisjahbana, UN Under-Secretary-General and Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) spoke on this. “I call on countries to actively implement the sustainable trade measures highlighted in the Survey to foster inclusive and sustainable trade and development,” she invited at the launch.
One more note: the regional results for Latin America and the Caribbean were produced jointly with Africa, Asia and the Pacific, and Europe, with the assistance of UN agencies. The survey was first published in 2015, and subsequent editions were released in 2017, 2019, and 2021.
Finally, the Launch of the UN Global Survey on Digital and Sustainable Trade Facilitation 2023 can be viewed here
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
