APEC economies urged to focus on trade facilitation
APEC economies urged to focus on trade facilitation
SINGAPORE (AFP): Singapore on Wednesday urged Asia-Pacific economies to shift the focus from tariff reduction to the simplification and harmonization of cumbersome procedures to enhance trade flows.
Tang Guan Seng, senior parliamentary secretary for the ministry of trade and industry, said tariffs were already at all- time lows and economies must now make "tangible commitments" in other areas to facilitate global trade.
"Areas such as trade facilitation, will therefore grow in importance," he said in a speech at an Asia-Pacific Economic Cooperation (APEC) forum workshop here.
He also said that since the failure to re-launch new global trade talks under the World Trade Organization, countries should take initiatives through their own individual action plans as well as to forge bilateral trade pacts.
Tang cited Singapore's recently concluded negotiations for a closer economic partnership with New Zealand.
Trade facilitation refers to the simplification and consolidation of trade procedures involving the mass of data required in international trade.
One area where trade facilitation can be applied is in customs procedures.
A study by the United Nations Conference on Trade and Development (UNCTAD) estimated that an average customs transaction involves 20 to 30 parties, 40 documents and 200 data elements, he said.
An APEC study showed that trade facilitation programs would generate gains of about 0.25 percent of the real gross domestic product in APEC -- almost double the expected gains from further tariff reduction, he added.
Aligning product standards with international benchmarks would also cut business costs.
"In the modern business environment of just-in-time manufacturing and distribution, our traders cannot afford to waste time and resources as a result of inefficient trade procedures," he said.
Cumbersome processes have sidelined small and medium enterprises from participating in global trade because of the high costs involved.
Information technology which allows trade to be conducted through the Internet "will reshape the meaning of trade facilitation," Tang said.
He urged APEC to contribute actively to discussions on whether electronic commerce should be included under the general agreement on tariffs and trade or be placed under a separate accord.
APEC groups Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the United States and Vietnam.