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.