From Declarations to Transactions within BRICS

Trade ease is not truly measured by the number of agreements signed, but by how quickly goods move, how efficiently documents are processed, and how predictably shipping times and costs can be determined.

Jakarta (ANTARA) - BRICS has agreed upon various forms of cooperation to facilitate trade. However, for business actors, the benefits of such agreements are only felt when goods can move from one member nation to another with greater ease.

A single shipment involves many stages: the exchange of data and documents, customs inspections, payments, and the logistics process from the country of origin to the destination. Without integration at every stage, policy-level agreements will not automatically reduce time, costs, or uncertainty in trade.

The high volume of trade makes this issue of integration increasingly urgent. During the 18th BRICS Summit in New Delhi, India, Russian President Vladimir Putin revealed that the value of trade between BRICS members has reached US$1.2 trillion.

With a scale this large, even the smallest barrier in the inter-country shipping process has the potential to increase the duration and cost of many transactions.

Therefore, the primary challenge for BRICS at present is no longer about adding new agreements, but rather ensuring that existing instruments truly function during transactions. The focus must shift from merely making agreements to resolving real-world obstacles when goods are in transit.

Closing the gap

Indonesia’s experience with the United Arab Emirates (UAE) demonstrates how an agreement can significantly transform customs processes at the border.

The Mutual Recognition Arrangement on Authorized Economic Operators (MRA AEO) between Indonesia and the UAE was fully implemented on 11 November 2023. This agreement serves as the foundation for providing simplified customs procedures for companies that have met AEO requirements.