Trade transaction costs fall in APEC region
Trade transaction costs fall in APEC region, research reveals
Issued by the APEC Secretariat
Honolulu, United States, November 8, 2011 - Trade transaction costs across the Asia-Pacific region have fallen 5%, resulting in US$ 58.7 billion in total savings for businesses, research shows.
In a new report
The report reveals that
although fees and charges for importers and exporters
increased across the region between 2006 and 2010, the
amount of time taken to clear goods across borders
decreased, resulting in an overall drop of 5% in trade
transaction costs and therefore costs savings for
businesses. "The reduction is good news for
businesses and economies in the Asia-Pacific region. Given
the uncertainty of the global economy, trade facilitation is
now even more crucial to supporting sustainable economic
growth," said Denis Hew, Director of the Policy Support Unit
"Reducing trade
transaction costs boosts the profitability of businesses and
helps create jobs. Introducing measures so that goods flow
more easily at, across and behind borders also increases the
competitiveness of markets and brings lower prices for
consumers," Dr Hew said.
"As the volume and
complexity of trade across the Asia-Pacific region grows,
streamlining and simplifying import and export procedures so
that goods and services are delivered more efficiently and
cost effectively is paramount," he said. The
report, which can be downloaded from the APEC website
The report shows that total fees and
charges rose in real terms across the region by US$ 6.3
billion between 2006 and 2010 for importing and exporting
all merchandise, an increase of 4.8%. However the
amount of total time taken to complete trade-related
procedures dropped, which represents a decrease in costs of
US$ 65 billion, or 6.2 percent from 2006. Thus, overall
trade transaction costs resulted in total savings for
businesses of US$ 58.7 billion. The costs - the fees
and charges plus the monetary value of the time spent
getting goods to market - relate to document preparation,
customs clearance and technical control, ports and terminal
handling and inland transport and handling. The
researchers measured trade transaction costs in the region
as part of their assessment of the success of APEC's Trade
Facilitation Action Plan II (TFAP II). The assessment found
that APEC had reached its target of reducing trade
transaction costs by 5% between 2007 and 2010, a goal set by
APEC Leaders in 2005. Total trade transaction costs
fell from US$ 1.187 trillion in 2006 to US$ 1.128 trillion
in 2010. Under TFAP II, APEC has been carrying out
projects around the region to encourage economies to
undertake reforms and improvements to streamline trade in
four priority areas; customs procedures, standards and
conformance, business mobility and electronic commerce (data
privacy and paperless trading). In their report,
the researchers conclude that APEC has made "significant
progress to improve trade facilitation and reduce trade
transaction costs through the measures implemented under
TFAP II." Monica Contreras, chair of APEC's
Committee on Trade and Investment, welcomed the findings,
which showed APEC has successfully identified obstacles that
hinder trade and implemented actions and measures to address
them, thereby bringing real results to the business
community. "While we are enthusiastic about the
progress made by APEC, we also recognize that there is more
that can be done to improve trade facilitation across the
region, therefore further efforts in this regard have been
already deployed " Ms Contreras said. TFAP II is
one of many APEC initiatives aimed at increasing free trade
and investment and strengthening regional economic
integration to assist economic growth and prosperity for its
people. TFAP II follows the first successful action plan,
which worked to reduce costs also by 5% over four years to
2006. The new report shows that by 2010, net savings
were realized in most stages of the logistics chain across
the APEC region. Substantial time savings were realized -
the average time spent to prepare documentation for example
was reduced by two days for both imports and exports.
However fees and charges rose strongly in real terms,
particularly in ports and terminal handling. On
average it took 17 days and US$ 842 to complete an APEC
export transaction for a single, standard container of goods
in 2006. In 2010, it took 15 days and US$ 856. Previously in
2006, it took 17 days and US$ 941 to complete such an APEC
import transaction; in 2010 it took 15 days and US$ 923.
For the main report, go to: "APEC's Achievements
in Trade Facilitation 2007-2010" "Final Assessment of
Second Trade Facilitation Action Plan (TFAP II)
http://publications.apec.org/publication-detail.php?pub_id=1211
For detailed measurements of trade transaction
costs, including figures for each economy, go to:
"Aggregate Measurement of Trade Transaction Costs in APEC
2007-2010"
http://publications.apec.org/publication-detail.php?pub_id=1212
For assessment of APEC's progress in the four
priority areas, go to: "Trade Facilitation through
Customs Procedures: Assessment of APEC's Progress"
http://publications.apec.org/publication-detail.php?pub_id=1213
"Reducing Business Travel Costs: The Success of
APEC's Business Mobility Initiatives"
http://publications.apec.org/publication-detail.php?pub_id=1214
"Facilitating Electronic Commerce in APEC: A Case
Study of Electronic Certificate of Origin"
http://publications.apec.org/publication-detail.php?pub_id=1215
"Reducing Trade Transaction Costs: Harmonization of
Standards and Conformity Assessments in APEC".
http://publications.apec.org/publication-detail.php?pub_id=1207