Cross-border paperless trade guide for Asia-Pacific region launched [1]
Saturday, December 12, 2020 - 22:06. Updated on Thursday, December 24, 2020 - 15:24.
A guide to support countries in the Asia-Pacific region to conduct self-assessments on their legal and technical readiness for cross-border paperless trade was launched on 9 December.
Cross-border paperless trade has great potential to not only grow trade competitiveness but also to address new challenges associated with e-commerce and the digital economy.
The interactive Online Readiness Assessment Guide for Cross-border Paperless Trade [2] was launched by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), in collaboration with the United Nations Commission on International Trade Law (UNCITRAL) and the Enhanced Integrated Framework (EIF).
With the new guide, countries can conduct readiness assessments without the need for intensive physical travelling of experts. They will also be able to interact virtually with experts for further guidance on conducting readiness assessment on a request basis.
UNCITRAL Secretary Ms Anna Joubin-Bret said the guide is an important tool to identify opportunities for adopting laws and regulations that enable paperless trade.
“UNCITRAL texts are a core component of that legal environment. The importance of taking prompt action in this area has recently been highlighted by the discussions on how to mitigate the economic effects of the COVID-19 pandemic.”
Treaty
The guide supports the implementation of The Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific treaty, which will enter into force on 20 February 2021.
UN Under-Secretary-General and Executive Secretary of ESCAP, Ms Armida Salsiah Alisjahbana said the framework is designed so that countries at all levels of development and digitalization can participate, leaving no one behind.
To date, five countries including Azerbaijan, Philippines, Islamic Republic of Iran, Bangladesh and China, have ratified or acceded to this UN treaty.
In addition, Armenia and Cambodia signed in 2017, with several more in the process of completing their domestic processes for accession.
“I urge all member States to complete ratification as soon as possible,” said Ms Alisjahbana.
The treaty, with its common set of general principles and a dedicated intergovernmental platform, will support countries in building on the bilateral and sub regional digital trade solutions they have already developed to achieve greater, region-wide paperless trade.
Trade costs
Allowing the exchange and legal recognition of trade data and documents, could reduce trade costs by 25 per cent across the Asia-Pacific region and support more seamless and resilient trade.
Moreover, the policy responses to the COVID-19 pandemic are having a significant impact on the cost of trading goods across borders.
Despite measures taken by many countries to keep goods moving across borders, ESCAP research [3] reveals that international trade costs faced by importers and exporters in the region are expected to rise by 7 per cent on average this year, with some facing increases in costs exceeding 20 per cent.
The new guide is relevant to all countries globally, as it can support the implementation of not only the treaty but also the full digital implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA).
Executive Director of the Executive Secretariat for the EIF, Dr Ratnakar Adhikari said the potential benefits from digitalization of trade processes are substantial.
“We look forward to working with our partners, including ESCAP, to support least developed countries in the region to strengthen their institutional capacity and harmonize data standards towards the vision of an Asia-Pacific paperless trading environment.”