Developing the case for trade facilitation in practice

Abstract

While the rationale for trade facilitation, at least to the practitioner, is self-evident, building the case for trade facilitation is seldom straightforward. Policymakers often rely on the persuasive recommendations of international organisations and are likely to include reference to macroeconomic models. Though helpful, these lack operational detail. Many practical questions about trade facilitation solutions, context, scope and priorities, as well as the onus on implementation and funding remain open. This paper explores the challenges of developing a robust case for trade facilitation in practice, in particular the aspects relating to trade compliance cost. In doing so, the paper builds on the current understanding of trade facilitation and its literature, balanced against substantial practitioner experience in developed and developing countries. The paper concludes with a proposal for developing a trade compliance cost model.