Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific, proposed by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), has recently entered into force, which is the first multilateral agreement in the field of cross-border paperless trade under the framework of the United Nations, and will provide easier access of goods of Asia-Pacific members to each other’s markets.
Negotiations for the agreement were launched in April 2015 and completed in May 2016. Nearly 30 ESCAP members, including China, Russia, South Korea, India and Indonesia, have joined. Currently, the agreement has entered into force for five founding parties that have completed their domestic approvals, including China, the Philippines and Bangladesh.
The agreement has 25 articles, covering trade facilitation policy framework, cross-border paperless trade facilitation, and mutual recognition of trade data and documents in electronic form. The agreement requires the participants to use existing or create new cross-border paperless trade systems to achieve the exchange of trade data and documents in electronic form, and in particular, encourages the parties to accelerate the construction of “single window” systems and their use for cross-border paperless trade. The agreement promotes the establishment of cross-border mutual recognition mechanisms for trade data and documents in electronic form among members and allows members to conclude bilateral and multilateral mutual recognition arrangements for the implementation of the recognition.
ESCAP Executive Secretary Ms. Armida Salsiah Alisjahbana said cross-border paperless trade has proven to be an effective way to facilitate global trade development. The agreement could help most developing countries in the Asia-Pacific region reduce their trade costs by more than 20 percent. “It is hoped that more countries will join to boost regional economic recovery after the Covid-19 pandemic.”
Cyn-Young Park, head of the Economic Research and Regional Cooperation Department of Asian Development Bank, said the Asian region has made significant progress in recent years in simplifying trade procedures and promoting trade facilitation. However, the implementation progress of the different measures varies, and less than 40 percent of the region’s economies have started implementing cross-border paperless trade measures, such as the use of electronic certificates of origin. The launch of the Agreement is therefore very timely and relevant.
The Philippines is the first country in the ASEAN region to join the agreement. Tony S. Lopez, editor-in-chief of BizNewsAsia in the Philippines, told us that for a long time, the Philippines’ cross-border trade has not been paperless. After joining the agreement, it is expected to improve efficiency and transparency and reduce trade costs. According to Lopez, the agreement will also further enrich the cooperation in the Asia-Pacific region in building the Belt and Road Initiative and enhance the interconnection in trade.
(Source: CCPIT/ People's Daily)
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