CUT RED TAPE TO INCREASE EXPORTS IN ASIA-PACIFIC, UN-BACKED CONFERENCE CONCLUDES

CUT RED TAPE TO INCREASE EXPORTS IN ASIA-PACIFIC, UN-BACKED CONFERENCE CONCLUDES
New York, May 22 2009 2:00PM
A reduction of export red tape by Governments in the Asia-Pacific region will lead to an increase in exports from areas hard hit by the global financial crisis, said participants at a United Nations-backed trade conference today.

The 20-22 May meeting in Beijing on small and medium size enterprises, sponsored by the UN Economic and Social Commission for Asia- Pacific (<"http://www.unescap.org/unis/press/2009/may/g37.asp">ESCAP), concluded that bureaucratic procedures are particularly hard for smaller companies.

"They simply do not have the capacity to deal with complex and opaque procedures," said Ravi Ratnayake, Director of the Trade and Investment Division for ESCAP.

"Recent research at ESCAP finds that a 5 per cent reduction in the cost associated with preparing export documents and moving goods from the factory to the ship may lead to increase in exports of 4 per cent or more," Mr. Ratnayake said.

"The hidden costs of trade are high – in some cases up to 15 per cent of the value of goods traded," he said.

John S. Wilson, Lead Economist at the World Bank's Research Department said that "trade facilitation reform matters a great deal to development," adding that "World Bank research estimates, for example, gains of over $400 billion in global GDP with increased transparency in trade in the Asia Pacific Economic Cooperation bloc alone."

The forum also recommended speeding up the computerization and automation of trade documentation and procedures to slash the time, cost and uncertainties related to moving goods across borders.

Participants at the ESCAP gathering said small- and medium-size firms are typically not well represented in policy making forums.
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NEW UN SCHEME TO TACKLE COSTLY OBSTACLES TO TRADE IN THE ASIA-PACIFIC REGION

The Asia-Pacific arm of the United Nations has launched an initiative aimed at cutting through the red tape that is adding as much as 15 per cent to the cost of goods traded in the region.

The scheme will pool expertise and experience of countries in the region to remove hidden trade barriers, such as delays at border crossings, harbours and docks caused by cumbersome procedures and excessive paperwork.

The UN Network of Experts for Paperless Trade in Asia and the Pacific (UN NExT) initiative was launched at a high-level meeting this week in Bangkok, which was organized by the UN Economic and Social Commission for Asia and the Pacific (ESCAP) and the UN Economic Commission for Europe (ECE).

Ravi Ratnayake, Director of the Trade and Investment Division of ESCAP, said hidden trade barriers have resulted in the "higher cost of exports and lost opportunities in trade, which the countries in the Asia-Pacific region cannot afford at a time of great economic turmoil."

While commending the fiscal stimulus packages of the region in response to the on-going global economic turmoil and the emphasis they place on physical infrastructure, Mr. Ratnayake said, "we at ESCAP believe that the region should also take this opportunity to address its 'soft infrastructure' challenges – the many forms of institutional barriers to trade."

Capacity building, training, sharing experience on successful trade facilitation measures, and sensitizing policy makers on the importance of trade facilitation were among the elements of a work programme presented by UN NeXT at the end of the meeting.
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