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On 2 February, the UN published the 2021 Digital and Sustainable Trade Facilitation Global Report, which reviews the progress of trade facilitation reforms across 144 countries. The analysis concludes that countries across the globe have made progress on digitalizing international trade formalities during the COVID-19 pandemic, but stronger efforts are needed to facilitate trade for small and medium-sized enterprises (SMEs) and other groups and sectors with special needs.

The report shows that the global average implementation rate of general and digital trade facilitation measures stands at 64.7%. Despite the grave impact of COVID-19 on global trade, significant progress has been observed in more efficient trade facilitation over the past two years. The overall implementation rate of measures increased by more than 5% between 2019 and 2021. In general, WTO TFA-related measures are relatively well-implemented globally. In addition, the COVID-19 pandemic has contributed to the acceleration of digital transformation, with the implementation of ‘Paperless Trade’ standing at 64%. However, the implementation level of ‘Cross-Border Paperless Trade’ is substantially low at 38%, with bilateral and subregional paperless trade systems remaining either mostly partial or on a pilot basis.

The report highlights the low implementation rates of sustainable trade facilitation measures, or measures targeted at specific sectors and groups of traders. While measures for the agriculture sector have been comparatively well-implemented, trade facilitation measures aimed at SMEs, as well as women in business face significant challenges, with average implementation rates of 41% and 31%, respectively.

The COVID-19 pandemic has revealed many weaknesses of the trading system. The survey results show that most countries have implemented short-term crisis measures. However, the overall implementation level of measures in the ‘Trade Facilitation in Times of Crisis’ section stands at only 41%, essentially because many countries still lack long-term trade facilitation plans to enhance preparedness for future crises. The report suggests that continued and sustained efforts should be made to strengthen cooperation further, make trade information transparent, and enhance the capacity of countries to contribute to recovery and safeguard against future crises adequately.

Source: UN