Digital Trade Trade for APIS... · Not aligned with the UN’s SDG 2030 goals ... by the...
Transcript of Digital Trade Trade for APIS... · Not aligned with the UN’s SDG 2030 goals ... by the...
DIGITAL TRADEASIA-PACIFIC INFORMATION SUPERHIGHWAY ( AP- IS )
F IRST STEERING COMMITTEE MEET ING 2017
Duangthip Chomprang
2 November I 2017
Dhaka
SDG 2030 CAVEATS RELATING TO TRADE & DEVELOPMENT
Universal Goal (Inclusive of both Developed and Developing)
International Trade as part of the SDG Goals for the first time
Trade Led Development Focus
Sustainable Investment Framework
MOTIVATIONS
To take advantage of competitive advantage
Balance of Trade
Market access
To attract Foreign Direct Investments
National security
Liking into the Global Value Chain
Economic Cooperation and Integration
LINKING DIGITAL CONNECTIVITY AND TRADE FOR SDG
Trade (Direct, Indirect (Intellectual Exchange)
Facilitate Investments
Global Value Chain
Economic Integration
UNDERSTANDING TRADE MECHANISM AND FUNCTIONALITY
Trade Corridors: Trade corridors are a network of transportation infrastructure enabling and linking the streams of products/services and information moving through and within communities in a geographic patterns according to a matrix of culture, trade agreements, statutes, legislations and customs that govern and guide trading relationships, institutions and structure. (Michael Van Pelt 2003)
Economic Corridors: Mobility of capital, labour, product/services, information, etc.
Niche Corridors
UNCTAD B2C E-COMMERCE INDEX 2016
Source: UNCTAD B2C e-Commerce Index 2016
Penetration (% of Pop)
Credit card penetration(
%)
Secure Server (per
1Mln)
Public postal
reliability 2015
Ranking2016
Ranking
% Internet Shopper per Internet Pop
Brunei na na na na na na naCambodia 9 3 41 25 91 119 naIndonesia 17 2 47 66 88 93 9%Laos PDR 14 3 38 26 105 115 naMalaysia 68 20 69 84 45 44 15%Myanmar 2 25 21 na 133 naPhilippines 40 3 52 48 na 89 7%Singapore 82 35 88 98 26 23 57%Thailand 35 6 58 90 70 69 6%Vietnam 48 2 52 70 90 75 26%
NATIONAL DIGITAL ECONOMY DEVELOPMENT PLAN
Almost 99% of developing countries have a national digital economy development plan since 2016.
Lack substance and target
Not aligned with the UN’s SDG 2030 goals
e-Commerce is a starting point for most countries
DATA IS EATING THE WORLD!World’s largest taxi company owns no taxis UBER
Most popular media creates no content Facebook
Largest accommodation provider owns no real estate AirBnB
Largest phone companies does not own any telephone infrastructure Skype, WeChat
World’s most valuable retailer has no inventory Alibaba
Fastest growing banks have no actual money Society One
World’s largest movie house owns no cinemas NetFlix
Largest software vendor, does not write their apps Google
Most popular emerging research firm, has no researchers HfS Research
Source: HfS Research
GLOBAL VALUE CHAIN (GVC)
Fragmented network of production within a specific supply chain (product, services, materials, information, technology) primarily, regional in focus and tends to be trading in intermediate goods
For example, the Asia-Pacific region is the world’s the largest GVC for ICT product and services. As well as, the largest consumers of ICT products and services.
MAP OF ITA MEMBERS
Generally, ITA members with FTA tariff rates avg. 0.6% vs. Non-ITA members of 3.3%
29 member countries (original) mostly from Asia-
Pacific and the US
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Paperless Trade?
Paperless Trade
Conduct of trade activities on the basis
of electronic rather than paper
documents e.g. electronic Customs
declaration, electronic cert. of origin(application of e-commerce to international trade domain)
Paperless Trade Systems
Legal/regulatory and technical
frameworks in which paperless trade
transactions take place e.g. electronic
Single Window facility, e-port
management systems, Framework Act
on Electronic Transaction (in RoK)
Chamber
ImporterExporter
ShipperForwarder
Customs
Inspection
eCO
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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Towards Cross-border paperless trade (including to enable cross-border e-commerce)
International
Supply Chain
Integration / Cross-
Border e-Commerce
Rise of cross-border e-commerce
…Legal and technical
barriers in information
exchange (across borders)
Increased implementation of
(national) Single Windows and
paperless trade systems, but…
Need to facilitate cross-border trade data
exchange in the region and beyond
Rise of regional and global production networks
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
PAPERLESS TRADE AND NATIONAL SINGLED WINDOW
ASEAN Trade in Good Agreement Article 49: Establishment of the ASEAN Single Window
Member States shall undertake necessary measures to establish and operate their respective National Single
Windows and the ASEAN Single Window in accordance with the provisions of the Agreement to Establish and
Implement the ASEAN Single Window and the Protocol to Establish and Implement the ASEAN Single Window.
WTO TFA Article 10.4: Single Window 4.1 Members shall endeavour to establish or maintain a
single window, enabling traders to submit documentation and/or data requirements for importation, exportation,
or transit of goods through a single entry point to the participating authorities or agencies. After the examination
by the participating authorities or agencies of the documentation and/or data, the results shall be notified to the
applicants through the single window in a timely manner. [..] 4.4 Members shall, to the extent possible and
practicable, use information technology to support the single window.
ESCAP’s Cross-Border Paperless Trade Facility, 2016 – The adoption of Single Window and
the WTO TFA in Phase approach to facilitate current and future regional trade agreements
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Benefits of Paperless Trade
Effective & EfficientDeployment of
Resources
CorrectRevenue
Yield
ImprovedTrader
Compliance
EnhancedSecurity
IncreasedIntegrity &
Transparency
FasterClearance &
Release
PredictableApplication and
Explanation of Rules
Cutting Coststhrough
Reducing Delays
Effective & EfficientDeployment of
Resources
IncreasedTransparency
Paperless
Trade
TradersGovernment
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“It is expected to provide countries of Asia and the Pacific with a new tool and “digital” complement for better
implementation of the WTO Trade Facilitation Agreement (TFA) and the development of cross-border e-
commerce.”
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Framework Agreement on Facilitation of Cross-border
Paperless Trade in Asia and the Pacific: Key Provisions
Article 1: Objective
The objective of the present Framework Agreement is to promote cross-border paperless
trade by enabling the exchange and mutual recognition of trade-related data and documents
in electronic form and facilitating interoperability among national and subregional single
windows and/or other paperless trade systems, for the purpose of making international
trade transactions more efficient and transparent while improving regulatory compliance.
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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A new UN Treaty
Open to interested (53) ESCAP member states (voluntary) to become parties
Opening for signature set to 1 October 2016 at UN Headquarters, New York
Objective
To facilitate cross-border paperless trade (data exchange) among willing ESCAP member states by providing a dedicated intergovernmental framework to develop legal and technical solutions
Complementary to the WTO Trade Facilitation Agreement as well as (sub)regional efforts
4 year step-by-step development process (ESCAP resolutions 68/3,70/6,72/4)
Over 30 countries directly involved in finalizing the treaty text in March 2016
Regional
Study
Negotiation &
Finalization
Expert Review &
Member
Consultations
Adoption
by the
Commission
2012 2013 2013 - 2016 19 May 2016
Framework Agreement on the Facilitation of Cross-Border Paperless Trade in Asia and the Pacific
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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New WCO Report on
Cross-Border E-commerce*
*http://www.wcoomd.org/~/media/wco/public/global/pdf/topics/facilitation/activities-and-
programmes/ecommerce/wco-study-report-on-e_commerce.pdf?la=enSource: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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New WCO Report on
Cross-Border E-commerce*
*http://www.wcoomd.org/~/media/wco/public/global/pdf/topics/facilitation/activities-and-
programmes/ecommerce/wco-study-report-on-e_commerce.pdf?la=enSource: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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Paperless trade
coverage of RTAs
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3
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4
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5
6
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0 3 6 9 12 15 18 21 24 27
Pakistan - China
Japan - Mexico
China-Singapore
Chile-Japan
Switzerland - China
Iceland - China
EFTA-Hong Kong
China-Costa Rica
New Zealand-China
India - Japan
Chile-China
ASEAN-China
Japan - Philippines
Japan - Peru
WTO TFA
Rep.of Korea-India
Rep. of Korea-…
Nicaragua - Taiwan,PoC
Japan - Thailand
Hong Kong- Chile
Rep.of Korea-New Zealand
Japan-Mongolia
Peru-China
Japan - Switzerland
Singapore-Taiwan,PoC
Hong Kong-New Zealand
EU-Rep.of Korea
Canada-Rep.of Korea
New Zealand-Taiwan,PoC
Rep.of Korea-Singapore
Australia-China
Peru-Rep.of Korea
Japan-Australia
Rep.of Korea-Viet Nam
Rep.of Korea - Australia
Rep.of Korea-US
China-Rep.of Korea
TPP
Figure 2. Paperless trade
coverage in RTAs of East Asian
Economies since 2005
Figure shows number of
measures (our of 27) that are
featured in each RTA
Measures mainly found in TF &
Customs chapters, and e-
commerce chapters
Regional findings:
TPP most far reaching
Rep.of Korea, USA, and
Australia/N-Z leading
East Asia is leading
subregion, followed by
South-East Asia
RTAs of South and Central
Asia are (far) behind; India
as a leader
0% 10% 20% 30% 40% 50%
E-submission of Sea Cargo Manifests
E-application for customs refunds
E-system of Export/Import Permits
E-system for SPS certification
E-payment system
Single Window System
E-submission of Air Cargo Manifests
Meeting standards for E-signature and E-authentication
Interoperability of digital certificates used by business
E-exchange of COO related information
E-exchange of SPS related information
Proving regulatory compliance of E-transactions
E-system for COO application/processing
E-System for Risk Management
(Mutual) Determination and recogniton of authentication technologies
Promote e-exchange of data/documents
Mutual recognition of digital certificates and electronic signatures
E-system for inter-organization communication
E-transmission of financial information
Acceptance of e-copies
Electronic record-keeping
E-submission of trade-related data/docs
E-Customs System/Customs Automation
E-exchange of TBT related information
Laws for electronic transactions
E-certification and e-signatures
Use of international standards in paperless trade measures
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Frequency of
paperless trade
measures in RTAs
90 of 138 RTAs (65%) contain
at least one paperless trade
measure
30 RTAs (22%) have a
dedicated “Paperless Trading”
or “Paperless Trade
Administration” provision
Wide diversity in the type of
paperless trade measures
included “Single window” specifically
mentioned in very few agreements
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Measure/Provision
1 Acceptance of e-copies
2 E-submission/processing of trade-related data/documents
3 E-submission of Sea Cargo Manifests
4 E-submission of Air Cargo Manifests
5 E-system of Export/Import Licenses or Permits
6 E-system of SPS certificates
7 E-system of COO
8 E-record keeping
9 E-payment system
10 E-application for customs refunds
11 E-Customs System/ Customs Automation
12 Automated System for Risk Management and targeting
13 Single Window System
14 E-system for inter-organization communication
Typology of Paperless trade related provisions & measures
Based on the review, compiled a list of 27 paperless trade related provisions
and measures
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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15 Laws for electronic transactions
16 Use of electronic certificates and electronic signatures
17 (Mutual) determination of authentication technologies
18 Proving in court legal compliance of E-authentication
19 Meeting standards for E-signature and E-authentication
20 Mutual recognition of digital certificates and E-signature
21 Interoperability of digital certificates used by business
22 Trade-related electronic data exchange
23 E-exchange of COO related information
24 E-exchange of SPS related information
25 E-exchange of TBT related information
26 E-transmission of financial information
27 Use of international standards for paperless trade
Typology of Paperless trade related provisions & measures
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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A closer look:
Paperless trade in selected RTAs in Asia-Pacific
8 RTAs selected from 2005 to 2016
Articles on “Paperless Trading” found to
typically feature 3 key elements:
Endeavour to (1) make electronic
versions of their trade administration
documents available publicly,
Endeavour to (2) accept trade
documents submitted electronically
as the legal equivalent of their paper
version.
[Commitment to (3) exchange views
and/or cooperate with each other as
well as internationally to enhance the
acceptance of electronic documents.]
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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A closer look:
Paperless trade in selected RTAs in Asia-Pacific
Looking at the coverage of the 27
paperless trade measures:
All feature acceptance of
electronic copies
Strong commitments on
Customs automation and risk
management in recent RTAs
Promotion of acceptance and
mutual recognition of e-
authentication and e-signatures
Emerging commitments towards
cross-border e-exchange of
information (including related to
SPS and TBT)
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
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FACILITATING CROSS-BORDER E-COMMERCE…
e-
e-e-e-
e- e- e-
Source: ESCAP-ITD Paperless Trade and Trade Facilitation Regional Workshop 2017
DIGITAL TRADE –SDG 2030
Today’s cross-border trade in developing countries are dominated by women. Rwanda 74%, Cambodia 86% or China 55%.
THAILAND’S BORDER TRADE
7% of all global cross-border B2C commerce are border trade (UNCTAD Oct 2017, Information Economy Report
*Latency effect from Pre-Feasibility Report
WTO GENEVA MINISTERIAL SESSION 1998
Called for a Moratorium to Not Impose Custom Duties on Electronic Transmissions
DE MINIMIS THRESHOLD
Currently no international accepted norm or standard of practice
Versus Tax holidays
PROMOTING DIGITAL TRADE
Frictionless and Digital Trade led development key dependencies
Pillar 1 Connectivity (hardware and software)
Pillar 2 Traffic and Network Management (cross-border data exchange)
Pillar 3 Broadband for All (socio-economic inclusive development, mSME)
Pillar 4 e-Resiliency (security)