Reducing the Costs of Doing Business

The American Business Coalition for Doha (ABCDoha) strongly supports new commitments in the area of trade facilitation that will benefit developed and developing countries alike. In today's world economy, modern customs administration and procedures are vital to any country's ability to process efficiently the increasing volume and fast pace of trade. Significant gains can be made from making customs procedures simpler, transparent, and consistent.

Immediate Gains from Cutting Red Tape

Simpler, more transparent, and consistent customs procedures could reduce the cost of exporting by 15%. 250 million standard shipping containers pass through the world's ports each year. 1% reduction in transaction costs could improve global welfare by $40 billion.

An agreement on trade facilitation will translate into real savings for businesses and consumers globally and will enhance the benefits of liberalization under the Doha Round in trade in goods and services.

Inefficiencies and delays in getting goods across borders can add up to 15 percent to a company's cost of exporting. It is a price that consumers ultimately bear and that disproportionately affects small- to medium-sized exporters who are increasingly entering the global marketplace.

The need to eliminate red tape in the movement of goods is particularly important for many developing countries that are landlocked and beholden to neighboring countries' customs processes through which their goods must transit before their products can enter into global trade.

Studies predict that even a one percent reduction in trade transaction costs could improve global welfare by $40 billion. Improvements in transparency also enable governments to tackle the scourge of corruption and to reduce and prevent losses every year to legitimate businesses due to smuggling.

Enhancing security is of more concern today than ever. Every year, more than 250 million standard shipping containers enter and leave the world's ports. With ever-increasing interdependence, trade facilitation commitments are part of the long-term solution. Modern customs regimes with harmonized, transparent and efficient procedures are better equipped to quickly and safely process commercial transactions.

Additional Resources

• Trade Facilitation As An Engine in Development ( PDF)
  United Nations Conference on Trade and Development
  
  
• WTO Negotiations on Trade Facilitation - Compilation of Members' Proposals ( PDF)
  World Trade Organization
• Download a Trade Facilitation Fact Sheet ( PDF)