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UNESCAP Framework Agreement Cover-2-4.Indd FRAMEWORK AGREEMENT ON FACILITATION OF CROSS-BORDER PAPERLESS TRADE IN ASIA AND THE PACIFIC The shaded areas of the map indicate ESCAP members and associate members.* The Economic and Social Commission for Asia and the Pacifi c (ESCAP) serves as the United Nations’ regional hub promoting cooperation among countries to achieve inclusive and sustainable development. The largest regional intergovernmental platform with 53 Member States and 9 Associate Members, ESCAP has emerged as a strong regional think-tank offering countries sound analytical products that shed insight into the evolving economic, social and environmental dynamics of the region. The Commission’s strategic focus is to deliver on the 2030 Agenda for Sustainable Development, which it does by reinforcing and deepening regional cooperation and integration to advance connectivity, fi nancial cooperation and market integration. ESCAP’s research and analysis coupled with its policy advisory services, capacity building and technical assistance to governments aims to support countries’ sustainable and inclusive development ambitions. FRAMEWORK AGREEMENT ON FACILITATION OF CROSS-BORDER PAPERLESS TRADE IN ASIA AND THE PACIFIC FRAMEWORK AGREEMENT ON FACILITATION OF CROSS-BORDER PAPERLESS TRADE IN ASIA AND THE PACIFIC United Nations Publications Trade and Investment Division ESCAP Bangkok, Thailand Copyright © United Nations 2019 All rights reserved Manufactured in Thailand For further information on this publication, please contact: Mia Mikic Director Trade and Investment Division United Nations Economic and Social Commission for Asia and the Pacific United Nations Building Rajadamnern Nok Avenue Bangkok 10200, Thailand Email: [email protected] This publication contains the full text of Framework Agreement on Facilitation of Cross- border Paperless Trade in Asia and the Pacific, adopted by the Economic and Social Commission for Asia and the Pacific, on 19 May 2016. This document is published for information purposes only and does not replace the original authentic texts of the Agreement that are held by the Secretary-General of the United Nations in his capacity as depositary. The material in this publication may be freely quoted or reprinted, but acknowledgement is required, and a copy of the publication containing the quotation or reprint should be sent to the ESCAP Publications Office. The use of this publication for any commercial purpose, including resale, is prohibited unless permission is first obtained from the Trade and Investment Division, UNESCAP, Bangkok. Requests for permission should state the purpose and the extent of reproduction. The opinions, figures and estimates set forth in this publication are the responsibility of the authors, and should not necessarily be considered as reflecting the views or carrying the endorsement of the United Nations. Any errors are the responsibility of the authors. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or its authorities, or concerning the delimitation of its frontiers or boundaries. Where the designation “country or area” appears, it covers countries, territories, cities or areas. Mention of firm names and commercial products does not imply the endorsement of the United Nations. This publication has been issued without formal editing iii Contents Page PREFACE ....................................................................................................... iv Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific ..................................................................................... 1 Explanatory note to the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific .................................. 15 iv PREFACE On 19 May 2016, the Framework Agreement on Facilitation of Cross- border Paperless Trade in Asia and the Pacific was adopted as a UN treaty. The adoption was a result of dedicated and progressive efforts of a diverse group of more than 25 Asia-Pacific economies, who were engaged in four years of intensive consultations and negotiations. It is now open to 53 members of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The Framework Agreement is fully dedicated to the digitalization of trade processes, aiming to enable the exchange and mutual recognition of trade-related data and documents in electronic form among national and subregional paperless trade systems. Trade digitalization, or the simplification and digitalization of international trade procedures, will help the Asia-Pacific region harness international trade for sustainable development. Indeed, moving from paper to electronic data and information exchange is expected to make international trade easier, more transparent, more efficient and, hence, more inclusive and less taxing on the environment. Trade digitalization offers a great opportunity to reduce trade costs and increase trade volume for the region. Through paperless trade and seamless electronic exchange of trade data and documents, countries can enhance their competitiveness in global markets and increase their participation in global value chains. Enabling cross-border paperless trade together with full digital implementation of the WTO Trade Facilitation Agreement (TFA) could decrease trade cost by more than 25%, cutting international transaction costs in Asia and the Pacific by about $0.6 trillion annually.1 Annual export of the region could also expand by about $250 billion.2 Despite existing efforts and initiatives, the region’s progress towards trade digitalization have been challenging. In particular, the UN Global Survey on Digital and Sustainable Trade Facilitation reveals that the average implementation rate of cross-border paperless trade measures stands at less than 25%, compared to more than 50% for most other types of trade facilitation measures.3 In order 1 United Nations, Economic and Social Commission for Asia and the Pacific (ESCAP) (2017). Digital trade facilitation in Asia and the Pacific. Studies in Trade, Investment and Innovation, No. 87. Sales No. E.18.II.F.10. Available at: https://www.unescap.org/publications/digital-trade-facilitation- asia-and-pacific-studies-trade-investment-and-innovation-87 2 ESCAP (2014). Estimating the Benefits of Cross-Border Paperless Trade. Available at: https:// www.unescap.org/sites/default/files/Benefits%20of%20Cross-Border%20Paperless%20Trade.pdf 3 See: http://untfsurvey.org v to move forward on trade digitalization across the region, there is a need to: (1) harmonize technical and legal standards that apply to electronic trade data and documents; (2) reduce capacity gaps among countries in the region; (3) enhance collaboration between public and private sectors; and (4) establish a strong intergovernmental platform for coordination mechanisms among countries in the region. Recognizing these potential benefits and challenges, the Framework Agreement has started and will continue to support the region’s efforts by providing a dedicated institutional framework for countries with proven political will to develop legal and technical solutions for trade digitalization. The Framework Agreement brings significant benefits to the region by providing a region-wide multilateral intergovernmental platform, where the neutral and dedicated space needed for development and testing of legal and technical solutions for cross-border paperless trade is provided. It builds upon existing national, bilateral and subregional initiatives, and also helping to achieve the full digital implementation of the WTO TFA. The Framework also provides inclusive access to knowledge and capacity building opportunities, by allowing committed countries to fully participate in the Framework Agreement regardless of their digital or trade facilitation readiness, helping them to develop realistic action plans, and supporting their implementation through pilot projects and training activities. All ESCAP members are welcome to join this forward-looking Framework Agreement, as they prepare to cope with the fourth Industrial Revolution and strive to more effectively engage in the digital economy. The more countries work together to achieve cross-border trade digitalization, the more international trade will become efficient and transparent, which is essential for ensuring that trade fully contributes to inclusive and sustainable development. Armida Salsiah Alisjahbana Under-Secretary-General of the United Nations and Executive Secretary, United Nations Economic and Social Commission for Asia and the Pacific 1 Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific The Parties to the present Framework Agreement (hereinafter referred to as “the Parties”), Conscious of the importance of trade as an engine of growth and development and the need to increase the efficiency of international trade transactions to maintain and enhance the competitiveness of the region, Noting that unimpeded trade plays a crucial role in promoting comprehensive connectivity, which will lead to trade creation and new growth in the region, Recognizing that paperless trade makes international trade more efficient and transparent while improving regulatory compliance, particularly if trade-related data and documents in electronic form
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