Assessing the benefits of the ASEAN+6 Single Window for ASEAN members

Abstract

In this study, we estimate the potential benefits of partial or full implementation of cross-border paperless measures with respect to reduction of time required to export and import, as well as an increase in exports. This is done by classifying the implementation of cross-border paperless trade measures into three stages, namely no implementation or planning stage, partial implementation, and full implementation. Results of the study should be of interest to policymakers in two ways. First, the COVID-19 pandemic has highlighted the need for digitalizing trade procedures through the development of national and regional single windows. The work-from-home directive as part of the COVID-19 control measures means that some regulatory authorities in the ministries of trade, health or agriculture have to provide public services in different locations and may not be fully available to process paper documents submitted by traders. This has created risks of disrupting the supply chains in food and medical supplies. Such risks can be mitigated by the implementation of full-fledged NSW and subsequently ASW+6 to enable exporters or importers to submit all trade-related documents electronically only once for each occurrence of their exports or imports. Such documents are then processed electronically by the regulatory authorities either at the office or in the home. Second, results of the study should feed into the ongoing discussion on expanding the ASW in ASEAN. In November 2020, the ASEAN Secretariat published the ASEAN Comprehensive Recovery Framework (ACRF) and its implementation plan, which set out strategies and identified measures for recovery in line with sectoral and regional priorities (ASEC 2020). The ACRF trade facilitation measures include the harmonization of standards for essential goods and the expansion of ASW to ASEAN’s key trading partners. This aims to reduce compliance costs and procedural obstacles for traders, which should improve the efficiency of their business operations and increase their participation in international supply chains. This study consists of five sections. After the introduction in section 1, section 2 provides economic rationales for establishing the ASW+6. Section 3 describes the mechanism of ASW+6 in facilitating trade of participating countries. Section 4 presents the empirical results on potential reductions in export and import times as well as export gain under different scenarios of cross-border paperless trade reforms. Section 5 concludes the study with policy implications.