Aid for Trade in Asia and the Pacific: Thinking Forward About Trade Costs and the Digital Economy

Abstract

Highlighted in this report are some of the emerging trends since the last regional review of Aid for Trade. These are explored in the context of the 2015 theme of reducing trade costs for inclusive, sustainable growth.

Aid for Trade (AfT) flows have increased each year since 2006 in Asia and the Pacific. Even as regional aggregate trade costs continue to fall, many subregions continue to struggle with trade costs that are substantially higher than the global average. Trade performance in the Pacific in particular has been undermined by its geography.

At the same time, the relevance of different categories of trade costs is changing. The growing number of firms that are trading online face different logistics and shipping issues than traditional traders. The impetus to address these issues comes from evidence that e-commerce opens new opportunities for women-led and small and medium-sized enterprises (SMEs) to engage in trade. This report takes stock of how AfT has contributed to these trends and considers some constructive ways to move forward, continue to address trade costs in Asia and the Pacific.

This 2015 report include a special in-depth look at the case of the Pacific. It represents a subregion with high trade costs that nevertheless has a vibrant and growing exporter community. In the special Pacific chapter, we take a closer look at how AfT has contributed to trade growth and what more can be done.

Divided into four chapters, the introduction sets the stage by describing general trends in trade costs, AfT, and inclusiveness; Chapter 2 introduces the idea and opportunities of e-commerce for the region; Chapter 3 analyzes trends in trade costs in Central, East, South, and Southeast Asia; and Chapter 4 offers an in-depth case study of AfT and trade costs in the Pacific.