Quantitative Assessment of the Benefits of Trade Facilitation

This chapter analyses the economic impact of trade facilitation and discusses the distribution of potential benefits across countries. Unlike earlier research, the analysis highlights differences in trade transaction costs due to the efficiency and integrity of interacting businesses and administration, the characteristics or kind of traded goods and the size and type of trading businesses. Assuming trade facilitation to lead to a reduction in trade transaction costs of 1% of the value of world trade, aggregate welfare gains are estimated to amount to about USD 40 billion worldwide, with all countries benefiting and non-OECD countries experiencing the biggest gains in relative terms.