Growing Together: Economic Integration for an Inclusive and - escap
Growing Together: Economic Integration for an Inclusive and - escap
Growing Together: Economic Integration for an Inclusive and - escap
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CHAPTER TWO<br />
51<br />
Towards a broader integrated market<br />
BOX II.6. Central Asia Regional <strong>Economic</strong> Cooperation (CAREC) Tr<strong>an</strong>sport <strong>an</strong>d<br />
Trade Facilitation Strategy<br />
The Central Asi<strong>an</strong> has made some progress in developing tr<strong>an</strong>sport infrastructure,<br />
customs modernization <strong>an</strong>d trade facilitation. To exp<strong>an</strong>d on this, they are<br />
working towards further improving tr<strong>an</strong>sport infrastructure <strong>an</strong>d to reduce the<br />
cost of trade. Recognizing the synergy between tr<strong>an</strong>sport <strong>an</strong>d trade, CAREC has<br />
developed a tr<strong>an</strong>sport <strong>an</strong>d trade facilitation strategy (TTFS) <strong>for</strong> the period 2008-<br />
2017. This ten-year action pl<strong>an</strong> aims to improve the subregion’s competitiveness<br />
by taking <strong>an</strong> integrated approach, which entails combining tr<strong>an</strong>sport investments<br />
with trade facilitation initiatives <strong>an</strong>d enh<strong>an</strong>cing the three pillars of the strategyinfrastructure,<br />
m<strong>an</strong>agement <strong>an</strong>d technology. Key elements of the strategy are<br />
coordinated improvements of tr<strong>an</strong>sport infrastructure <strong>an</strong>d trade facilitation,<br />
including harmonized cross border regulations, procedures, <strong>an</strong>d st<strong>an</strong>dards<br />
along priority tr<strong>an</strong>sport corridors. These improvements will result in signific<strong>an</strong>t<br />
<strong>an</strong>d measurable reductions in tr<strong>an</strong>sport costs <strong>an</strong>d time <strong>for</strong> local, cross-border,<br />
<strong>an</strong>d tr<strong>an</strong>sit traffic. It will also, as a result, lead to <strong>an</strong> increase in trade along the<br />
corridors.<br />
The goals of the CAREC trade facilitation component are to:<br />
i. reduce tr<strong>an</strong>saction costs <strong>an</strong>d time signific<strong>an</strong>tly by improving administrative<br />
efficiency <strong>an</strong>d simplifying, st<strong>an</strong>dardizing, <strong>an</strong>d harmonizing trade<br />
procedures;<br />
ii. encourage the free movement of people <strong>an</strong>d goods;<br />
iii. enh<strong>an</strong>ce the tr<strong>an</strong>sparency of laws, regulations, procedures, <strong>an</strong>d <strong>for</strong>ms,<br />
<strong>an</strong>d share in<strong>for</strong>mation on these <strong>an</strong>d other trade issues.<br />
The trade facilitation component comprises three elements aimed at reducing<br />
trade costs: promoting concerted customs re<strong>for</strong>m <strong>an</strong>d modernization; using<br />
<strong>an</strong> integrated trade facilitation approach through interagency cooperation <strong>an</strong>d<br />
public–private partnerships; <strong>an</strong>d developing efficient regional logistics.<br />
region:<br />
1. An Asia-Pacific <strong>Economic</strong> Area,<br />
2. Building on ASEAN+ approach, <strong>an</strong>d<br />
3. A new Asia-Pacific Trade Agreement (APTA II).<br />
An Asia-Pacific <strong>Economic</strong> Area (APEA): The first<br />
option is to create <strong>an</strong> APEA as a framework<br />
to connect existing subregional groupings<br />
to exch<strong>an</strong>ge trade preferences between<br />
members, similar to the Europe<strong>an</strong> <strong>Economic</strong><br />
Space Agreement that combines the Single<br />
Market of the Europe<strong>an</strong> Union with members<br />
of the Europe<strong>an</strong> Free Trade Association. The<br />
major subregional groupings that could be<br />
covered in APEA are ECOTA, AFTA, SAFTA, <strong>an</strong>d<br />
the proposed Pacific Agreement on Closer<br />
Relations-Plus, which encompasses the Pacific<br />
Isl<strong>an</strong>ds Free Trade Agreement (PICTA) plus<br />
Australia <strong>an</strong>d New Zeal<strong>an</strong>d. Overall these four<br />
trade agreements include 43 of the 51 Asia-<br />
Pacific economies. 59 A modelling exercise<br />
conducted by ESCAP suggests that member<br />
countries would gain subst<strong>an</strong>tially if the four<br />
groupings were joined in APEA (figure II.11).<br />
The potential welfare impacts of the proposals<br />
are <strong>an</strong>alysed using simulations based on data