Imagine a frictionless trade environment powered by intelligent technology, where goods and people move freely across Asia-Pacific borders, and businesses participate in global value chains with unprecedented efficiency. This vision is becoming reality through the joint efforts of the World Customs Organization (WCO) and the Asia-Pacific Economic Cooperation (APEC). At the APEC Informal Senior Officials' Meeting in Santiago, Chile in December 2018, WCO Secretary General Kunio Mikuriya provided new momentum for this ambitious goal.
Chile's APEC Priorities: Digital Economy Challenges and Opportunities
Chilean President Sebastián Piñera outlined five priority topics for the 2019 APEC summit during the meeting's opening ceremony: digital society, Connectivity 4.0, women's empowerment, SME development and inclusive growth, and sustainable growth. These themes, centered around the conference motto "Connecting People, Building the Future," aim to foster cooperation among APEC economies in addressing digital economy challenges while seizing new opportunities.
Subsequent workshops explored these priorities in depth, emphasizing their importance in achieving APEC's core objectives. As host nation, Chile hopes the summit will advance digital economy cooperation, promote regional economic integration, and contribute to global economic growth.
WCO Perspective: Smart Borders for Connectivity 4.0
Secretary General Mikuriya highlighted the significance of Connectivity 4.0, stressing that true connectivity requires efficient and secure border management. He presented WCO's 2019 theme—"Smart borders for seamless trade, travel and transport"—detailing how WCO initiatives support APEC members in achieving economic integration and embracing digital transformation.
The "Smart Borders" concept extends beyond advanced technology to encompass efficient, transparent, and coordinated border management systems. This includes simplified customs procedures, enhanced risk management, information sharing, and collaboration with government agencies and private sector stakeholders. These measures can significantly reduce trade costs, improve efficiency, and create more predictable business environments.
Focus on SMEs: AEO Program Facilitates Global Value Chain Integration
Participants showed strong interest in WCO's Authorized Economic Operator (AEO) program, discussing how it could help SMEs integrate into global trade systems. The voluntary customs initiative certifies businesses meeting specific security standards, granting them trade facilitation benefits that enhance supply chain security and efficiency.
For SMEs, AEO certification reduces clearance costs, accelerates processes, and boosts international competitiveness. The designation demonstrates supply chain security to partners, potentially increasing business opportunities. The program also fosters collaboration among certified enterprises, strengthening supply chain networks.
WCO actively promotes AEO programs and encourages mutual recognition agreements between member economies. Such agreements further reduce cross-border trade costs and improve efficiency. APEC members are exploring AEO mutual recognition to build more secure and efficient regional trade systems.
Embracing Technological Change: Addressing E-Commerce Challenges
E-commerce's rapid growth presents unprecedented trade opportunities alongside new challenges. Traditional customs models struggle to accommodate cross-border e-commerce's high volume of small parcels. Additional concerns include intellectual property protection, consumer rights, and tax collection.
WCO is developing technological solutions to these challenges. Big data analytics enable targeted risk assessment for precision monitoring. Blockchain technology increases supply chain transparency to combat counterfeit goods. Artificial intelligence automates customs processes to improve efficiency.
APEC economies are experimenting with new e-commerce regulatory models. Some are piloting trade facilitation measures like simplified declarations, electronic payments, and online consultation services. Others are strengthening interagency and private sector cooperation to combat e-commerce related crime.
Chilean Customs Reform: WCO Offers Technical Support
During the APEC meeting, Secretary General Mikuriya met with Chilean Customs Acting Director Pablo Ibáñez and senior finance officials to discuss customs reform. WCO offered technical assistance to help Chile develop modern, efficient, and transparent customs management systems.
Chile's ongoing customs reforms aim to improve clearance efficiency, enhance risk management, and facilitate trade. Initiatives include implementing electronic declarations, streamlining procedures, and strengthening intergovernmental cooperation. WCO experts can provide technical consultation and training to support these reforms.
The collaboration between WCO and APEC exemplifies global trade facilitation efforts. By working together, these organizations can address digital economy challenges while capitalizing on new opportunities, contributing to regional and global economic prosperity. United by their shared vision of "Connecting People, Building the Future," WCO and APEC continue working toward an open, inclusive, and sustainable digital trade landscape.