Better Trade Facilitation by Trading Partners Could Save US Exporters Billions, Report Says
The U.S. should take steps to reduce domestic and global red tape around shipping, which could save companies billions of dollars in export costs and cut shipping delays, Third Way said in a report this week. The think tank specifically called on the U.S. to work with trading partners to simplify border processes, embrace digitization and simplify procedures for the release of goods.
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The report said U.S. exporters are “far too often” hampered by “unnecessarily opaque” foreign customs procedures. The U.S. can pursue various “trade facilitation efforts,” including through trade deals, to make sure foreign customs rules are easily accessible and easy to follow. The U.S. can also push for other countries to adopt single windows and accept electronic customs documents to help goods move more quickly and efficiently, the report said.
Pursuing more trade facilitation with its trading partners could save the U.S. $88 billion in export costs, the report said, which points to potential savings if countries with “layers of red tape” adopted “trade facilitation best practices.” These measures “have the potential to significantly reduce time and money needed to keep supply chains moving,” the report said. “[P]olicymakers must understand that more red tape on trade can have negative consequences for the American economy.”