INCREASED integration into the global economy of the economies that comprise the Asean has made the region a more accessible market for trading goods than either the European Union or United States. This is one of the findings of the Global Enabling Trade Report 2016, published today by the World Economic Forum and the Global Alliance for Trade Facilitation.
The report features the Enabling Trade Index (ETI), which assesses the performance of 136 economies on domestic and foreign-market access; border administration; transport and digital infrastructure; transport services; and operating environment. Produced every two years, the report is a benchmark for leaders looking to boost growth and development through trade.
Asean’s progress as an economic power comes at a time when the US and EU are becoming less open, according to the report. However, Asean’s progress in other areas measured by the index is less pronounced. As a result, the best economies for enabling trade tend to be in Northern and Western Europe, with the notable exception of Singapore and Hong Kong SAR, in first and third places, respectively.
“Free trade remains the most powerful driver of global economic development and social progress. The challenge for leaders today is to confront protectionism, but they also have a duty to make trade a source for more inclusive growth,” said Klaus Schwab, founder and executive chairman of the World Economic Forum.
Another key finding of the report is the limited success with which governments are tackling border administration efficiency. Reforming administration is recognized as a “low-hanging fruit” capable of producing disproportionate gains for both small and large businesses compared to the financial and political capital required to implement them. This lack of momentum could be seen as a cause for concern as the World Trade Organization’s 2014 Trade Facilitation Agreement comes into force in 2017.