Role and impact of trade facilitation on international trade

Rajeev Malhotra and Vijay Singh Chauhan

Chapter 34 in Elgar Encyclopedia of International Trade, 2026, pp 173-177 from Edward Elgar Publishing

Abstract: This entry discusses the role of trade facilitation, which includes measures aimed at reducing trade costs and time in export, import, and transit of international cargo. The recognition of causes of friction at international borders, which entail costs significantly higher than explicit tariffs, led to concerted efforts to modernize, streamline, and harmonize the cargo clearance process. The Revised Kyoto Convention (1999) and Trade Facilitation Agreement (2017) have been the major milestones in promoting trade facilitation, with several studies presenting quantitative estimates of significant gains from their implementation on trade and economic development. This has been accompanied by performance measurement across administrations, mostly through survey-based indicators and the use of national time release studies. While performance indicators reflect noticeable progress, there is some distance yet to be covered to fully realize the potential of trade facilitation. In addition, a significant research gap in the assessment of trade facilitation needs to be bridged.

Keywords: Trade Facilitation; Trade Facilitation Agreement; Time Release Study; Average Cargo Release Time; Trade Cost (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035327492
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