RCEP trade facilitation

RCEP: Facilitating Trade for E-Commerce?

One area of particular importance for smaller firms engaged in e-commerce is dealing with problems at customs.  Many e-commerce companies are not shipping 40 foot containers but a few boxes or even just one package straight to consumers or to other companies.  Yet the paperwork and processing requirements to send one small box can be exactly the same a huge container.  Firms often face complicated and cumbersome paperwork requirements at the border.  Some markets charge high fees or inspect every single parcel, which causes expensive delays.  Sometimes these issues are so significant that companies simply stop trying to send goods overseas at all.  These problems are not unique to e-commerce shippers, of course, but if one important goal of RCEP is to facilitate trade for e-commerce, then a final agreement that does not address the real impediments to trade in smaller size, smaller value shipments at the borders will be a missed opportunity.  The benefits of a robust e-commerce chapter that does not simultaneously tackle customs issues could be lost or watered down.

RCEP: Designing an Agreement for the Future

Officials have clearly got a focus on helping the smallest firms in RCEP benefit from the final agreement.  This is a welcome development, since every country in the grouping is dominated by smaller size companies. The one area of sustained focus in RCEP that will be most promising for SMEs is e-commerce and digital trade.  E-commerce and digital trade represent the fastest and easiest way for smaller firms to connect to suppliers, consumers and lead firms.  Given the relatively higher levels of connectivity in Asia compared to other regions, this pathway can be developed further quickly with the right policies in place and help lead to new growth opportunities. Even getting this chapter right is difficult, since it requires that officials think hard about the rules that should structure the business environment today and still remain relevant tomorrow.  The rules need to provide adequate protections for consumers, deal effectively with security concerns but not unduly hamper business plans now or in the future.