CTI discusses on global value chain, e-commerce and free trade in APEC

CTI meeting in Ho Chi Minh City. Photo: Thanh Thuy

The meeting discussed issues focusing on the global value chain, e-commerce, free trade within APEC, facilitating small and medium enterprises and a single window.

Regarding the global value chains, Professor Yabin Wu, Global Value Chain Management Research Institute, International University of Business and Economy, China presented the progress of the Global Value Chain Partnership Platform of APEC (GVC). Accordingly, in November 2016, China and Indonesia jointly proposed the " Proposal to establish the APEC GVC Partnership Platform". It was approved by the APEC Economic Leaders’ meeting and then in May of 2017, it was written in the Actions of the 23^rd Meeting of APEC Ministers responsible for trade. The missions are to promote knowledge sharing, build capacity for APEC economies, help developing economies to better integrate into GVCs and assist SMEs to benefit from GVCs

Regarding e-commerce, representatives of the Vietnamese delegation also contributed to the meeting with a presentation and discussion on the framework for cross-border trade through APEC. The main objective was to create an E-commerce management environment facilitates flexibility, competitiveness, security, fair and consistent competition; Strengthening public-private partnerships including consumer protection; Contribute to promoting trade and investment in the region, supporting the achievement of the Bogor Goals and vision in 2020.

In fact, e-commerce is becoming a major pillar of the Internet economy and the digital economy has contributed to the development of commerce in the region. Online services make up the largest share of the total mining market by 2015.

Cross border e-commerce is one of the fastest growing segments of the global trade, growing from zero in two decades ago to an estimated value of $US 1.92 trillion globally by the end of 2016. The Asia – Pacific region also had the biggest volume of sales in 2016, followed by Western Europe and North America. Cross-border B2C e-commerce sales in the Asia-Pacific region reached $US 144 billion, accounting for 35.9% of worldwide cross border B2C e-commerce sales. The figures are estimated to be $US 476 billion and 47.9% in 2020.

The rapid digitalization of the global economy has opened up new growth opportunities for APEC’s Micro, Small and Medium Enterprises (MSMEs). Cross border e-commerce is a powerful enabler for the internationalization of APEC’s MSMEs, who no longer need physical, commercial presence to market and sell their products to the world. Recognizing this, in 2014, APEC Leaders endorsed the APEC cross border e-commerce Innovation and Development initiative. At APEC Ministerial Meeting (AMM) 2015, Ministers welcomed the proposal to promote e-commerce to globalize MSMEs. And in 2016 Ministers agreed to encourage further work to exchange experience on the implementation of the WTO Agreement on Trade Facilitation and promotion of Customs control over cross border e-commerce for better connectivity, further integration of regional economy and modernize MSMEs. These are instructions that need a response from the APEC Economies.

Additionally, in the meeting, Deputy Director General of Vietnam Customs Vu Ngoc Anh presented the second meeting of the Customs Sub-Committee (SCCP2) summary report. Accordingly, the SCCP reached a consensus on common actions such as the implementation of the Trade Facilitation Agreement (WTO); improvement of Single window system that aims to strengthen the capacity of Customs officials in order to establish and implement a sustainable single window; Free Trade Area of the Asia Pacific Region (FTAAP); Promoting e-commerce; Simplified procedures of rules of origin (ROO); Capacity building among member economies to exchanges best practices and experiences in order to develops national legal framework for authorized economic operator sector (AEO); Strengthening cooperation between public and private sectors, Customs and businesses.

SCCP stressed its collaboration with other APEC sub-fora, working groups and with external stakeholders. SCCP positively participated n the A2C2; EGILAT workshop; and IPEG workshop. SCCP encouraged members to continue working with internal and external stakeholders in ACBD, TFA, and other relevant areas.

Therefore, to help SCCP fruitfully implement its objectives of trade facilitation and supply chain security, SCCp seeks for CTI member’s and CTI Chair’s support SCC's proposals. Through the proposed activities and SCCP work program in 2017 under the momentum of WTO-TFA, SCCP wishes to contribute to working on the streamlining the CTI priorities.

At the meeting, delegates of member economies made constructive contributions to the reports and the results achieved through the meetings of the sub-committees. Most of the issues were unanimously approved by the chair and members. The revision and comment on activities are aimed at consolidating, improving and addressing the remaining issues in the economies. As well as strengthening the cooperation of members in the implementation of joint projects to improve and facilitate the APEC economies and security overall.