Trade facilitation in Latin America and the Caribbean: formalities, infrastructure and logistics

International trade is subject to a great many documentation requirements, in addition to goods inspection procedures and the payment of various duties and charges. Taken together, these formalities can considerably delay and increase the cost of export, import and transit operations. For example, Gerzee (2022) notes that the documentation required for an individual shipment by sea may involve the exchange of 50 sheets of paper between up to 30 actors, such as exporters, importers, customs, port and sanitary authorities, customs brokers and carriers, among others. The costs in time and money created by cumbersome or duplicative procedures are particularly significant for trade associated with international production networks, which involves multiple border crossings for inputs, parts and components as well as final goods. In this context, trade facilitation has become increasingly prominent on public policy agendas around the world, especially since the World Trade Organization (WTO) Agreement on Trade Facilitation came into force in 2017. The major disruptions to global supply chains caused by the coronavirus disease (COVID-19) pandemic also highlighted the need to ensure that essential goods could move easily across borders.

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