Trade facilitation – transparent, predictable and straightforward border procedures that expedite the movement of goods – promises large gains domestically and globally. In a globalised world, where production is spread across countries and goods cross borders many times before reaching consumers, trade facilitation is essential to lowering trade costs and increasing economic welfare. Efficient border procedures allow firms to reduce losses of perishables, cut inventory costs, be more responsive to changing consumer preferences, and participate in time-sensitive global value chains. The OECD Trade Facilitation Indicators (TFIs) provide a powerful tool to assess these gains and to monitor worldwide efforts to improve border procedures, reduce trade costs, boost trade flows, and contribute to inclusive growth. They are the most precisely targeted instrument for monitoring and benchmarking country performance on trade facilitation across more than 160 countries.

Trade facilitation – transparent, predictable and straightforward border procedures that expedite the movement of goods across borders – is becoming ever more important in an increasingly interconnected global economy. In a globalised world, where production is spread across countries and goods cross borders many times before reaching consumers, trade facilitation is essential for lowering the costs of trade. Keeping the costs of trading low is an important part of making trade work for all: trade facilitation helps more – and smaller – firms to participate in trade and more consumers to benefit from lower prices, higher quality and a greater range of goods.

This chapter discusses the role of trade facilitation in the global economy: what it means and why it matters. It introduces the OECD Trade Facilitation Indicators (TFIs), a set of leading edge tools to assist policy makers in identifying, prioritising, and reaching their trade facilitation objectives. It concludes with a short overview of the publication.