This chapter explores how specific border measures affect trade and the functioning of supply chains and what policy makers can do to optimise their operation. What are the trade facilitation policies and measures that have the strongest impact in reducing trade costs and enhancing trade flows? Which policies and measures matter most for boosting country participation in global value chains? The assessment focusses on the impact of trade facilitation measures on developing both the supply and the demand side of value chains.

A full and swift implementation of the WTO Trade Facilitation Agreement (TFA) has the potential to generate important global economic benefits but quantifying these poses serious challenges. This chapter draws on analysis using the OECD METRO model to document the channels through which trade facilitation reforms can benefit the global economy and the distribution of those potential benefits across country groupings and sectors over the short and longer term. Impacts on labour income and employment and welfare over the longer term are also explored.