Why trade facilitation is key to keeping trade flows moving in turbulent times

For millennia, people have crossed oceans and borders to exchange what they produce for what they need. Trade flows are shaped by economic policies, political alliances and, at times, conflict. Yet trade does not disappear; it adapts. Like many forces, it seeks the path of least resistance.

When conducted responsibly, trade has worked well for many parties. It drives production, boosts innovation and fuels competition. In doing so, it benefits consumers and strengthens economies. The global impact is undeniable: between 1990 and 2017, developing countries nearly doubled their share of global exports – from 16% to 30% – while the global poverty rate fell sharply from 36% to just 9%.

In today’s world of growing political polarization and economic uncertainty, trade is once again under pressure. Tariff wars and rising protectionism make headlines, but they’re only part of the story. While some trade is intentionally throttled by tariffs, much of the trade that should be happening – trade that people and businesses want – is still held back by avoidable frictions.

This is where trade facilitation plays a vital role. It pushes trade to adapt by removing the unnecessary obstacles that slow down legitimate flows.

Bureaucratic bottlenecks, outdated regulations, manual processes and cumbersome procedures still act as barriers to efficient trade. These inefficiencies delay shipments, raise costs and reduce productivity. Even as countries seek to diversify trade relationships in response to tariff barriers, they often find themselves constrained by the sheer complexity of border procedures.

And while tariffs hit everyone, inefficient border procedures disproportionately hurt small- and medium-sized enterprises (SMEs). These businesses typically lack the capacity to navigate multiple forms, comply with redundant inspections or absorb long delays. Inhibiting their access to markets discourages entrepreneurship, stifles innovation and weakens economic development.

In some cases, inefficiencies are the result of protectionist policies. But in many developing countries, they stem from capacity or infrastructure gaps rather than deliberate choices. Regardless of the cause, the impact is significant and often overlooked. There may be a moment of shock when countries like Lesotho or Madagascar are hit with high tariffs, yet these same countries often bear far higher trade costs, silently, with little attention paid.

Trade facilitation offers a clear response. By streamlining procedures, reducing paperwork, digitalizing border operations and promoting transparency, it lowers trade costs and improves economic resilience. It helps countries, especially the most vulnerable, adapt to a constantly changing global trade environment.

The Global Alliance for Trade Facilitation exists to help address these challenges. It brings together governments and businesses in a unique public-private partnership. Our model is built on three pillars: public-private partnership, agility and impact.

A public-private partnership approach gives us a strong foundation and a roadmap for success. Every project is based on government buy-in and a commitment to involve the private sector as an equal partner. Currently, 47 global business partners support our initiatives, and we work with 50 multinationals and more than 1,700 local micro, small and medium- enterprises (MSMEs) to strengthen their competitiveness and sustainability in international markets.

Agility is integral to our model. Trade facilitation must adapt swiftly to evolving political and economic conditions. Whether we are working in conflict-affected regions or navigating abrupt regulatory shifts, our agility enables us to keep delivering results.

Finally, our strong emphasis on impact ensures that our interventions translate into real-world benefits. Through rigorous quantitative assessments, we demonstrate how streamlined trade procedures yield tangible gains for businesses and national economies alike.

There’s a saying in the logistics sector: you cannot improve what you do not measure. That is why we prioritize quantifying impact as a core principle. It reflects our commitment to meaningful change.

At its core, trade facilitation is about enabling economic growth, particularly in developing countries. Every improvement – whether it’s reducing customs clearance time or introducing a new digital system – leads to real-world gains. These include lower transaction costs, improved competitiveness, and expanded opportunities for businesses of all sizes.

Our 2024 Annual Report highlights the cost savings achieved through our projects and provides clear evidence of the value our model delivers. From implementing advance rulings in Tunisia to modernizing port procedures in Guatemala, our work consistently shows how collaboration leads to scalable, sustainable impact.

Over the past year, we have worked with over 25 project countries on tailored trade facilitation initiatives, each designed for local needs and contexts. Our completed projects have generated $213 million in trade-related cost savings, representing a 240% return on investment.

We cannot control the political environment or predict how global trade will evolve. But one thing is clear: making trade more efficient will always make sense.

Our Annual Report not only shares our achievements – it reflects our commitment to evolving and adapting to the demands of global trade. We continue to look for new opportunities to strengthen supply chains, enhance transparency and support innovation.

With a flexible yet focused approach, we aim to ensure that trade facilitation delivers practical benefits for businesses, communities and governments everywhere.

Access the full Annual Report here.