The Single Window and the TFA: ASEAN’s Best Chance at a Common Rule of Law

Abstract

“Trade facilitation for the ASEAN Economic Community,” reads the mission statement of the ASEAN Single Window (ASW). This moved closer to becoming reality on 1 January 2018 when four of the six pilot Member States – Singapore, Malaysia, Indonesia and Vietnam, officially implemented the use of the Single Window’s first functional module: the electronic exchange of preferential certificates of origin. This is a monumental landmark of an occasion – especially given ASEAN’s reputation as an ineffective, disintegrated alliance. It had been work in progress for so long (the Protocol to establish the ASW was signed in 2013, negotiations commenced much earlier) that sceptics, not few to begin with, were increasingly doubtful of success. But it has happened, which gives the Member States a much needed boost in credibility that they will take trade facilitation seriously. The true test, however, lies ahead. Investors and business operators continue to be frustrated by inefficient customs procedures and weak rule of law which are costing businesses even more than discriminatory tariffs. The WTO’s 2015 World Trade Report estimated that the Trade Facilitation Agreement (TFA), in which most of the ASEAN Member States are also participating, would cut trade costs globally by between 9% and 21% when implemented. By geography, the South East Asian countries other than Singapore leaned in the 21% region. This article identifies the Rule of Law to be a critical common denominator and offers to illustrate how Member States must maximise the involvement of multiple stakeholders, from civil service employees to the private sector, to develop and strengthen the regional Rule of Law to in turn optimise ASEAN’s involvement in the Single Window and TFA.