Case study 3: trade facilitation in the GMS[7]
• Challenge 4 (cross-border cooperation)
• Challenge 6 (landlocked status)
• Challenge 7 (hard and soft infrastructure)
The GMS provides an example of an integrated approach to trade facilitation in Asia,
which has already improved outcomes for logistics operators. Connectivity in that
region is particularly important for two reasons. First, it facilitates linkages with the
PRC, a regional giant. Second, it has the potential to significantly promote international
trade, as well as international trade more broadly. That point is particularly true for
landlocked Lao PDR, which depends on transit arrangements with other countries to
bring its goods to international markets and to have access to important imports, such
as capital goods and intermediate inputs, as well as human development products
such as medicines and vaccines. The GMS is a good example of the fact that logistics is
by its very nature a cross-border activity in much of the Asia-Pacific, which means that
governments need to cooperate in adopting an integrated approach covering both
“hard” (infrastructure) and “soft” (regulations and procedures) aspects.