Gearing up for Trade—Evaluating Australia's Contribution to Trade Facilitation in South East Asia and the Pacific
| Author | Kanupriya Negi,Peter Van Diermen,David Goodwins |
| DOI | 10.1177/1035719X1701700106 |
| Published date | 01 March 2017 |
| Date | 01 March 2017 |
| Subject Matter | Practice Article |
P R A C T I C E A R T I C L E Evaluation Journal of Australasia Vol 17 | No 1 | 2017 | p p . 3 9 – 5 0
daVid goodwinS | KanUPRiya negi | PeTeR Van dieRmen
Gearing up for trade—Evaluating
Australia’s contribution to trade facilitation
in South East Asia and the Pacific
Trade facilitation refers to the simplification and harmonisation of international trade
procedures to assist the movement of goods. It is a key factor for international trade efficiency
and the economic development of countries. It has gained world prominence and recognition
under the World Trade Organization’s (2015) Trade facilitation agreement. Trade facilitation
obstacles are now considered bigger barriers to trade than tariffs and quotas. Developing
countries are increasingly looking at trade facilitation measures to enhance administrative
efficiency and effectiveness, reduce costs and time to markets, and increase predictability in
global trade. But how is Australia positioned to assist countries with this transition?
The Gearing up for trade evaluation assessed the effectiveness of Australia’s support for trade
facilitation in Asia and the Pacific, and examined whether the investments have assisted partner
countries to better integrate with regional and global economies. The evaluation focussed
on four major Department of Foreign Affairs and Trade (DFAT) trade facilitation investments
and found that they have been effective in addressing capacity issues, encouraging pro-
poor outcomes, and exemplify good global practice. To assist with future programming, the
evaluation recommended some practical improvements to the DFAT program and investment
managers in the use of integrated approaches, private sector engagement, gender equality and
women’s economic empowerment, and monitoring and evaluation.
an introduction to aid for Trade (afT) and trade facilitation
There is a common misconception that AfT means providing international aid in exchange for increases in trade. AfT is
actually about helping developing countries to build trade capacity and infrastructure to enable them to benefit from trade
opportunities. AfT investments1 are designed to address the internal barriers to trade in developing countries. These barriers
are classified according to three key themes (OECD, 2016):
1. trade policy and regulations, including trade facilitation
2. economic infrastructure such as transport, storage and communications, and
3. building the productive capacity of the private sector.
Global initiatives around AfT provide a framework for helping developing countries participate in international trade
and improve the benefits for the poor and disadvantaged. Australia has set a target of increasing AfT expenditure to 20
per cent of Australia’s aid budget by 2020. During 2015–16 it is estimated that Australia provided a total of $698 million
G o o d w i n s, Ne g i , va n D i e r m e n — G e a r i n g u p fo r t ra d e — Eva l u at i n g Au s t ra l i a’s co nt r i b u t i o n to t ra d e f a c i l i t at i o n i n S E A s i a a n d t h e Pa c i f i c
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Figure 1. Research Framework
P R A C T I C E A R T I C L E
David goodwins is Senior Principal at Coffey
Kanupriya Negi is Assistant Director, Office
Peter van Diermen is Managing Director,
International Development, Adelaide.
of Development Effectiveness, Department
Economic Development Services, Adelaide.
Email: David.Goodwins@coffey.com
of Foreign Affairs and Trade, Canberra.
Email: petervandiermen@edsfirst.com
Email: Negi.Kanu@dfat.gov.au
of Official Development Assistance to support AfT
investments or improving productive capacity. In terms
initiatives in the Asia-Pacific region.
of trade cost reductions per unit of expenditure, reforms
In July 2015 the Australian Government, through
to customs and border administration and other ‘soft’
DFAT released its AfT strategy (DFAT, 2015). The
measures are the ‘low-hanging fruit’ of trade facilitation,
strategy recognises the role of AfT initiatives in improving
offering the greatest gains for the least cost (Humphries,
the economic conditions of developing country partners.
2014). These investments can therefore result in
It establishes an overarching framework to ensure
potentially large gains representing good value for money.
investments are effective, meet the needs of developing
country partners, and align with Australian interests.
evaluating trade facilitation
Trade facilitation comes under one of eight priority areas
for investments for Australia under the AfT strategy.
The objective of this evaluation was to evaluate the
Trade facilitation and related assistance is targeted
effectiveness of Australia’s recent support for trade
at predominantly ‘at the border’ initiatives. It is defined
facilitation investments including the extent to which they
as all activities and efforts that remove obstacles to the
have improved the capacity of the recipient government,
movement of goods and services across borders, and
enhanced international trade and promoted gender equality.
any other technical assistance or capacity-building
The lessons learnt from this evaluation will inform future
projects and programs that enhance or facilitate trade.
investment designs, with a specific reference to improving
This includes: simplification and harmonisation of
women’s leadership and economic empowerment, and help
international trade procedures, including import
improve performance measurement.
and export procedures (customs valuation, licensing
The focus and scope of this evaluation was developed
procedures, transport formalities, payments, insurance);
in consultation with the key stakeholders, and is limited
support to customs departments; tariff reforms; sanitary
to trade facilitation and technical assistance and related
and phytosanitary measures; and regulatory reform.
systems, policies and regulations of DFAT’s recent Asia-
Trade facilitation and related assistance is important
Pacific investments. The key evaluation questions developed
because it directly affects a country’s ability to participate
based on the evaluation’s objectives were:
in international trade. Focussing on these areas can
1. How and to what extent have DFAT investments in
provide opportunities for trade by improving market
trade facilitation affected the capacity of the partner
access, or addressing critical bottlenecks that may
countries to increase international trade?
restrict trade and increase transaction costs. Moreover,
2. To what extent have the relevant DFAT investments led
this area also benefits from requiring relatively small but
to positive changes in achieving the partner country’s
carefully targeted investments compared to infrastructure
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E v a l u a t i o n J o u r n a l o f A u s t r a l a s i a Vo l 1 7 | N o 1 | 2 0 1 7
P R A C T I C E A R T I C L E
broader economic and development goals? Is there
trade negotiations and supports related stakeholder
evidence to suggest this?
consultations at regional and national level.
3. How do DFAT-supported trade facilitation
Other DFAT interventions were reviewed to draw on
investments compare with international good
any findings that support or contradict findings from
practice?
the in-depth studies. The evaluation examined how
the interventions address gender equality and women’s
To address these questions relevant investments and
economic empowerment. Case studies selected also
available sources of data were identified to provide the
provided insight and lessons for poverty reduction and
basis for the research. Overall there were 24 major DFAT
economic growth.
investments examined with four investments selected
for in-depth case studies. To support this evaluation,
Evaluation methodology
relevant qualitative and quantitative data were sourced
from a wide range of sources. These are illustrated in the
The general approach to this evaluation is theory-based
research framework (see Figure 1).
while also examining implementation processes, capacity
The evaluation used an in-depth analysis of four key
and coordination. The research methods used are
DFAT investments listed below. These four investments
predominantly qualitative supplemented by quantitative
were chosen because: they are considered strategic
data where available. Given the breadth and depth
priorities for Australia; have sufficient data and resources
of AfT initiatives across the region, and the limited
available to conduct an evaluation; and have strong
resources and time available to conduct the evaluation,
components of trade facilitation and related assistance.
a convergent parallel mixed method design (Creswell &
In addition these investments operate in the regions that
Plano Clark, 2011) was adopted based on the selected
Australia considers a priority—Asia and the Pacific.
case studies. This is a pragmatic approach which aims
to collect qualitative and quantitative data in parallel,
1. ASEAN–Australia and New Zealand Free Trade
merging the results into an overall interpretation to
Agreement Economic Cooperation Support Program
address the objectives of the evaluation. The evaluation
(AANZFTA AECSP) 2010–2018—an AUD27.5
is guided by a theory of change which is based on and
million five-year program to help build the capacity
adapted from the program logic provided in DFAT’s AfT
of ASEAN countries to access the benefits of
strategy (2015)...
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