Trade Facilitation

Description

According to the latest World Bank’s Logistics Performance Index (LPI) (2012) which measures countries’ trade logistics efficiency, Brazil improved 16 positions to 45th from 2007 to 2012, which is mainly as a result of better tracking and tracing of consignments. Its overall performance is better than the average of the comparable region and income level. However, the challenges remains in the lack of efficiency of the clearance process by border control agencies, including customs. For example, prices for port services vary from port to port; private terminal prices are not subject to the government’s control; and shipping companies must submit more than 100 documents to more than 20 institutions in order to carry out operations (WTO 2013). Given that around 90 per cent of Brazilian exports are carried by sea and that its international trade has been expanding, the capacity and operational constraints that the country’s ports have been facing are serious. According to the World Bank Doing Business Report (2013), exporting and importing one standard container of goods costs USD 2,215 and USD 2,275 respectively in Brazil, which are higher than the regional average of USD 1,283 and USD 1,676. The government has allocated USD 5 billion for improvements in port infrastructure, port logistics, and passenger terminals since 2007, in addition to implementing a program for simplifying these port procedures. The OECD also measures the performance of trade facilitation in Brazil and highlighted that in general, Brazil performs better than the averages of Latin America and the Caribbean and upper middle income countries, whereas its performance for internal border agency co-operation is below the averages of those countries (OECD 2013).

Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)

Note: Source: World Bank, 2012

Logistics Performance Index – Evolution
Source: World Bank, Logistics Performance Index (LPI)

Note: Source: World Bank, 2012