Analysis of the cross-border paperless trade mutual recognition cases and attributes for a cross-border mutual recognition arrangement

Abstract

Even with the increasing implementation rate of overall trade facilitation measures, crossborder paperless trade measures implementation rate has been lowest. Emerging cross-border ecommerce platforms has enabled electronic transactions hence opening a new chapter of international trade. However, the electronic means used by the private economic operators in international trade are not recognized by the public sector. The new UN Framework Agreement on the Facilitation of Crossborder Paperless Trade (2016) is one of the initiatives to overcome this barrier. However, this treaty does not provide any specific mutual recognition model yet. This study aims to analyze a common structure and attributes that compose a cross-border mutual recognition scheme and help policymakers and practitioners establish adequate mutual recognition arrangement (MRA). From the literature review and the analysis of actual MRA cases, the study identified six attributes: normative sources, mutual recognition methods, technical possibility,
management/control possibility, trust mechanism and coverage of recognition service. By applying different combinations of these attributes, MRA models with different characteristics and levels could be generated.