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Directorate for Public Governance

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Global Trade Without Corruption

Fighting the Hidden Tariff

This report provides an analytical framework for studying integrity in trade, combining insights from OECD work on trade facilitation, responsible business conduct and integrity in customs. It provides data and evidence supporting the view that trade facilitation and integrity are mutually supportive objectives, and suggests measures to effectively tackle corrupt practices affecting global supply chains.

Published on October 17, 2017

TABLE OF CONTENTS

Foreword
Acronyms and abbreviations
Executive Summary
How trade is shaping the world today
The issue: The cost of corruption hampering trade
Mapping integrity risks in the global supply chain
The twin devils of corruption and illicit trade
Towards integrity strategies for clean trade
Measures to promote integrity in global trade
References
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Key findings

1

Implementation of trade facilitation measures arising from the WTO Trade Facilitation Agreement could reduce trade costs by 11.8% for OECD countries.

2

Implementing appropriate governance structures, accountability mechanisms and integrity policies in customs administrations alone has the potential to reduce trade costs by up to 1.1%.

3

To effectively address lack of integrity in international trade, a risk-based approach to promoting integrity is required, combined with ongoing dialogue with relevant stakeholders outside government.