Better Borders for Trade, Traceability and Enforcement

Trade facilitation, supply chain traceability and economic security are becoming increasingly interconnected as governments introduce new environmental, social and resilience-related requirements for traded goods. Border processes must now support not only efficient trade flows but also the collection, verification and transmission of information on product origins, production methods and supply chains. This report examines how prepared OECD economies are to use trade facilitation systems to support evolving traceability-related requirements while minimising costs and complexity for businesses. It finds significant gaps between regulatory ambition and operational readiness. Fewer than 20% of new environmental and social-related requirements are designed with comprehensive border implementation in mind, while only 55% of environmental lifecycle requirements are addressed. The report highlights the importance of digitalisation, interoperability, inter-agency co-operation and international co-operation to strengthen compliance, supply chain resilience and efficient cross-border trade.