Supply Chain Security Initiatives and Trade Facilitation. Do Security Initiatives Deliver on Their Promises or is it Just Too Much and All Too Soon?

After 9/11 2001, a series of transport security initiatives were adopted, often in haste. Since then, they have multiplied in Europe and the US and spread worldwide in different forms ranging from compulsory public regulations to voluntary private certifications. Very little research has been conducted on the impacts of such schemes on trade and commerce, but economists and businesses can no longer ignore what is likely to remain a priority for a long time: security in supply chains. Are security initiatives impeding trade; or strengthening supply chains?

Apart from increasing public security, these initiatives provide several benefits to private businesses, such as improving supply chain control, mitigating uncertainty, lowering insurance premiums, and standardising customs procedures. However, if done without consideration of business reality, they can substantially increase transaction costs, notably through longer transport times and cumbersome paperwork, and distort trade. Hence, the perspective of trade facilitation should be properly integrated in the design of security initiatives.
 

This conference will present a new comprehensive study on security initiatives by the National Board of Trade in Sweden, bring together world experts to scrutinize evidence concerning costs and benefits of security-chain initiatives, and offer practical and realistic advice on the way forward. The floor will be open to all present to discuss the delicate balance between security and facilitation.

The Report Supply Chain Security Initiatives: A Trade Facilitation Perspective can be found here.

Programme>>

Presentations from the conference:

• Mike Edbury, Director, BERR, UK
• Adrian van den Hoven, Director of International Relations, Business Europe
  
• Joe Kelly, Deputy Director, Capacity Building Directorate, WCO
• Malcolm McKinnon, CEO, SITPRO
• Daniel Mirza, Lecturer, University of Rennes, Research Fellow, CEPII
• Johan Pontén, Analyst, National Board of Trade, Sweden
• Miroslaw Zielinski, Director, Customs Policy, DG Taxud