India could cut trade costs, boost exports via CPTA: Report
By adopting the Asia-Pacific Framework Agreement on Facilitation of Cross-Border Paperless Trade (CPTA), India can reduce trade costs by up to 25% and enhance export competitiveness. The agreement streamlines trade procedures, lowers logistics costs, and improves regulatory cooperation, benefiting exporters and MSMEs. While India has made domestic reforms, joining CPTA will further integrate India's trade ecosystem digitally without immediate legal overhauls.
A recent report highlights that India stands to significantly reduce trade costs and boost exports by joining the Asia-Pacific CPTA, which promotes cross-border paperless trade—conducting trade through electronic communication to streamline and speed up trade processes. Countries in this agreement benefit from lower logistics costs, improved regulatory cooperation, and simplified customs procedures. Although India has implemented domestic digital reforms like the Single Window Interface for Facilitating Trade and electronic indirect tax handling, it has not formally joined the CPTA as of early 2025. Joining the CPTA would help India overcome remaining challenges related to legal and technical interoperability with partner countries, enable gradual alignment with international standards, and enhance capacity-building. This move is expected to especially benefit exporters and micro, small, and medium enterprises by reducing red tape and increasing operational efficiency. Overall, CPTA accession would deepen India's global trade integration and provide a flexible framework to further digitize and streamline cross-border trade, amplifying India's export potential and cutting trade expenses substantially.
