ICC and WCO release trade facilitation recommendations for enhanced integrity at borders

US$1.2 to US$1.5 trillion. That’s the staggering annual cost of bribery alone – equal to roughly 2% of annual global GDP. But bribery represents just one facet of corruption’s devastating impact. The true cost runs far deeper, undermining the very foundations of fair trade and economic growth by eroding institutional trust, distorting competition, and creating artificial barriers that stifle opportunity for businesses worldwide. Corruption thrives precisely where trade facilitation is most needed: in complex, opaque environments where procedures span multiple government agencies and discretionary decision-making creates opportunities for abuse. Micro-, small- and medium-sized enterprises (MSMEs) and women-owned businesses are particularly vulnerable in these settings, as they often lack the resources to navigate burdensome procedures or absorb the added costs of informal payments.

However, trade facilitation – the simplification and harmonisation of international trade procedures – can be a powerful lever for combatting corruption, according to a new joint paper from the World Customs Organization (WCO) and International Chamber of Commerce (ICC).

How does trade facilitation limit corrupt practices?

By reducing complexity and increasing transparency, trade facilitation limits opportunities for illicit practices. When properly implemented, these measures create an environment where corruption becomes both harder to carry out and easier to detect.

Digitalising border processes to reduce human intervention and establishing clear and transparent regulatory frameworks that limit discretionary decision-making are concrete trade facilitation measures that strengthen integrity. Public-private partnerships play an essential role by promoting collective action and reinforcing the implementation of integrity-focused reforms.

These efforts must be grounded in the World Trade Organiztion (WTO) Trade Facilitation Agreement and the WCO Revised Kyoto Convention, which provide a critical foundation for strengthening integrity, promoting transparency, limiting discretion, and supporting more predictable and rules-based border procedures.

However, border practices in many countries remain in urgent need of trade facilitation reforms . Take export licensing, for example: in some cases, companies must visit multiple government offices to have paper documents stamped – a time-consuming and costly process. When officials arbitrarily demand additional documentation, it creates fertile ground for corruption, where officials can demand facilitation payments while businesses feel pressured to comply simply to expedite processes.

While trade facilitation serves as a powerful anti-corruption tool, it is not without risks and limitations. These measures can face challenges including data manipulation in digitalised systems, cybersecurity threats, internal corruption risks, and resistance to technological adoption. To address these vulnerabilities, both Customs authorities and businesses must implement comprehensive approaches that include robust governance structures, regular audits, cybersecurity protections, and training programs. Public-private partnerships through National Trade Facilitation Committees and chambers of commerce are essential for building trust and creating effective enforcement strategies that address both the supply and demand sides of corruption.

Trade facilitation in action

Forward-thinking companies are adopting practices aligned with tra principles as anti-corruption tools. Some firms require their business units to take practical steps to reduce the risk of solicitation, including through digitalising sensitive transactions and engaging legal support when attending meetings with parties that present a higher risk of solicitation.

Other businesses mandate the use of electronic communications or e-government solutions in areas such as licensing, procurement and taxes to reduce face-to-face interactions with public officials and minimise connected risks of bribe solicitation.

Similarly, some countries that embrace digitalisation have seen remarkable outcomes. For example, in Guatemala a project supported by the Global Alliance for Trade Facilitation digitalised ship arrival and departures procedures through the National Single Window (VUMAR), reducing processing times by 85% and eliminating the need for multiple in-person visits. This reform made all these transactions traceable and verifiable, demonstrating how digital trade facilitation can reduce opportunities for corruption by replacing paper-based processes with more transparent and accountable procedures.

Actionable recommendations for Customs and business