Background of Trade FacilitationInternational trade has beenchanging it trade landscape ever since the Free Trade Agreement being imposed.These leaves the movement of goods across border to be massive. As a result, customwhich have many red tapes and bureaucratic delays were unable to make clearanceon time causing even more traffic on the queuing of being release. Trade costwill also increase in which brings disadvantages to suppliers.
Thus, MinisterialConference in Singapore in 1996 brought up these issues. In 2004, WTO formallyagreed to negotiate on trade facilitation which touch on improving relevantaspect in GATT 1994. The accelerating of the movement with the help of technicalassistance and support for capacity building that will enhance the quality ofcustoms or other relevant authority. Later during Bali Ministerial Conferencein December 2013, a Preparatory Committee on Trade Facilitation was formed and after5 years of members completing domestic ratification, Trade FacilitationAgreement was established (World Trade Organization, 2017). Ever since the issue being raise, manycountries were preparing to reduce the non-tariff barriers within the supplychain of the international trade. Ismail &M. Mahyldeen, mentioned about improving infrastructure as a means of tradefacilitation that will increase agriculture and manufacturing exportation,(2015). The articles touches on trade cost that exist apporximately 170%; 21%from transportation, 44% from border related trade barriers and 55% fromtrading partners distribution (Ismail & M.
Mahyldeen, 2015).Focusing on agriculture however, different type of agriculture requiredspecific condition to keep it fresh as well as different procedure forquarantien inspection for health and safety of the nations when reached to itdestination. This is especially for aquatic agriculture which was not clarify.Thus, shrimp exportation in Thailand and Vietnam will be the investigation inthis research. Plus, due to the complexity of trade facilitation that involveswith trade partners and multi-dimensional of trade facilitation, this researchwill focus on infrastructure design to improve the efficiency of borderprocedure.
1.2. Thailand and Vietnam exportationShrimp have been a major exports inAsia. Thailand has been the leading shrimp exporters according to Kagawa, (2003) while Vietnam has been enhancingtheir shrimp exportation. In 2014, Portley statedthat Thailand has exported 74% of shrimp production to USA, Japan and EU (2016).
According to VASEP, the exportation of Vietnam’s shrimp has increase to 40% inChina, 27.4% in South Korea and 35.2% in Japan ( (Viet Nam News, 2017).These have proven that shrimp production is part of countries net exporter whichleads to economic gain.