SYDNEY – Bribes and hidden trade barriers are costing APEC member states at least US$148 billion in lost economic activity, according to a World Bank report published last week.

The report, released for an Asia-Pacific Economic Cooperation (APEC) summit in Sydney, said some poorer countries could increase trade by a quarter to 50 percent if they could eliminate bad practice.

At the same time, it added, companies also badly need more transparent and predictable rules to reduce the uncertainty of trading.

The World Bank said APEC economies generally had a good record on reducing regular trade barriers such as tariffs but called for more action to address “hidden” barriers and “unofficial payments” or bribes.

The report’s co-author John Wilson said removing the problem would benefit poorer APEC countries the most. “The Philippines’ trade could expand by 25pc, trade in Vietnam could expand by 50pc,” Wilson told reporters.

In comparison, Australian trade would rise less than 4pc.
The World Bank analysis said companies might need to pay bribes to customs agents to ease import and export transactions, adding to the overall cost of doing business.

“In many economies, the flow of goods and services remains hindered by complicated customs regulations, insufficient use of modern technology in customs, the lack of handling and transportation infrastructure, or by other shortcomings,” it said.

APEC’s 21 economies, including China, Japan, the US, Thailand and Malaysia, account for 56pc of world gross domestic product and nearly half of global trade. Myanmar is not a member. – AFP