Definition. The management of international flows of goods, and related documentation and payments, with a focus on reducing direct and indirect logistical costs through the simplification/harmonization of procedures and documentation.

Overview. The availability of high quality and price competitive trade logistics services (transport, warehousing, distribution, information management) is strongly correlated with country competitiveness. Limited availability of such services lead to reduced trade and in turn to even more limited logistics services. Economy of scale in trade logistics can be substantial. The facilitation of trade and transport by government agencies directly impacts the availability of such services.

Regaining trade market share entails a systematic analysis of TTF impediments, using tools such as trade facilitation audits, the measurement of performance enabling cross-country or historical comparisons, and the gathering of those statistics and tools used for cargo and vehicle tracking. Developing countries need active strategies to attract trade logistics services that will allow them to expand, particularly when considering the implications of increased security requirements. Systematically addressing existing bottlenecks stemming from lack of harmonization, complex and non transparent requirement, market access failure will facilitate the access of local companies to global supply chains.

Where to start. An overview by UNCTAD, Compendium of Trade Facilitation, "Forging subregional links in transportation and logistics"

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