FSM ASYCUDA World Launch

Distinguished Guest, Ladies and Gentlemen,

Kaselehlie, Mogethin, Ran Annim, Len Wo

It is with great pleasure that I extend my sincere congratulations to the Government of the Federated States of Micronesia for successfully digitizing its customs management system by implementing the ASYCUDAWorld system. 

To the team that worked hard over the last two years … well done! 

In today’s world of rapid globalisation, efficiency through digitalisation in customs and trade processes is imperative for Small Island Development States like FSM to leverage international trade and not be left behind. 

FSM becomes the 14th country in the Pacific Region to have adopted ASYCUDA.  FSM is also now one of 103 countries and territories to benefit from this system. ASYCUDAWorld will help FSM align its procedures to global standards, facilitating increased trade with the region and internationally. 

In January this year, the Republic of Palau and UNCTAD also launched the ASYCUDAWorld system. I understand that by mid-March, after two months of implementation, Palau witnessed an astonishing 53% increase in customs revenue, compared to the same period last year. The system has also shown tremendous results with collecting accurate trade statistics and reduced the clearance time enabling evidence-based decision-making capacity for senior government officials.

In particular, ASYCUDAWorld is known to increase the efficiency and transparency of governance and also generate trade data that can be used for economic analysis and management. It also enables paperless trade and reduce carbon emissions by cutting down face-to-face interactions, reducing the average time and costs by 37%. Now, businesses will require little to no travel to the customs offices.

The United Nations strongly supports initiatives that accelerate our progress toward achieving the global SDGs. Digital advancements are key to delivering the green transition. This means supporting the global efforts toward protecting our home the Blue Pacific, and the world. 

Certainly, climate change and unprecedented global crises like COVID-19 will continue to affect the people, cause economic losses and aggravate the intrinsic vulnerabilities of Small Island Developing States like FSM. 

SIDS such as FSM also face the ‘tyranny of distance’ due to the large distances between markets, which increase associated trade costs. These costs are among the highest in the world and limit FSM’s participation in regional and global trade. The import to export ratio is not favourable for Pacific Island countries and they experience record trade deficits with the rest of the world. 

Digitalisation work such as this will reduce costs associated with international trade by changing how the Pacific Island Countries trades. This will also enable inclusiveness in the trade sector such as for outer islanders.

We all know that customs plays a crucial role in supporting the economic competitiveness as well as protecting the community, environment and country. Enhancing the capacity of customs will facilitate trade, reduce costs and promote the nation’s economy. 

I am therefore pleased to note that UNCTAD has partnered with many administrations in the Pacific, and continues to do so through the European Union supported IMPACT project. I am also pleased to note that it has enabled technical assistance to meet global trade agreements and standards, streamlined customs processes and deployed the latest iteration of its ASYCUDA system.

Last but not least, I once again congratulate the Government of the FSM for this accomplishment as well as the UNCTAD and the EU partnership for transforming Pacific customs and trade. 

Let’s join hands in stepping into the digital era. One that is enabled by ASYCUDA. 

Thank you