Point of View

The role of the private sector in policy formulation in the americas and the caribbean

28 October 2025
By Erik Moncayo, Chair of the Regional Private Sector Group for the Americas and the Caribbean (GRSP)

The role of the private sector within the WCO

The Private Sector Consultative Group (PSCG) is an essential component of the institutional architecture of the World Customs Organization (WCO). This consultative body was established to ensure that businesses have a structured voice in policy formulation within customs administrations, thereby strengthening international trade. The PSCG exists to remind us that international standards are not an end in themselves, but a means to facilitate trade and make it more secure, reliable, and efficient.

International trade is not uniform; the needs of an exporter in Asia can differ significantly from those of a logistics company in the Caribbean or the Americas. For this reason, it is crucial to create mechanisms that capture these differences. Recognizing this reality, the PSCG promoted the creation of Regional Private Sector Consultative Groups (GRSPs).

While the PSCG operates in Brussels and focuses on global policy matters, regional groups work closer to local realities. The Regional Private Sector Group (GRSP) for the Americas and the Caribbean is a prime example of this approach. Its mission is to localize the global agenda in the region — to collect the experiences of local businesses and associations, identify the specific challenges of cross-border trade, and convey them to both the PSCG and national customs administrations.

The PSCG serves as the global bridge, while the GRSP acts as the localized voice of the private sector, reflecting the economic and operational realities of the Americas and the Caribbean. Its work involves translating global decisions into local action, while also feeding regional experience back into international dialogue.

Main challenges in the region

Trade in the Americas and the Caribbean continues to face structural challenges that affect its competitiveness and the effectiveness of facilitation policies. Border infrastructure deficiencies remain a major limiting factor. In several countries, land and maritime border crossings operate with limited capacity, generating bottlenecks and additional delays in the clearance of goods. According to the World Bank, logistics costs in the region can reach up to 30% of a product’s value, three times higher than in developed economies. This underscores the need for continued investment in connectivity and operational efficiency.

The level of customs digitalization is also uneven. While countries such as Chile, Mexico, Panama, and the Dominican Republic have fully operational and, in some cases, interoperable Single Windows for Foreign Trade (VUCE), others still rely on manual or partially automated processes. This technological diversity limits traceability, interoperability, and coordinated risk management. However, it has also driven the search for more integrated and sustainable regional solutions.

Cross-border coordination remains another key challenge. Regulatory and technological differences between countries hinder the harmonization of procedures and the interoperability of IT systems, especially along the land corridors of Central America and the Southern Cone. Despite these challenges, the region has advanced in adopting international standards promoted by the WCO, such as the SAFE Framework of Standards, the Revised Kyoto Convention, and the WCO Data Model, which together provide a common foundation for strengthening cooperation and trade facilitation.

Strategic objectives and focus areas of the GRSP for the Americas and the Caribbean

The Regional Private Sector Group (GRSP) for the Americas and the Caribbean focuses its work on four strategic areas: trade facilitation, customs transparency, digitalization and interoperability, and the strengthening of Authorized Economic Operator (AEO) programs.

Through these initiatives, the GRSP seeks not only to represent private sector perspectives but also to propose concrete and practical solutions to strengthen the implementation of WCO instruments in the region.

Trade facilitation

The GRSP works closely with customs administrations across the region to monitor the implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA), identifying progress and opportunities to reduce time and costs. This collaboration has helped promote document simplification, inter-institutional coordination, and risk management, resulting in more agile, efficient, and predictable customs processes.

Customs transparency

Encouraged by the WCO, the GRSP promotes the use of the Time Release Study (TRS), a tool that allows administrations to objectively measure clearance times and identify operational bottlenecks. As a result, several countries have implemented reforms that significantly reduced clearance times, strengthening mutual trust between the public and private sectors.

Digitalization and interoperability

The integration of Single Windows for Foreign Trade (VUCE) is another strategic priority. The GRSP supports regional cooperation to harmonize technological and regulatory processes, promoting interoperability among national systems. Interoperability has been shown to reduce costs, speed up operations, and improve the traceability and transparency of logistics chains. The GRSP also encourages the adoption of electronic signatures, data exchange systems, and emerging technologies as tools to enhance efficiency and security.

Authorized Economic Operator (AEO)

The strengthening of AEO programs is a strategic priority for the region, which currently includes more than 7,000 certified companies, reflecting sustained growth over the last decade. Participating companies report benefits such as fewer inspections, priority clearance, and greater operational predictability. Nonetheless, challenges remain in harmonizing certification criteria, promoting program benefits, and integrating small and medium-sized enterprises (SMEs). The GRSP supports the consolidation of Mutual Recognition Arrangements (MRAs) and encourages the inclusion of new participants through training, technical assistance, and cooperation with customs administrations.

Building trust and understanding between customs authorities and the private sector

The Regional Private Sector Group (GRSP) for the Americas and the Caribbean operates under a collaborative governance model that promotes continuous dialogue between the private sector and customs administrations across the region. The group holds regular virtual meetings among its members, as well as semi-annual forums with Directors General of Customs, business associations, and international organizations to identify common priorities and gather feedback from members.

The GRSP also organizes specialized virtual seminars that bring together customs authorities, business representatives, and international experts to address key topics such as trade facilitation, regulatory compliance, transparency, and integrity.

Each year, the group organizes the Joint Customs–GRSP Forum for the Americas and the Caribbean, in cooperation with the WCO Regional Vice-Chair’s Office. This event has become a high-level platform for exchange of experiences and trust-building between the public and private sectors.

The group also participates actively in the sessions of the Private Sector Consultative Group (PSCG) in Brussels and in various WCO-led initiatives, providing the regional private sector perspective. Among its key contributions are its participation in the review of the WCO SAFE Framework of Standards, discussions on the interoperability of Single Windows for Foreign Trade in cooperation with SIECA, and the promotion of best practices in customs and business integrity.

From this collective work, several key lessons have emerged that guide the future of cooperation in the region:

  • Customs modernization requires sustained public–private collaboration.
  • Digitalization and transparency are essential to achieving efficiency and trust.
  • Global policies must be adapted to local contexts to be effective.

The ongoing collaboration between the WCO, customs administrations, and the private sector, articulated through the GRSP, demonstrates that continuous cooperation is the most effective way to build supply chains that are more secure, competitive, and resilient throughout the Americas and the Caribbean.

More information
https://grspamericas.com/sobre-nosotros/
info@grspamericas.com