In this Lowy Institute Analysis, Nicholas Humphries examines how Australian Customs can increase Australia’s trade competitiveness at a time when goods and services are increasingly produced across borders in so- called ‘global value chains’ (GVC). This Analysis was written as a part of the Australian Customs and Border Protection Services Fellowship at the Lowy Institute.

Key findings

• International trade is now defined by global value chains, in which goods and services are ‘made in the world’ and which encompass the cross-border flows of components, investment, skills, ideas, and people.
• Through the development of an Authorised Economic Operator program, Customs can facilitate greater trade and participation in global value chains, while still providing border protection.
• Without a whole-of-government approach to GVC participation, local industries will struggle to exploit opportunities presented by the new forms of international trade.