The Challenge

Customs administrations across Latin America and the Caribbean face the dual challenge of securing borders while facilitating growing volumes of legitimate trade. Although many countries had established Authorized Economic Operator (AEO) programmes, these operated largely in isolation. Without mutual recognition across borders, trusted exporters could not fully benefit from their investments in compliance and supply chain security, and Customs authorities missed opportunities to focus controls on higher-risk trade. While bilateral AEO agreements were proliferating globally, their practical implementation, and therefore impact on businesses, was limited.

 

What We Did

The Alliance supported 11 customs administrations in Latin America and the Caribbean to design, implement, and begin measuring the world’s largest Regional AEO Recognition Arrangement by:

  • Facilitating alignment of national AEO programmes with the WCO SAFE Framework through joint site validations and peer reviews across all participating countries.
  • Supporting the negotiation and signing of a single multilateral Regional AEO Arrangement in May 2022, replacing the need for multiple bilateral agreements.
  • Building institutional capacity by training nearly 200 Customs officials on AEO validation methodologies, including innovative remote validation techniques during the COVID-19 pandemic.
  • Supporting operational implementation through common data exchange protocols, monitoring tools, and national AEO management systems, including the launch of a fully digital system in Paraguay.
  • Leading the first systematic effort to measure the real-world implementation of a mutual recognition arrangement, focusing on utilisation rates, Customs selectivity, and clearance times.
  • Conducting extensive public–private outreach, reaching more than 5,000 private sector stakeholders to explain how the arrangement works and how exporters and brokers can access its benefits.

 

The Impacts

The project delivered landmark results for regional trade facilitation:

  • 11 Customs administrations established a shared framework to recognise trusted exporters across borders, strengthening regional integration and coordinated border management.
  • Preliminary data showed that AEO shipments under the arrangement received significantly higher green-channel treatment and faster clearance, with clearance times in some countries cut nearly in half.
  • For the first time globally, a regional group of Customs administrations agreed on common indicators to monitor the implementation and impact of a mutual recognition arrangement.
  • Trust, cooperation, and peer learning among Customs authorities deepened, creating a sustainable platform for future collaboration.

By moving beyond signature to implementation and measurement, the project demonstrated how regional cooperation on trusted trader programmes can deliver real benefits for businesses and Customs alike—and set a global benchmark for how mutual recognition arrangements can be made operational and accountable.

 

Early Closure

In January 2025, a Stop Work Order from the U.S. Department of State led to the withdrawal of USAID funding, closing the project earlier than planned. While this curtailed planned activities, the project demonstrated how regional cooperation on trusted trader programmes can deliver real benefits for businesses and Customs alike—and set a global benchmark for how mutual recognition arrangements can be made operational and accountable.