1. 1 >>> www.cotecna.com UNECE Executive Forum 2004 « Competing in a Changing Europe » European Union New Frontiers : New Issues!! John Broadhurst Vice President

2. 2 >>> www.cotecna.com > Expansion of Europe > EU-Mediterranean Basin Free Trade Area > Addressing security and trade facilitation issues New Frontiers : New Issues!!

3. 3 >>> www.cotecna.com > The borders moved « out » > New trade security & trade facilitation issues > Increase in trade transactions > Need for advance information > Dissemination of advance trade data The expansion of the EU has implications for trade security and trade facilitation…

4. 4 >>> www.cotecna.com > Advance Cargo Information > EU-US Container Security Agreement > Working toward common data standards > WCO Integrated Supply Chain Management Guidelines > Single Window Concept - UNECE > Secure actors (“approved economic operators”) > Container security technology …- the EU is taking action.

5. 5 >>> www.cotecna.com > EC D-G for Energy and Transport identified three key security risk categories: > Threats to key infrastructure > No common security standards > No co-ordination or control of national activities Is this “good” enough?

6. 6 >>> www.cotecna.com > Moving out the borders (again) > Securing new borders (again) > Dismantling Customs duties > Advance Cargo Information > Information sharing Barcelona treaty (1995) for EU-MED Free Trade Area.

7. 7 >>> www.cotecna.com > Container security > Secure trade lanes > Threat Identification / Detection > Security Technology The EU-US Agreement opens the opportunity for technology, knowledge and information sharing! Private industry addresses threats to trade security…

8. 8 >>> www.cotecna.com Container Security HIGH LOW Trade Facilitation LOWHIGH ! X GO SLOW …with the ultimate goal being trade facilitation within a high security trade environment.

9. 9 >>> www.cotecna.com > The innovative Trade Network (ITN) is just one of the new industry initiatives > ITN = High Facilitation + High Security > ITN is an open systems solution > Industry partners with complementary skills and capabilities And industry has responded with…

10. 10 >>> www.cotecna.com > BV Solutions Group > Calspan UB Research Center > Cargill > Cotecna > FreightDesk Technologies > General Dynamics > Honeywell > Transcore …the Innovative Trade Network (ITN).

11. 11 >>> www.cotecna.com Physical Controls & Data Validation Physical verification Sealing, tracking, custody Visible security presence Risk Management Fusion, sort, organize, harvest data Anomaly identification Contraband discovery Data Clearinghouse Near real-time data Global business model Global crisis response platform …= end-to-end security controls… The building blocks of the ITN trade Security process…

12. 12 >>> www.cotecna.com > Validation of container contents prior to sealing > 24 hour accurate advance manifest information > Validation and monitoring of containers in transit > Detection and reporting of tampering > Data clearinghouse accessible to all end users > Accurate and timely cargo information > Save time and money ultimately …represents an end-to-end supply chain security solution.

13. 13 >>> www.cotecna.com > The experience gathered from pilot projects is a basis for developing trade security standards: > Two ITN pilot trade lanes – Japan & Germany > Cotecna participating with others – Brazil, Singapore, Turkey, China, & Africa > ITN has been nominated Category A Liaison with ISO/TC8 Developing trade security standards is part of the process.

14. 14 >>> www.cotecna.com > A global solution with significant benefits for emerging and developed economies, > Represents an open platform for all stakeholders, > Provides proven test bed for trade security technology implementation, > Solution that enables transatlantic trade security and trade facilitation cooperation, and > Will address trade security and trade facilitation for the EU-MED and beyond (2010+)… The ITN solution: