1. Australia’s support for trade facilitation programs Findings and recommendations from the ODE evaluation of trade facilitation in South East Asia and the Pacific Presentation by Kanu Negi, Office of Development Effectiveness (ODE), DFAT and David Goodwins, Coffey International Development

2. I.Introduction and background Purpose and scope of the evaluation Key evaluation questions Interventions examined II. Key findings and recommendations Effectiveness of DFAT investments An integrated framework for trade facilitation investments Factors affecting success of trade facilitation investments Strengthening internal coordination and communication Presentation structure

3. Purpose, scope and focus › To evaluate the effectiveness of investments supporting trade facilitation and related assistance including capacity built, trade improvement and gender equality › To better inform future targeting of assistance taking into account gender equality and women’s economic empowerment › Provide in-depth analysis of four DFAT investments but framed by a global perspective of good practice Introduction and background

4. 1.Simplification and harmonisation international trade procedures including import and export procedures (customs valuation, licensing procedures, transport formalities, payments, insurance) 2.Support to customs departments 3.Tariff reforms 4.Sanitary and phytosanitary measures 5.Regulatory reform Trade facilitation and related activities

5. 1.How and to what extent have DFAT investments in trade facilitation affected the capacity of the partner countries to increase international trade? 2.To what extent have the relevant DFAT investments led to positive changes in achieving the partner country’s broader economic and development goals? Is there evidence to suggest this? 3.How do DFAT-supported trade facilitation investments compare with international good practice? Key evaluation questions

6. 1.ASEAN–Australia and New Zealand Free Trade Agreement Economic Cooperation Support Program (AANZFTA AECSP) 2010-2018 – Cambodia and Laos 2.The Trade Development Facility 2 (TDF-2) 2013-2017 – an AUD19.8 million program in Laos 3.Pacific Horticultural and Agricultural Market Access (PHAMA) 2009-2017 – an AUD34.2 million trade facilitation program assists Samoa, Tonga, Solomon Islands, Vanuatu, PNG and Fiji 4.Pacific Agreement on Closer Economic Relations (PACER Plus) 2007- 2016, an AUD13.3 million initiative supporting Pacific island countries. Investments examined

7. Addressing capacity issues across a diverse range of areas Effective government to government capacity development Diverse range of capacity building strategies Regional networks Enabling flexible and adaptive approaches Integration of DFAT and AusAID provides combined skills in aid and trade Key finding: Effective in addressing capacity issues

8. Reaching the poor through small business, supply chains and intermediaries Benefiting many women suppliers Working with women in key decision making roles Attribution remains an issue Key finding: Impacting on broader economic and social development goals

9. Establishing and maintaining market access is critical Can dramatically affect pricing of goods Maintaining quality standards is key Stringent conditions can limit market entry by smaller producers Some exporters try to circumvent the system leading to restricted market access Key finding: Impacting on broader economic and social development goals continued

10. 1.Government ownership 2.Private sector involvement 3.Integrated approach 4.Regional approach 5.Addressing key constraints 6.Gender equality and women’s empowerment 7.Flexibility 8.Monitoring and evaluation Key finding: Elements of good practice – identified eight criteria

11. Many examples of innovation and good practice Improvements required in (1) private sector engagement, (2) more integrated approaches, (3) focussing on gender equality, and (4) M&E systems Key findings: Elements of good practice present

12. Good Practice CriteriaPHAMAAECSPTDF-2PACER Plus Results Chain   Realistic Objectives  Baseline Data   Indicators   Range of Methods   International Measures  Contextual Factors Stakeholder Engagement  Program Improvement   Public Knowledge  Monitoring and evaluation – elements of good practice identified by investment

13. Many examples of programs benefiting women Participation levels high but this is not an indication of gender equality More purposeful designs required Limited knowledge of the links between gender and trade There are efforts to improve the supply side – greater opportunities and better working conditions for women Key finding: Gender equality and women’s economic empowerment

14. Sound problem analysis and program theory Understanding the political economy – ownership and commitment Private sector engagement strategies Regional and local coordination Gender strategy Institutional development Monitoring and evaluation framework Key finding: need for an integrated framework for trade facilitation interventions

15. Recommendations 1 and 2 Recommendation 1 Investment in capacity development for trade facilitation initiatives should be guided by an integrated framework that promotes sustainable outcomes, including institutional strengthening, and without compromising flexible and responsive approaches to address emerging constraints and opportunities. An integrated framework includes a technical and political economy analysis, design and program logic and a performance framework. Recommendation 2 DFAT should continue to build on its experience in incorporating gender and trade in its programs, and ensure all future trade facilitation program designs adequately consider gender dimensions and an analysis of gender gaps. Gender equality and women’s empowerment objectives should be explicitly stated as development goals in the designs, identified in the program logic models, and monitored and evaluated using gender indicators and sex-disaggregation of data related to people. Good international practice should be followed around analysis of gender equality gaps.

16. Flexible and long term Government to government approaches Political will, ownership Use of diagnostic trade integration studies Strong private sector support and participation Key finding: Trade facilitation investments need to be flexible, linked to government priorities, private sector priorities and require government ownership to be successful

17. Trade is regional – regional approaches are required Bilateral programs can complement regional initiatives through trade agreements and unilateral reforms Aid investment plans can be used to identify areas of collaboration and linkages Linkages between trade facilitation, productive capacity and infrastructure development Key finding: Internal coordination and communication between Australia’s bilateral, regional and global programs needs to be strengthened

18. Recommendations 3 and 4 Recommendation 3 DFAT trade facilitation initiatives should include private sector engagement considerations throughout key stages, including planning and design. The investments should include an element of strong public-private dialogue particularly in partner countries. Recommendation 4 DFAT should improve communication and coordination between regional, bilateral and global programs working on aid for trade by requiring its investment managers to identify synergies in DFAT’s Aid Investment Plans, design and contracting processes, and Aid Quality Checks.

19. ESCAP Trade Cost Database ESCAP Trade Facilitation Implementation and Paperless Trade Database Doing Business Database Logistics Performance Index Database Liner Shipping Connectivity Index Database OECD Trade Facilitation Indicators Global Competitiveness Index Database ESCAP International Supply Chain Connectivity (ISCC) Index Transparency in Trade Database The World Trade Integrated Solution (WITS) Software provides access to international merchandise, trade, tariff and non-tariff measures (NTM) dataWorld Trade Integrated Solution (WITS) Software Useful global trade facilitation data bases