1. Negotiations on trade facilitation at the World Trade Organization Geneva, November 2012 Jan.Hoffmann@UNCTAD.org

3. Draft agreement

4. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO

5. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO

6. 1. Exports of manufactured goods Today 80% of developing countries exports are manufactured goods, up from only 20% two decades agoToday 80% of developing countries exports are manufactured goods, up from only 20% two decades ago

7. 2. Globalized production Intra-company trade Trade in intermediate products Logistics part of production process

8. 3. Increased security concerns Security measures along the entire supply chain

9. 4. New Geography of Trade Especially the share of South-South trade has more than doubled since 1990

10. 5. Regional integration Increased regional and transit trade

11. 6. Within Logistics expenditure …inventory holding decreases, and Transport expenditure increases

12. 7. Technologies Containerization, shipping networks Use of computers and Internet

13. 8. Privatizations / concessions Ports, Shipping lines, Railways, Airlines, Airports

14. 9. Tariff reductions For most developing countries exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in developed countries. Source: Miccio/ Perez 2002

15. 10. Negotiations on trade facilitation at the World Trade Organization

16. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

17. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO

18. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

19. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations advance ruling

21. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations authorized traders

23. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Risk analysis 3. Security concerns

25. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Internet publication 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography

27. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations 5. Regional integration Regional approaches

30. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Separate release from clearance

32. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations 7. Technologies Automated payments, Electronic documents

34. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations National Trade Facilitation Committee

35. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Transport costs and trade facilitation more important than tariffs !

36. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations … a response to trends in international trade, transport, logistics and technologies !

37. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO

38. The introduction of ICTs by Customs may encourage smaller companies to also connect to the internet. Developing ICTs

39. Developing e-commerce Reforms of legal regimes that facilitate the use of electronic documents may also modernize other business practices.

40. Developing Transit A framework for bank guarantees for transit trade may also generally improve the financial system.

41. Are poor countries poor because of red tape? OR Is red tape the result of a lack of development? ANSWER: It is both

42. More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation

43. Lower Transport Costs -> More trade -> Economies of scale -> Lower Transport Costs

44. Better services -> More trade -> More income to finance infrastructure -> Better services

45. The tipping point: Start with Trade and transport facilitation Trade and transport facilitation is good for trade and for development Development is good for trade and for trade and transport facilitation

46. 10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO Questions?