1. SADC Transport Services Liberalisation Forum Riverside Hotel, Durban South Africa 11 th -13 th September, 2012 Prepared by: Natasha Ward &Viola Sawere

2. Introduction Definition and coverage Trade facilitation Transport services SADC Legal Framework Trade Protocol Protocol on Transport, Communication and Meteorology Protocol on trade in Services Which policy instrument for which Issue? Conclusion Outline

3. Prime economic activity in itself (trade in transport services) Infrastructure for most other economic activities High cost of trading in the region is partly due to and challenges in services industry (transport, communication etc. Hence the need for: trade facilitation and Trade in services libelisation agreements Transport liberalization is an objective of trade and transport officials Introduction: Transport Services

4. Users prefer liberal policy that offers wide choice Competitive, efficient and quality transport services (thus delivery of goods and passengers at right place at the right time, & price) Operators interest Fulfilling shippers demand & profits and wish to protect home market from foreign competition Government (ministry & regulator) Enabling Policy & regulation to the interest of each group Common goal is to address challenges in transport industry limited interaction and limited understanding of the differences and linkages of trade facilitation and trade liberalisation agenda Important Note

5. No global agreed definition of trade facilitation but SADC Trade Protocol the coordination and rationalisation of trade procedures and documents relating to the movement of goods in international trade from the place of consignment to the destination to improve border and transit management procedures and their implementation The main focus is to facilitate movement along the eighteen officially recognised corridors can be facilitated Definition

6. Trade facilitation identifying and addressing bottlenecks that are imposed by weaknesses in trade related logistics and regulatory regimes and that prevent the timely, cost effective movement of goods Transport Services liberalisation enhancing access to the various transport markets and to substantially reduce or eliminate discriminatory measures which favour domestic service providers over foreign ones Definition Transport services liberalisation agenda can be considered to be a subset of the broader trade facilitation agenda

7. The Coverage Trade Facilitation Competitiveness Export promotion Meeting international standards Physical infrastructur e Roads, ports Telecommun ication infrastructure Logistics and transport services Promoting competition Customs and boarder management Transport services liberalisation all measures that affect supply of transport services Laws, regulations, rules, guidelines etc. in the various sub-sectors Maritime, internal water ways, Air, space, rail, road, pipeline & auxiliary services

8. 8 Classification of Transport Services A.Maritime Transport Services Passenger transportation Freight transportation Rental of vessels with crew Maintenance and repair of vessels Push and towing services Supporting services for maritime transport B.Internal Waterways Transport Passenger transportation Freight transportation Rental of vessels with crew Maintenance and repair of vessels Push and towing services Supporting services for maritime transport C.Air transport Services Passenger transportation Freight transportation Rental of vessels with crew Maintenance and repair of vessels Supporting services for maritime transport D.Space Transport E.Rail transport Passenger transportation Freight transportation Maintenance and repair of vessels Push and towing services Supporting services for maritime transport F.Road Transport Passenger transportation Freight transportation Rental of vessels with crew Maintenance and repair of vessels Push and towing services Supporting services for maritime transport G.Pipeline Transportation of fuel Transportation of other goods H.Services auxiliary to all modes of transport Cargo handling services Storage and warehouse services Freight transport agency services Other I.Other transport services

9. Trade Protocol Annex III: Simplification and harmonisation of trade documentation and procedures Sub-comittee on Trade Facilitation exportation and importation; export and import licensing; insurance of goods; transit operations; international transport and licensing of carriers; and statistical control and dissemination of information on trade documents Transit Trade and Transit Facilities licensing of transistors and carriers; approval of means of transport; bonds and securities; transit documents; transit procedures; and other provisions (customs and bonded warehouses Legal Framework

10. Protocol on Transport Communication and Meteorology framework for cooperation in all modes of regional transport Infrastructure development (hard and soft) and related technical standards; Regulatory mechanisms on: quantity (bilateral agreements; and quota and capacity management) quality (vehicle standards and dimensions, loads and fitness testing) safety (abnormal loads, hazardous/dangerous goods, and environmental protection) market liberalisation for road and air transport services Legal Framework Ctd.

11. Protocol on Trade in Services elaborates the rules governing trade in services ( incl. transport services) through progressively liberalise Provides for MFN and National Treatment Provides for the mutual recognition of standards, requirements and qualifications; and transparency in domestic regulation to promote trade Legal Framework Ctd

12. Which instrument for which issue?

14. Examples of Trade Restrictions in Transport Services by Modes of Supply

15. Measures which restrict Mode 3 Trade in Transport Services

16. PHASE 1 :Abolition of restrictions on carriers of two member states to carry goods on a defined route between (a) such states or (b) in transit across the territory of another member state en route to a third member state or non-member state. (Third country rule permitted and cabotage prohibited). PHASE 2: Abolition of restrictions on carriers of one member state to carry goods on a defined route between another member state and a third member state or non-member state, irrespective of whether the carrier's vehicle traverses the territory of its home state. (Third country rule permitted and cabotage prohibited). PHASE 3 Abolition of restrictions on carriers of one member state to carry goods between another member state and a third member state or a non-member state. (Abolition of the third country rule). PHASE 4 Allow cabotage. Road Market liberalization agenda (PTCM)

17. Trade facilitation and transport services liberalisation agendas are addressed in separate SADC instruments Protocol on Transport, Communications and Meteorology appropriate legal framework in SADC for addressing trade facilitation issues related to transport Protocol on Trade in Services market access issues Conclusion

18. Both the trade facilitation and the trade in services agendas offer useful avenues for addressing key issues in the transport industry a complementary processes to promote increased trade in goods and in transport services Benefits from the two processes can only be realized through policy coherence Essential to this co-ordination is the task of clearly establishing the notion the overlapping agendas can be complementary as opposed to competing Key Message

19. all transport stakeholders have a role to play in the effort to capitalise on the synergies private sector (operators) identify the challenges and suggest solution transport regulators create and sustain an enabling environment to foster the growth of trade in both goods and services policy makers (trade and transport) develop suitable policies and negotiate fair and balanced agreements Way forward