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ITC Support to Landlocked Developing Countries A presentation to: UN-OHRLLS By: Anders Aeroe, Director, Division of Market Development, ITC Date: 21 March,

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Presentation on theme: "ITC Support to Landlocked Developing Countries A presentation to: UN-OHRLLS By: Anders Aeroe, Director, Division of Market Development, ITC Date: 21 March,"— Presentation transcript:

1 ITC Support to Landlocked Developing Countries A presentation to: UN-OHRLLS By: Anders Aeroe, Director, Division of Market Development, ITC Date: 21 March, 2013 Brainstorming Meeting on the Priorities of a New Development Agenda for the Landlocked Developing Countries

2 ITC Mandate To enable export success for small and medium-sized enterprises (SMEs) Pro-poor agenda – emphasis on Africa and LDCs, LLDCs and SIDS. Contribution to MDGs – especially: – 1: Eradicate Extreme Poverty and Hunger – 3: Promote Gender Equality and Empower Women – 7: Ensure Environmental Sustainability – 8: Global Partnership for Development 2 The role and support of the private sector are essential if we are to be successful. It is in this spirit that I have held in-depth consultations with Ms Patricia Francis of ITC on how to elaborate a global strategy aimed at enhancing the role of the private sector, particularly in developing countries. Pascal Lamy (2 nd Global Aid for Trade Review)

3 ITCs Areas of Work 3

4 Trade Intelligence 4 ITC builds capacities in trade information services, in market research and analysis and the formulation and implementation of export strategies. Example: ITC supported the Central African Republic in conducting a customized export potential assessment. This allowed policy makers and TSIs to identify products and sectors with high export potential which contributed to the formulation of a National Export Strategy. Enhancing trade support institutions and policies ITC builds capacities of Trade Support Institutions to support the private sector. ITC also works on building stakeholder confidence in developing appropriate policy and regulatory reform processes. Example: ITC supported Lao PDR in preparation for WTO accession, by strengthening stakeholder confidence in the government's bid for membership.

5 Strengthening export capacity of enterprises 5 ITC assists small and medium sized enterprises in building productive capacities and reach global markets. Example: ITC's Trade Promotion Project in Tajikistan strengthens the sustainable expansion and diversification of SME exports from Tajikistan. Inclusiveness and sustainability ITC mainstreams inclusiveness and sustainability into trade promotion and export development policies Example: ITC works to enhance the capacity of Ugandan women informal cross-border traders (ICBTs) to increase their exports to neighbouring countries by reducing and eliminating trade facilitation impediments at points of entry and exit.

6 ITCs projects in LLDCs 2010-2013 Afghanistan, Armenia, Bhutan, Bolivia, Botswana, Burkina Faso, Burundi, Central African Republic, Chad, Ethiopia, Kazakhstan, Kyrgyzstan, Lao PDR, Lesotho, Republic of Macedonia, Malawi, Mali, Nepal, Niger, Paraguay, Rwanda, Swaziland, Tajikistan, Uganda, Uzbekistan, Zambia, Zimbabwe (27 in total) 6

7 LLDCs Exports 2001- 2011 7 Note: Includes all export groups (oil as well as services) Percentage change in export 2001-2011

8 Export by level of processing 8 raw materialssemi-processed goodsprocessed goods 200720112007201120072011 LLDCs32.7%37.2%47.9%46.8%19.5%16.0% Developing8.4%10.7%20.6%21.6%71.0%67.7% LDCs31.2%29.9%27.2%28.4%41.6%41.8% Note: Export values are US$ billion. Percentages show the share of each product group in total exports by country group. Excluding oil.

9 Regional Trade Exports to region Share of intra-regional exports (out of total exports) LLDCs32.434.3% Sub-Saharan Africa52.623.6% Latin America177.919.8% Asia-Pacific1553.538.5% EU27 & EFTA3699.165.6% Rest of OECD1047.630.8% Rest of World159.429.2% Note: Export values are US$ billion. 9

10 Documents, time and cost for export and import Documents to export (number) Time to export (days) Cost to export (US$ per container) Documents to import (number) Time to import (days) Cost to import (US$ per container) LLDCs examples Afghanistan1074354510773830 Bhutan938223012382330 Botswana62729457373445 Burkina Faso1041241210474030 Chad8755902111018525 Ethiopia74221609442660 Lesotho73116957351945 Malawi103421759432870 Swaziland81818808272085 Uganda73330509333215 Uzbekistan1380458514994750 LLDC Average (full)843309710493721 Best practice economies Singapore4545644439 Hong Kong SAR, China4557545565 Korea Rep.3766537695 Denmark4574435 UAE4763057590 Average of top 54661446607 Developing economy Thailand514585513750 World Bank, Doing Business Report 2013

11 Business perspective in focus Direct empirical research through company level surveys In-depth analysis of survey results as diagnostic of the current situation of companies with regards to NTMs Carried out in close collaboration with national and international partners Around 30 beneficiary countries between 2010 and 2013 11 The ITC Programme on NTMs

12 The ITC Programme on NTMs - Survey countries As of 1 January 2013 9,339 phone interviews 3,290 face-to-face interviews (plus 7 pilot countries)

13 What are Non-Tariff Measures (NTMs)? Official policy measures on export and import, other than ordinary customs tariffs, that can potentially have an economic effect on international trade in goods, changing quantities traded, prices or both Mandatory requirements, rules or regulations legally set by the government of the exporting, importing or transit country (in contrast to private standards which are not legally set) Can affect both export and import Include technical measures and standards, as well as regulations on customs procedures, para-tariff measures, financial measures, prohibition, etc.

14 Share of companies affected by NTMs Country No. of interviewed companies Overall affectedness (= affected companies / all interviewed companies) Landlocked countries Burkina Faso17259.9% Malawi12969.0% Kazakhstan38733.9% Paraguay40661.8% Rwanda52974.7% LLDC simple average 59.8% Non-landlocked countries Sri Lanka51269.7% Peru96040.2% Morocco79443.5% Kenya76474.0% Mauritius41640.9% Madagascar39353.4% Jamaica60834.5% Trinidad and Tobago50034.2% Senegal26063.1% Occ. Palestinian Territory23056.5% Guinea33194.9% Non-LLDC simple average 55.0% 14

15 Survey:Types of Reported Barriers 15 (Based on NTM surveys of 12 countries including 3 LLDCs)

16 Development Agenda for LLDCs Mobilizing the private sector for achieving sustainable economic development goals in LLDCs. Suggested priorities: 1.Address non-tariff barriers to trade 2.Build productive capacities 3.Enable trade in services 4.Strengthen private sector voice and confidence in policy and regulatory reform processes 5.Build private sector resilience to new challenges 6.Ensure trade, economic growth and LLDCs are at the centre of the post- 2015 MDG planning 16

17 17 Thank You!

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