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Trade facilitation policy at national and regional levels: core elements Strengthening Trade Competitiveness in times of global economic crisis – Challenges.

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Presentation on theme: "Trade facilitation policy at national and regional levels: core elements Strengthening Trade Competitiveness in times of global economic crisis – Challenges."— Presentation transcript:

1 Trade facilitation policy at national and regional levels: core elements Strengthening Trade Competitiveness in times of global economic crisis – Challenges faced by LLDCs UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT Third Meeting of Trade Ministers of Landlocked Developing Countries Ezulwini, Swaziland, 21-22 October 2009 José María Rubiato UNCTAD – Trade Logistics Branch

2 Outline Evolving concepts on Trade Facilitation International Instruments related to Trade Facilitation New Tools available Trade facilitation reform How to start

3 Evolving concepts

4 Traditional definition Simplification and harmonization of international trade procedures and documentation Core elements: Documents as support of information Procedures as information processing Main outcomes: Standard documents Standard data and codes Standard protocols

5 Transport corridors and trade channels Supply chain management model Core elements: Goods movements rather than paperwork Operational issues not only controls Main outcomes: Integrated approach on processes Single international transaction Recent evolution

6 TF is just a matter of bureaucracy TF is inexpensive & easy to implement Potentially Misleading Beliefs

7 Up to 20 Involved Parties 200+ data elements Manual data exchange processes Multiple data platforms 30+ documents or messages 60-70% repetitions 6-15% of the final value of the goods 40% of the transaction time Data Flow for International Trade

8 International Instruments related to Trade Facilitation

9 ICC International Customs Guidelines; ICS rec. on B/L and ships manifest; IMO FAL Convention; IMO: other conventions with TF relevance (7); Relevant ISO Standards; UN/ECE (& UN/CEFACT) Recommendations; UN/ECE TIR Convention; UN/ECE CMR Convention; WCO: Revised Kyoto Convention; WCO: Istanbul Conv. (Temporary Admission); WCO: Nairobi Conv. on Prevention, Investigation & Repression of Customs offences; WCO: Various other WCO Customs Conv. (9); WCO: Various non-binding WCO rec. (5); Free trade agreements and/or Customs unions. Instruments outside WTO

10 Agreement on the Implementation of Article VII GATT 1994 (Customs Valuation) Agreement on Preshipment Inspection Agreement on Import Licensing Procedures Agreement on Rules of Origin Agreement on Technical Barriers to Trade Agreement on Sanitary and Phytosanitary Measures Existing WTO rules on trade facilitation

11 New Tools available

12 Trade Facilitation Platforms National and Regional Trade and Transport Facilitation Committees: as structures for dialogue with private stakeholders, inter-agency coordination and high level policy coherence at national level in the design of administrative reforms. WTO Trade Facilitation Support Groups: as coordinating mechanisms to support national negotiators in Geneva through the provision of technical expertise and feedback on the tabled proposals. Transit corridor facilitation clusters: as operational multi stakeholders multi national cooperative platforms to assess obstacles, design and implement solutions to improve transport corridor operations and management.

13 Repository of Trade Facilitation Working Groups A joint initiative by UNCTAD and UNECE the repository of national working group on trade facilitation, provides a collection of country's experiences in setting up and maintaining national inter-agency public private consultative trade facilitation mechanisms The country experiences currently include Benin, Burkina Faso, Ecuador, Mali, and St. Lucia. It is planned to expand the number of countries participating during this and the following year. See:

14 Clusters along Transport Corridors Shipper Freight Forwarder Customs Carrier Cluster

15 Ulaanbaatar Tianjin Port Time/Cost – Distance Methodology

16 Zamyn Uud 1000 km Average speed 22.4 km/h Tianjin, 0 km 75 hrs 31 min. 500 km1000 km2000 km1500 km Day 4 Distance Time 1,691 km 33.7 km/h 27.5 km/h 04.18 a.m. Day 3 Day 2 Day 1 29 hrs 12 min. Erenhot, 983 km 02.30 a.m. 05.59 a.m. 20 hrs 31 min. Ulaanbaatar 1700 km Shunting + train formation: 3 hrs. 35 min. Transshipment: (3.5 min. per box) 3 hrs. 20 min. 4 hrs. 50 min.Mongolia, China,3 hrs. 00 min.Customs: Example: Tianjin-Ulaanbaatar Railway link

17 Cost per TEU $131 $100 $293 $155$124 $200 $650 $0 $100 $200 $300 $400 $500 $600 $700 Lao PDR- Thai Lao PDR- Viet Nam Mongolia- China Mongolia- Russian Fed. Nepal- India Kazakhstan- Russian Fed. *Uzbekistan- Turkmenistan * Estimated from cost of standard European 12 meter semi trailer. Border Crossings: Cost or Time

18 UNCTAD Liner Shipping Connectivity in 2009 Source:

19 Transit Countries LSCI 2004-2009

20 WB - Logistics Performance Index 1 <= LPI <= 2.29 2.29 <= LPI <= 2.53 2.53 <= LPI <= 3.14 3.14 <= LPI <= 5 No data1 is the lowest score and 5 is the maximum score.

21 LPI 2009 – LLDCs and transit

22 Trade facilitation reform

23 Reform Policy Objectives External commitments: Bilateral and regional agreements WTO Internal objectives: Administrative effectiveness Better trade management Better use of public resources Trade competitiveness Support national trade sector Lower transaction costs

24 Common Reform Phases Definition of goals to achieve the objectives Analysis of the capacity of the current processes to achieve the goal Analysis of required actions to fill the gaps Assessment of needs/resources for identified actions Design of individual processes Development of comprehensive plan Implementation of the solution Operation and maintenance of the new system

25 Elements in each phase Staffing: manpower / technical skills Technology: equipment and training Institutional: functions, interactions and management Regulatory: authority and mandates Budgeting costs / revenues All the above for three different levels: Planning and monitoring unit : goals – analysis – solution - sequencing Design and development units: analysis and process development Implementation units: operation and maintenance of the system

26 Sequences to introduce reform Function sequence depends on: Steps to take before Impact on consecutive processes Priority sequence depends on: External commitments Other defined objectives Time sequence depends on: Priorities Resource deployment

27 Three dimensions Trade Facilitation TRADETRANSPORT CUSTOMS

28 CUSTOMS dimension Customs Facilitation Customs Reform and Modernization Support automated data systems faster clearance of cargo Increased Customs revenues Simplify/harmonize documents & procedures Implement modern Customs laws ASYCUDA

29 TRADE dimension Trade Facilitation Best-recommended commercial practices faster RoI for IMP Competitive exports Simplify IMP/EXP documents & procedures Create awareness on best practices Promote Single Window Transit Agr.

30 TRANSPORT dimension Transport Facilitation Faster turn-over of means smooth movement of goods Create awareness on modern transport & logistics Establish norms (incl. liability insurance) Implement modern Transport laws Implement logistics tools Best-recommended transport practices

31 How to start

32 Action planning workshop 3 days of analysis and 2 days for planning of activities with 20-25 participants: Ministry of Trade Ministry of Finance/ Customs Other Government Agencies related to trade Exporters, importers and shippers Service providers: Customs brokers, freight forwarders, carriers Commercial banks, Central Bank Export promotion agency / Investment promotion agency

33 Objective To introduce fundamentals of trade facilitation (basic concepts, global trends, what can be done, costs and benefits, how to implement, etc); To exchange experiences: learning about trade facilitation (TF), identify bottlenecks, needs and priorities on TF. To develop an initial high level scoping with participants and outline a strategy for implementation (identification of bottlenecks, priorities, key stakeholders, etc). To prepare a draft national or regional action plan.

34 Day 1: General presentation 1) Introduction to trade facilitation 2) Cost and benefits of trade facilitation. 3) Main stakeholders of trade facilitation reforms. 4) Trade facilitation implementation strategies. 5) Presentation of trade facilitation successful reforms.

35 Day 2: Needs assessment - round table To learn from participants about the state of the play as regards trade facilitation and identify bottlenecks. The presence of representatives of the private sector is essential. Main obstacles and bottlenecks faced by trade operations Current initiatives to address procedural obstacles and bottlenecks Existing legal and institutional frameworks governing trade Transit /transport policy and transit / transport arrangements.

36 Day 3: Barriers and Stakeholders Risk analysis: minimum conditions that must exist for a successful implementation of the project; external factors that can have an impact on the project Stakeholder analysis: identify key persons, institutions as counterparts and establish a TF consultative group; identify a possible trade facilitation task force that could support the implementation of adopted measures.

37 Day 4: Plan of action Determine a TF focal point to be the main counterpart for the future project implementation. Define the pre-conditions for projects implementation. Determine project objectives/outcomes and related activities. Prepare an initial draft of a project proposal. Agree on an initial scheduling of the activities. Discuss staffing and resource requirements Design practical operational modalities.

38 Day 5: Meeting with donors and partners Meet with relevant financing and technical assistance agencies foreseen to be involved in project implementation Current activities and ensure synergies and complementarities Discuss local practical conditions for project personnel deployment and scheduling of deliveries.

39 Announcements 8-9-10 December 2009: Experts meeting on Public and Private Partnerships for the Development of Infrastructure to Facilitate Trade and Transport. 11December 2009: Ad Hoc Experts Meeting on Transit Ports servicing Landlocked Developing Countries

40 Thank you UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT José María Rubiato UNCTAD – Trade Logistics Branch Third Meeting of Trade Ministers of Landlocked Developing Countries Ezulwini, Swaziland, 21-22 October 2009

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