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WTO TRADE FACILITATION SUPPORT PROGRAM Gerard McLinden International Trade Department The World Bank Needs and Priorities/Implementation Costs and Challenges.

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Presentation on theme: "WTO TRADE FACILITATION SUPPORT PROGRAM Gerard McLinden International Trade Department The World Bank Needs and Priorities/Implementation Costs and Challenges."— Presentation transcript:

1 WTO TRADE FACILITATION SUPPORT PROGRAM Gerard McLinden International Trade Department The World Bank Needs and Priorities/Implementation Costs and Challenges Study 26 July 2006

2 Outline Overview Overview Progress to date Progress to date Key Issues identified Key Issues identified Conclusions Conclusions Next Steps Next Steps

3 Overview Annex D – Clear role for the World Bank (during and after negotiations) Annex D – Clear role for the World Bank (during and after negotiations) Six country studies designed to identify probable costs and implementation difficulties associated with a new Trade Facilitation Agreement Six country studies designed to identify probable costs and implementation difficulties associated with a new Trade Facilitation Agreement Support provided by EC, DFID (UK) and Sweden Support provided by EC, DFID (UK) and Sweden Methodology Methodology Partnership with the WCO and IMF Partnership with the WCO and IMF Country assessment visits – Experienced TF specialists Country assessment visits – Experienced TF specialists Development of a practical assessment tool (Based on TN/TF/W43 – Compilation of Proposals) Development of a practical assessment tool (Based on TN/TF/W43 – Compilation of Proposals) Individual reports prepared for each country Individual reports prepared for each country Consolidated report for NGTF members Consolidated report for NGTF members Self assessment tool Self assessment tool

4 Overview Scope Scope Regulatory/Legal Framework Needs Regulatory/Legal Framework Needs Administrative Policy and Procedure Needs Administrative Policy and Procedure Needs Human Resource Needs Human Resource Needs Training Needs Training Needs Equipment/Infrastructure Needs Equipment/Infrastructure Needs Organizational Needs Organizational Needs Change Management Needs Change Management Needs Focused on WTO NGTF Agenda – Not wider capacity building needs and priorities Focused on WTO NGTF Agenda – Not wider capacity building needs and priorities Customs and other border management agencies Customs and other border management agencies

5 Progress to Date Detailed assessments conducted in: Detailed assessments conducted in: Rwanda Rwanda Sri Lanka Sri Lanka Paraguay Paraguay Senegal Senegal Egypt Egypt Philippines late July Philippines late July

6 Key Issues Identified Specific needs and priorities differ but many common concerns and challenges Specific needs and priorities differ but many common concerns and challenges Majority of proposals considered positive and practical by government officials and the business community Majority of proposals considered positive and practical by government officials and the business community A new agreement seen by many as a catalyst for building political will and momentum A new agreement seen by many as a catalyst for building political will and momentum Little new – most proposals already part of the suite of good practice promoted by WCO, UNECE, WB, IMF and donors Little new – most proposals already part of the suite of good practice promoted by WCO, UNECE, WB, IMF and donors No country is starting from scratch – much donor support already provided and more in the pipeline No country is starting from scratch – much donor support already provided and more in the pipeline

7 Key Issues Identified All countries studied have made good progress already. All currently: All countries studied have made good progress already. All currently: Maintain websites containing most required information in a WTO language Maintain websites containing most required information in a WTO language Have formal appeal mechanisms in place Have formal appeal mechanisms in place Utilize some form of risk management and selectivity Utilize some form of risk management and selectivity Accept security to release goods prior to final resolution of import transactions Accept security to release goods prior to final resolution of import transactions Provide advice on tariff classification in advance of importation Provide advice on tariff classification in advance of importation Have IT systems for processing import/export transactions Have IT systems for processing import/export transactions Possess adequate technical know how in key TF areas Possess adequate technical know how in key TF areas Have established post clearance audit units Have established post clearance audit units

8 Key Issues Identified Many of the implementation challenges and barriers identified do not lend themselves to resolution by TA (regardless of its quality or quantity) Many of the implementation challenges and barriers identified do not lend themselves to resolution by TA (regardless of its quality or quantity) Competition between government agencies Competition between government agencies Poor quality of public/private relationship Poor quality of public/private relationship Revenue maximization focus at expense of all other priorities Revenue maximization focus at expense of all other priorities Low levels of voluntary compliance Low levels of voluntary compliance Under developed private sector (Banking, ICT, Customs brokers) Under developed private sector (Banking, ICT, Customs brokers) Lack of sustained political will and commitment Lack of sustained political will and commitment

9 Key Issues Identified Customs typically far ahead of other agencies: Customs typically far ahead of other agencies: Customs in all countries have IT systems in place Customs in all countries have IT systems in place Customs already use some form of risk management and selectivity Customs already use some form of risk management and selectivity Customs typically have some form of active cooperation and information sharing with neighboring countries Customs typically have some form of active cooperation and information sharing with neighboring countries Customs have received bulk of donor support to date Customs have received bulk of donor support to date Customs attempt to measure performance Customs attempt to measure performance Customs understand the TF agenda Customs understand the TF agenda Customs have agreed international instruments and blueprints to work from Customs have agreed international instruments and blueprints to work from

10 Conclusions WTO TF agenda typically welcome and in line with existing modernization plans and strategies (with some exceptions) WTO TF agenda typically welcome and in line with existing modernization plans and strategies (with some exceptions) Little new TA needed for mere compliance with likely provisions of a new agreement Little new TA needed for mere compliance with likely provisions of a new agreement High costs associated with IT (single window) and border station refurbishment High costs associated with IT (single window) and border station refurbishment TA needed for effective implementation – particularly in areas such as: TA needed for effective implementation – particularly in areas such as: Drafting of legislative amendments Drafting of legislative amendments Developing new administrative systems and procedures Developing new administrative systems and procedures IT system migration/upgrade IT system migration/upgrade Risk management – control mindset Risk management – control mindset Activity based costing methods Activity based costing methods

11 Conclusions But, WTO TF agenda cant be seen in isolation from wider reform and modernization needs But, WTO TF agenda cant be seen in isolation from wider reform and modernization needs Many needs similar across countries – potential for economies of scale in design and provision of TA – potential for regional solutions and programs Many needs similar across countries – potential for economies of scale in design and provision of TA – potential for regional solutions and programs S&DT must take into account individual circumstances of members: S&DT must take into account individual circumstances of members: Level of sophistication of private sector Level of sophistication of private sector ICT infrastructure ICT infrastructure Revenue mobilization implications (rationalization of charges, consularization fees, etc) Revenue mobilization implications (rationalization of charges, consularization fees, etc) Geography Geography

12 Next Steps … Finalize reports for six case study countries (August) Finalize reports for six case study countries (August) Prepare consolidated report and cost tables for distribution to NGTF members and donors (after recess) Prepare consolidated report and cost tables for distribution to NGTF members and donors (after recess) Convert current country study tool into a practical self assessment tool Convert current country study tool into a practical self assessment tool Currently exploring possibility of providing training to national officials to assist them to undertake detailed needs and priorities assessments using the self assessment tool and methodology Currently exploring possibility of providing training to national officials to assist them to undertake detailed needs and priorities assessments using the self assessment tool and methodology

13 Benefits for Government and Traders Low High Low Implementation Difficulty/Cost High Reject Proposal ? Dont Care ? Support Proposal But … Consider S & DT and TA/Capacity Building ? WB/WCO PROPOSAL ANALYSIS GRID


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