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Trade Facilitation in Eastern and Southern Africa WTO TRADE FACILITATION Symposium 11 th July 2012 Geneva.

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Presentation on theme: "Trade Facilitation in Eastern and Southern Africa WTO TRADE FACILITATION Symposium 11 th July 2012 Geneva."— Presentation transcript:

1 Trade Facilitation in Eastern and Southern Africa WTO TRADE FACILITATION Symposium 11 th July 2012 Geneva

2 Outline of presentation i)The Tripartite Agenda ii)The Tripartite Partners for Trade Facilitation iii)TradeMark programme-who we are? iv)TradeMark supported projects v)Other initiatives under implementation in the region vi)Linkages with WTO Trade Facilitation agenda vii) Going forward

3 The COMESA-EAC-SADC Tripartite

4 Political and Economic Geography of the COMESA-EAC-SADC Tripartite Region

5 The Tripartite cooperation arrangement The three main pillars of the Tripartite strategy: Market integration – Market Integration concerns the removal of tariff and non-tariff barriers and implementation of trade facilitation measures Infrastructure development – Infrastructure Development concentrates on improving the regions infrastructure so as to improve the efficiency of regional trade flows and transport network (road, rail, water and air and including ICT and energy) Industrial development – The intention is to improve productive capacity and competitiveness and programmes that can take advantage of improvements in market integration and infrastructure development.

6 The Tripartite Partners for Trade Facilitation Support provided at REC, Corridor and national support: World Bank- Customs reform and modernization JICA- One-stop border posts; Customs reform and modernization SIDA- SPS, TBTs, Customs reform and Modernization IMF- Capacity Building WCO- Capacity Building EU – Trade related infrastructure USAID – Trade Facilitation, Customs reform and modernization AfDB – One stop border posts, trade related infrastructure DFID- Trade facilitation, Infrastructure provided through TradeMark East Africa and TradeMark Southern Africa and national level

7 Who we are…….. TradeMark Southern Africa (TMSA) is a £100 million, DFID- funded 5 year programme that supports deeper regional integration in East and Southern Africa by working closely with the COMESA-EAC-SADC Tripartite, its 26/27 member states, business and civil society organisations. The Programme was established in November The £100 million contribution consists of a £67 million contribution to the COMESA- EAC-SADC Tripartite Trust Account for the purposes of leveraging infrastructure upgrading and investment along the North-South Corridor. Additional funding to the TTA is provided by other Development Cooperation Partners. The remaining £33 million is programmed in the following key work areas: – Trade Policy – Trade and Transport Facilitation – Corridors and Infrastructure – Economic Competitiveness


9 TMSA supported Trade Facilitation projects Comprehensive Tripartite Trade and Transport Facilitation Programme Regulatory and policy reforms encouraging the harmonization and adoption of international instruments and best practices; national and regional capacity building activities to facilitate cross-border movements; and enhancement of infrastructure facilities at border posts to improve efficiency of cross-border movements. a)Transport Market Access Regulation b) Harmonisation of Road Traffic Regulation c)Cross-Border Processes and Procedures d)NTBs, SPS Measures and Standards

10 TMSA supported Trade Facilitation projects Transport Market Access Regulation Reducing quantity regulation in the regional transport market and creating a system of enforcing quality controls and better support to operators. Harmonisation of Road Traffic Regulation Motor vehicle third party insurance systems Rationalisation and publication of road user charges; Vehicle Regulations and Standards: Fitness of Vehicles; Transportation of Dangerous Goods; and Transportation of Abnormal Goods Vehicle Overload Controls

11 TMSA supported Trade Facilitation projects Cross-Border Processes and Procedures Customs Legislation and Procedures; Efficient management of border posts; Single Administrative Customs Document; Cooperation on Customs Enforcement; Design and implementation of a harmonised Regional Customs Bond and development of transit management system; Design and implementation of a regional road transport management system based on self-regulation; Implementation of corridor monitoring system for selected border posts

12 TMSA supported Trade Facilitation projects Customs legislation and procedures Heads of Customs have decided that all Member States should take the necessary measures to accede to and fully implement the RKC and that the RECs should provide the necessary technical assistance required for the implementation of the RKC; TMSA facilitates regional and national workshops on RKC and technical and financial support at national level for accession to the Convention; TMSA is also supporting REC conformity assessment reviews to support full implementation of RKC provisions by countries that have acceded to the Convention.

13 TMSA supported Trade Facilitation projects Integrated Border Management (Coordinated Border Management) TMSA supports IBM projects at three levels: – Development of Tripartite Policy and Inter-REC implementation strategy; – REC level bilateral cooperation projects; – National IBM projects (Legislation, Institutional strengthening, development of operating procedures, capacity building) that could include One-Stop Border Posts

14 TMSA supported Trade Facilitation projects Transit Management System TMSA is supporting COMESA and SADC in the development of a regional transit management system supported by a regional bond guarantee scheme and electronic exchange of data among customs administrations. One Member State has also partnered the two RECs to develop the SADCOM transit information management system. The SADCOM system will have the following 5 pillars: Connectivity and data exchange Track and trace Risk management Bond management

15 TMSA supported Trade Facilitation projects Computerised Immigration Systems The Tripartite is currently working with one country on a computerised immigration system that could be used as a model for other countries that require it. Capacity Building Supporting collaboration between three RECs and WCO-ESA to implement E-learning programme and deliver specialized training in areas such as risk management and post clearance auditing. Implementation of corridor monitoring system for selected border posts The Tripartite are developing a corridor monitoring system to monitor the time taken and reasons for delays along a corridor.

16 Border Crossing Monitoring: Have relatively sophisticated border monitoring processes based on a GPS truck tracking system. The system tracks queuing times as well as border clearing times. Chirundu Border Post - Analysis from Global Track GPS data Northbound Traffic (Zimbabwe to Zambia)Aug-11Sep-11Oct-11Nov-11Dec-11Jan-12 Nr of Crossings Avg hours to cross from Zimbabwe to Zambia Standard Deviation Median hours to cross from Zimbabwe to Zambia Minimum hours to cross from Zimbabwe to Zambia Maximum hours to cross from Zimbabwe to Zambia Avg hours on Zimbabwe side Avg hours on Zambia side % Crossings within 12 hours26%39%33%36%33%39% % Crossings within 24 hours53%55%50% 46%58% % crossings within 36 hours68%69%64% 62%74% % Crossings within 48 hours88%82%80%79%77%84% % Crossings within 72 hours95%93%92%91%93%95% % Crossing more than 72 hours5%7%8%9%7%5%

17 OSBP – On-going work at Chirundu Border Post Journey times on NSC typically 1/3 driving and 2/3 waiting. Most effective way to reduce costs is to reduce waiting times at borders. This can be done by converting to OSBP but need to address: physical facilities (common control zone with a fenced perimeter, common facilities – scanning, weighbridges and inspection bays); operations and training; and legal framework (extraterritorial jurisdiction). Chirundu OSBP is now fully operational and works to ensue full ICT connectivity of the two sides of the border are underway. Challenges have been faced with air conditioning units but measures have been taken to address these outstanding issues

18 NTB Monitoring and Removal System As customs duties have gone down through trade liberalization measures by the RECs intra-Tripartite export trade has remained low in relation to total trade due to the emergence of NTBs. Surveyed firms reported NTBs affected one-fifth of regional trade in ESA ($3.3 billion in Southern Africa alone). The removal of NTBs will lead to increased levels of regional trade - identification, removal and monitoring of NTBs is a priority area. NTBs National Monitoring Committees being established

19 TMSA supported Trade Facilitation projects SPS and Standards -Non-tariff measures in the form of technical requirements and standards, as well as SPS measures, have been shown to pose a major challenge to trade in among countries in the region. -Over and above this, one of the main hurdles to cross-border trade that exporters face is costly multiple testing and/or certification of products because of a lack of trust among trading partners on the competence and efficiency of the conformity assessment procedures of the relevant national bodies. -Harmonising standards and conformity assessment procedures could have far-reaching benefits for regional/international trade. -The main thrust of Tripartite work is on: Harmonizing a number of trade-related technical regulations, standards and SPS measures for identified products, Harmonizing the conformity assessment procedures for the identified products and capacity building for regulatory authorities

20 Other TF initiatives under implementation EAC (regional) - Common customs law based on RKC (including procedure manuals), Common Customs training curriculum and material, Projects on customs IT connectivity, corridor based AEO programme, OSBPs, Free circulation and revenue sharing, regional single window

21 Other TF initiatives under implementation SADC and COMESA (regional) -Model Customs Laws and support for accession to RKC; -Common Customs Nomenclatures -Common customs training material -Integrated Border Management and OSBPs -Customs to Business Forums -Regional Single Window (COMESA) -Regional decisions on Consularization and Pre- shipment inspections -Customs capacity building and e-learning

22 Other TF initiatives under implementation National Single Windows; Upgrades to ICT systems Bilateral customs cooperation agreements Implementation of AEO programmes Publication of laws prior to implementation Availability of regulatory information on Revenue Authority sites Pre-arrival processing and Risk Management Systems Post Clearance Audits Time Release Studies; TF Diagnostic studies

23 Linkages with WTO Trade Facilitation agenda Support for accession and full implementation of RKC Advance rulings Appeals procedures Formalities associated with importation and exportation and transit Regional Transit management Systems Freedom of transit Customs cooperation Formalities associated with importation, and exportation and transit

24 Linkages with WTO Trade Facilitation agenda Integrated Border Management Border Agency Cooperation Customs Cooperation Common border procedures Single Window One-stop border posts Enquiry points National Trade Facilitation Committees

25 Going Forward -Policy and regulatory harmonization at regional level is a long-term process not in line with time horizons of most projects. Need to take a long-term view to measure results of support given for these processes; -Need for implementation capacity at REC and national level- RECs and donors can agree on support measures

26 Going Forward -Involvement of the private sector and corridor institutions to create a client base for on-going reforms; -Main focus for TMSA will be on TFTA negotiations which will result in a binding Agreement incorporating harmonized policies and trade facilitation instruments developed by COMESA, EAC and SADC. - TMSA is facilitating the negotiating process while concurrently providing financial and technical assistance for implementing already adopted policies and instruments


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