Presentation on theme: "WTO TRADE FACILITATION Symposium"— Presentation transcript:
1 WTO TRADE FACILITATION Symposium Trade Facilitation in Eastern and Southern AfricaWTO TRADE FACILITATION Symposium11th July 2012Geneva
2 Outline of presentation The Tripartite AgendaThe Tripartite Partners for Trade FacilitationTradeMark programme-who we are?TradeMark supported projectsOther initiatives under implementation in the regionLinkages with WTO Trade Facilitation agendaGoing forward
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 integrationMarket Integration concerns the removal of tariff and non-tariff barriers and implementation of trade facilitation measuresInfrastructure developmentInfrastructure Development concentrates on improving the region’s 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 developmentThe 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 modernizationJICA- One-stop border posts; Customs reform and modernizationSIDA- SPS, TBT’s, Customs reform and ModernizationIMF- Capacity BuildingWCO- Capacity BuildingEU – Trade related infrastructureUSAID – Trade Facilitation, Customs reform and modernizationAfDB – One stop border posts, trade related infrastructureDFID- 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 2009.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 PolicyTrade and Transport FacilitationCorridors and InfrastructureEconomic Competitiveness
9 TMSA supported Trade Facilitation projects Comprehensive Tripartite Trade and Transport Facilitation ProgrammeRegulatory 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.Transport Market Access Regulationb) Harmonisation of Road Traffic RegulationCross-Border Processes and ProceduresNTB’s, SPS Measures and Standards
10 TMSA supported Trade Facilitation projects Transport Market Access RegulationReducing quantity regulation in the regional transport market and creating a system of enforcing quality controls and better support to operators.Harmonisation of Road Traffic RegulationMotor vehicle third party insurance systemsRationalisation and publication of road user charges;Vehicle Regulations and Standards: Fitness of Vehicles; Transportation of Dangerous Goods; and Transportation of Abnormal GoodsVehicle Overload Controls
11 TMSA supported Trade Facilitation projects Cross-Border Processes and ProceduresCustoms 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 proceduresHeads 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 SystemTMSA 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 REC’s to develop the SADCOM transit information management system.The SADCOM system will have the following 5 pillars:Connectivity and data exchangeTrack and traceRisk managementBond management
15 TMSA supported Trade Facilitation projects Computerised Immigration SystemsThe 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 BuildingSupporting collaboration between three REC’s 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 postsThe Tripartite are developing a corridor monitoring system to monitor the time taken and reasons for delays along a corridor.
16 Border Crossing Monitoring: Chirundu Border Post - Analysis from Global Track GPS dataNorthbound Traffic (Zimbabwe to Zambia)Aug-11Sep-11Oct-11Nov-11Dec-11Jan-12Nr of Crossings57531520540513519Avg hours to cross from Zimbabwe to Zambia283225Standard Deviation20262723Median hours to cross from Zimbabwe to Zambia242221Minimum hours to cross from Zimbabwe to Zambia412Maximum hours to cross from Zimbabwe to Zambia94138157167173188Avg hours on Zimbabwe side98116Avg hours on Zambia side19% Crossings within 12 hours26%39%33%36%% 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%% Crossing more than 72 hours5%7%8%9%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.
17 OSBP – On-going work at Chirundu Border Post 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 issuesJourney 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).
18 NTB Monitoring and Removal System As customs duties have gone down through trade liberalization measures by the REC’s intra-Tripartite export trade has remained low in relation to total trade due to the emergence of NTB’s. 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. NTB’s National Monitoring Committees being established
19 TMSA supported Trade Facilitation projects SPS and StandardsNon-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, OSBP’s, 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 NomenclaturesCommon customs training materialIntegrated Border Management and OSBP’sCustoms to Business ForumsRegional Single Window (COMESA)Regional decisions on Consularization and Pre-shipment inspectionsCustoms capacity building and e-learning
22 Other TF initiatives under implementation NationalSingle Windows;Upgrades to ICT systemsBilateral customs cooperation agreementsImplementation of AEO programmesPublication of laws prior to implementationAvailability of regulatory information on Revenue Authority sitesPre-arrival processing and Risk Management SystemsPost Clearance AuditsTime Release Studies;TF Diagnostic studies
23 Linkages with WTO Trade Facilitation agenda Support for accession and full implementation of RKCAdvance rulingsAppeals proceduresFormalities associated with importation and exportation and transitRegional Transit management SystemsFreedom of transitCustoms cooperationFormalities associated with importation, and exportation and transit
25 Going ForwardPolicy 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- REC’s and donors can agree on support measures
26 Going ForwardInvolvement 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