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EuropeAid Delivery of EC Assistance in field of Trade Facilitation Michaela Dodini, EC 1 July 2009.

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Presentation on theme: "EuropeAid Delivery of EC Assistance in field of Trade Facilitation Michaela Dodini, EC 1 July 2009."— Presentation transcript:

1 EuropeAid Delivery of EC Assistance in field of Trade Facilitation Michaela Dodini, EC 1 July 2009

2 EuropeAid Policy Context for EC Aid 2000 Millennium Development Goals (MDGs) o Fixing objectives for poverty reduction for Paris Declaration on Aid Effectiveness o 50 donors and 60 partner countries o Ownership, Alignment, Harmonisation, Mutual Accountability, Results Oriented Framework o 12 progress indicators 2005 European Consensus on Development o EU development policy o Applicable to both EC and EU Member States

3 EuropeAid Programming of EC Aid Work together with more than 150 countries/ regions Multi-annual planning in countries/regions ( CSP/NIP, RSP/RIP*) In principle not more than 2 focal sectors per country ……… Priorities in accordance with national strategic development objectives (PRSPs/NDPs) *Country/Regional Strategy Papers and National/Regional Indicative Programmes

4 EuropeAid EU Aid for Trade Strategy Oct 2007 o Support to DC integration in the world trading system as part of poverty reduction efforts o Support greater competitiveness and efficiency of the production systems o Support for regional economic integration o AfT Strategy focuses on more resources and better impact on development objectives o EU commitments to increase TRA translated into reality: EC TRA 1 bn in 2007, AfT 2,4 bn (EC+EU MS overall TRA 1.9bn/AfT 7.12bn) o Follow up to the recommendations of the WTO AfT Task Force of summer 2006

5 EuropeAid EC support to Trade Facilitation - Key objectives Trade facilitation activities to enhance DCs' trade competitiveness, and support the establishment of fully functioning free trade areas and customs unions: simplification and harmonisation of national customs procedures and systems, reduce time of customs clearance and facilitate the transit of the goods (notably through the computerization of customs systems) development of customs related infrastructures (creation of one stop border posts for bordering countries).

6 EuropeAid Demand driven: Regional integration processes give a strong impetus to trade facilitation Local ownership: need high level political will and solid implementation structures. Trade facilitation, e.g. customs reforms - a sensitive political issue, may encounter strong resistance to change Thorough needs assessment diagnostic/gap analysis carried out using e-g.TAXUD customs blueprint approach Institutional sustainability – local/regional: short & long term support Co-ordination: coherence with activities of other donors, reduce administrative burden Preparation takes time! EC support to Trade Facilitation – Key Principles

7 EuropeAid How can we support implementation of new Trade Facilitation Agreement Possible to incorporate appropriate activities into ongoing EC TRA projects in a country if so requested by relevant local authorities (TF needs to be high in their priorities) Future programmes: TF needs assessments/ implementation plans can be taken into account in the design of new EC interventions in the field of TRA / trade facilitation, if considered a priority by beneficiaries (focal areas)

8 EuropeAid How can we support implementation of new Trade Facilitation Agreement (contd) Contacts to be made with EC Delegations in DCs (bottom up) Essential to have effective communication and decision making channels within beneficiaries (Geneva-based negotiators, capital-based responsible for TF implementation, managers of aid programmes and of relations with donors)

9 EuropeAid Overview of TF programmes

10 EuropeAid Trade Facilitation in practice: Identification of needs in the Caribbean -EPA signed in 2008 (Chapter 4 on Customs and TF) -Regional Preparatory Task Force – CARIFORUM/EU -Launch of studies for implementation of the EPA, incl a Study on Customs and Trade Facilitation to assess level of conformity of Customs Adm, identify capacity constrains -Methodology: surveys to Customs, Gov. Admin and Private Sector, field visits -19 programmes identified, based on needs, existing support, national/regional processes -Implementation based on Regional integration roadmap EuropeAid

11 Tools for identification of needs: EU Customs Blueprints 4 Areas General management issues- related to administration/organisation of an organisation Cooperation/Communication mainly related to external partners Customs specific Customs specific operational/technical areas Supporting- relating to Customs Infrastructure Gap Analysis Needs Analysis Action Plan publications/info_docs/customs/index_en.htm

12 EuropeAid Tools for identification of needs: Integrating existing assessments Ensure inclusion of findings from existing studies for actions which are considered a priority by local authorities - Trade Facilitation Needs Assessment for TF Agreement - Diagnostic Trade integration Studies - WCO Columbus Programme - Other studies at national/regional level

13 EuropeAid Focus mainly at regional level Several comprehensive programmes with particular emphasis on developing Customs Unions eg. regional integration support programmes for CEMAC and for West Africa, harmonisation of customs for COMESA etc. Projects funded under 9 th and 10 th EDF Assistance under 10 th EDF is be based on results / evaluations of ongoing programmes. Support EPA implementation. Identification/design 2009/2010. TF projects portfolio: 380 million EC Trade Facilitation – overview per region Africa, Caribbean, Pacific

14 EuropeAid Trade Facilitation for EPA implementation Harmonization & simplification of customs procedures, including transit aspects: all regions except the Pacific Customs processing systems inter-connexion (ASYCUDA/UNCTAD): o Central Africa: FASTRAC ( 12.5 million); SADC : Customs modernization programme ( 18 million); COMESA (ICT programme) One stop border posts: West Africa (PARI II) Training: all regions Regional networking (Customs liaison committees) and exchanges of experience/coordination between Regional Organisations (ESA, SADC and SACU regions) Compensation mechanism for the implementation of the Customs Union (CET): o West Africa (9th EDF ECOWAS 19.4m, UEMOA 11m within programmes supporting Regional Integration) o COMESA (Regional Integration Budget Support programme : 7m

15 EuropeAid EC Trade Facilitation – SADC SADC Customs Modernisation Programme ( 18m 9th EDF RIP) To assist SADC Member States in the transformation and modernisation of their customs systems ( including improved transit flows) and to set the legal and institutional framework for the establishment of a SADC Customs Union by Demand oriented assistance to SADC. Results covering core area of cooperation for SADC CU to function effectively

16 EuropeAid EC Trade Facilitation – Central Africa CEMAC Trade facilitation programme (FASTRAC) 12.5 million designed to assist CEMAC Member States and Sao Tomé and Principe to improve transit flows in the region through proper application of the Transit legislation. Upgrading of priority one stop border posts Inter connexion of CEMAC customs administration (UNCTAD) Implementing a proper functioning transit system Harmonisation and simplification of transport related legislation

17 EuropeAid EC Trade Facilitation – West Africa 1. Regional integration programme with West Africa 105m includes support on trade facilitation to UEMOA and ECOWAS and national customs authorities. Facilitation of Transport 9th EDF 63.8m Project addresses main concerns identified in negotiations in field of trade facilitation Activities include institutional support, facilitation actions in favour of road, air, rail & maritime transport, transit and trade facilitation, construction of joint border control posts

18 EuropeAid EC Trade Facilitation – East Africa 33.5 M Regional integration support programme includes support to the establishment of a customs union 78 M COMESA Regional Fund, a regionally owned financial compensation mechanism COMESA ICT programme (including Asycuda) 21M Support to develop regional ICT policy Provide high-speed Internet connectivity to key regional stakeholders Upgrade to Asycuda++ at regional level and in selected countries Establish regional information portals, design websites for RIO Establishment of incubator ICT projects, transfer of skills to SMEs Design of regional transport and communication strategy, priority investment plan

19 EuropeAid EC Trade Facilitation – Caribbean The 41.6 M Caribbean Integration Support Programme supports the Caribbean Single Market and Economy together with activities to improve regional transport and Information and Communication Technology (ICT). Supports implementation of a Common External Tariff (CET) and a Common External Trade Policy Specific customs related activities: enhancing institutional and management capabilities within customs administrations, improving operational effectiveness of procedures affecting business transactions, and increasing transparency of operations of customs services affecting cross- border transactions.

20 EuropeAid EC Trade Facilitation – Pacific Included under the 11.2M PACREIP (Pacific Regional Economic Integration Programme). Includes: Customs, standards and conformance: workshops/handbook and manual on RoO for customs and trade officials, customs automation using ASYCUDA software Bio-security (SPS): drafting legislation on bio-security (pests and diseases of plants and animals), harmonisation of legislation at regional level, manual on bio-security administration and website on regulatory information Fiscal Reform: Work (studies) on fiscal reform, competition policy and regulatory reform, work on revision of customs and general tax legislation for selected PACPs is being undertaken

21 EuropeAid EC Trade Facilitation – Latin America Key projects at regional level to support regional integration including establishment of common external tariff Central America - Andean Union I & II 15m Harmonization of Customs Procedures and Common Terminology, Implementation plan for Custom Union, Training and establishment of Central American Customs School. Andean Community 13m includes harmonization of Procedures, Common Terminology, Single Customs Document, Training, electronic data exchange system Mercosur SPS & Customs Cooperation 12m includes harmonization of Procedures, Common Terminology, Customs Single Document, Training. TF projects portfolio: 45 million (excludes Caribbean)

22 EuropeAid EC Trade Facilitation – ASIA Included as an aspect within both bilateral and regional TRA programmes. ASEAN - Customs capacity building provided through the ASEAN Programme for Regional Integration (APRIS) 6.8m. Customs and Trade Facilitation is one of five components Central Asia - Border Management in Central Asia (BOMCA) 25 million ( ) (Kazakhstan, Kyrgystan, Tajikistan, Turkmenistan, Uzbekistan) National support TF project portfolio: 95 m (excludes Afghanistan)

23 EuropeAid EC Trade Facilitation - Neighbourhood Europe Support to Cross-border cooperation between EU and East Europe / Central Asia EU Border Assistance Mission to Ukraine and Moldova Support to Transport Corridor Europe-Caucasus-Asia Russia – support provided for customs improvement through the cross border cooperation programme and support for approximation. Balkans Mediterranean Support Mediterranean Partners in preparation for a Euro- MED FTA, a key objective of the Barcelona Process. TF project portfolio: 320m

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