1. Cross Border Transport Agreement and Trade Facilitation in GMS Lingling Ding Senior Regional Economist Thailand Resident Mission, Asian Development Bank 13 March 2007

2. Key Points GMS program and trade facilitationGMS program and trade facilitation Main initiatives: Cross Border Transport Agreement and GMS Trade Facilitation FrameworkMain initiatives: Cross Border Transport Agreement and GMS Trade Facilitation Framework The GMS program extends beyond cross border trade into poverty reduction and promotion of sustainable developmentThe GMS program extends beyond cross border trade into poverty reduction and promotion of sustainable development The ADB has taken the leading role in promoting trade facilitation through sub-regional arrangements like the GMSThe ADB has taken the leading role in promoting trade facilitation through sub-regional arrangements like the GMS

3. The GMS Program Ten year strategic framework: 1992, development of markets, transport and economic corridorsTen year strategic framework: 1992, development of markets, transport and economic corridors Regional Cooperation Strategy and Program (2004-2008): connectivity, competitiveness and community; three year rolling programRegional Cooperation Strategy and Program (2004-2008): connectivity, competitiveness and community; three year rolling program

4. GMS Program Components Transport Transport Telecoms Telecoms Energy Energy Environment Environment Tourism Tourism Trade facilitation Investment Human resource development Agriculture

5. Trade Facilitation in GMS Defined: trade, customs and transport facilitation, to support accession and implementation of the international/regional agreements and commitmentsDefined: trade, customs and transport facilitation, to support accession and implementation of the international/regional agreements and commitments Focus of work: physical connectivity; legal agreement (CBTA); framework for action on trade facilitationFocus of work: physical connectivity; legal agreement (CBTA); framework for action on trade facilitation Institutional mechanisms: trade facilitation working group meetings; committees under CBTA; GMS Customs directors-generals meetingsInstitutional mechanisms: trade facilitation working group meetings; committees under CBTA; GMS Customs directors-generals meetings Implementation of pilot projectsImplementation of pilot projects

6. The CBTA Cross Border Transport Agreement

7. The CBTA Initiative Inconsistent and difficult border crossing formalities and proceduresInconsistent and difficult border crossing formalities and procedures Restrictive visa requirementsRestrictive visa requirements Restrictions on entry of motor vehiclesRestrictions on entry of motor vehicles Different standards on vehicles and drivers across countriesDifferent standards on vehicles and drivers across countries Transit traffic difficult/not allowedTransit traffic difficult/not allowed

8. 8 CBTA Features Multilateral agreement that covers all aspects of cross border movement of goods, vehicles and peopleMultilateral agreement that covers all aspects of cross border movement of goods, vehicles and people Makes reference and in conformity with international conventions: Conventions on Road traffic; Road Signs and Signals, TIR; Temporary Importation of Commercial Road Vehicles; Containers; Harmonization of Frontier Control of GoodsMakes reference and in conformity with international conventions: Conventions on Road traffic; Road Signs and Signals, TIR; Temporary Importation of Commercial Road Vehicles; Containers; Harmonization of Frontier Control of Goods Comprises of one framework agreements+20 annexes and protocolsComprises of one framework agreements+20 annexes and protocols

9. CBTA Focus Facilitation of border crossing formalities (single window and single stop customs inspection, coordinating of hours of operation; and exchange of advance information and clearance)Facilitation of border crossing formalities (single window and single stop customs inspection, coordinating of hours of operation; and exchange of advance information and clearance) Facilitate cross-border movement of people (multi-entry visa, recognition of driver license)Facilitate cross-border movement of people (multi-entry visa, recognition of driver license) Facilitate cross-border movement of goods (regional transit regime)Facilitate cross-border movement of goods (regional transit regime) Exchange of traffic rightsExchange of traffic rights Requirements for admittance of road vehiclesRequirements for admittance of road vehicles Institutional ArrangementsInstitutional Arrangements

10. 10 CBTA Institutional Mechanism National Subregional Cambodia NTFC PRC NTFC Viet Nam NTFC Lao PDR NTTFC Myanmar NTFC Thailand NTFC ADB RETA Support Ministerial Joint Committee TransportCustomsImmigrationQuarantine subcommittees

11. CBTA- Chronology 1998: preparation of Framework Agreement1998: preparation of Framework Agreement 1998-2003: negotiation and signing of Framework Agreement1998-2003: negotiation and signing of Framework Agreement 1999–2006: preparation and negotiation of Annexes and Protocols1999–2006: preparation and negotiation of Annexes and Protocols March 2007: 2 nd Joint Committee Meeting, signing of remaining annexes and protocolMarch 2007: 2 nd Joint Committee Meeting, signing of remaining annexes and protocol 2005-2008: initial implementation of CBTA at selected border crossing points2005-2008: initial implementation of CBTA at selected border crossing points 2009 onwards: full implementation2009 onwards: full implementation

12. Ruili – Muse Mohan – Boten Veune Kham – Dong Kralor Hat Lek – Cham Yeam Mukdahan – Savannakhet Lao-Bao – Dansavanh Aranyaprathet – Poipet Bavet – Moc Bai Hekou – Lao Cai Myawaddy – Mae Sot Mae Sai – Tachilek Houayxay – Chiang Khong Nam Phao – Cau Treo Chongmek – Wang Tao Nongkhai – Thanaleng Geographic Coverage of CBTA FIRST PHASE (commencing in 2005/06) SECOND PHASE (commencing in 2007) THIRD PHASE (commencing in 2008/2009) POTENTIAL NEW BORDER CROSSING POINTS YOUYIGUAN (PRC) - HUU NGHI (VIE) THAKHEK (LAO) – HA TINH (VIE) LORK (CAM) – XA XIA (VIE) BY 2009 FULL IMPLEMENTATION

13. SFA-TFI Initiative Strategic Framework for Action on Trade Facilitation and Investment

14. SFA-TFI Initiative While CBTA focuses on activities at the border, effective trade facilitation extends beyond the border to cover the entire supply chain activities used for importing and exportingWhile CBTA focuses on activities at the border, effective trade facilitation extends beyond the border to cover the entire supply chain activities used for importing and exporting SFA-TFI priority areas:SFA-TFI priority areas: Trade logistics development Trade logistics development Customs procedures harmonization Customs procedures harmonization SPS strengthening SPS strengthening Business mobility improvement Business mobility improvement

15. SFA-TFI Initiative SFA-TFI re-enforces FTAs, WTO agreements, Revised Kyoto Convention, and ASEAN Transit AgreementSFA-TFI re-enforces FTAs, WTO agreements, Revised Kyoto Convention, and ASEAN Transit Agreement

16. SFA-TFI: Implementation Status  Country consultation  Preparation of technical report: identification of gaps identification of gaps supply chain analysis supply chain analysis ICT system evaluation ICT system evaluation legal and regulatory review of policy impediments legal and regulatory review of policy impediments national and regional actions national and regional actions pilot project development pilot project development

17. SFA-TFI –Initial findings SFA-TFI needs to target the four priority areas at the pilot project levelSFA-TFI needs to target the four priority areas at the pilot project level Alternatively, it could address specific obstacles in each country, which could be more ad-hocAlternatively, it could address specific obstacles in each country, which could be more ad-hoc

18. SFA-TFI: Customs  Regional theme common declaration forms common declaration forms single electronic window single electronic window regional intelligence and enforcement regional intelligence and enforcement data sharing and advance processing data sharing and advance processing  Develop regional matrix

19. SFA-TFI: SPS Trade off between free flow of goods and SPS risksTrade off between free flow of goods and SPS risks Some options:Some options: effective risk assessment procedures and collaboration effective risk assessment procedures and collaboration government working closely with private sector government working closely with private sector secure quarantine area for plant and animal introductions secure quarantine area for plant and animal introductions share experiences on risk assessment share experiences on risk assessment improve lab diagnostics and certification improve lab diagnostics and certification

20. SFA-TFI: Logistics Logistics are to be addressed at the pilot project levelLogistics are to be addressed at the pilot project level Some software optionsSome software options Strengthen public sector capacity Strengthen public sector capacity Improve private sector management of supply chain Improve private sector management of supply chain Select and monitor logistics performance indicators Select and monitor logistics performance indicators Some hardware optionsSome hardware options Support cold chain development Support cold chain development Provide infrastructure at border crossings Provide infrastructure at border crossings Options will be discussed at the 5 th TFWG meeting in May 2007Options will be discussed at the 5 th TFWG meeting in May 2007

21. Summing Up  GMS provides platform for cooperation in trade facilitation  Short term: cooperation between heads of agencies (e.g. in customs and transport)  Long term: facilitating implementation of necessary regional and multilateral agreements  ADB is supporting both processes as they are closely linked

22. 22 Thank you For more information: www.adb.org/gms www.adb.org/gms Or email to: dingl@adb.org and yushufeng@adb.org