TRADE AND TRANSPORT FACILITATION AND DEVELOPMENT THE UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD)

Presented by: Solomon A. Kasa Councillor - to Tanzania Freight Forwarders Association (TAFFA) Ms. World Commerce Ltd, P.O. Box 72645, Dar es Salaam, Tanzania. Fax Cell phone

A.Introduction B.Definitions C: Factors which influence trade and transport facilitation D:Reasons for trade and transport facilitation E: Trade and Transport Facilitation Progress F:The role of Freight Forwarding Industry in Trade and Transport Facilitation and Development G: Barriers to trade and transport facilitation and development (Impact to operators) H: The way forward I: Conclusion

A.Introduction International trade contributes to the sustainable growth and development. It provides a country's access to goods, services, technology and knowledge. Trade is facilitated through an efficient and effective transportation process and broadly supportive policy environment based on a solid legal framework.

B.Definitions Trade Facilitation: Is broadly defined as the simplification and harmonisation of international trade procedures

C: Factors which influence trade and transport facilitation 1.Increase in International trade 2.Information Communication Technology (ICT) development which has lead to faster, cheaper and more efficient modes of trade and transport system such as Just in Time (JIT) management and e-commerce

3.The rapid increase in bilateral and regional free trade agreements that often feature complex customs requirements such as rules of origin. 4.Significant change in the nature of internationally traded goods. 5.The increase in the comparative cost on cumbersome and anachronistic trade procedures as a result of extensive work in progress and on other trade liberalization issues, such as tariff and quota reductions. 6.Expansion of transportation scope, i.e. air transport expansion and modernization of airports and ports along with facilities.

D:Reasons for trade and transport facilitation 1.The unstoppable growing volume of global production and changed trade patterns 2.Logistics developments 3.The availability of technologies 4.The significantly improvement of management of cross - border trade and distribution of goods 5.The fall in tariff levels after the conclusion of the Uruguay round table

E: Trade and Transport Facilitation Progress The Work of WTO, UNCTAD, World bank, IMF and others international organisations, have contributed to establish trade procedures, and other regulatory systems such as import licensing and automated customs systems based on best practices and mutually accepted standards and applicable in all environments.

E: Trade and Transport Facilitation Progress (cont.) Trade policy, trade facilitation contributes towards development objectives Foreign Direct Investments (FDI) or increase in volume of trade will only materialize where imports or exports are subject to very short, predictable and no costly delays.

F:The role of Freight Forwarding Industry in Trade and Transport Facilitation and Development They can be called: 1.Freight Forwarders in East Africa 2.Forwarding Agents in East Africa 3.Freight brokers in East Africa and Europe 4.Customs brokers Europe and Southern Africa 5.Freight Agents East Africa 6.Freight logisticians Europe and eat Africa 7.OTS (Ocean Transport Intermediaries) etc. USA

F:The role of Freight Forwarding Industry in Trade and Transport Facilitation and Development (cont.) Transporters/transporting agents Consolidators/consolidation operators Multimodal transport operators Customs brokers Warehousing contractors Insurance brokers

Export agent (for shipper) Cargo sales agent (For airline) Break bulk agent (delivery agent) Claim administration agents COD (Cash on delivery) collecting agents Overseas buyer's agents F:The role of Freight Forwarding Industry in Trade and Transport Facilitation and Development (cont.)

G: Barriers to trade and transport facilitation and development (Impact to operators) Lack of knowledge as to the interpretations of various conventions, treaties, protocols and rules accompanied by non availability or inadequacy of supply to the players. Too much documentation requirements by customs laws

1.Disappearance, misplacements of documents at customs 2.Multiple agency fees chargeable 3.Entry passes chargeable 4.Multiple identity cards issued 5.Customs bonds guarantee procedures 6.Non implementation of various conventions, treaties, protocols and rules 7.Inflexible standards of regulatory bodies and their associated chargeable fees 8.Double standard procedures and services offered by some companies under trade liberalisation policies. 9.Infrastructure problems G: Barriers to trade and transport facilitation and development (Impact to operators)

Transportation network in the region consists of. -Rail transport. -Road transport. -Air transport. -Ocean/lakes/inland waterways. -Ports. -Communication. They all have some problems and some barriers to individual modes and intermodal. G: Barriers to trade and transport facilitation and development (Impact to operators)

Transport Accident at a place where there is no diversion

H: The way forward 1.To encourage all countries who have not yet signed various conventions, treaties, protocols, etc to do so, so that, to enjoy regional trade in goods on the bases of mutually beneficial trade arrangements

2.To Standardise and simplify of laws, regulations and procedures. 3.To Harmonise Procedures, regulations and administrative systems 4.Promotion of transparency and predictability attitude 5.Modernization and make use of Information Communication Technology H: The way forward (cont.)

6.Efforts to strengthen training and Capacity building 7.To Introduction of stakeholders forum should be encouraged (Public and private partnership) 8.To emphasize the use of multimodal transportation 9.To improve the efficiency of regional transport network and develop mechanism for reducing transport costs H: The way forward (cont.)

10.To Integration of power and any other energy supply throughout the region 11.To Promote Good governance atmosphere 12.To Promote Private Sector Participation in regional economic development H: The way forward (cont.)

I. Conclusions  Standardization, simplification and harmonization of procedures and regulations  ICTs  Capacity building  Regional transport networks

Thank You !