High-Level Expert Group Meeting On the Preparation of the Arab Countries for the 7Th WTO Ministerial Conference Tamam El-Ghul Beirut, November 2009

2 Trade Facilitation 1.A number of International Organizations worked on TF before WTO. 2.TF on WTO agenda at 1 st Ministerial Meeting in Singapore, 1996 (para.21) 3.Followed by WTO review of past work of International Organizations on TF. 4.TF became part of Doha Development Agenda in 2001 (para. 27) 5.Negotiations on TF were delayed because of 5 th Ministerial Meeting failure in 2003(Cancun)

3 Trade Facilitation 6.A Negotiating Group on Trade Facilitation (NGTF) was established according July 2004 Package (Annex D( 7.Work Plan by NGTF covering all elements of Annex D that were grouped to six clusters. 8.Schedule of meetings, keeping in mind that TF negotiations are part of Single Undertaking. 9.NGTF first meeting was held in October 2004.

4 Trade Facilitation 10. Clusters of Work Plan: –Clarification and improvement of relevant aspects of articles V,VIII and X of GATT1994; effective cooperation between customs or any other appropriate authorities on TF and compliance issues –S&DT for developing and LDC –Least-developed country members –Identification of TF needs and priorities; concerns of cost implications of proposed measures –Enhancement of Technical Assistance and Capacity Building –Working with and work of relevant international organizations

5 Negotiations Process Annex E of 6 th Ministerial declaration detailed issues to be taken into consideration during discussion of Members’ proposals & textual drafting of the proposals. New and old proposals were discussed and revised to narrow differences. Members were concerned over ability to commit to some proposed obligations. WTO conducted regional and national “Needs Assessment” workshops in cooperation with Annex D organizations. Nine Arab countries benefited from such workshops: Egypt, Jordan, Tunisia, Yemen, Morocco, Bahrain, Qatar, Arab Emirates and Djibouti.

6 Article V Negotiations 1- Article V addresses goods in transit. It strives to: –Not delay movement of goods in transit by imposing unnecessary restrictions or unreasonable charges, –Accord such goods MFN treatment, 2- Although historically there were violations of article V, it was never applied in dispute settlement in GATT or WTO.

7 Article V Negotiations Status of negotiations Article V negotiations aim at ensuring that all facilitating provisions in future TF agreement will apply to goods in transit, as most of the article V principles are present in other WTO agreements. Issues not agreed concern: definition of goods in transit like energy goods & dangerous goods; limitations to freedom of transit to protect physical infrastructure; and applicability to transiting goods.

8 Article VIII Negotiations 1.Article VIII: Fees and Formalities connected with Importation and Exportation seeks to limit costs and complexities associated with exportation and importation process and to reduce the number of related fees & documentation requirements. 2.This article is the most controversial in TF negotiations. Agreement on a number of issues is still outstanding.

9 Article VIII Negotiations – Status Main issues discussed: Rules applied by customs for fees and charges should represent cost of services rendered. Not to be calculated as % age of value of goods. To expedite release and clearance of goods proposals include: 1.Pre-arrival processing 2.Risk Assessment/ Analysis 3.Expedited shipments 4.Post clearance audit using international standards and most compliant traders to be granted easier clearance by customs (Authorized Traders). –Proposal to make use of international standards to execute 1-4 (though giving Member right of inspection).

10 Article VIII Negotiations – Status Main issues discussed: Border Agency Cooperation that includes coordinating procedures, common facilities& exchange of non-confidential information.

11 Article VIII Negotiations – Status Main issues discussed: Other formalities : 1.Elimination of consular transactions and related fees. 2.Reduction of documentation requirements. 3.Single window/one time submission. 4.Elimination of pre-shipment inspection and of customs brokers. 5.Same border procedures uniform forms and documentation requirements within a customs union..

12 Article X Negotiations 1.Article X objective is to allow for a certain transparency in Publication and Administration of Trade Regulations. Accordingly it requires a Member to: Publish its trade-related laws, regulations, rulings and agreements in a prompt and accessible manner. Abstain from enforcing measures of general application prior to their publication. Administer all the above in a uniform, impartial and reasonable manner. Consequently members are required to institute or maintain tribunals or procedures for, inter alia, prompt review and correction of administrative action relating to customs matters..

13 Article X Negotiations 2.For publication and availability of information proposals require publication using the internet and web sites, establishment of enquiry points and notification to future WTO TF Committee. Remaining issues are details, and whether one of WTO official languages should be used on internet. 3.Prior publication and consultation before applying them. 4.Advance rulings on goods classification to be issued upon request from a member for a limited period. Remaining issue relates to revoke them if based on wrong information..

14 Article X Negotiations 5.Appeal procedures concern: Right of appeal for traders against decisions by border agencies like customs and, Appeal mechanism in a Customs Union. Should be available in each member state of Union..

15 Article X Negotiations 6.Other Measures to enhance impartiality, non- discrimination and Transparency using: Import alerts/rapid alerts in customs unions must only be imposed if based on uniform standards and applies uniformly. Detention of goods, importers informed of that. Test procedures should be clear and list of accredited laboratories should be published. Members of customs unions shall recognise each others conformity tests..

16 Special and Differential Treatment Negotiation S&DT provisions for DC and LDC are an important part of TF agreement. These include: –Needs assessment of priorities and needs –Sequencing of obligations after signing of Agreement –Categories of Commitments:  Category A: provisions Member commit to implement from entry into force of the agreement  Category B: provisions Member require more time to implement  Category C: provisions Member requires more time, TA & CB RI: shifting between categories.

17 Arab countries and TF Agreement 1.TF is important to Arab countries to overcome customs and administrative barriers to Arab trade flow. 2.Proposed commitments in TF Agreement are two kinds: –One requires trade policy& legislative changes –The other is of technical nature to enhance quality of customs procedures and practices. Some aspects of both kinds are present in customs systems in Arab countries

18 Arab countries and TF Agreement 3.Results of Needs Assessment workshops in 9 Arab countries are not available to draw any conclusions from in order to assess their capabilities to implement TF obligations. 4.Summaries of Jordan’s and Yemen workshops show differences in capability to implement obligations. 5.Assessing human capability and infrastructure needs at an early stage makes it easier to benefit from the TF Agreement.

19 Arab countries and TF Agreement 6.Arab countries must define their commitments to implement obligations according to the three categories (A,B and C) and have in place a plan and timeline for implementation. 7. Arab countries should start implementing TF measures that contribute to increase Pan Arab trade flow on voluntary basis as this is in their interest. 8.Being part of a multilateral TF Agreement will enhance trade flow and reduce losses incurred now by traders. 9.Conducting assessment study for financial, political and security cost is worth embarking on at this stage.

20 Arab countries and TF Agreement 10.Arab participation in ongoing negotiation on TF is very weak 11.Some kind of coordination mechanism between Arab delegations in Geneva should be envisaged to enhance their participation in the negotiations. 12. WTO Director General Pascal Lamy called on Arab countries to have more active role in WTO multilateral negotiation in a letter addressed to the Arab Economic Summit in Kuwait in January 2009.