Trade Facilitation in the WTO: Samer Seif El Yazal Head, Arab & Middle-East, Central & Eastern Europe and Central Asia Regional Desk, Institute for Training and Technical Cooperation World Trade Organization

2 Contents  Key issues  Legal Framework  DDA negotiations

3 Main problems for traders Lacking transparency and predictability Lack of automation and scare use of IT Burdensome border-crossing procedures Lack of cooperation and coordination Excessive documentation requirements 1. Key issues  Outdated legislation inhibiting change

4  1 extra day in clearance represents 1 percent of tariff According to the World Bank... (9 billion documents are necessary each year to process movement of goods) 1. Key Issues Documentation requirements  Companies sometimes spend more money complying with customs regulations than customs earn in revenue

5 1. Key Issues Documents required to import goods (average number) Time to comply with all procedures to export and import goods (days) East Asia & Pacific CEECAC OECD Sub-Saharan Africa Source: World Bank, Doing Business 2010

6 reliance by customs on transaction-based controls scarce use of “green channels” wide array of discretionary powers for customs no effective redress against decisions by customs lack of co-operation between customs and traders, and between customs and other government agencies Border crossing problems 1. Key issues

7 Lack of automated processes and scarce use of information technology has potential to cause delays and reduce efficiency of administration Time lost at borders accounts in some countries for 20 % of overall transport time 1 extra day in clearance represents 1 percent of tariff 1. Key issues

8 2. Introduction – Objective of Trade Facilitation negotiations in the WTO Making trade procedures as efficient as possible through the simplification, rationalization and harmonization of procedures, documentation, and information flows Specific focus of work: Articles V, VIII and X of GATT 1994

9 2. Legal framework GATT 1994: Freedom of Transit Publication and Administration of Trade Regulations Fees + Formalities connected with Importation & Exportation  Art. V  Art. VIII  Art. X Existing WTO rules on TF GATT 1994

10 Existing WTO Legal Framework GATT Article X – Transparency Publication Administration of laws Right to appeal GATT Article VIII – Fees and Formalities Fees reflect cost of services rendered Reduce # and kind of fees Simplify formalities and documents Minor penalty for minor errors GATT Article V – Freedom of Transit Most convenient route No discrimination No unnecessary delays or restrictions No duties

11 Claimed shortcomings  Lack of clarity and precision  Lack of operationality  Lacking enforceability  Lacking transparency and predictability  Absence of requirements for cooperation and coordination amongst the various stakeholders 2. Legal Framework

12 Clarify and improve V, VIII, X SDT - Longer transition periods No obligation for infrastructure Identify needs and priorities Technical Assistance & support WT/L/579- Annex D Mandate:

13  Substantive number of proposals  Current discussions on draft-text  Significant number of meetings so far State-of-play: Trade Facilitation  Negotiations should bear overall outcome of DDA – Early harvest

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