Arab Countries & Trade Facilitation Reform Priorities Raed Safadi Deputy Director Trade & Agriculture Directorate

Bali package on Trade Facilitation is a good start, but needs to be implemented WTO BALI PACKAGE ON TRADE FACILITATION COVERS 12 TOPICS 1. Publication and availability of information 2. Opportunity to comment, information before entry into force and consultation 3. Advance rulings 4. Appeal or review procedures 5. Other measures to enhance impartiality 6. Disciplines on fees and charges 7. Release and clearance of goods 8. Border agency cooperation 9. Movement of goods under customs control 10. Formalities connected with importation, exportation and transit 11. Freedom of transit 12. Customs cooperation OECD Trade and Agriculture Directorate2

Implementation can only start after next hurdles are overcome Bali package to be adopted by the WTO General Council by 31 July 2014 Bali package needs to be ratified by two thirds of WTO members (expected to take up to 2 years) On-the-ground implementation period will differ by country and by type of measure  Provisions divided into categories A, B, and C, according to planned implementation timing  Developing and Least Developed Countries allowed differential treatment for implementation OECD Trade and Agriculture Directorate3

Overall potential trade costs reductions for MENA and selected groups OECD Trade and Agriculture Directorate4

Potential trade costs reductions for the “top three” sets of measures – MENA and selected groups OECD Trade and Agriculture Directorate5

OECD Trade Facilitation Indicators  Assessing the impact of TF measures on trade flows and trade costs  Following the structure of the WTO Trade Facilitation Draft Consolidated Negotiating Text  Aiming to provide a basis for prioritising trade facilitation actions by governments  Helping mobilise technical assistance in a targeted way OECD Trade and Agriculture Directorate6

OECD TFIs structure OECD Trade and Agriculture Directorate7 Information availability Involvement of the trade community (consultations ) Advance rulingsAppeal proceduresFees and chargesFormalities – DocumentsFormalities – AutomationFormalities – ProceduresBorder agency cooperation – InternalBorder agency cooperation - ExternalGovernance and impartiality

Extensive coverage  133 countries at different stages of development  Extensive data collection process: Customs websites and regulation, publicly available databases, collaboration with countries’ Permanent Delegations to the WTO  Focus on assessing impacts for different country groups: income groups, geographic groups, regional economic partnerships groups OECD Trade and Agriculture Directorate8

Objectives The OECD Trade Facilitation Indicators are a tool that allows exploring  the state of trade facilitation performance across: income groups regions countries  quantitative impacts on: trade flows trade costs OECD Trade and Agriculture Directorate9

Arab countries covered  8 countries in the Middle East: Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, United Arab Emirates  3 countries in North Africa Algeria, Morocco, Tunisia OECD Trade and Agriculture Directorate10

Arab Countries: TF state of implementation OECD Trade and Agriculture Directorate11

Main sub-regions: TF state of implementation OECD Trade and Agriculture Directorate12

Arab focus: Impact on trade flows and trade costs OECD Trade and Agriculture Directorate13 Automation Streamlining of procedures Involvement of the trade community (consultations) Simplification and harmonisation of documents Governance and impartiality Information availability Advance rulings result most important for: - increasing trade flows with the rest of the world - lowering trade costs - boosting intra-regional trade - equally important for both exports and imports

Impact on trade costs – potential reductions OECD Trade and Agriculture Directorate14

How can these findings be put into practice?  The use of the indicators in this proposed framework should enable countries sharing similar characteristics to better assess which trade facilitation dimensions deserve priority  This empirical evidence provides useful information to guide policymakers, private sector practitioners and other stakeholders on which might be the areas for which resource allocation could bring the highest benefits  The set of variables identified shows that some measures for which costs are considerably lower than for larger infrastructure projects can bring high benefits (e.g. the simplification and harmonisation of documents, increasing information availability) 15OECD Trade and Agriculture Directorate