LATIN AMERICA REGIONAL REPORT ON “IMPROVING TRANSIT COOPERATION, TRADE AND TRADE FACILITATION FOR THE BENEFIT OF BOLIVIA AND PARAGUAY” Current Status and Policy implications

ADVANCES Infrastructure and Integration

ADVANCES Trade Facilitation Advanced regional transit Agreement ATIT Single custom document (MIC/DTA) Customs electronic system SINTIA Electronic monitoring seal in Arg – Paraguay – Uruguay (partially) – upcoming Brazil Integrated control posts in most of the borders Authorized Economic Operators – Single Windows – Postal Trade Interest in applying standards to secure and facilitate trade from WCO – WTO TFA *Image from WEF 2015.

SUCCESSFUL CASES  Paraguayan Single Windows for Exports and Imports and information platform  Role of private sector: CONDESUR* and agreement on weight and dimensions as well as optional guarantee system (security guarantee).  Border coordinators  Postal trade: to foster SMES international trade.  Multimodal trade: Bolivian and Paraguayan soya and derivatives. * This group is formed by the private sector and institutions of MERCOSUR countries, Chile and Bolivia (to a lesser extent). They started working in December, They meet yearly, before the national coordinator meetings of Subgroup 5.

ACHIEVEMENTS Increased intraregional trade Total exports from Bolivia to MERCOSUR, CAN and MERCOSUR members Source: ALADI

ACHIEVEMENTS Increased intraregional trade Total exports from Paraguay to MERCOSUR, CAN and MERCOSUR members. Source: ALADI

ACHIEVEMENTS Reduction in total time to import and export Doing Business Trading Across Borders Source: World Bank Time to export (days)Time to import (days) Country Argentina Bolivia Brazil Chile Paraguay Peru

CHALLENGES Longer Time at the Border and Higher Costs Source: World Bank Domestic Logistics Performance Index 2014ArgentinaBoliviaBrazilChileParaguayPeru Income: Lower middle income Region: Latin America & Caribbean Number of border agencies imports 5343N/A Number of border agencies exports 4442N/A344.1 Percentage of physical inspection 11.77%30%7.5%1.26%N/A11.18%33.34%31.3% Lead time export median case 4 days5 days3.4 days5 daysN/A 4.2 days3.97 days Lead time import median case 4 days7 days3 days4 daysN/A 4.6 days3.5 days Typical charge for a 40' dry box exportcontainer or a semi-trailer (i.e. total cost/charges to transport and port services) 1842US$2739US$1000US$1145US$N/A 1780US$1652US$ Typical charge for a 40' import dry box container or a semi-trailer (i.e. total cost/charges to transport and port services) 2943US$2828US$1191US$1500US$N/A 2003US$1566US$

CHALLENGES Number of documents remain the same across years… Doing Business Trading Across Borders Documents to export (number) Documents to import (number) Country Argentina Bolivia Brazil Chile Paraguay Peru Source: World Bank

CHALLENGES Infrastructure indicators worsening – Better Score but worse rank Enabling Trading Index – Infrastructure Component Source: World Economic Forum (Range 1 to 7) Year CountryRankScoreRankScore Argentina Bolivia Brazil Chile Paraguay Peru

POLICY ACTION AREAS Short-Term Policy OptionsMedium-Term Policy Options Strengthen public and private sector capacity to effectively apply the transit regulations. Develop infrastructure on roads, railways and waterways, as strategically planned by IIRSA initiatives. Improve customs efficiency and border-crossing procedures by implementing the agreements. Develop infrastructure maintenance options. Strengthen multimodal transportation.Scale up on the value chain of export goods. Extent guarantees systemSeek new innovative ways to mobilize resources. Exclusive lanes and 24hs border operations.Implement solutions that streamline supply chains.

THANK YOU! Maria Florencia Millan Placci