Towards a Central Africa Trade Facilitation Strategy: Customs union and Policy Dialogue BBL – September 29 th 2011

Contents Customs Union agenda Policy Dialogue Proposed way forward

I Complete the customs union agenda In 1994, the CEMAC countries agreed to a single economic and monetary union. But the customs union has been ineffective at making trade easier between member states: – Intra-CEMAC formal trade was just 1% of the region’s overall trade in – Member states have made numerous exceptions to the common external tariff, rendering it obsolete.

I.Complete customs union agenda To strengthen the customs union, the following is needed: – Harmonization of tariff nomenclature. – Common regulations guiding customs management. – Shared payment systems. – Removal of standards-related trade restrictions within CEMAC.

I. Complete CU agenda: Common tariff nomenclature (CTN) 1.develop and update CTN and guidelines to promote standardized interpretation 2.Gap analysis between present situation of each Member State and CTN 3.Domestication and implementation of CTN, 4.Mechanism for maintenance of standardized interpretation of CTN across the Customs Union.

I. Complete CU agenda: Common customs procedures(CMR) Same Customs procedures or common Customs Management Regulations (CMR), also known as Common Customs Code for standardized Customs procedures 1.promote standardized interpretation; 2.Gap analysis between present situation of each Member State and CMR 3.Domestication and implementation of CMR, 4.A mechanism for maintenance of standardized interpretation of CMR.

I. Complete CU agenda: payment Systems 1.small-value payments services that constrain the growth of cross-border trade: (1) dialogue with traders, regulators, and financial sector stakeholders to identify barriers to innovation and competition in the market; (2) survey of small traders to provide evidence of gaps in demand and supply-side of financial intermediaries’ products and services 2.Payment instrument for trade transactions 3.Capacity of players, particularly SMEs

II. Policy dialogue The essential components of the policy dialogue are: – A platform to support a holistic trade facilitation agenda; – A forum for engaging stakeholders (national and regional, public and private); and – A transport observatory for diagnostic and monitoring, first to determine reform areas, and second to measure the effectiveness and impact of the reforms along the corridor. Dialogue including all stakeholders Design of policy interventions Implementation Impact assessment and monitoring tools

II. Policy dialogue: Platform specifics Experience and good practices to enhance processes along the entire supply chain hence ensure Best information on rules and regulations affecting the provision and cost ; Appropriate design of trade and regulatory reforms and the capacity required for effective implementation; Outcomes of reforms, including impact on losers; Policy options to address any adverse distributional consequences.

II. Policy dialogue : Forum Build a knowledge base and nurture a constituency for reform – Identify and engage with relevant stakeholders – Use tested tools (TTFA, TRS) implemented by locals – Evaluation and impact assessment analysis in the Bank – Build and use local capacity: necessary to properly integrate local condition in design and implementation – Trade facilitation week: traditional TF stakeholders, broaden the reach (ministry of trade, academics)

Conclusion Intervene at regional, national and corridor levels. Focus on large or coastal countries; account for smaller ones to ensure spillover effects Facts essential, so is the process(political economy for effective implementation )