1. FIATA RAME 2016 20 May 2016 Addis Ababa
Freight Logistics as an engine of growth Challenges Trade facilitation scenario
Poul Hansen
UNCTAD

2. UN’s organization for Trade and Development
9/13/2017
UNCTAD
UN’s organization for Trade and Development
Research and analysis
Consensus building
Capacity Building
THINK
DEBATE
DELIVER
Trade facilitation

3. How much does it cost to import and export a 20ft container?
Exportation
Importation
520$
530$
Top 5 performing countries x2 x2
2,380$
2,960$
Ethiopia
x12
x16
Explain what a 20ct is + scope of the costs included in the analysis
6,400$
8,700$
5 worst performing countries
Source: Doing Business 2015

4. 44% of transport costs can be related to cross-border inefficiencies
Transport costs breakdown on the northern corridor (% of total transport cost)
Direct and Indirect costs due to cross-border inefficiencies
Source: Analytical Comparative Transport Cost Study Along the Northern Corridor Region, CPCS, June 2010

5. Source: Transport Intelligence

6. Source: World Bank Logistics Performance index

8. Top/bottom TF measures by implementation
Source: UNCTAD

9. Trade Facilitation and Competitiveness
Clearance times are key determinants of foreign investment, export status and productivity
For integration into global value chains efficient importation is as important as exportation
Inefficient trade practices and complex procedures significantly reduce the ability to successfully integrate to global value chains.
Trade costs are a crucial ingredient for competitiveness and FDI
Economic development is key to general development

10. Trade Facilitation is…
WTO defines Trade Facilitation as:
“Simplification and harmonization of the activities, practices and formalities involved in collecting, presenting, communications and processing data required for the movements of goods in international trade”
Transparency and efficiency in international trade supply chain with the objective to reduce time and costs of cross-border procedures through:
Simplification,
Standardisation,
Harmonisation
Modernisation
An ongoing and multi-agency function
Only achieved through collaboration between public and private sector 10 10

11. Implementation of the TFA will reduce trade costs in all regions
Estimated reductions in ad valorem tariff equivalent trade costs due to TFA implementation (%)
Source: WTO Secretariat calculations, WTO World Trade Report 2015

12. Studies estimate that implementation of the TFA will lead to export and GDP growth…
WTO
ICC
OECD
Other1
Export growth
+750 to 1,000
billions $
1,000
billions $
1,000 to 1,500
billions $ NA
GDP growth
+0.35 to 0.55 % growth
+960
billions $
+40
billions $
+0.50
% growth
1.Ferrantino and Tsigas (2013), Hufbauer and Schott (2013); World Trade Report 2015

13. Structure of the Trade Facilitation Agreement
Preamble
Section I - Substantive Provisions
TFA Articles
Scope
GATT articles
Articles 1 to 5
Transparency
Article X
Articles 6 to 10
Fees and Formalities
Article VIII
Article 11
Transit
Article V
Article 12
Customs Cooperation na
Section II - Special and Differential Treatment
Section III – Institution al arrangements and final provisions

14. Review of TFA articles 1 to 10
Transparency
Articles
(1-5)
1 - Publication and availability of information
2 - Prior publication and consultation
3 - Advance Rulings
4 - Appeal or Review Procedures
5 - Other measures to enhance impartiality, non-discrimination and transparency
Fees & Formalities
(6-10)
6 - Disciplines on fees and charges imposed on or in connection with importation and exportation
7 - Release and clearance of goods
8 - Border agency co-operation
9 – Movement of goods under customs control intended for export
10 - Formalities connected with importation and exportation and transit

15. Review of TFA other articles
Article 11: Freedom of transit
Article 12: Customs Cooperation
Section II Special and Differential Treatment
Dedicated workshop session (Session 3)
Section III: Institutional Arrangements & final provision
Article 23.1: Trade Facilitation Committee
Article 23.2: National TF Committee

16. WTO TFA situation as of today
TFA agreed in Bali and finalized in November 2014
Members to go through their internal processes for categorization and treaty ratification process and notify acceptance of protocol to WTO
The Protocol will be open open-ended.
The Agreement will enter into force once 2/3 of the WTO Members ratify it

17. WTO TFA situation as of today
79 countries have ratified the Agreement (108 necessary)
81 countries have notified Category A
3 countries have notified Category B
3 countries have notified Category C

18. Challenges and opportunities for the Logistics industry of the WTO TFA
Is Trade Facilitation in the interest of all sectors of the Logistics Industry? Customs Brokers?
Is transparency and simplification an advantage? Single Window!
WTO TFA provides growth potential for Logistics Industry!
More trade more Logistics business
How does the Logistics Industry engage and promote trade facilitation?
Public Private Partnership – National Trade Facilitation Committees – Training and capacity of members

19. Thank You Division on Technology and Logistics Trade Logistics Branch
Trade Facilitation Section