1. UNECE Integrated Approach to Trade Facilitation Tom Butterly Deputy Chief Global Trade Solutions Branch UNECE Capacity-Building Workshop on the WTO Trade Facilitation Negotiations June 2006, Chisinau, Republic of Moldova

2. Agenda UNECE Integrated Model of Trade Facilitation
Best Practice Examples - UN/CEFACT Standards, Recommendations and Tools
International Trade Single Window
Capacity Building

3. UNECE Integrated Model of Trade Facilitation
UNECE’s objective in international trade: to facilitate and strengthen the integration of member States, and especially countries in transition, into the European and global economy. Trade Facilitation is a key tool of UNECE to achieve this objective

4. Trade Facilitation
“The simplification, standardization and harmonization of procedures and associated information flows required to move goods from seller to buyer and to make payment “
Facilitate - to make easy or easier

6. INTERNATIONAL TRADE TRANSACTION PROCESS
BUY
SHIP
PAY
Prepare For
Export
Prepare For
Import
Export
Transport
Import
INVOLVES
Commercial
Procedures
Establish Contract
Order Goods
Advise On Delivery
Request Payment
Transport
Procedures
Establish Transport Contract
Collect,Transport and Deliver Goods
Provide Waybills, Goods Receipts Status reports
Regulatory
Procudures
Obtain Import/Export Licences etc
Provide Customs Declarations
Provide Cargo Declaration
Apply Trade Security Procedures
Clear Goods for Export/Import
Financial Procedures
Provide Credit Rating
Provide Insurance
Provide Credit
Execute Payment
Issue Statements

7. The UN/CEFACT Vision Total Trade Transaction – Integrated supply-chain
Competitiveness – trade efficiency
Trade facilitation
ASTRAL TUNISIA, Painting industry had either to adapt to requirement made by EU customer or disappear. They decided to manage the change process by doing a business and modelling approach to improve inventory and delivery times.
TF allows to reduce frictions in international trade

8. Economic efficiency WHY is TF a tool for development?
Enquiry Validation
Credit Arrangements
Refund claim
Long Lead
items
Export Licence
Short Lead Components
Delivery to port
Documentation
Dehire GKN pallets
Delivery to customers warehouse
Unload and store
Retail sale
Payment by customer
Payment of
transport
and FOB
charges
Added value
and cost
Omagh to Algeria. 1 Order –
360 net tonnes, 21 weeks
Invoice and order administration
Unload, re-
pack
Delivery to customs warehouse
Exit clearance from community
Refund payment and administration 12 13 15 16 19 21
Weeks
(approx)
Main vessel loading
Sea Crossing
Main vessel off-loading
Artwork
Order receipt and administration
Request Health Certificates, Licences
Pre-shipment Inspection
Customs formalities (Inland)
Manufacture
Load and despatch
Proof of export
Inwards clearance
WHY is TF a tool for development?
Trade facilitation allows to increase added value to the products and reduce cost – the green curve

10. Why focus on Trade Facilitation ?
Economic Benefits - shift in focus from technical to trade/economic policy perspective
Greater demands from business for predictability and speed
Information requirements
Investment Link
Trade Facilitation at the WTO

11. Economic Benefits
Estimates vary from 1-15% of total trade transaction costs
Even if only 1%, OECD estimates total gains to world economy of US$40, billion
APEC estimates gains of US$46 billion from trade facilitation measures - adopted TF as key policy target.

12. Economic Benefits
Benefits higher for developing countries and for SMEs
Greater than the potential value of increased tariff reductions under future multilateral trade negotiations.
Inefficient or unnecessary process and controls add no value whatsoever

13. UNECE Study on TF
TF plays a crucial role in deriving benefits from overall trade liberalisation policy
Even in non-liberalised economies significant benefits cold be gained
The introduction of trade liberalisation measures without parallel trade facilitation initiative might fail to realise their full economic potential.

15. Strategic Approach to Realising the Benefits of Trade Facilitation
Undertake detailed needs analysis and set priorities at both the national and regional level
Involve the business community from the outset
Cultivate the necessary political will
Develop national and regional implementation strategies, with trade facilitation as a key trade and economic development instrument
Total trade transaction approach
Use existing trade facilitation standards, tools and instruments