1. Jan.Hoffmann@UNCTAD.org Geneva, May 2009 Trade Facilitation: Links to Logistics and Development

2. 10 global trends Trade facilitation measures Implications for development Trade Facilitation – Links to Logistics and Development

3. 10 global trends Trade facilitation measures Implications for development Trade Facilitation – Links to Logistics and Development Loooong term

4. 1. Exports of manufactured goods Today 80% of developing countries’ exports are manufactured goods, up from only 20% two decades ago

5. 2. Globalized production About 1/3 of global trade is intra-company trade Around 30% of trade is trade in components and unfinished goods

6. 3. Increased security concerns Security measures along the entire supply chain

7. 4. New Geography of Trade Especially the share of South-South trade has doubled since 1990

8. 5. Regional integration Increased regional and transit trade

9. 6. Within Logistics expenditure …inventory holding decreases, and Transport expenditure increases Data for USA, via DOT

10. 7. Technologies Containerization, shipping networks Use of computers and Internet

11. 8. Privatizations / concessions Ports, Shipping lines, Railways, Airlines, Airports

12. 9. Tariff reductions For most developing countries’ exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in developed countries. Source: Miccio/ Perez 2002

13. 10. Negotiations on trade facilitation at the World Trade Organization

14. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

15. 10 global trends Trade facilitation measures Implications for development Trade Facilitation – Links to Logistics and Development

16. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

17. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations advance ruling

18. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations authorized traders

19. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Risk analysis 3. Security concerns

20. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Internet publication 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography

21. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations 5. Regional integration “Regional approaches”

22. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Separate release from clearance

23. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations 7. Technologies Automated payments, Electronic documents

24. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Customs to accept commercial information, information platforms

25. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Transport costs and trade facilitation more important than tariffs !

26. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations … a response to trends in international trade, transport, logistics and technologies !

27. 10 global trends Trade facilitation measures Implications for development Trade Facilitation – Links to Logistics and Development

28. “Aid for Trade”

29. Trade and Transport Facilitation is not only good for trade but also has other positive side effects The introduction of ICTs by Customs may encourage smaller companies to also connect to the internet.

30. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Capacity building raises the country’s overall human capital.

31. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) A framework for bank guarantees for transit trade may also generally improve the financial system.

32. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) A single window experience for trade may help to introduce single windows elsewhere.

33. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Reforms of legal regimes that facilitate the use of electronic documents may also modernize other business practices.

34. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Mechanisms to consult with stake holders may be beneficial for other policy decisions as well.

35. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Increased transparency is good for good governance in general.

36. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Are poor countries poor because of red tape? OR Is red tape the result of a lack of development? ANSWER: It is both

37. More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation

38. The “tipping point”: Start with Trade and transport facilitation Trade and transport facilitation is good for trade and for development Development is good for trade and for trade and transport facilitation

39. 10 global trends Trade facilitation measures Implications for development Trade Facilitation – Links to Logistics and Development Questions?