1. Trade Facilitation: A Regional Perspective Regional Policy Forum on Trade Facilitation in Times of Crisis 20-22 May 2009, Beijing, China

2. Trade has been a main engine of growth in Asia-Pacific Comparison of trade growth and GDP growth 2000-2007 Sources: WTO, 2008

3. High Trade Dependence of ESCAP member countries Trade to GDP ratio in Asia compared to EU and US, 2005-2007 Central Asia East and Southeast Asia South AsiaDeveloped economies CountryRatioCountryRatioCountryRatioCountryRatio Azerbaijan105China71.3Bangladesh45EU (27)26.4 Kazakhstan93.3Mongolia127.1Bhutan97.3US27.2 Kyrgyzstan126 Korea (Rep. of) 85.7India44.7 Tajikistan139Brunei96.9Maldives184.2 Uzbekistan65.1Cambodia139.2Nepal46.9 Indonesia60.4Pakistan41.6 Lao73.5Sri Lanka70.7 Malaysia209.6 Philippines92.3 Singapore443.7 Thailand143.9 Vietnam156 Sources: WTO, 2008

4. Asia-Pacific Region still the fastest growing Sources: ESCAP, 2009, data for 2008 are estimates and for 2009 are forecasts

5. But export performance in many developing ESCAP economies has faltered Sources: compiled by ESCAP based on CEIC database

6. How can trade facilitation help? Trade facilitation: “Any measure, or set of measures, that aims to increase the cost-effectiveness of international trade transactions”. http://www.gfptt.org/Entities/TopicProfile.aspx http://www.gfptt.org/Entities/TopicProfile.aspx  Hidden trade costs can make up to 10% of value of goods traded  Tackling inefficiencies in trade transaction procedures and regulations can be key to sustaining trade competitiveness, particularly during downturn

7. How well are ESCAP members doing in trade facilitation? *Landlocked countries (Afghanistan, Armenia, Azerbaijan, Bhutan, Kazakhstan, Kyrgyz Republic, Lao PDR, Mongolia, Nepal, Tajikistan and Uzbekistan) are excluded from subregional averages. Source: Calculated based on data from Doing Business 2009, World Bank

8. Time for Export Source: Calculated based on data from Doing Business 2009, World Bank

9. Business Cost of Corruption Note: Score based on question on whether illegal payments influence impose costs or otherwise negatively affect their companies (1 = yes, they have a significant negative impact, 7 = no, they have no impact) Source: Global Competitiveness Report 2007-2008

10. Port Infrastructure Note: Score based on the questionnaire on Port facilities and inland waterways in a country are (1 = underdeveloped, 7 = as developed as world’s best). For landlocked countries, this measures the ease of access to port facilities and inland waterways Source: Global Competitiveness Report 2007-2008

11. Timeliness (likelihood of on-schedule delivery) Notes: *Developed ESCAP consists of Australia, Japan and New Zealand. **East and Northeast Asia average does not include Hong Kong, China. ***Southeast Asia average does not include Singapore. Source: Calculated based on data from the World Bank Logistic Performance Index (2007)

12. How well are ESCAP members doing in trade facilitation?  There are many dimensions/ways to facilitate trade and not all countries have chosen the same approach  Most countries have made progress and/or are engaged in trade facilitation reforms, but significant room for improvement remains  Although there are many regional trade facilitation initiatives, a lot of potential remain on facilitating intra-regional trade (at land borders)

13. How well are ESCAP members doing in trade facilitation?  Trade facilitation performance varies greatly between and within Asian sub-regions, but also within countries  Domestic (behind-the-border) regulations and procedures often seem to be most problematic for traders

14. How well are ESCAP members doing in trade facilitation?

15. Promoting trade facilitation: ESCAP approach  Promote the use of global standards and innovative solutions  collaboration with UN/CEFACT, WCO…  Create a community of knowledge and best practices through a pool of experienced experts both in-house and from countries that have successfully implemented trade facilitation reforms  UNNExT  Conduct analytical work and develop implementation tools and methodologies for practitioners to ease the implementation of global standards  Collaboration with WTO, ADB, and ARTNeT

16. Conclusion and Recommendations  Asia-Pacific region is a highly trade dependent region  Trade facilitation performance varies widely across Asia- Pacific countries and subregions  Countries have made progress, but still room for improvement in many countries  Reducing trade transaction costs is important  to increase trade competitiveness  to enable participation by more firms in international trade

17.  International Trade is a tool for development, not an end in itself  Governments should promote a more inclusive participation in trade  One way to do so is to cater more to the need of SMEs when facilitating trade  Trade facilitation needs and priorities differ across countries, and may also differ across industries and firms  Pragmatic and holistic approach required  Strong inter-agency and public-private sector cooperation required Conclusion and Recommendations

18. Thank you