1. WTO TRADE FACILITATION SUPPORT PROGRAM
Gerard McLinden
International Trade Department
The World Bank
Needs and Priorities/Implementation Costs and Challenges Study
26 July 2006

2. Outline Overview Progress to date Key Issues identified Conclusions
Next Steps

3. Overview
Annex D – Clear role for the World Bank (during and after negotiations)
Six country studies designed to identify probable costs and implementation difficulties associated with a new Trade Facilitation Agreement
Support provided by EC, DFID (UK) and Sweden
Methodology
Partnership with the WCO and IMF
Country assessment visits – Experienced TF specialists
Development of a practical assessment tool (Based on TN/TF/W43 – Compilation of Proposals)
Individual reports prepared for each country
Consolidated report for NGTF members
Self assessment tool

4. Overview Scope Regulatory/Legal Framework Needs
Administrative Policy and Procedure Needs
Human Resource Needs
Training Needs
Equipment/Infrastructure Needs
Organizational Needs
Change Management Needs
Focused on WTO NGTF Agenda – Not wider capacity building needs and priorities
Customs and other border management agencies

5. Progress to Date Detailed assessments conducted in: Rwanda Sri Lanka
Paraguay
Senegal
Egypt
Philippines late July

6. Key Issues Identified
Specific needs and priorities differ but many common concerns and challenges
Majority of proposals considered positive and practical by government officials and the business community
A new agreement seen by many as a catalyst for building political will and momentum
Little new – most proposals already part of the suite of good practice promoted by WCO, UNECE, WB, IMF and donors
No country is starting from scratch – much donor support already provided and more in the pipeline

7. Key Issues Identified
All countries studied have made good progress already. All currently:
Maintain websites containing most required information in a WTO language
Have formal appeal mechanisms in place
Utilize some form of risk management and selectivity
Accept security to release goods prior to final resolution of import transactions
Provide advice on tariff classification in advance of importation
Have IT systems for processing import/export transactions
Possess adequate technical know how in key TF areas
Have established post clearance audit units

8. Key Issues Identified
Many of the implementation challenges and barriers identified do not lend themselves to resolution by TA (regardless of its quality or quantity)
Competition between government agencies
Poor quality of public/private relationship
Revenue maximization focus at expense of all other priorities
Low levels of voluntary compliance
Under developed private sector (Banking, ICT, Customs brokers)
Lack of sustained political will and commitment

9. Key Issues Identified Customs typically far ahead of other agencies:
Customs in all countries have IT systems in place
Customs already use some form of risk management and selectivity
Customs typically have some form of active cooperation and information sharing with neighboring countries
Customs have received bulk of donor support to date
Customs attempt to measure performance
Customs understand the TF agenda
Customs have agreed international instruments and blueprints to work from

10. Conclusions
WTO TF agenda typically welcome and in line with existing modernization plans and strategies (with some exceptions)
Little new TA needed for mere compliance with likely provisions of a new agreement
High costs associated with IT (single window) and border station refurbishment
TA needed for effective implementation – particularly in areas such as:
Drafting of legislative amendments
Developing new administrative systems and procedures
IT system migration/upgrade
Risk management – ‘control mindset’
Activity based costing methods

11. Conclusions
But, WTO TF agenda can’t be seen in isolation from wider reform and modernization needs
Many needs similar across countries – potential for economies of scale in design and provision of TA – potential for regional solutions and programs
S&DT must take into account individual circumstances of members:
Level of sophistication of private sector
ICT infrastructure
Revenue mobilization implications (rationalization of charges, consularization fees, etc)
Geography

12. Next Steps … Finalize reports for six case study countries (August)
Prepare consolidated report and cost tables for distribution to NGTF members and donors (after recess)
Convert current country study tool into a practical self assessment tool
Currently exploring possibility of providing training to national officials to assist them to undertake detailed needs and priorities assessments using the self assessment tool and methodology

13. WB/WCO PROPOSAL ANALYSIS GRID
High
Low
Implementation Difficulty/Cost
Reject Proposal ?
Don’t Care ?
Support Proposal
But …
Consider S & DT and TA/Capacity Building ?
Benefits for Government and Traders
Low
High