1. Address by the Secretary General of the International Road Transport Union, Mr Martin Marmy Facilitation of Secure Trade and International Road Transport in the BSEC Region and Beyond BSEC-UNDP Private Sector Rountable Meeting 26 June 2012 Istanbul (c) International Road Transport Union (IRU) 2012 Page 1

2. Evolution of IRU Membership 1948: eight founder countries 2012: 170 Members in 73 countries 2012: 22 CRIPA Members 2012: 170 Members in 73 countries (c) International Road Transport Union (IRU) 2012 Page 2

3. Road transport is BSEC’s engine for economic growth! Page 3 (c) International Road Transport Union (IRU) 2012 Page 3

4. Road transport is the most regulated and penalised mode of transport

5. To drive trade, road transport must be promoted and further facilitated Page 5 (c) International Road Transport Union (IRU) 2012 Page 5

6. 2007 Black Sea Ring Highway Truck Caravan The Caravan was initiated to further facilitate trade by identifying barriers to road transport in the BSEC region. (c) International Road Transport Union (IRU) 2012 Page 6

7.   2011 NELTI confirms road infrastructure is NOT the problem of trade facilitation  Based on more than 117 round trips via territories of 24 countries (c) International Road Transport Union (IRU) 2012 Page 7

8. 4. Sum of unjustified levies paid143 700 USD NELTI: Facilitation Problems are Procedural! 1. Time spent en route by all vehicles5 041 days 2. Distance covered1 560 000 km 4. Sum of unjustified levies paid143 700 USD 3. Amount of official levies paid167 200 USD 5. Number of stops en route 5 917 6. Number of state border crossings1064 7. Length of downtime en route1 880 days 8. Cargo carried4 200 tonnes 1. Time spent en route by all vehicles5 041 days 7. Length of downtime en route1 880 days 3. Amount of official levies paid167 200 USD 40% of time lost at border crossings! Bakshish at the border accounts for 38% of additional costs!

9. What is Globalisation? The combined efforts of 29 companies in 18 countries Source: IRU Road Transport has become a production tool, interconnecting every business to every market! What does it take to have a cup of coffee in a café? (c) International Road Transport Union (IRU) 2012 Page 9

10. Implementation of Annex 8 of the UN Harmonization Convention to prevent waiting times   New Annex 8 of the UN Harmonization Convention entered into force on 20 May 2008   Trade and transport facilitation requires its implementation in every country of the BSEC and along the Silk Road (c) International Road Transport Union (IRU) 2012 Page 10

11. Global Trade Figures   Where IRU is active and UN global facilitation instruments are implemented: Intraregional trade = 71 % of global trade   Where IRU has not been active in the past and UN global instruments are only partially implemented, such as in the BSEC Region: Intraregional trade = 18 % of global trade   Source WTO (c) International Road Transport Union (IRU) 2012 Page 11

12. TIR-EPD can Facilitate and secure trade throughout BSEC and along the Silk road Page 12 (c) International Road Transport Union (IRU) 2012 Page 12

13. Facilitation of secure trade throughout BSEC and along the Silk road through TIR-EPD green lanes Page 13 (c) International Road Transport Union (IRU) 2012 Page 13

14. TIR-EPD can Facilitate and secure trade throughout BSEC and along the Silk road Page 14 (c) International Road Transport Union (IRU) 2012 Page 14

15. Facilitation of secure trade throughout BSEC and along the Silk road through TIR-EPD green lanes (c) International Road Transport Union (IRU) 2012 Page 15

16. (c) International Road Transport Union (IRU) 2012 Page 16