achieving compliance with wto future trade facilitation agreement: learning from unctad's...

Achieving Compliance with WTO future Trade Achieving Compliance with WTO future Trade Facilitation Agreement: Learning from UNCTAD's Facilitation Agreement: Learning from UNCTAD's Experience of Working with 25+ Developing Experience of Working with 25+ Developing CountriesCountries

Dr. Mohammad SAEED Senior Technical Advisor, UNCTAD

[email protected]

Regional Training Workshop on Trade Facilitation, Infrastructure and Trade Costs

Policies in ESCWA Region

8 –9 April 2013, Dubai

1.1. The Context & Quantum The Context & Quantum

2.2. UNCTAD projects on iUNCTAD projects on implementing TF measures mplementing TF measures

in developing countriesin developing countries

3.3. Methodology and national implementation PlanMethodology and national implementation Plan

4.4. Key Findings Lessons LearntKey Findings Lessons Learnt

5.5. Way ForwardWay Forward

Trade Facilitation, Infrastructure & Trade Costs Policies

A typical trade transaction passes through 27 to 30 parties – including brokers, banks, carriers, sureties, freight forwarders and other intermediaries requiring at least 40 documents.

Enormous amount of time and money wasted and is hampering business, stifling growth and holding back economic development, particularly in developing countries.

1. The Context & Quantum-1

Approximate estimate for world trade is US$ 600 billion each year (OECD)

One extra day in handling or clearance of consignment represents 1% of tariff

1% reduction in transport and logistic costs represents increase in Asian GDP of US$ 3.3 billion (World Bank)

Moving to e-documentation to trade would yield a cost savings of some 1.5% to 15% of the landed cost of an imported item.


Transport cost barriers outweigh tariff barriers for 168 out of 216 US$ trading partners. The dominance of transport cost is more prominent in the case of developing countries. (World Bank, 2002)

If the developing countries can curtail an average of 1 day in time spent in handling of all of their trade, they can save nearly US$ 240 billion annually. (UNCTAD, 2001)


Huge documentary requirements Inefficient administrative formalities Lack of cooperation - between custom and other

border agencies and traders

Lack of automated processes and scarce use of IT

Lack of human and financial resources Deficiencies in the area of infrastructure

Trade Transportation

Customs and other border agencies

Trade Facilitation

Reduce transaction costs

Door-to-door Logistics

Public SectorMinistry of Communications/Commerce/Finance

Customs reform & modernization

TRADE FACILITATION

MEASURES

Private SectorImporters & exporters, transport operators, banks, insurance cos.


2.2. UNCTAD project on iUNCTAD project on implementing TF measures mplementing TF measures



4.4. Key Findings and Lessons LearntKey Findings and Lessons Learnt



2. UNCTAD project…

Trade facilitation

Research and analysis

Consensus building

Capacity Building

UNCTAD’s three pillars

To improve the national environment for international trade transactions;In close coordination with Government and private sector concerns;

Through alignment with international conventions, regional arrangements, nal. reform initiatives in line with recognized best practicesWith particular reference to WTO future TF Agreement

TWO multi-country projects for developing national implementation plans for future WTO trade facilitation agreement and aligning national, regional and multilateral initiatives and country specific

Financed by the European Union, individual country donors and by UNDA

Duration: 2 years (2012–2013) for EU & UNDA Projects

In cooperation with other Annex D organizations (IMF, OECD, WB and WCO)

Over twenty five countries covered by this project and a special project financed by UNDA

National implementation plans (confidential) Current status of implementation Action Plan and lead agency Resource and time requirements Priority and indicative categorization

The UNCTAD consolidated report: Understanding the measures Summary of findings without attribution Implementation template and sequencing along

with an implementation check list

The project’s outputs

Identify areas of non-compliance based upon current status and what needs to be done to achieve compliance

Updated needs assessment Action plans, national priority and time requirement Areas where additional support/funding may be

necessary and source Increased knowledge of TF measures negotiated in

WTO Reaffirmed/strenghened role of the TF committees Basis to develop fullfledged project proposals

Support for Partner countries in WTO TF Negotiation

• Angola• Bangladesh• Benin• Burkina Faso• Burundi• Dominican Republic• Gabon• Guatemala

• Jordan• Nepal• Organization of Eastern

Caribbean States (OECS) (6 WTO members)

• Paraguay• Suriname• Sudan• Nicaragua

A selection of the least developed countries, middle income developing countries, landlocked countries and small island economies.

Geographical coverage

3. Methodology Development/adjustemnt of Questionnaire Selection of National Consultant Fact Finding Mission in partnership with national

authorities and national colloborative forums Interviews of national stakeholders Draft National Implementation plan Validation Conference National implementation Plan

Step I: Interviews with the TF stakeholders (Members of the TF Committee) To discuss the TF measures of particular importance to the

interviewee using a standardized questionnaire The response solicited is not the official position or commitment

of the government but an informed opinion based on the knowledge and experience of the interviewee(s).

Step II: Drafting of the national implementation plan (national consultant, UNCTAD) Based on the result of the interviews Building on the needs assessment and current state of

implementation Assigning proposed categorization and national priorities

Preparation of the national implementation plan

Step III: National validation workshop to review and validate the draft plan, i.e. Current status of implementation of each trade

facilitation measures in the draft TFA; Implementation priority and category for each

measure Actions required for the implementation of non or

partially implemented measures Needs for technical assistance Scope for the regional action, if relevant

Preparation of the national implementation plan

4. Key Findings -ATF is not an ‘alien’ concept (principles well

understood)No country starting from scratchSignificant progress since ‘Needs Assessment’Many measures are implemented, but not

‘institutionalized’Measures may require ‘fine tuning’ or ‘add-ons’

to achieve compliance with the final text Customs is ‘ahead’ of other border agenciesNeed to identify Lead Agency to drive change

4. Key Findings -BAutomation can be a key ingredient in providing the

enabling environment necessary to support other measures

Most T.A. necessary will be in form of Capacity Building to assist in development and implementation of reform strategies (not technical)

Need to aim beyond just achieving compliance with TFA to maximize returns

Concerns expressed about private sectors ability to engage in some measures / drive agenda

Lessons Learnt -A

Important not to underestimate Political Support still necessary, even at advanced stages

Need to aim beyond just achieving compliance with TFA Need to identify and implement ‘Change Management’

Strategies and Lead Agency to help in achieving ownership of Reforms

The use of a National Consultant improves the quality of study especially in identification of suitable respondents

Frequently consult with private sector The ‘Needs Assessment’ was a useful starting point to

further develop the plans

Lessons Learnt -B The desk research prior to conducting study helped in

making it more effective /focused Where implementation is already underway, need to

monitor with regard to final text ‘Costing’ remains a complex issue but amounts are not

enormous A well functioning national trade facilitation Committee

can steer the implementation process in a better way Aim at implementation plans with actions, budgets and

calendars Need to help guide respondents (keep focus) without

appearing dismissive (not a debate on TFA merits)





4.4. Key Findings Lessons LearntKey Findings Lessons Learnt



5. The Way Forward

Strengthen the National Trade Facilitation collaborative forum(s)

Look beyond TFA to broader National TF agenda

Develop or Update National TF Strategy

Develop Action Plan for updated TF Strategy

Design implementation Plans in consultation with the lead implementation Agency

Using experience in other countriesMethodology ( questionnaire, interviews & validation

workshops) evolved and well testedPartner countries’ response regarding process and

utility of output further refined it.Procedural steps (hiring of national consultants, travel

plans, selectionn of participants) well practicedSupport from Annex D forthcoming & beneficial Expertise (available with UNCTAD) combined with

funding can help assisting more developing countries

THANK YOU FOR YOUR ATTENTION

QUESTIONS?

achieving compliance with wto future trade facilitation agreement: learning from unctad's...

Documents

world trade

developing countriesdr

transport cost barriers

case of developing countries

dominance of transport

tf measures

logistic costs

transport operators