Partnership to Strengthen Reform: How Partnership to Strengthen Reform: How Do They Work?Do They Work?

Dominique Njinkeu, Dominique Njinkeu, Lead Trade Facilitation Specialist, Lead Trade Facilitation Specialist,

TFF Program coordinatorTFF Program coordinator

Symposium on WTO Trade Facilitation for Symposium on WTO Trade Facilitation for African CountriesAfrican Countries

Nairobi, November 13-15, 2012Nairobi, November 13-15, 2012

OutlineOutline

I. IntroductionI. Introduction

II. Trade Facilitation in the World Bank: II. Trade Facilitation in the World Bank: Focus on the TFFFocus on the TFF

III. Partnership approaches to Trade III. Partnership approaches to Trade FacilitationFacilitation

Trade Facilitation FacilityTrade Facilitation Facility

Fighting Poverty Through the Fighting Poverty Through the Engine of TradeEngine of Trade

What is the TFFWhat is the TFF

Multi-donor: UK, Sida, CIDA, Holland

Managed by the World Bank

Support concrete improvements in TF systems

Help reduce developing countries’ trade costs

Emphasis on Africa/low-income countries

TRADE TRADE FACILITATIONFACILITATION

FACILITYFACILITY

TFF Guiding principlesTFF Guiding principles

Country/beneficiary ownership

Country/beneficiary ownership Rapid responseRapid response Focus on

implementationFocus on

implementation

Requests for TFF assistance

Must come from the beneficiaries (countries and RECs)

Demonstrate alignment with development priorities.

The TFF receives requests on a rolling basis

Proposals are reviewed and processed through a fast-track process.

TFF funds activities that lead to concrete reforms and investments.

Bridge between upstream research /diagnostics, and implementation of policy recommendations

Preparation of large scale projects.

III Partnerships III Partnerships approach to approach to

Trade Facilitation Trade Facilitation

Partnership because various dimensionsPartnership because various dimensions

Partnership to mainstream trade Partnership to mainstream trade facilitation in trade policy.facilitation in trade policy.

DTIS and Action Matrix (TTFA)DTIS and Action Matrix (TTFA) Trade and trade facilitation Trade and trade facilitation

nexus (agriculture, nexus (agriculture, manufacturing)manufacturing)

Partnership to Balance Partnership to Balance “Soft” and “Soft” and “Hard” infrastructure“Hard” infrastructure

Addressing both hard and soft Addressing both hard and soft infrastructure issues is importantinfrastructure issues is important

Near consensus on challengesNear consensus on challenges Different views about prioritizationDifferent views about prioritization Against widely held view hard Against widely held view hard

infrastructure cost represents infrastructure cost represents a small part of total logistics a small part of total logistics costscosts

Partnership to work on the Partnership to work on the corridorcorridor

• The Transport corridors link a The Transport corridors link a gateway to an inland gateway to an inland terminal:terminal:– Physical infrastructure (ports, Physical infrastructure (ports,

roads, railways, dry ports)roads, railways, dry ports)– Logistics servicesLogistics services– Procedures (notably transit)Procedures (notably transit)

• Institutional environment:Institutional environment:– Articulation of regional, corridor Articulation of regional, corridor

and national levelsand national levels– stakeholders engagementstakeholders engagement– policiespolicies

• M&E:M&E:– corridor performancescorridor performances– identification of non tariff identification of non tariff

barriers to address through barriers to address through policies / operational measurespolicies / operational measures

Partnership to enhance Partnership to enhance efficiency of gatewayefficiency of gateway

• Two main issues for Two main issues for gateway operations:gateway operations:– Efficiency of the Efficiency of the

agencies and operatorsagencies and operators• Port authority and port Port authority and port

operatorsoperators• Border agencies Border agencies

(Customs, SPS, Ministry (Customs, SPS, Ministry of Commerce, etc.)of Commerce, etc.)

• Logistics operatorsLogistics operators

– Coordination of the role Coordination of the role of the various agencies of the various agencies and operatorsand operators

Partnership for simplification prior Partnership for simplification prior to automationto automation

• Audit of trade procedures of various Audit of trade procedures of various agencies : inter-ministerial coordinationagencies : inter-ministerial coordination

• Change in legal and regulatory textsChange in legal and regulatory texts

• Payment regimePayment regime

Partnership to enhance Partnership to enhance efficiency of the transit regimeefficiency of the transit regime

• Current status :Current status :– Several layers of control Several layers of control

(bond, guarantees, GPS (bond, guarantees, GPS tracking)tracking)

• Revised Transit Regime:Revised Transit Regime:– Regulatory issues Regulatory issues

(mutual acceptance of (mutual acceptance of guarantees and guarantees and interoperability of bonds, interoperability of bonds, release conditions)release conditions)

– ICT infrastructure ICT infrastructure (Connection of Customs)(Connection of Customs)

• Within countryWithin country– HQ to bordersHQ to borders

• Between countriesBetween countries– Border to adjacent Border to adjacent

borderborder– HQ to HQHQ to HQ

Strategic Partnerships:Strategic Partnerships:

1.1.Mainstreaming trade facilitation in trade policymaking : links to Mainstreaming trade facilitation in trade policymaking : links to the EIFthe EIF

2.2.Supporting WTO negotiations: Annex D needs assessmentSupporting WTO negotiations: Annex D needs assessment

3.3.Trade Facilitation to boost trade. Trade Facilitation to boost trade. working across sectors, working across sectors, ministries (e.g. agriculture)ministries (e.g. agriculture)

4.4.Related Institutions : WCO, STDFRelated Institutions : WCO, STDF

5.5.RECs and JSSO (ADB, UNECA, AUC)RECs and JSSO (ADB, UNECA, AUC)

Concluding remarksConcluding remarks

No Sector in the Bank, no agency at No Sector in the Bank, no agency at the national or regional level, no the national or regional level, no donor, working in isolation can make donor, working in isolation can make a differencea difference

Partner, Partner, Partner Partner, Partner, Partner or no Result.or no Result.