TRADE AND TRANSPORT FACILITATION AND

DEVELOPMENT

THE UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD)

Presented by:

Solomon A. Kasa

Councillor - to

Tanzania Freight Forwarders Association (TAFFA)Ms. World Commerce Ltd,P.O. Box 72645,Dar es Salaam,Tanzania.Fax + 255 22 2128520Cell phone + 255 741 306460E-mail: solomonkasa@yahoo.com

A. IntroductionB. DefinitionsC: Factors which influence trade and transport facilitationD: Reasons for trade and transport facilitationE: Trade and Transport Facilitation Progress F: The role of Freight Forwarding Industry in Trade and Transport Facilitation and DevelopmentG: Barriers to trade and transport facilitation and development (Impact to operators)H: The way forwardI: Conclusion

A. Introduction

International trade contributes to the sustainable growth and development. It provides a country's access to goods, services, technology and knowledge. Trade is facilitated through an efficient and effective transportation process and broadly supportive policy environment based on a solid legal framework.

B. Definitions

Trade Facilitation:Is broadly defined as the simplification and harmonisation of international trade procedures

C: Factors which influence trade and transport facilitation

1. Increase in International trade

2. Information Communication Technology (ICT) development which has lead to faster, cheaper and more efficient modes of trade and transport system such as Just in Time (JIT) management and e-commerce

3.The rapid increase in bilateral and regional free trade agreements that often feature complex customs requirements such as rules of origin.

4.Significant change in the nature of internationally traded goods.

5.The increase in the comparative cost on cumbersome and anachronistic trade procedures as a result of extensive work in progress and on other trade liberalization issues, such as tariff and quota reductions.

6.Expansion of transportation scope, i.e. air transport expansion and modernization of airports and ports along with facilities.

D: Reasons for trade and transport facilitation

1.The unstoppable growing volume of global

production and changed trade patterns

2.Logistics developments

3.The availability of technologies

4.The significantly improvement of management of

cross - border trade and distribution of goods

5.The fall in tariff levels after the conclusion of the

Uruguay round table

E: Trade and Transport Facilitation Progress

The Work of The Work of WTO, UNCTADWTO, UNCTAD, , World bank, IMFWorld bank, IMF and and others others international organisations, have international organisations, have contributed to establish trade procedures, and contributed to establish trade procedures, and other regulatory systems such as import other regulatory systems such as import licensing and automated customs systems licensing and automated customs systems based on best practices and mutually accepted based on best practices and mutually accepted standards and applicable in all environments.standards and applicable in all environments.

E: Trade and Transport Facilitation Progress (cont.)

Trade policy, trade facilitation contributes towards

development objectives Foreign Direct Investments

(FDI) or increase in volume of trade will only

materialize where imports or exports are subject to

very short, predictable and no costly delays.

F: The role of Freight Forwarding Industry in Trade and Transport Facilitation and Development

They can be called:1.Freight Forwarders in East Africa2.Forwarding Agents in East Africa3.Freight brokers in East Africa and Europe4.Customs brokers Europe and Southern Africa5.Freight Agents East Africa6.Freight logisticians Europe and eat Africa7.OTS (Ocean Transport Intermediaries) etc. USA

F: The role of Freight Forwarding Industry in Trade and Transport Facilitation and Development (cont.)

Transporters/transporting agents

Consolidators/consolidation operators

Multimodal transport operators

Customs brokers

Warehousing contractors

Insurance brokers

Export agent (for shipper)

Cargo sales agent (For airline)

Break bulk agent (delivery agent)

Claim administration agents

COD (Cash on delivery) collecting agents

Overseas buyer's agents

F: The role of Freight Forwarding Industry in Trade and Transport Facilitation and Development (cont.)

G: Barriers to trade and transport facilitation and development (Impact to operators)

Lack of knowledge as to the interpretations of various conventions, treaties, protocols and rules accompanied by non availability or inadequacy of supply to the players.

Too much documentation requirements by customs laws

1. Disappearance, misplacements of documents at customs

2. Multiple agency fees chargeable 3. Entry passes chargeable 4. Multiple identity cards issued 5. Customs bonds guarantee procedures6. Non implementation of various conventions, treaties,

protocols and rules7. Inflexible standards of regulatory bodies and their

associated chargeable fees8. Double standard procedures and services offered by

some companies under trade liberalisation policies.9. Infrastructure problems

G: Barriers to trade and transport facilitation and development (Impact to operators)

Transportation network in the region consists of.

- Rail transport.- Road transport.- Air transport.- Ocean/lakes/inland waterways. - Ports. - Communication.

They all have some problems and some barriers to individual modes and intermodal.

G: Barriers to trade and transport facilitation and development (Impact to operators)

Transport Accident at a place where there is no diversion

H: The way forwardH: The way forward

1.1. To encourage all countries who have not yet To encourage all countries who have not yet signed various conventions, treaties, signed various conventions, treaties, protocols, etc to do so, so that, to enjoy protocols, etc to do so, so that, to enjoy regional trade in goods on the bases of regional trade in goods on the bases of mutually beneficial trade arrangements mutually beneficial trade arrangements

2.To Standardise and simplify of laws,

regulations and procedures.

3.To Harmonise Procedures, regulations and

administrative systems

4.Promotion of transparency and predictability

attitude

5.Modernization and make use of Information

Communication Technology

H: The way forward (cont.)

6.Efforts to strengthen training and Capacity

building

7.To Introduction of stakeholders forum should

be encouraged (Public and private

partnership)

8.To emphasize the use of multimodal

transportation

9.To improve the efficiency of regional transport

network and develop mechanism for reducing

transport costs

H: The way forward (cont.)

10.To Integration of power and any other energy

supply throughout the region

11.To Promote Good governance atmosphere

12.To Promote Private Sector Participation in

regional economic development

H: The way forward (cont.)

I. ConclusionsI. Conclusions

Standardization, simplification and Standardization, simplification and harmonization of procedures and harmonization of procedures and regulationsregulations

ICTsICTs Capacity buildingCapacity building Regional transport networksRegional transport networks

Thank You !Thank You !