trade facilitation in the wto:

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Trade Facilitation in the WTO: Samer Seif El Yazal Head, Arab & Middle-East, Central & Eastern Europe and Central Asia Regional Desk, Institute for Training and Technical Cooperation World Trade Organization

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Trade Facilitation in the WTO:. Samer Seif El Yazal Head, Arab & Middle-East, Central & Eastern Europe and Central Asia Regional Desk, Institute for Training and Technical Cooperation World Trade Organization. Contents. Key issues Legal Framework DDA negotiations. 1. Key issues. - PowerPoint PPT Presentation

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Page 1: Trade Facilitation in the WTO:

Trade Facilitation in the WTO:

Samer Seif El YazalHead, Arab & Middle-East, Central

& Eastern Europe and Central Asia Regional Desk, Institute for Training and Technical Cooperation

World Trade Organization

Page 2: Trade Facilitation in the WTO:

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Contents

Key issues

Legal Framework

DDA negotiations

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Main problems for traders

Lacking transparency and predictability

Lack of automation and scare use of IT

Burdensome border-crossing procedures

Lack of cooperation and coordination

Excessive documentation requirements

1. Key issues

Outdated legislation inhibiting change

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1 extra day in clearance represents 1 percent of tariff

According to the World Bank... (9 billion documents are necessary each year to process movement of goods)

1. Key Issues

Documentation requirements

Companies sometimes spend more money complying with customs regulations than customs earn in revenue

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1. Key Issues

Documents required to import goods (average number)

Time to comply with all procedures to export and import goods (days)

East Asia & Pacific7.123.1 24.3CEECAC7.826.8 28.4OECD4.910.5 11.0

Sub-Saharan Africa8.833.6 39.4

Source: World Bank, Doing Business 2010

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reliance by customs on transaction-based controls

scarce use of “green channels” wide array of discretionary powers for customs no effective redress against decisions by

customs lack of co-operation between customs and

traders, and between customs and other government agencies

Border crossing problems

1. Key issues

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Lack of automated processes and scarce use of information technology has potential to cause delays and reduce

efficiency of administration Time lost at borders accounts in some

countries for 20 % of overall transport time 1 extra day in clearance represents 1

percent of tariff

1. Key issues

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2. Introduction – Objective of TradeFacilitation negotiations in the WTO

Making trade procedures as efficient as possible through the simplification, rationalization and harmonization of procedures, documentation, and information flows

Specific focus of work:

Articles V, VIII and X of GATT 1994

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2. Legal framework

GATT 1994:Freedom of Transit

Publication and Administration of Trade Regulations

Fees + Formalities connected with Importation & Exportation

Art. V

Art. VIII

Art. X

Existing WTO rules on TF

GA

TT 1

994

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Existing WTO Legal FrameworkGATT Article X – Transparency Publication Administration of laws Right to appealGATT Article VIII – Fees and

Formalities Fees reflect cost of services

rendered Reduce # and kind of fees Simplify formalities and

documents Minor penalty for minor errors

GATT Article V – Freedom of Transit

Most convenient route No discrimination No unnecessary delays or

restrictions No duties

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Claimed shortcomings Lack of clarity and precision Lack of operationality Lacking enforceability Lacking transparency and predictability Absence of requirements for cooperation

and coordination amongst the various stakeholders

2. Legal Framework

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Clarify and improve V, VIII, X

SDT - Longer transition periods

No obligation for infrastructure

Identify needs and priorities

Technical Assistance & supportWT/L/579- Annex DWT/L/579- Annex D

Mandate:Mandate:

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Substantive number of proposals

Current discussions on draft-text

Significant number of meetings so far

State-of-play: Trade Facilitation

Negotiations should bear overall outcome of DDA – Early harvest

Page 14: Trade Facilitation in the WTO:

Thank you for your attention