Transport Services Liberalisation and Trade Facilitation

1. Transport Services Liberalisation and Trade Facilitation SADC Transport Services Liberalisation Forum Riverside Hotel, Durban South Africa 11th -13th September, 2012 • Prepared by: Natasha Ward &Viola Sawere

2. Outline • Introduction • Definition and coverage • Trade facilitation • Transport services • SADC Legal Framework • Trade Protocol • Protocol on Transport, Communication and Meteorology • Protocol on trade in Services • Which policy instrument for which Issue? • Conclusion

3. Introduction: Transport Services • Prime economic activity in itself (trade in transport services) • Infrastructure for most other economic activities • High cost of trading in the region is partly due to and challenges in services industry (transport, communication etc. • Hence the need for: • trade facilitation and • Trade in services libelisation agreements • Transport liberalization is an objective of trade and transport officials

4. Important Note • Users prefer liberal policy that offers wide choice • Competitive, efficient and quality transport services (thus delivery of goods and passengers at right place at the right time, & price) • Operators interest • Fulfilling shippers’ demand & profits and wish to protect home market from foreign competition • Government (ministry & regulator) • Enabling Policy & regulation to the interest of each group • Common goal is to address challenges in transport industry • limited interaction and limited understanding of the differences and linkages of trade facilitation and trade liberalisation agenda

5. Definition • No global agreed definition of trade facilitation but • SADC Trade Protocol • “the coordination and rationalisation of trade procedures and documents relating to the movement of goods in international tradefrom the place of consignment to the destination” • to improve border and transit management procedures and their implementation • The main focus is to facilitate movement along the eighteen officially recognised corridors can be facilitated

6. Definition Transport services liberalisation agenda can be considered to be a subset of the broader trade facilitation agenda

7. The Coverage Trade Facilitation Transport services liberalisation

8. Classification of Transport Services 8

9. Legal Framework • Trade Protocol • Annex III: Simplification and harmonisation of trade documentation and procedures • Sub-comittee on Trade Facilitation • exportation and importation; export and import licensing; insurance of goods; transit operations; international transport and licensing of carriers; and statistical control and dissemination of information on trade documents • Transit Trade and Transit Facilities • licensing of transistors and carriers; approval of means of transport; bonds and securities; transit documents; transit procedures; and other provisions (customs and bonded warehouses

10. Legal Framework Ctd. • Protocol on Transport Communication and Meteorology • framework for cooperation in all modes of regional transport • Infrastructure development (hard and soft) and related technical standards; • Regulatory mechanisms on: • quantity (bilateral agreements; and quota and capacity management) • quality (vehicle standards and dimensions, loads and fitness testing) • safety (abnormal loads, hazardous/dangerous goods, and environmental protection) • market liberalisation for road and air transport services

11. Legal Framework Ctd • Protocol on Trade in Services • elaborates the rules governing trade in services ( incl. transport services) through progressively liberalise • Provides for MFN and National Treatment • Provides for the mutual recognition of standards, requirements and qualifications; and • transparency in domestic regulation to promote trade

12. Which instrument for which issue?

14. Examples of Trade Restrictions in Transport Services by Modes of Supply

15. Measures which restrict Mode 3 Trade in Transport Services

16. Road Market liberalization agenda (PTCM)

17. Conclusion • Trade facilitation and transport services liberalisation agendas are addressed in separate SADC instruments • Protocol on Transport, Communications and Meteorology • appropriate legal framework in SADC for addressing trade facilitation issues related to transport • Protocol on Trade in Services • market access issues

18. Key Message • Both the trade facilitation and the trade in services agendas offer useful avenues for addressing key issues in the transport industry • a complementary processes • to promote increased trade in goods and in transport services • Benefits from the two processes can only be realized through policy coherence • Essential to this co-ordination is the task of clearly establishing the notion the overlapping agendas can be complementary as opposed to competing

19. Way forward • all transport stakeholders have a role to play in the effort to capitalise on the synergies • private sector (operators) • identify the challenges and suggest solution • transport regulators • create and sustain an enabling environment to foster the growth of trade in both goods and services • policy makers (trade and transport) • develop suitable policies and negotiate fair and balanced agreements