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OECD/DAC Project on Trade Facilitation

OECD/DAC Project on Trade Facilitation. Caroline Lesser OECD/DAC Secretariat. What is the DAC?. Forum of 22 major bilateral donors, plus the EC (permanent observers: World Bank, IMF, UNDP)

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OECD/DAC Project on Trade Facilitation

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  1. OECD/DAC Projecton Trade Facilitation Caroline Lesser OECD/DAC Secretariat

  2. What is the DAC? • Forum of 22 major bilateral donors, plus the EC (permanent observers: World Bank, IMF, UNDP) • Main objective: Improve aid effectiveness and ensure policy coherence for development, through common efforts • Main activities: monitoring of aid flows; peer reviews of development policies; sharing of good practices; guidelines.

  3. What is the DAC doing in the area of trade facilitation? • Review of past TA/CB for trade facilitation(August - December 2005) • Identificationof good practices for strengthening sustainable trade facilitation capacities in developing countries (January - September 2006) Ensure that programming and delivery of TA/CB for trade facilitation is part of broader dev. strategies and in line with aid effectiveness principles (Paris Declaration)

  4. Why ? Background: Increase synergies between the OECD’s work on development and its work on trade. Rationale: • Potential contribution to increased competitiveness, development and poverty reduction • Significant donor support for TF measures since 2001 • WTO “July Package” mandate

  5. How? Methodology for reviewing past TA/CB (phase 1): • Statistical analysis of donors’ TA/CB - based on WTO/OECD TCB Database • Mapping of donor expertise – based on Database and list of available instruments (e.g. diagnostic tools) • Identify factors for “success”of TA/CB and past donor programmes that illustrate effective aid practices

  6. How? Methodology for identifying good practices for strengthening TF capacities (phase 2): • Further elaborate on factors for “success” of TA/CB, through field research and wide consultations; • Leverage on existing guidance for TF reform in developing countries (World Bank, OECD, WCO, etc) • Investigate the role of the private sector Identify how donors, developing country officials and the private sector can best work together

  7. Interaction between domestic reforms, donor TA/CB and private sector initiatives Private sector (in donor and developing country) Donors Developing countries Strengthened capacity in trade facilitation

  8. Key preliminary results Commitments for TA/CB for TF by main donor US $ million Total 383.7 400 Other 300 United Kingdom 27 % AsDB 200 Total 143.4 Total 125.7 United States 33 % 100 IDA 38 % 60 % 50 % EC 0 2001 2002 2003 NB: 2002 decrease of IDA contribution due to periodicity of programming cycle. 2003 IDA figures need to be interpreted with caution. Preliminary results are not for quotation as will be revised soon

  9. Distribution of TA/CB by Income Group Total 2001-2003 5% Least Developedcountries (LDCs) 13% 34% Other Low IncomeCountries Lower Middle IncomeCountries 33% European countries intransition 15% High income developingcountries NB: LDCs: mainly Afghanistan and Madagascar Preliminary results are not for quotation as will be revised soon

  10. Bilateral geographical focus No. of activities, 2001-2003 Preliminary results are not for quotation as will be revised soon

  11. Next steps • The review of TA/CB (phase 1) will be examined by the DAC at the end November 2005; • An informal group is steering this project

  12. Thank you! http://www.oecd.org/dac/trade http://tcbdb.wto.org (TCB Database)

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