“Trade Facilitation in the WTO Context”

1. “Trade Facilitation in the WTO Context” High-Level Policy Segment of the Committee for Trade, Industry and Enterprise Development United Nations Economic Commission for Europe Zoran Jolevski National WTO coordinator, WTO Compliance Activity Skopje, Macedonia

2. IMPORTNACE OF TRADE The international trade is one of the key engines for an economic prosperity Liberalization and increased discipline in international trade In the modern world economy, the opportunities for efficient realization of the concept of global chains of supply influence the business decisions.

3. Trade liberalization – Trade facilitation The trade procedures are seen as a future bottleneck to international trade. The international community must ensure that multilateral roles in trade facilitation are following the trade liberalization. Canadian study URTR R. Zoellick: “trade facilitation measures are basically en extension of market access procedures that lower transaction costs and increase timeliness of transit.”

4. DEFINITION OF TRADE FACILITATION Broad and narrow definition of trade facilitation In the WTO trade facilitation represents: “the simplification and harmonization of international trade procedures,” with trade procedures being “the activities, practices and formalities involved in collecting, presenting, communications and processing data required for the movements of goods in international trade”.

5. BENEFITS FROM TRADE FACILITATION • Increase country’s ability to use the benefits of the market access • Increase transparency and predictability; • Facilitate the free flow of goods and services in the new just-in-time economy. • Increase in foreign direct investments; • More efficient collection of government revenues; • Improve security and reduced corruption. • Enhance the economic development.

6. MANDATE OF WTO IN TRADE FACILITATION July Package is requesting the negotiations to clarify and improve the relevant aspects of Article V, VIII and X The WTO is the most appropriate forum to set the basic trade facilitation policy framework

7. TRADE FACILITATION IN UN/ECE The UNECE has long experience in the area of trade facilitation The UN CEFACT that is subsidiary body of the UN/ECE CTIED develops instruments that reduce, simplify and automate procedures, and information flow in international trade. UNECE could help the process of operationalization of the agreed solutions in the negotiations in the DDA in the area of trade facilitation.

8. GATT Article V - FREE TRANSIT • The clarification of GATT Article V should be aimed at: • improving the transparency, predictability and non-discrimination of transit requirements, procedures and charges, • simplifying and standardizing documentation, data requirements and procedures, • ensuring non-discrimination between means of transport, carries etc., • improving the cooperation and coordination between different agencies at the borders.

9. ECE Complements WTO GATT 1994 Article V- Freedom of Transit Article VIII – Fees/ Formalities Article X – Publication & appeals UNECE TIR convention and Harmonization convention - practical solutions for transit procedures Simplified procedures and limited data requirement (UN/EDIFACT; UNeDOC, Single Window, UN/LOCODE est. Harmonization convention

10. ROLE OF THE UNECE IN CAPACITY BUILDING • Importance of technical assistance and support for capacity building in trade facilitation • The UNECE has good experience in technical assistance and capacity building. • The UNECE leader in creating awareness about the importance trade facilitation, but it will more curtail in the second phase when the countries from the region will need to implement results of DDA in the area of trade facilitation.

11. Introduction the concept of trade facilitation in Macedonia The economic development of the Republic of Macedonia, as a small country, could be achieved only through integration in the world economy As a landlocked country with an open market economy, the Republic of Macedonia is very vulnerable to the efficiency of the movement of goods and services across borders Investing in the infrastructure in the region of SEE, without taking measures for trade facilitation on a national, regional and international level, would not give the expected results.

12. successful implementation of the concept of trade facilitation • multidisciplinary approach • on a national, regional and international level • the political will and commitment as well as, • a close cooperation and partnership with the business community

13. ACTIVITIES THAT CONTRIBUTE TO TRADE FACILITATION IN MACEDONIA • Trade Facilitation Working Group within the WTO Coordinative Body of Experts established • The adoption of the new Customs Code is in a final stage. • To increase the compatibility of its customs regime with international standards

14. Conference on enhancing the Macedonian export • Coordination and unified application of regulations for foreign trade; • Elimination of all inconsistencies between the Law on VAT and customs exemptions prescribed by the Law on Customs; • Reducing the administrative barriers in obtaining licenses, permits, certificates for exports; • Training of business entities in order to be able to meet the requirements for obtaining the treatment of a “trusted partner” to the Customs Administration, particularly for small and medium-sized enterprises; • More efficient and continuant 24 hours services of the Customs and other trade facilitation measures; • Providing the right to use the diagonal accumulation of rules of origin; • Reduction of transportation fees for transiting through some neighboring countries; • Reduction of expensive services of the Thessalonica Harbor.

15. Regional initiatives Regional meeting of the directors general from the Customs administrations from the SEE region in Ohrid Regional seminar on trade facilitation for the Southeast European countries

16. ROLE OF THE UNECE IN TRADE FACILITATION • full support of the findings contained in the document TRADE/2005/18 “UNECE Instruments to Address Trade Facilitation in the WTO Doha Programme: Review of the Articles V, VIII and X of the GATT 1994” • experience and instruments that are developed in the UNECE find proper use in the implementation of the results of Doha Development Agenda

17. THANK YOU Zoran Jolevski National WTO coordinator, WTO Compliance Activity Skopje, Macedonia E-mail: z.jolevski @bah.org.mk tel. + 389 2 32 31 250 fax: + 389 2 32 31 235