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Expert Group on Design and Implementation of Transit Transport Arrangements

Expert Group on Design and Implementation of Transit Transport Arrangements. Agenda item 3 – Introduction. Peter Faust Trade Logistics Branch SITE/UNCTAD. Design and Implementation of Transit Transport Arrangements. - Constraints facing transit trade Trends in international logistics

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Expert Group on Design and Implementation of Transit Transport Arrangements

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  1. Expert Group on Design and Implementation of Transit Transport Arrangements Agenda item 3 – Introduction Peter Faust Trade Logistics Branch SITE/UNCTAD

  2. Design and Implementation of Transit Transport Arrangements - Constraints facing transit trade Trends in international logistics Cooperation toward transit transport arrangements

  3. Design and Implementation of Transit Transport Arrangements - Constraints facing transit trade Trends in international logistics Cooperation toward transit transport arrangements

  4. New Geography of Trade More exports of manufactured goods and more South South and intra-regional trade But: • Not all developing countries are participating • Vicious cycle: low trade volumes lead to high transport costs and low connectivity, which in turn leads to low trade volumes…

  5. Dependence on Transit Trade International transport costs: • Import freights of African land-locked countries: 20.7% of value of imports • World average: 5.1% • African average: 12.7%

  6. Examples of Transport/Logistics Cost • Corridor based- «Northern Corridor Kenya-Rwanda (Import) • Sea Europe - Mombasa approx US $ 1200/TEU • Road Mombasa – Kigali approx US $ 5000/TEU (15t+)

  7. Dependence on Transit Trade Study on US exports: • 1000 km by sea increase freight by 4% • 1000 km by land increase freight by 30% • Being a landlocked country increases freight by 50% … Lower fdi, less growth, more poverty

  8. Dependence on Transit Trade … … is different from “distance” or “remoteness”. Specific obstacles are related to: • Different standards and specifications • Operational systems and practices • Documentation and procedures

  9. Specific obstacles • Different standards and regulations • Inadequate transport infrastructure • Insufficient use of ICTs • Requirements for drivers and crew • Protection of national operators • Non-insurability • Security checkpoints • Inadequate transport documentation • Inadequate legal framework • No Customs transit system • Border crossing formalities and delays

  10. Design and Implementation of Transit Transport Arrangements - Constraints facing transit trade Trends in international logistics Cooperation toward transit transport arrangements

  11. Recent multilateral developments • Negotiations at the WTO regarding • Article V: Transit Issues • Article VIII: Fees and formalities • Article X: Transparency

  12. Transit – Article V of GATT 1994 • Freedom of transit • Simplify transit rules and procedures • Minimize burden on transit operations • Support the creation of regional systems and corridors

  13. Proposals concerningGATT Article V • Customs procedures & documentation requirements; • Non-discriminatory treatment; • Fees and charges and securities; • Cooperation; • Technical assistance, capacity building, S & D.

  14. Recent developments in transport and logistics • Technological developments • Use of containers door to door • ICT tracking systems • ICT based customs systems

  15. Recent developments in transport and logistics • Multimodal Transport • One responsible operator door to door • Legal requirements

  16. Recent developments in transport and logistics • Security • Supply chain security

  17. Design and Implementation of Transit Transport Arrangements - Constraints facing transit trade Trends in international logistics Cooperation toward transit transport arrangements

  18. Cooperation among… • Private and public sector • Landlocked and transit country along corridors • Transport service providers and users

  19. Cooperation among…

  20. Your task • Experts will explore elements of a strategy for improving the design and implementation of transit transport arrangements • TD/B/COM.3/EM.22/2

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