ECO Experience

1. Expert Meeting on Trade Facilitation as an engine for Development UNCTAD, GENEVA, 21-23 September 2005 ECO Experience Economic Cooperation Organization, Tehran-Iran Email: registry@ecosecretariat.org www.ecosecretariat.org

2. Map & Area of the ECO Region

3. Priority Areas in ECO Cooperation • Trade & Investment • Transport & Communication • Energy, Minerals and Environment, • Agriculture and Industry

4. Treaty of Izmir: Charter of ECO • Progressive Removal of Trade Barriers • Expansion of Intra-Regional Trade • Creating awareness of trading opportunities through increased interaction of business communities

5. Table 1: ECO MEMBER ECONOMY DATA 2000

6. Table 1: ECO MEMBER ECONOMY DATA (2004)

7. Comparison The ECO Member Economy 2000-2004

9. ECO Trade (Billion US$) * Calculated without data from Afghanistan ** Estimate

10. Highest Trade Potential Products in ECO Region(Million US $)

11. Trade Development Strategy • Inter-Governmental Process (Up to Bottom): ECOTA • Private Sector Involvement: (Bottom to UP) • ECO / ITC Project: Raising Business Awareness on Trade opportunities. • ECO Chamber of Commerce / Industry.

12. Trade Facilitation and Trade Development Strategy • Trade Liberalization. • Trade Facilitation: ∙ Customs Cooperation. ∙ Transit Transport Agreements. (TTA-TTFA) ∙ Trade Information Networking: (ECO Trade Net) ∙ Visa Agreement . Standardization, Conformity, Accreditation and Metrology (ROSCAM)

13. Trade Liberalization Activities • HLEG on Trade and Investment Related Matters • Established after signing of ECOTA and held three meetings • ECO Trade Agreement (ECOTA) on removal of Tariff and Non-Tariff barriers was signed on 17 July 2003

14. Most Prevalent Non-Tariff Barriers in the Region • Tariffs are on average between 0-30% NTBS • Quantitative restrictions (quotas, prohibitions, licensing). • Import surcharges (including VAT practice of ACAMs). • High transit transport fees. • Restrictions on financial/banking services. • Customs Barriers (delays in clearance, transit operations, lack of facilities at border points). • Lack of transparency (rapidly changing regulations, discretionary treatment).

15. Trade Facilitation Activities • Transit Trade Agreement (TTA) • Transit Transport Framework Agreement (TTFA) • Customs Cooperation: Council of Heads of Customs Administration (CHCA) • Trade & Investment Information Networking: (ECO Trade-Net) • Visa Agreement

16. ECO Transit Trade Agreement •   Objective: • Facilitate transit movement of goods; • Signed in 1995, entered into force in 1998; • Ratified by all signatory countries; • Transit Trade Committee established to monitor the progress of the Agreement; • Pending issues: • Finalization of ECO Passage Document. • Nomination of Guaranteeing Associations. • Maps of transit routes to be used.

17. Transit Transport Framework Agreement • TTFA signed in 1998 covers all model of transportation including insurance and other related issues • In line with T.I.R convention • So far 5 Member States have ratified • Member States to introduce their nominees for Transit Transport Coordination Council (TTCC). • Azerbaijan is the coordinator country for its implementation. • Preference given to TTFA over TTA.

18. Agreement on Simplification of Visa procedures for Businessmen of ECO Member States • Objective: • To facilitate the travel of businessmen within ECO region • Implementation of Status: • Ratified by Iran, Kazakhstan, Pakistan and Turkey only • Came into force in 2002 • Issues • Except for a few countries, getting visa on time is still a big problem • Visa policies of Member States have been modified without regard to the present agreement • Future Action • Scope of the Agreement could be enhanced to make it more effective. • I.R.Iran as coordinator country is activating the implementation of the agreement

19. Trade & Investment Information Networking: • Objective • Create awareness of business opportunities; • Disseminate information to Member Countries. • Achievements • 3nd Seminar on Networking, held in January 31, 2005, in Karachi -Pakistan; • Review of Information Services rendered by Trade Promotion Organizations of Member Countries; • “ECO Trade-Net” is under development and as first step Links have been established to available information Sources. • ITC & ESCAP agreed to Provide Technical Assistance for Establishment of “ECO Trade-Net”

20. Other Projects / Programs • ECO / ITC Project: Expanding Intra–ECO Trade. • ECO Chamber of Commerce and Industry. • Investment Promotion • ECO / WTO Joint Activities. • Transport Facilitations Programmes. • ECO Trade and Development Bank.

21. Trade Promotion Trade Promotion through ITCs Practical (bottom-up) approach: • Buyers & Sellers meetings on : • Textiles and Clothing (Held in Istanbul, 2001) • Agro Products (Almaty, 2003) • Pharmaceutics (Istanbul, 2004) • ECO Business Forum (7th Summit-Turkey October 2002)

22. ECO Chamber of Commerce & Industry: • Objective • To establish closer relations between business communities. • Established in 1993. •  Achievements • Two technical committees established: • Joint Transit Committee; • Investment and Industrial Committee. • 2nd ECO Trade Fair held 1997 in Bishkek(Kyrgyz Republic); • 3rd ECO Trade Fair held in 1998 in Bandar Anzali (Iran); • General Assembly (GA) meeting to be held in Kabol. April 2004 ECO-CCI Chairmanship passed to Afghan CCI. •  Future Action • 4th Fair is to be held in Kabol (Afganistan ) 9-10 November 2005 • GA to decide the issue of permanent location of the ECO CCI Secretariat • Capacity Building of the ACAM’s Chambers; • Investment conference for promoting intra regional investment to be held in Kabol 9-10 November 2005 • A more business oriented work programme is to be developed in the light of the ITC’s project.

23. WTO ACTIVITIES: • Objectives • To become familiar with WTO and its rules & disciplines and to promote accession of Member Countries to WTO. Achievements • Three Seminars held on WTO and Accession Procedures and Trade Negotiations Simulation • 4th Seminar on Regionalism was held in Bishkek (19-20 June 2002) • Workshop on Implementation of WTO Agreement on Customs Valuation in Tehran (10-14 March 2002)

24. ECO Trade and Development Bank & Reinsurance Company Objective Promote and provide financial facilities to expand trade and development projects. • Iran, Pakistan and Turkey ratified. • Preparation for the establishment of Bank is in progress: • 1st Meeting of the Board of Governors is scheduled to be held in 2005 in Ankara.

25. Transport Facilitation Programs: • Transit Transport Framework Agreement (TTFA) • ECO Road and Railway Network Map and Road Directory • Multimodal Transport Project (ECO/IDB/ESCAP/UNCTAD) • Working Group on Transit permits, quotas, fees • Cooperation among ECO Railways • Almaty-Tashkent-Ashgabat-Tehran-Istanbul Passenger and Container Trains (several runs have been completed)

26. AGREEMENT ON PROMOTION & PROTECTION OF INVESTMENT (APPI) • Objective • To provide a framework for promotion & protection of investment among the ECO members • To present the ECO region as a single investment area for promoting FDI inflows • APPI was finalized and signed by four countries during the 3rd Ministerial Meeting on Commerce/Trade in July 2005.

27. What we have learned: • Continue ECOTA deliberations BUT it is a long-run issue • Short-Medium Run: Trade Facilitation measures • More practical – business oriented • Gather information on trade constraints feed into the intergovernmental trade process (thru ECO/ITC projects) • Need for a permanent body like a trade facilitation working committee comprised of public and private sectors representatives.

28. THANKS