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Trade Facilitation: Research Priorities for Low-Income Countries

This presentation discusses the main issues in trade facilitation negotiations for developing countries and outlines the assigned objectives of the trade facilitation program. It also highlights regional analytical priorities and proposes areas for further research.

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Trade Facilitation: Research Priorities for Low-Income Countries

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  1. Post-Hong Kong Research and Analytical Priorities for Low-income Countries: Discussions on Trade Facilitation Dr Ongolo Zogo Valérie ILEAP – University of Yaounde II Hong Kong 16 December 2005

  2. PRESENTATION STRUCTURE • 1.Main issues in the Trade Facilitation Negotiations for Developing Countries • 2. Assigned Objectives of the TF programme • 3. Regional Analytical Priorities • 4. Research Areas

  3. I.1. MAIN ISSUES:Concept Definition • Definition: “Series of measures taken to reduce costs related to trade” • Accompanied by an aid for trade programme • Implementing instruments vary with respect to the nature of the programme: WTO, UNCTAD, World Bank

  4. I.2. MAIN ISSUES: Importance of the concept The TF programme directly influences the other aspects of trade: trade in goods, trade in services…

  5. I.3. TRADE FACILITATION AT THE WTO • Definition: “Simplification and Harmonisation of the procedures of international trade” • Framework: Articles V, VIII and X of GATT (1994) • Content: Transit; Fees and Formalities of external trade; and Publication and implementation of trade regulations

  6. I.4. TRADE FACILITATION AT THE EU (EPA Perspective) • Definition: “Support for the promotion of trade and reinforcement of export corridors” • Framework: To be defined • Content: System of rules of origin, legislation and customs procedures (including information exchange), and certification and Quality Assurance

  7. I.5. TRADE FACILITATION IN OTHER COOPERATION AREAS: World Bank and UNCTAD • Definition: “Support for trade promotion activities” • Framework: (Transport & Trade programme, Support for Maritime Activities…) • Contents: Port reforms; improvement in transit corridors; and reform of road transport activities

  8. I.6. Trade Facilitation: Resume of Main TF Issues The implementation of this programme requires accompanying technical assistance programmes and capacity building for developing and least-developed countries

  9. REGIONAL INTEGRATION IMPLEMENTATION CAPACITY PROGRAMME HARMONISATION TRADE AND DEVELOPMENT I.7. Resume of Main TF Issues WTO/EU (EPA) UNCTAD/WB AUTONOMOUS REFORMS

  10. II. EXPECTED OBJECTIVES OF TF NEGOTIATIONS Importance of the negotiations on TF in this context • Identify the content of the programmes • Identify competent authorities • Harmonise existing initiatives • Take advantage of Aid for Trade • opportunities

  11. II.1. Objective of Regional Integration Regional integration is the central objective of TF programmes TF programmes should aim at reducing obstacles to trade and promoting intra-regional exchange in order to help reduce transaction costs

  12. II.2. Facilitate the implementation of programmes Difficulties related to implementation of programmes A number of programmes exist but they suffer from implementation problems (i.e. administrative rigidity; lack of Coherence at the inter-state level; and absence of coordination)

  13. II.3. Harmonising TF programmes Problems of programme harmonisation • The programmes implemented by the aforementioned institutions are not always harmonised, due to: • Risks of conflict of jurisdiction; • Risks of dispersion of resources; and • The need for harmonisation

  14. COORDINATION HARMONISATION INFRASTRUCTURE STANDARDISATION SIMPLIFICATION MODERNISATION IV- REGIONAL PRIORITIES NATIONAL STRUCTURES REGIONAL STRUCTURES

  15. IV.1. REGIONAL ANALYTICAL PRIORITIES INFRASTRUCTURE • Consolidate the level of implementation of integrated transport networks • Improve technical capacity of ports to reduce delays

  16. IV.2. REGIONAL ANALYTICAL PRIORITIES HARMONISATION & SIMPLIFICATION • Operationalise the relevant Conventions • Finalise and apply common customs codes • Diffusion of information on transport and customs procedures

  17. IV.3. REGIONAL ANALYTICAL PRIORITIES MODERNISATION • Harmonisation of customs information systems through ASYCUDA • Installation and computerisation of single window systems • Integration of databases • Information system on transit

  18. IV.4. REGIONAL ANALYTICAL PRIORITES STANDARDISATION • Application of the revised Kyoto Convention • Framework of standards from the WCO • UN/EDIFACT standards • Computerisation of single window procedures at entry ports

  19. IV.5. REGIONAL ANALYTICAL PRIORITIES COORDINATION • Activate and invigorate juxtaposed border posts • Rationalise merchandise transport procedures (limit transit corridor controls) • Create regional systems for coordination of shared trade-related information

  20. IV.6. REGIONAL ANALYTICAL PRIORITIES NATIONAL STRUCTURES • Port Services • Fiscal and Customs Services • Road & Rail Transport Services • National Freight Offices

  21. IV.6. REGIONAL ANALYTICAL PRIORITIES REGIONAL STRUCTURES • Cooperation of landlocked countries in management of port facilities • Fiscal and Customs Cooperation (road & rail transport services) • Regional freight management offices

  22. V- PROPOSALS FOR FURTHER RESEARCH ON TF • Article V: Transit • 2. Article VIII: Fees & Formalities • 3. Article X: Scope & Application

  23. V.1. INITIATIVES RELATED TO TRANSIT INITIATIVES IN FAVOUR OF LANDLOCKED COUNTRIES • Adoption of integrated road network • Fiscal and customs harmonisation • Harmonisation and Standardisation of procedures: (juxtaposed border posts; establishment of observatories; technical and legal studies)

  24. WHY A REGIONAL AGENCY? • Coordination between relevant administrations • Cost-sharing • Common standards between countries • Clarification of transit-related costs • Coordination and harmonisation of documentation • Reliable regional information system • Adoption the Kyoto Convention • 8. Effective harmonisation of decision-making

  25. REGIONAL INSTITUTIONS PRIVATE OPERATORS DEFINITION EXECUTION OPERATIONALISATION OF A REGIONAL AGENCY REGIONAL AGENCY OPERATION

  26. ARTICLE V ARTICLE VIII ARTICLE X • System to track merchandise in transit • Juxtaposed border posts • Freight management offices • Updating Customs Information Systems • Operationalisation of Regional Agency • Common information systems • Regional information platform • Creation of focal points • Collections and updating REGIONAL AGENCY: AREAS OF COMPETENCE

  27. V.3. AREAS OF RESEARCH ON ARTICLE V • Regional Transit and Facilitation Agency: institutional framework, financing… • Provision for application of international conventions related to transit • Feasibility and conditions of harmonisation of transit documents

  28. V.4. INITIATIVES RELATED TO FEES AND FORMALITIES HARMONISATION AND SIMPLIFICATION • Evaluation of port services reform • Computerisation of single windows • Modernisation of maritime procedures and auxiliaries • Initiatives for establishment of juxtaposed border posts

  29. V.4. AREAS OF RESEARCH RELATED TO ARTICLE VIII • Sectoral studies for evaluation of port reforms • Conditions for creation of observatories and technical and legal studies • Evaluation of costs of computerisation of customs procedures • Economic impact of consolidation of TF proposals: (‘single document’; new technologies for document publication and legislation; use of international standards for customs formalities)

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