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Negotiations on trade facilitation at the World Trade Organization

Negotiations on trade facilitation at the World Trade Organization. Geneva, November 2012 Jan.Hoffmann@UNCTAD.org. Draft agreement. Trade Facilitation: Linking global trends and what happens at the WTO. 10 global trends Trade facilitation measures Implications for development.

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Negotiations on trade facilitation at the World Trade Organization

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  1. Negotiations on trade facilitation at the World Trade Organization Geneva, November 2012Jan.Hoffmann@UNCTAD.org

  2. Draft agreement

  3. Trade Facilitation: Linking global trends and what happens at the WTO 10 global trends Trade facilitation measures Implications for development

  4. Trade Facilitation: Linking global trends and what happens at the WTO 10 global trends Trade facilitation measures Implications for development

  5. 1.Exports of manufactured goods • Today 80% of developing countries’ exports are manufactured goods, up from only 20% two decades ago

  6. 2.Globalized production • Intra-company trade • Trade in intermediate products • Logistics part of production process

  7. 3.Increased security concerns • Security measures along the entire supply chain

  8. 4.New Geography of Trade • Especially the share of South-South trade has more than doubled since 1990

  9. 5.Regional integration • Increased regional and transit trade

  10. 6.Within Logistics expenditure …inventory holding decreases, and Transport expenditure increases

  11. 7.Technologies • Containerization, shipping networks • Use of computers and Internet

  12. 8.Privatizations / concessions Ports, Shipping lines, Railways, Airlines, Airports

  13. 9.Tariff reductions • For most developing countries’ exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in developed countries. Source: Miccio/ Perez 2002

  14. 10.Negotiations on trade facilitation at the World Trade Organization

  15. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

  16. Trade Facilitation: Linking global trends and what happens at the WTO 10 global trends Trade facilitation measures Implications for development

  17. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

  18. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations advance ruling

  19. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations authorized traders

  20. 3. Security concerns 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Risk analysis

  21. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Internet publication

  22. 5. Regional integration 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations “Regional approaches”

  23. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Separate release from clearance

  24. 7. Technologies 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Automated payments, Electronic documents

  25. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations National Trade Facilitation Committee

  26. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Transport costs and trade facilitation more important than tariffs !

  27. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations … a response to trends in international trade, transport, logistics and technologies !

  28. Trade Facilitation: Linking global trends and what happens at the WTO 10 global trends Trade facilitation measures Implications for development

  29. DevelopingICTs The introduction of ICTs by Customs may encourage smaller companies to also connect to the internet.

  30. Developing e-commerce Reforms of legal regimes that facilitate the use of electronic documents may also modernize other business practices.

  31. Developing Transit A framework for bank guarantees for transit trade may also generally improve the financial system.

  32. Are poor countries poor because of red tape? OR Is red tape the result of a lack of development? ANSWER: It is both

  33. More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation

  34. Lower Transport Costs -> More trade -> Economies of scale -> Lower Transport Costs

  35. Better services -> More trade -> More income to finance infrastructure -> Better services

  36. The “tipping point”: Start with Trade and transport facilitation Trade and transport facilitation is good for trade and for development Development is good for trade and for trade and transport facilitation

  37. Trade Facilitation: Linking global trends and what happens at the WTO 10 global trends Trade facilitation measures Implications for development Questions?

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