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Delivery of EC Assistance in field of Trade Facilitation

Michaela Dodini, EC 1 July 2009. Delivery of EC Assistance in field of Trade Facilitation. Policy Context for EC Aid. 2000 Millennium Development Goals (M DGs) Fixing objectives for poverty reduction for 2015 2005 Paris Declaration on Aid Effectiveness 50 donors and 60 partner countries

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Delivery of EC Assistance in field of Trade Facilitation

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  1. Michaela Dodini, EC 1 July 2009 Delivery of EC Assistance in field of Trade Facilitation

  2. Policy Context for EC Aid 2000 Millennium Development Goals(MDGs) Fixing objectives for poverty reduction for 2015 2005 Paris Declaration on Aid Effectiveness 50 donors and 60 partner countries Ownership, Alignment, Harmonisation, Mutual Accountability, Results Oriented Framework 12 progress indicators 2005 European Consensus on Development EU development policy Applicable to both EC and EU Member States

  3. Programming of EC Aid Work together with more than 150 countries/ regions Multi-annual planning in countries/regions(2007-2013 CSP/NIP, RSP/RIP*) In principle not more than 2 focal sectors per country ……… Priorities in accordance with national strategic development objectives (PRSPs/NDPs) *Country/Regional Strategy Papers and National/Regional Indicative Programmes

  4. EU Aid for Trade Strategy Oct 2007 Support to DC integration in the world trading systemas part of poverty reduction efforts Support greater competitiveness and efficiency of the production systems Support for regional economic integration AfT Strategy focuses on more resources and better impact on development objectives EU commitments to increase TRA translated into reality: EC TRA €1 bn in 2007, AfT €2,4 bn (EC+EU MS overall TRA €1.9bn/AfT €7.12bn) Follow up to the recommendations of the WTO AfT Task Force of summer 2006

  5. EC support to Trade Facilitation - Key objectives Trade facilitation activities to enhance DCs' trade competitiveness, and support the establishment of fully functioning free trade areas and customs unions: simplification and harmonisation of national customs procedures and systems, reduce time of customs clearanceandfacilitate the transit of the goods (notably through the computerization of customs systems) development of customs related infrastructures (creation of one stop border posts for bordering countries).

  6. Demand driven:Regional integration processes give a strong impetus to trade facilitation Local ownership:need high level political will and solid implementation structures. Trade facilitation, e.g. customs reforms - a sensitive political issue, may encounter strong resistance to change Thorough needs assessment diagnostic/gap analysis carried out using e-g.TAXUD customs blueprint approach Institutional sustainability – local/regional: short & long term support Co-ordination: coherence with activities of other donors, reduce administrative burden Preparation takes time! EC support to Trade Facilitation – Key Principles

  7. How can we support implementation of new Trade Facilitation Agreement Possible to incorporate appropriate activities intoongoing EC TRA projectsin a countryif so requested by relevant local authorities (TF needs to be high in their priorities) Future programmes: TF needs assessments/ implementation plans can be taken into account in the design of new EC interventions in the field of TRA / trade facilitation, if considered a priority by beneficiaries (focal areas)

  8. How can we support implementation of new Trade Facilitation Agreement (contd) Contacts to be made with EC Delegations in DCs (bottom up) Essential to have effective communication and decision making channels within beneficiaries (Geneva-based negotiators, capital-based responsible for TF implementation, managers of aid programmes and of relations with donors)

  9. Overview of TF programmes

  10. EuropeAid Trade Facilitation in practice: Identification of needs in the Caribbean • EPA signed in 2008 (Chapter 4 on Customs and TF) • Regional Preparatory Task Force – CARIFORUM/EU • Launch of studies for implementation of the EPA, incl a Study on Customs and Trade Facilitation http://www.caricomonline.org/rptfstudies to assess level of conformity of Customs Adm, identify capacity constrains • Methodology: surveys to Customs, Gov. Admin and Private Sector, field visits • 19 programmes identified, based on needs, existing support, national/regional processes • Implementation based on Regional integration roadmap

  11. Tools for identification of needs:EU Customs Blueprints • 4 Areas General management issues- related to administration/organisation of an organisation Cooperation/Communication mainly related to external partnersCustoms specific Customs specific operational/technical areas Supporting- relating to Customs Infrastructure Action Plan Gap Analysis Needs Analysis http://ec.europa.eu/taxation_customs/common/publications/info_docs/customs/index_en.htm

  12. Tools for identification of needs:Integrating existing assessments • Ensure inclusion of findings from existing studies for actions which are considered a priority by local authorities • - Trade Facilitation Needs Assessment for TF Agreement • - Diagnostic Trade integration Studies • - WCO Columbus Programme • - Other studies at national/regional level

  13. EC Trade Facilitation – overview per regionAfrica, Caribbean, Pacific Focus mainly at regional level Several comprehensive programmes with particular emphasis on developing Customs Unions eg. regional integration support programmes for CEMAC and for West Africa, harmonisation of customs for COMESA etc. Projects funded under 9th and 10th EDF Assistance under 10th EDF is be based on results / evaluations of ongoing programmes. Support EPA implementation. Identification/design 2009/2010. TF projects portfolio: € 380 million

  14. Trade Facilitation for EPAimplementation Harmonization & simplification of customs procedures, including transit aspects: all regions except the Pacific Customs processing systems inter-connexion (ASYCUDA/UNCTAD): Central Africa: FASTRAC (€ 12.5 million); SADC : Customs modernization programme (€ 18 million); COMESA (ICT programme) One stop border posts: West Africa (PARI II) Training: all regions Regional networking (Customs liaison committees) and exchanges of experience/coordination between Regional Organisations (ESA, SADC and SACU regions) Compensation mechanism for the implementation of the Customs Union (CET): West Africa (9th EDF ECOWAS €19.4m, UEMOA €11m within programmes supporting Regional Integration) COMESA (Regional Integration Budget Support programme : € 7m

  15. EC Trade Facilitation – SADC • SADC Customs Modernisation Programme (€ 18m 9th EDF RIP) • To assist SADC Member States in the transformation and modernisation of their customs systems ( including improved transit flows) and to set the legal and institutional framework for the establishment of a SADC Customs Union by 2010. • Demand oriented assistance to SADC. • Results covering core area of cooperation for SADC CU to function effectively

  16. EC Trade Facilitation – Central Africa • CEMAC Trade facilitation programme (FASTRAC) € 12.5 million designed to assist CEMAC Member States and Sao Tomé and Principe to improve transit flows in the region through proper application of the Transit legislation. • Upgrading of priority one stop border posts • Inter connexion of CEMAC customs administration (UNCTAD) • Implementing a proper functioning transit system • Harmonisation and simplification of transport related legislation

  17. EC Trade Facilitation – West Africa • 1. Regional integration programme with West Africa €105mincludes support on trade facilitation to UEMOA and ECOWAS and national customs authorities. Facilitation of Transport 9th EDF € 63.8m Project addresses main concerns identified in negotiations in field of trade facilitation Activities include institutional support, facilitation actions in favour of road, air, rail & maritime transport, transit and trade facilitation, construction of joint border control posts

  18. EC Trade Facilitation – East Africa • € 33.5 M Regional integration support programme includes support to the establishment of a customs union • € 78 M COMESA Regional Fund, a regionally owned financial compensation mechanism • COMESA ICT programme (including Asycuda) € 21M • Support to develop regional ICT policy • Provide high-speed Internet connectivity to key regional stakeholders • Upgrade to Asycuda++ at regional level and in selected countries • Establish regional information portals, design websites for RIO • Establishment of incubator ICT projects, transfer of skills to SMEs • Design of regional transport and communication strategy, priority investment plan

  19. EC Trade Facilitation – Caribbean • The 41.6 M € Caribbean Integration Support Programme supports the Caribbean Single Market and Economy together with activities to improve regional transport and Information and Communication Technology (ICT). • Supports implementation of a Common External Tariff (CET) and a Common External Trade Policy • Specific customs related activities: enhancing institutional and management capabilities within customs administrations, improving operational effectiveness of procedures affecting business transactions, and increasing transparency of operations of customs services affecting cross- border transactions.

  20. EC Trade Facilitation – Pacific • Included under the €11.2M PACREIP (Pacific Regional Economic Integration Programme). Includes: • Customs, standards and conformance:workshops/handbook and manual on RoO for customs and trade officials, customs automation using ASYCUDA software • Bio-security (SPS):drafting legislation on bio-security (pests and diseases of plants and animals), harmonisation of legislation at regional level, manual on bio-security administration and website on regulatory information • Fiscal Reform: Work (studies) on fiscal reform, competition policy and regulatory reform, work on revision of customs and general tax legislation for selected PACPs is being undertaken

  21. EC Trade Facilitation – Latin America Key projects at regional level to support regional integration including establishment of common external tariff Central America - Andean Union I & II €15m Harmonization of Customs Procedures and Common Terminology, Implementation plan for Custom Union, Training and establishment of Central American Customs School. Andean Community €13m includes harmonization of Procedures, Common Terminology, Single Customs Document, Training, electronic data exchange system Mercosur SPS & Customs Cooperation €12m includes harmonization of Procedures, Common Terminology, Customs Single Document, Training. TF projects portfolio: € 45 million (excludes Caribbean)

  22. EC Trade Facilitation – ASIA Included as an aspect within both bilateral and regional TRA programmes. ASEAN - Customs capacity building provided through the ASEAN Programme for Regional Integration (APRIS) € 6.8m. Customs and Trade Facilitation is one of five components Central Asia - Border Management in Central Asia (BOMCA) €25 million (2003-2009) (Kazakhstan, Kyrgystan, Tajikistan, Turkmenistan, Uzbekistan) National support TF project portfolio: € 95 m (excludes Afghanistan)

  23. EC Trade Facilitation - Neighbourhood • Europe • Support to Cross-border cooperation between EU and East Europe / Central Asia EU Border Assistance Mission to Ukraine and Moldova Support to Transport Corridor Europe-Caucasus-Asia Russia – support provided for customs improvement through the cross border cooperation programme and support for approximation. Balkans Mediterranean • Support Mediterranean Partners in preparation for a Euro-MED FTA, a key objective of the Barcelona Process. • TF project portfolio: € 320m

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