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WTO TRADE FACILITATION SUPPORT PROGRAM

WTO TRADE FACILITATION SUPPORT PROGRAM. Gerard McLinden International Trade Department The World Bank Needs and Priorities/Implementation Costs and Challenges Study 26 July 2006. Outline. Overview Progress to date Key Issues identified Conclusions Next Steps. Overview.

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WTO TRADE FACILITATION SUPPORT PROGRAM

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  1. WTO TRADE FACILITATION SUPPORT PROGRAM Gerard McLinden International Trade Department The World Bank Needs and Priorities/Implementation Costs and Challenges Study 26 July 2006

  2. Outline • Overview • Progress to date • Key Issues identified • Conclusions • Next Steps

  3. Overview • Annex D – Clear role for the World Bank (during and after negotiations) • Six country studies designed to identify probable costs and implementation difficulties associated with a new Trade Facilitation Agreement • Support provided by EC, DFID (UK) and Sweden • Methodology • Partnership with the WCO and IMF • Country assessment visits – Experienced TF specialists • Development of a practical assessment tool (Based on TN/TF/W43 – Compilation of Proposals) • Individual reports prepared for each country • Consolidated report for NGTF members • Self assessment tool

  4. Overview • Scope • Regulatory/Legal FrameworkNeeds • Administrative Policy and Procedure Needs • Human Resource Needs • Training Needs • Equipment/Infrastructure Needs • Organizational Needs • Change Management Needs • Focused on WTO NGTF Agenda – Not wider capacity building needs and priorities • Customs and other border management agencies

  5. Progress to Date • Detailed assessments conducted in: • Rwanda • Sri Lanka • Paraguay • Senegal • Egypt • Philippines late July

  6. Key Issues Identified • Specific needs and priorities differ but many common concerns and challenges • Majority of proposals considered positive and practical by government officials and the business community • A new agreement seen by many as a catalyst for building political will and momentum • Little new – most proposals already part of the suite of good practice promoted by WCO, UNECE, WB, IMF and donors • No country is starting from scratch – much donor support already provided and more in the pipeline

  7. Key Issues Identified • All countries studied have made good progress already. All currently: • Maintain websites containing most required information in a WTO language • Have formal appeal mechanisms in place • Utilize some form of risk management and selectivity • Accept security to release goods prior to final resolution of import transactions • Provide advice on tariff classification in advance of importation • Have IT systems for processing import/export transactions • Possess adequate technical know how in key TF areas • Have established post clearance audit units

  8. Key Issues Identified • Many of the implementation challenges and barriers identified do not lend themselves to resolution by TA (regardless of its quality or quantity) • Competition between government agencies • Poor quality of public/private relationship • Revenue maximization focus at expense of all other priorities • Low levels of voluntary compliance • Under developed private sector (Banking, ICT, Customs brokers) • Lack of sustained political will and commitment

  9. Key Issues Identified • Customs typically far ahead of other agencies: • Customs in all countries have IT systems in place • Customs already use some form of risk management and selectivity • Customs typically have some form of active cooperation and information sharing with neighboring countries • Customs have received bulk of donor support to date • Customs attempt to measure performance • Customs understand the TF agenda • Customs have agreed international instruments and blueprints to work from

  10. Conclusions • WTO TF agenda typically welcome and in line with existing modernization plans and strategies (with some exceptions) • Little new TA needed for mere compliance with likely provisions of a new agreement • High costs associated with IT (single window) and border station refurbishment • TA needed for effective implementation – particularly in areas such as: • Drafting of legislative amendments • Developing new administrative systems and procedures • IT system migration/upgrade • Risk management – ‘control mindset’ • Activity based costing methods

  11. Conclusions • But, WTO TF agenda can’t be seen in isolation from wider reform and modernization needs • Many needs similar across countries – potential for economies of scale in design and provision of TA – potential for regional solutions and programs • S&DT must take into account individual circumstances of members: • Level of sophistication of private sector • ICT infrastructure • Revenue mobilization implications (rationalization of charges, consularization fees, etc) • Geography

  12. Next Steps … • Finalize reports for six case study countries (August) • Prepare consolidated report and cost tables for distribution to NGTF members and donors (after recess) • Convert current country study tool into a practical self assessment tool • Currently exploring possibility of providing training to national officials to assist them to undertake detailed needs and priorities assessments using the self assessment tool and methodology

  13. Reject Proposal ? Support Proposal But … Consider S & DT and TA/Capacity Building ? Implementation Difficulty/Cost Low Don’t Care ? Support Proposal Low High WB/WCO PROPOSAL ANALYSIS GRID High Benefits for Government and Traders

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