Trade Facilitation : A Catalyst for Change

1. Trade Facilitation : A Catalyst for Change Mohammad Nahavandian, Ph.D. International Forum on Trade Facilitation UN/CEFACT 29-30 May 2002

2. Trade Facilitation: A Catalyst for Change • Development Strategies and the Strategic View on Trade Facilitation • The Trade Facilitation Strategy in the e-Life Era: A Framework for Structural Change • The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform • Concerns and Challenges for Developing Countries • Lessons and Recommendations

3. I. Development Strategies and the Strategic View on Trade Facilitation • Development Theories and Strategies • Trade as the Engine of Growth Theory • Export-Led Growth • Microeconomic / Macroeconomic Considerations • Private Sector Participation / Public Sector Governance • Strategic Choice as in the Game Theory • Competition in Productivity

4. II. The Trade Facilitation Strategy in the e-Life Era:A Framework for Structural Change • Industrial Organizational Paradigm: Structure , Conduct, Performance • Structural Change with a vision

5. II. The Trade Facilitation Strategy in the e-Life Era:A Framework for Structural Change • Building Blocks for Structural Change: • Education and Awareness: • Fostering the Competitive Culture • Legal Environment • Intellectual Property Rights • Electronic Business Legislation • Technical Infrastructure: • Telecommunication • Banking Services

6. II. The Trade Facilitation Strategy in the e-Life Era:A Framework for Structural Change 4. Economic Policies: • Competition Policy vs. Rent Generating Policy • Exchange Rate Policy • Trade Policies: • Tariffication • Regional Cooperation

7. III. The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform(1994-2002) • Vision, Research and Strategic Planning: • Five year Plan for the Ministry of Commerce, 1994-99 • Trade Reform Policies in the national third five year plan, 2000 • Provision of the government’s national e-Commerce policy, 2001

8. III. The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform(1994-2002) • Trade Information Services: • Agahgar Network, 1995 • Trade Point Network, 1997 • Chamber of Commerce Network, 2000 • Feasibility Study for the Comprehensive National Trade Information Network, 1998-2000 • Design and Build up of the National Trade Information Network, 2001-2002

9. III. The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform(1994-2002) cont. • Awareness and Education: • International Edicom 1998 • Seminar on e-Banking and e-Commerce, 1999 • Seminar on smart cards and e-Commerce, 2000 • WIPO International seminar on Intellectual Property and Electronic Commerce,2002 • Translation of International Documents and Literature • General Education and Professional courses and workshops

10. III. The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform(1994-2002) cont. • Facilitating Services: • Implementation of Barcode Technology in the Supply Chain, 1997 • Introduction of UN/Edifact standards, 1997 • Establishment of the inter-organizational Iran-Edifact Committee and specialized working groups, 1995

11. III. The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform(1994-2002) cont. • Legal Environment: • Provision of the draft for “e-Commerce Law”, 2000, due for final approval in 2002 • Coordination with the Legislative Branch for provision of specialized courts for e-Commerce cases, and provision of training workshops for judges • Law Enforcement Agencies Workshop on e-Crime

12. III. The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform(1994-2002) cont. • Technical Infra-structure: • PTT’s Data Network ( IranPAC), national backbone • Trans-Asia Europe Fiber Optics Cable Project • Implementation of the SWIFT protocol in the banking system

13. III. The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform(1994-2002) cont. • Trade Policy and Procedures: • Removal of non-tariff barriers by 2004, according to the third five year plan, 1999 • Transformation of at least 50% of government transaction to e-Business by 2004, according to the third five year plan, 1999

14. III. The Experience of the Islamic Republic of Iran: A Case Model for Trade Policy Reform(1994-2002) cont. • Removal of all export duties and licensing procedures, 2001 • Implementation of ASYCUDA system in the major customs, 2001 • Automation of the registration procedures for imports, due by end of 2002

15. IV. Concerns and Challenges for Developing Countries • Political Economy of Trade Facilitation: • Productivity Gain , win-win game • Transparency and competition, loss of rent, • Public Policy Concerns in the globalized market-place: • Lack of Competition and anti-trust rules in the supra-national markets • Employment losses occur in domestic market, but new employment opportunities fly abroad: • The case for trade in services

16. IV. Concerns and Challenges for Developing Countries • Sustainable Development through Responsible Participation of all • Implementation of Trade Liberalization and Facilitation for the LDCs’ Exports

17. V. Lessons and Recommendations • Vision, Design, Implementation of a Master Plan • Inter-Ministerial Mandate, Coordinated Support • Private Sector Involvement • Benefit Sharing , Widening the spectrum of the beneficiaries • Expansion of ICT and E-business investments and job opportunities • Technical Assistance from International Organizations and MNCs

18. Trade Facilitation not only a Catalyst for Change but also a Catalyst for Peace

19. Thank You