Towards a Central Africa Trade Facilitation Strategy: Customs union and Policy Dialogue

1. Towards a Central Africa Trade Facilitation Strategy: Customs union and Policy Dialogue BBL – September 29th 2011

2. Contents • Customs Union agenda • Policy Dialogue • Proposed way forward

3. I Complete the customs union agenda • In 1994, the CEMAC countries agreed to a single economic and monetary union. • But the customs union has been ineffective at making trade easier between member states: • Intra-CEMAC formal trade was just 1% of the region’s overall trade in 2006. • Member states have made numerous exceptions to the common external tariff, rendering it obsolete.

4. I.Complete customs union agenda • To strengthen the customs union, the following is needed: • Harmonization of tariff nomenclature. • Common regulations guiding customs management. • Shared payment systems. • Removal of standards-related trade restrictions within CEMAC.

5. I. Complete CU agenda: Common tariff nomenclature (CTN) • develop and update CTN and guidelines to promote standardized interpretation • Gap analysis between present situation of each Member State and CTN • Domestication and implementation of CTN, • Mechanism for maintenance of standardized interpretation of CTN across the Customs Union.

6. I. Complete CU agenda: Common customs procedures(CMR) Same Customs procedures or common Customs Management Regulations (CMR), also known as Common Customs Code for standardized Customs procedures • promote standardized interpretation; • Gap analysis between present situation of each Member State and CMR • Domestication and implementation of CMR, • A mechanism for maintenance of standardized interpretation of CMR.

7. I. Complete CU agenda: payment Systems • small-value payments services that constrain the growth of cross-border trade: (1) dialogue with traders, regulators, and financial sector stakeholders to identify barriers to innovation and competition in the market; (2) survey of small traders to provide evidence of gaps in demand and supply-side of financial intermediaries’ products and services • Payment instrument for trade transactions • Capacity of players, particularly SMEs

8. II. Policy dialogue • The essential components of the policy dialogue are: • A platform to support a holistic trade facilitation agenda; • A forum for engaging stakeholders (national and regional, public and private); and • A transport observatory for diagnostic and monitoring, first to determine reform areas, and second to measure the effectiveness and impact of the reforms along the corridor.

9. II. Policy dialogue: Platform specifics • Experience and good practices to enhance processes along the entire supply chain hence ensure • Best information on rules and regulations affecting the provision and cost ; • Appropriate design of trade and regulatory reforms and the capacity required for effective implementation; • Outcomes of reforms, including impact on losers; • Policy options to address any adverse distributional consequences.

10. II. Policy dialogue : Forum Build a knowledge base and nurture a constituency for reform • Identify and engage with relevant stakeholders • Use tested tools (TTFA, TRS) implemented by locals • Evaluation and impact assessment analysis in the Bank • Build and use local capacity: necessary to properly integrate local condition in design and implementation • Trade facilitation week: traditional TF stakeholders, broaden the reach (ministry of trade, academics)

11. Conclusion • Intervene at regional, national and corridor levels. • Focus on large or coastal countries; account for smaller ones to ensure spillover effects • Facts essential, so is the process(political economy for effective implementation)