Gladys Mutangadura, Senior Economic Affairs Officer, UN-OHRLLS

1. Improving transit cooperation, trade and trade facilitation for the benefit of the LLDCs: Current Status and Policy implications - Global Report Gladys Mutangadura, Senior Economic Affairs Officer, UN-OHRLLS

2. Objectives of the report • To assess the status of transit cooperation, trade and trade facilitation for the benefit of the LLDCs – using a holistic approach through analyzing all the aspects related to transit, including infrastructure development, legal frameworks, institutions, trade, investment, customs and border-crossing procedures, the private sector and others. • To identify key achievements, best/effective examples and constraints and, • To suggest solutions required to address transit issues for the successful participation of the LLDCs in international trade and for their overall development.

3. Organization of the report • Chapter 1: Socio-economic development in LLDCs and the 2030 Agenda for Sustainable Development; • Chapter 2: The Legal Framework on Transit issues; • Chapter 3: Transit Infrastructure Development; • Chapter 4: Trade Facilitation, Customs and Border Procedures; • Chapter 5: LLDCs’ Participation in International and Regional Trade, • Chapter 6: Means of Implementation; and • Chapter 7: Recommendations

4. SOME HIGHLIGHTS

5. Per-capita GDP (constant 2011 $) LLDCs have lower values

6. LLDCs’ have lower HDI

7. LLDCs’ average costs to export are much higher and have been increasing

8. LLDCs’ average costs to import are also much higher and have been increasing

9. LLDCs’ Aggregate structure of LLDC exports, 2013 – low diversification

10. LLDCs’ Aggregate structure of LLDC imports, 2013 – low diversification

11. LLDCs’ trade is low compared to Transit I with China and India and Transit II without

12. LLDCs’ export concentration is higher than other groups

13. Implications • Trade costs need to be reduced • Hard infrastructure need to be improved • Soft infrastructure need to be strengthened.

14. The Legal Framework on Transit issues • Supportive International conventions are available • Ratification by the LLDCs and transit countries has been slow, there is need to speed up ratification and effectively implement the conventions. • It is important for the international community to provide financial and technical support to the LLDCs and transit countries in this endeavour.

15. Transit Infrastructure Development • There has been improvements in transit infrastructure development in all regions particularly road transport, ICT and port development. • However the transit infrastructure is still inadequate and still accounts for why the LLDCs face high trade costs. • Resource requirements for infrastructure development are high. • It requires forging sub-regional and regional cooperation on infrastructure projects; strengthening national budgets, and international development assistance. • It is also important to explore innovative financing mechanisms including the use of Public-Private Partnerships (PPPs).

16. Trade and Trade Facilitation • LLDCs’ share of trade is very low and not diversified • Enhanced trade facilitation is required to reduce trade costs. • Accession, ratification and effective implementation of international, regional and sub-regional conventions and agreements related to trade facilitation is important – speedy ratification of the WTO TFA • Simplification and harmonization of customs regulations and border crossing procedures. • LLDCs should fully harness the potential of Aid for Trade in improving their capacity to reduce their trade costs and increasing their competiveness.

17. Means of Implementation • Mobilization and efficient use of domestic resources is crucial. • Better and targeted use of official development assistance (ODA) is important. • Need for policies and measures to attract FDI to LLDCs. • Explore innovative financing options, including greater use of blended financing, public-private partnerships and regional capital markets

18. Thank You