Information Technology and Trade Facilitation An Introduction to the ARTNeT Study 2008/9

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and Trade Facilitation An Introduction to the ARTNeT Study

1 Regional Policy Forum on Trade Facilitation in Times of Crisis May 2009, Beijing, China Information Technology and Trade Facilitation An Introduction to the ARTNeT Study 2008/9 Ravi Ratnayake, Director, Trade and Investment Division, ESCAP

2 ARTNeT ARTNeT: An open network of national-level research institutions interested in trade and investment policy and facilitation issues TPMs UNESCAP WTO, UNCTAD Objective: to build national /regional trade IDRC, Canada research capacity to provide trade policy makers with the homegrown quality analysis they need Bilateral Donors Current geographic coverage: East, South, Southeast Asia and the Pacific

3 Overview of ARTNeT Activities Policy makers in the UNESCAP region able to make (more) informed decisions on trade issues Increased quantity, quality, relevance and dissemination of trade-related research for policy makers ARTNET Research Programme Team-based research Trade issues of interest to the region Short-term and long-term research Research Dissemination Consultative meetings of Researchers and Policy makers ARTNET website Policy Briefs, WPs Research Capacity Building Visiting fellowships for LDC researchers Technical Workshop on Trade Research for LDC Technical Advisors

ARTNeT in 2009 5 years old network 20 member research institutions in 15

Brief series (70+) many of which published in UN publications and used in

programmes for government officials and negotiators (e.g., in WTO Regional Trade

4 ARTNeT in years old network 20 member research institutions in 15 countries 4 core partners (IDRC, WTO, UNCTAD and UNDP) Working Papers & Policy Brief series (70+) many of which published in UN publications and used in training programmes for government officials and negotiators (e.g., in WTO Regional Trade Policy Course) ARTNeT website (online database of trade and investment related publications) ARTNeT-linked projects, including ARTNeT GMS

5 ARTNeT Phase II (On-going, ) 2010) Research Programme Overview Three main regional research themes: Trade, investment and domestic policy coherence for inclusive growth Trade facilitation and trade in related services 2008/9: Development impact of IT-related TF measures Regional integration 2008/9: Regional integration and production networks Developed in consultation with members and government focal points Updated during annual Multi-stakeholder Steering Committee meeting

6 ICT and Trade Facilitation Trade Facilitation Performance Trading across Border (Rank) Poor TF High TF Nepal Cambodia Bangladesh Timor-Leste Sri Lanka Indonesia Mon golia India Pa ki stan Vietnam Philippines Thai land China Korea Hong Kong,China Malaysia Sing apore unsuccessful Not a Government Success in ICT Promotion* successful Top priority priority * Global Competitiveness Report (perception survey data), 2008

7 ICT and Trade Facilitation Most recent trade facilitation related recommendations and agreements involve ICT Revised Kyoto Convention Chap. 7 Application of IT WTO Trade Facilitation Negotiation Use of ICT for data storage and dissemination Automation of customs and trade procedures Recent UN/CEFACT recommendations Many customs modernization programs rely on ICT to meet their goals

8 ICT and Trade Facilitation Many potential and real benefits, e.g. Speed up the movement of good Reduce regulatory compliance costs Facilitate risk management and improve security Increase transparency Help safeguard integrity (WCO Arusha Declaration, principle 4)

9 But, some potential and real issues Cost of ICT for trade facilitation can be significant Very high Costs / Savings Very 0.5 small Alignment Online pub. SNFPs NTFCs Adv. Rulings Appeal Single Window Pre-arrival clearance Risk Management Post-Clear. Audit Bond Guarantee Express shipping Years Setup costs Operating costs Long-term savings Time for implementation in LDCs (in years) Source: ESCAP, Experts Qualitative Assessment of the Relative Cost, Benefits and Time Needed for Implementing Selected Trade Facilitation Measures

10 But, some potential and real issues Is adoption of IT for trade facilitation and communication with government agencies benefiting all traders, particularly small and medium sized enterprises? limited ICT literacy of SME owners/employees Cost of adoption Lack of widely available/reliable or easily accessible infrastructure for IT use Rules not favorable to small / infrequent traders ARTNeT Study on the Development impact of IT-based Trade Facilitation Measures endorsed by ARTNeT Steering Committee in December 2007

11 ARTNeT Study on the Development impact of IT-based Trade Facilitation Measures Main Purpose: gain insights on how ITbased trade facilitation measures impact SMEs Focus on customs clearance process Identify needs and gaps in computerization and automation, particularly for SMEs Main Method: survey/interviews of SMEs and customs house agents (exploratory)

12 ARTNeT Study on the Development impact of IT-based Trade Facilitation Measures Regional research team PHILIPPINES: Florian Alburo, CATIF (Team leader) and Loreli de Dios. BANGLADESH: Uttam Deb and Syed Saifuddin Hossain, CPD KOREA (Rep.of): Junsok Yang, CUK INDIA: Sachin Chaturvedi, RIS SRI LANKA: Janaka Wijayasiri and Suwendrani Jayaratne, IPS

THANK YOU For further information: Email:

13 THANK YOU For further information: ; Website:

Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis

Regional Policy Forum on Trade Facilitation and SMEs in Times of Crisis PROGRAMME 20-22 May 2009 Beijing, China Wednesday, 20 May 2009 08:30-09:00 Registration 09:00-09:30 Opening Session Chair: Mr. Diao