Progress in ADB Support for Transport and Trade Facilitation in the GMS

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1 Progress in ADB Support for Transport and Trade Facilitation in the GMS 2nd Meeting of the Regional Network of Legal and Technical Experts on Transport Facilitation, Incheon, March

2 Outline 1. ADB s Support on Transport and Trade Facilitation in SEA 2. Progress in Implementation of ADB Support in TTF 3. Development Partners Coordination 4. Issues and Challenges 2

3 Connectivity Initiatives Supported by ADB Physical Connectivity: ADB continues to lend for infrastructure development in the region. Of the $ 4.66 billion in lending in 2013, at least 25% was on infrastructure (ADB Annual Report, 2013). Innovative Financing: In addition, ADB is involved in new and innovative financing schemes, such as the ASEAN Infrastructure Fund, which plans to lend $300 million per year (cofinanced with ADB). Private Sector Participation: $2 billion in operations by ADB s Private Sector Operations Department (2013). In addition, ADB is working to promote PPP development in the region for physical and software connectivity projects via a $10 million TA partnering with Singapore and Canada. Software Connectivity: Development partner/coordinator for the GMS, BIMP-EAGA, IMT-GT programs to promote software connectivity and integration from the bottom up through technical assistance, knowledge sharing and capacity building. 3

4 Transport and Trade Facilitation in Southeast Asia Subregions in Southeast Asia are implementing various transport and trade facilitation (TTF) measures GMS Transport and Trade Facilitation BIMP-EAGA CIQS Action Plan and Transport MOUs. IMT-GT CIQ work at early stage Increasing alignment with ASEAN Trade Facilitation initiatives (ATIGA, AFAGIT, ACA, etc.) Figure 12: Subregional groups in Southeast Asia 4

5 TTF Pyramid 5

6 Progress in Implementation of ADB s Support On-going Program on Transport and Trade Facilitation: Title Amount ($ m) Status (completion date) Trade Facilitation Support for AEC Blueprint Implementation for GMS/IMT (Co-financed by Japan) 2.0 Ongoing (Oct2015) Support to Implement GMS TTF Action Program, Subproject 2 (Co-financed by Australia) 3.6 Ongoing (Dec2016) Strengthening Institutional Knowledge and Capacity of Customs Administrations for Trade Facilitation within ASEAN (Co-financed by Japan) 1.5 Ongoing (Aug2016) Strengthening Trade Facilitation in GMS through Partnerships with the Private Sector (Cofinanced by Japan) 1.5 Ongoing (Aug2016) 6

7 Cross-Border Transport & Trade Facilitation Framework IMPACT INTERNATIONAL TRADE INCREASES OUTCOME CROSS-BORDER TRANSPORT AND TRADE IS FASTER, EASIER, CHEAPER AND INCLUSIVE PRIORITY COMPONENTS & APPROACHES Adopt and apply updated Legal Framework for Transport & Trade Facilitation - Computerized customs transit system - Commercially viable guarantee system - Accredited Economic Operators/ MRAs - Advance rulings on classification, origin and valuation - Efficient and effective dispute resolution system and procedures Provide modern cross-border Logistics Infrastructure - Border crossing/ inspection facilities - Designated fasttrack lanes for qualifying commercial traffic - Trans-shipment/ multi-modal facilities - Warehousing/ cold storage facilities - Cross-border/ special economic zones Harmonize and enforce Transport Regulations - Designated routes and entry/ exit points - Operator licenses, permits and quotas - Vehicle standards and specifications - Operations manuals for traffic rules & safety DFAT SP2: Red; JFPR 3 TAs: Blue ; JFPR and SP2: Purple Strengthen Institutional Coordination at and beyond the borders - Coordinated border management - Single stop inspection procedures - Automated national coordination committee - National single window regime - National/ subregional freight forwarder associations - Trade-related private sector Improve Operations & Services at border crossings - Customs modernization & capacity building - Modern risk management systems/ procedures - Streamlined pre-shipment inspection and post-clearance audit procedures - Harmonized SPS measures & procedures - Computerized control & management systems 7 Improve Transparency and Monitoring of Transport & Trade Facilitation - Transparency of rules, regulations and procedures - TTF Database, incl. disclosure of permit applications and utilization rates. - Time release studies - Time-costdistance study (i.e. Corridors Performance Measurement and Monitoring) Business process analysis

8 RETA 8079:Trade Facilitation Support for ASEAN Economic Community Blueprint Implementation Activities undertaken: TRS Exit Conferences in Thailand, Malaysia, Myanmar and Cambodia Other workshops: AEO (Viet Nam), RKC (Myanmar), Advance Ruling of ROO (Cambodia) Planned Activities: RKC Gap Analysis: Myanmar (expected by July) ASEAN ROO National Workshops: Selected countries Handbook on Customs Clearance Procedures: Cambodia AEO Gap Analysis: Viet Nam (expected by August) TRS Exit Conference: Indonesia (by August), Malaysia (by June) 8 Regional Conference on TRS in Tokyo, October

9 TA 8709:Strengthening Institutional Knowledge and Capacity of Customs Administration in ASEAN Expected outcome: Implementation of procedures, regulations and management measures by customs administrations (based on various ASEAN Agreements) to facilitate the cross border movement of goods Planned activities: Co-finance WCO Workshop on WTO Trade Facilitation Agreement (TFA), March 2015, Indonesia Convene a workshop on WTO TFA in the context of AEC, 19 March 2015, Indonesia Consultation on-going on specific areas of capacity building needed by each participating country 9

10 TA 8707:Strengthening Trade Facilitation in GMS through Partnerships with Private Sector Expected outcome: Established or strengthened schemes and measures for customs administrations to better coordinate with private sector for more effective trade facilitation. Planned activities: Consultation still on-going to develop country specific work plan covering: (i) enhancing Customs accreditation program for reliable traders (including authorized transit traders); (ii) capacity building on business outreach Business perception survey (BPS), to be conducted by April

11 C-R-PATA 8748 (Subproject 2 (SP2)): Support for Implementing the Action Plan for Transport and Trade Facilitation (TTF) in the GMS Expected outcome: (i) Focus on selected corridors, faster, easier, cheaper and more inclusive cross-border transport and trade; and (ii) improved coordination between national, subregional, regional and multilateral commitments and activities, with particular focus on customs transit To be achieved through 3 core components: i. Strengthening transit operations; ii. Expanding transport rights and traffic routes iii. Developing subregional trade logistics system 11

12 C-R-PATA 8748 (Subproject 2 (SP2)): Support for Implementing the Action Plan for Transport and Trade Facilitation (TTF) in the GMS Planned activities: Strengthening transit operations: (i) Workplan on gap assessment (hard and soft) and other activities; (ii) CBTA realignment identifying provisions that require revisions; (iii) Coordinated RM (incl. ATT) coordination with TA 8707; (iv) Second CBM (SSI) Review of first SSI, business case review of other potential site 3 sites nominated Expanding transport Rights and Traffic Routes: (i) mapping unravelling noodle bowl common template defined; (ii) Traffic rights extension a number of bilateral transports and one trilateral transport agreements in the pipeline; (iii) Road usage charge scheme for Lao PDR designed Developing subregional trade logistics System (support for private sector) : measures to upgrade the road haulage industry. FY 2015 mainly consultations with private sector related to other activities above. 12

13 Development Partners Coordination Enhance coordination among development partners committed to TTF in the GMS, while supporting CLMV to reap full benefits from AEC. First Meeting in April 2014 Produced GMS TTF Partnership Program encourage greater coordination and cooperation among DPs on TTF efforts in the GMS avoid unnecessary overlaps or duplication of DP assistance. Encourage collaboration where needed ESCAP is an active participant 2 nd Meeting held on March 2015, Bangkok. 13

14 Challenges and Opportunities Main challenge: Trade facilitation is a complex and broad issue involving regulatory, business processes and human resources Alignment with regional, subregional and international framework/agreements (reducing noodle bowls ) Implementation of regulatory reform Quantitative data, ownership on sustainable monitoring mechanism Recruitment of high-quality consultant/experts Opportunities: Momentum is there Endorsement of WTO TFA (November 2014) ASEAN Economic Community 2015 GMS Leaders call for strengthening Software connectivity ASEAN plus 1 FTAs and on-going Regional Comprehensive Economic Partnership (RCEP) include Trade Facilitation issues DP Coordination meetings and TTF Partnership Program 14

15 THANK YOU 15

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