SASEC Trade Facilitation Strategic Framework

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1 SASEC Trade Facilitation Strategic Framework Aileen Pangilinan Programs Officer Regional Cooperation and Operations Coordination Division South Asia Department Asian Development Bank Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

2 Why? Key Messages An integrated and prosperous South Asia How? Regional cooperation through SASEC Implement the SASEC TF Framework Strengthen Customs cooperation 2

3 21 st Century South Asia is the Least Integrated Region in the World Intra-regional Trade Share (%) ASEAN+3 South Asia Central and West Asia The Pacific Islands 100 hours for trucks to cross between Petrapole & Benapole 200 signatures in Nepal to trade goods with India Source: ADB ARIC Trade and Integration database ( raw data from IMF DOTS. 3

4 Trade Facilitation Indicators Source: World Bank,

5 2012 Intra and InterRegional Trade in Asia (billion) $92 PRC $325 $1147 $1047 SAARC $41 $87 $93 $169 $168 East Asia $2,830 $904 $400 Source: ADB Staff estimates and ARIC Trade Integration Database $253 ASEAN $611 $972 N.B. The data inside boxes is intraregional trade of the region; data outside of the boxes refer to inter regional trade. 5

6 Centrality of SASEC in The Garland of an Integrated Asia SASEC Asia is increasingly integrated economically stretching from the shores of the Black Sea in the West to the Western shores of the Pacific in the East and stretching from the Maldives and South Pacific to PRC and Central Asia in the North ASEAN Association of Southeast Asian Nations BIMP-EAGA Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area BIMSTEC Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation CAREC Central Asia Regional Economic Cooperation GMS Greater Mekong Subregion IMT-GT Indonesia Malaysia Thailand Growth Triangle PIF Pacific Islands Forum SAARC South Asian Association for Regional Cooperation Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. 6

7 ADB s Strategy 2020 & RCI By 2020, at least 30% of operations are in regional cooperation and integration Inclusive Growth Environmentally Sustainable Growth Regional Integration Private Sector Development MAIN DRIVERS IN STRATEGY 2020 Knowledge Partnerships Good Governance CORE AREAS IN STRATEGY 2020 Infrastructure Environment Regional Cooperation Education and Integration Financial Sector Development FOUR PILLARS IN REGIONAL COOPERATION AND INTEGRATION STRATEGY Regional/subregional Economic Cooperation Programs Monetary and Financial Cooperation and Integration Trade and Investment Cooperation and Integration Cooperation in Regional Public Goods 7

8 Regional Cooperation in Practice in South Asia Afghanistan Pakistan Maldives India Bhutan Sri Lanka Nepal SASEC (2001) Bangladesh Myanmar Thailand SAARC (1985) BIMSTEC (1997) 8

9 South Asia Subregional Economic Cooperation (SASEC) Members: BAN, BHU, IND, NEP; MLD, SRI - new Institution-light; projects-heavy Almost US$5 billion invested since 2001 Focus on transport, trade facilitation, energy Supports SAARC and BIMSTEC 9

10 Key SASEC Transport and Trade Facilitation Projects

11 Key SASEC Transport Projects India Road Connectivity Sector Project, $500m Bhutan Road Connectivity Project, $57m Bangladesh Road Connectivity Project Nepal Road Connectivity Project 11

12 Key SASEC Trade Facilitation Projects/ Activities SASEC Trade Facilitation Program Loans/ Grants Capacity Building and Discussion Platform SASEC Trade Facilitation Strategic Framework 12

13 SASEC TF Program Loans/Grants BAN ($21M); BHU ($11.67M); NEP ($15M) Tranche release is triggered by specific policy actions First tranche fully disbursed: Bangladesh: $10.7M loan in Q2/2013 Bhutan: $6.3M loan and grant in Q1/2013 Nepal: $8M grant in Q2/2013 Milestones achieved: Important steps taken toward accession to the Revised Kyoto Convention Planning finalized for automation of trade facilitation business procedures National Trade Facilitation Working Committees being established

14 Capacity Building and Discussion Platform Training to support customs reforms Knowledge sharing on key TF issues SASEC Customs Subgroup established agreed on work plan serves as platform for knowledge sharing and training advocacy for customs reform and modernization 14

15 SASEC Trade Facilitation Framework Strategic Thrusts Components Goals Mission Increased trade, including intra-regional trade, of SASEC Countries More efficient, transparent, secure and service-oriented trade in SASEC Countries Customs Simplify & expedite border formalities, increase ICT applications, develop NSWs Standards Identify SPSsensitive products, Strengthen National Conformity Assessment Boards Border Facilities Strengthen cross-border facilities Transport Facilitation Develop & pilot transport facilitation arrangements Enhance cooperation and coordination mechanisms 15

16 Implementing the TFSF Guiding principles Country owned Pragmatic and results oriented Flexible and responsive Open cooperation with neighbors Involves private sector and development partners Two-track process South-South cooperation 16

17 SASEC Customs Subgroup WP Strategic thrusts Simplifying and expediting border formalities Increasing the application of ICT Developing national single windows Composition 7 subregional projects 20 national projects in all 3 strategic thrusts 6 subregional training areas 17

18 Subregional Projects in the WP (1) Sharing of experience on risk management and SAFE application Exchange of documents at major BCPs (taking inspiration from the SAARC Agreement on Mutual Administrative Assistance on Customs Matters) Assessment of the readiness of regulatory framework and infrastructure facilities in SASEC countries for containerized movement of cargo through land borders

19 Subregional Projects in the WP (2) Institutionalize regular border meetings between/among the Customs authorities at major border crossing points Conduct of the SASEC Trade and Transport Facilitation Monitoring Mechanism Use of ICT in processing of the transit cargo for enhanced efficiency Conduct of feasibility study on electronic exchange of trade-related information

20 For more information: Visit or 20

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