CEFTA Trade Facilitation Agenda

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1 CEFTA Trade Facilitation Agenda Market Access, Additional Protocol 5, Transparency Umut Ergezer Acting Director TFA Training for CEFTA Parties Geneva, 14 March 2016

2 INTRODUCTION

3 POSITIONING OF CEFTA WTO Trade Facilitation Agreement EU Acquis

4 POSITIONING OF CEFTA PARTIES EC (9) 1973 EC (10) (1981) EC (12) (1986) EC (15) (1995) EU (25) (2004) EU (27) (2007) EU (28) (2013) Europe Norway (1973) Iceland (1973) Switzerland (1973) Albania (2009) Macedonia (2004) Bosnia and Herzegovina (2008) Montenegro (2010) Serbia (2010) Ukraine (2014) Georgia (2014) Moldova (2014) Mediterranean Syria (1977) Palestinian Authority (1997) Tunisia (1998) Morocco (2000) Israel (2000) Jordan (2002) EU Acquis Lebanon (2003) Egypt (2004) Algeria (2005)

5 POSITIONING OF CEFTA PARTIES EC (9) 1973 EC (10) (1981) EC (12) (1986) EC (15) (1995) EU (25) (2004) EU (27) (2007) EU (28) (2013) Other EU Acquis Mexico (2000) South Africa (2000) Chile (2003) CARIFORUM States (2008) Madagascar, Mauritius, Seychelles, and Zimbabwe (2009) Cameroon (2009) South Korea (2010) Papua New Guinea and Fiji (2011) Iraq (2012) Columbia (2012) Peru (2012) Central America (2012) Ecuador (2015)

6 POSITIONING OF CEFTA PARTIES As a country? (Bi lateral FTAs with EU, EFTA, Turkey, Russia etc) As a country in the Region? ( PEM Convention, SAP + cumulation, Western Balkans cumulation diagonal cumulation / prohibition of duty drawback) As a Region? (CEFTA, full cumulation and duty drawback in the regional trade) EU Acquis

7 HOW TO DISTINGUISH CEFTA FROM OTHERS?

8 Current Context in CEFTA Trade in industrial and agricultural goods is liberalised (no tariff no quota) Alignment to the EU acquis is in progress with variable levels no action in CEFTA to contradict with the acquis All signed FTAs with the EU, and TR and with the EFTA states (except Moldova and Kosovo*) Overall commitment to respect WTO rule book in the implementation of CEFTA independent from the status of membership to WTO *This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo declaration of independence

9 Highlights of CEFTA Trade

10 EVOLUTION OF CEFTA PRIORITIES

11 MAIN PILLARS of CEFTA TRADE FACILITATION AGENDA and THEIR EVOLUTION IN CEFTA PRIORITIES WTO Trade Facilitation Agreement EU Acquis

12 UPDATE ON CEFTA STRUCTURES

13 CEFTA Structures

14 CEFTA TRADE FACILITATION AGENDA

15 Overall Policy Context of CEFTA Priorities Economic Growth Promote Trade and Investment Interconnectivity Trade Facilitation Liberalisation of Trade in Services Capacity Building Transparency

16 General Principles of Trade Facilitation in CEFTA Built upon the EU Acquis (Acquis +) Private Sector Oriented Specific and Result Oriented No Region Specific Standards Public private sector dialogue is to be strengthened Product Specific Measures All actions are to be in line with the Acquis Private Sector is to play advisory role Most Trade Distortive Barriers Additional legal instruments are to be created to utilise the Acquis for economic interest of the Region Attention of private sector to play a role of watchdog to the implementation of CEFTA Facilitate Access to Markets

17 Regional Actions in CEFTA always aim to create regional legal instruments Harmonisation Identifying and Eliminating NTBs (in all clearance stages) Simplification Additional Protocol on Trade Facilitation (pre clearance and clearance) CEFTA Trade Facilitation Standardisation Elimination of overlapping and redundant documentary requirements (pre clearance)

18 UPDATE ON NEGOTIATIONS OF ADDITIONAL PROTOCOL 5

19 Interaction of AP5 CEFTA with other Agreements and Processes Berlin Process WTO TFA Additional Protocol 5 SEE 2020 WTO Trade Facilitation Agreement CEFTA Agreement EU Acquis EU Acquis

20 Structure of AP 5 Securing implementation by creating direct link to CEFTA dispute settlement CEFTA specific obligations for the electronic exchange of information including all agencies involved in the clearance of goods WTO Trade Facilitation Agreement EU bilateral agreements with EFTA States for trade facilitation and mutual recognition of AEOs WTO TFA + EU Acquis WTO TFA (on the basis of self assessments of CEFTA Parties)

21 Update on the negotiations of CEFTA Additional Protocol 5on Trade Facilitation (1) When What Remarks 21 November 2014 Adoption of Ministerial Conclusions to launch negotiations on the Framework Agreement (Additional Protocol 5) January 2015 to May 2015 Technical assistance financed by the CPF to support the negotiations IT Consultancy for technical annexe of electronic exchange of data Workshop with the EU and WCO 27 May st Round of Negotiations Conclusions on the modus operandi 1 st draft of Additional Protocol and Technical Annexe on Electronic Exchange of Information 26 June 2015 Circulation of follow up documents of the 1 st Round

22 Update on the negotiations of CEFTA Additional Protocol 5 on Trade Facilitation (2) When What Remarks June to September 2015 Appointing Chief Negotiators and Deputies All CEFTA Parties appointed their Chief Negotiator 01 October 2015 Coordination meeting of Chief Negotiator 2 nd draft text of AP 5 Planning the upcoming rounds SEED + 13 November 2015 Invitation to the 2 nd Round of negotiations 3 rd draft of the Additional Protocol Draft Action Plan Methodology to compile documentary requirements January nd Round of Negotiations 3 rd draft of the Additional Protocol (All text of AP 5 36 Articlesreviewed) (based on WTO TFA SA, EU) Agreed on the Action Plan March June 3 rd and 4 th Rounds of negotiations 4 th draft of AP 5 (WTO TFA+ and EU +) To conclude negotiations To conclude the technical annexe on electronic exchange of data

23 Challenges EU Acquis EU Accession Process how to benefit / utilise the EU acquis? EU acquis economic growth competitiveness trade facilitation? High level commitment to mid level management Who wants trade facilitation? Who want to facilitate trade? (Berlin Process, SEE 2020) Public private sector dialogue? Capacity of private sector representatives How to reflect policy recommendations of private sector? How bottom up should be? Coordination? Regional ( between regional organisations RCC CEFTA SEETO SEECEL etc) Regional to national (SEE 2020 and ERPs) Intra national (Inter ministry and intra ministry)

24 THANK YOU.

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