Talking Points for USAID World Customs Organization Trade Facilitation Conference

Transcription

1 1 Talking Points for USAID World Customs Organization Trade Facilitation Conference Charge d Affaires Virginia Palmer Monday, September 10, 2012 Johannesburg, South Africa I am pleased to be here with colleagues from the World Customs Organization, Government Officials from around the region and beyond, public and private sector partners, and distinguished Minister of the South African Department of Trade and Industry, Rob Davies. Minister Davies, we hope you will champion some of the trade facilitation strategies discussed at this conference. (other distinguished guests acknowledged) Ambassador Gips wanted to be here today, but was called away to Washington on short notice. This topic is one that remains very important to him. He is a huge advocate for measures that will help to improve the business-enabling environment and which will benefit local, regional, and international firms alike. In the recently published Strategy for for Sub-Saharan Africa, President Obama made support for economic growth, trade and investment one of the highest priorities for the U.S. government.

2 2 We believe that Africa is poised to play an ever-expanding role in the global economy. That is why I am pleased to help kick off this conference which will present valuable new tools and experiences for promoting an enabling environment for trade and investment. What are the barriers to achieving Africa s aspirations for economic growth, jobs, and investment? How can we improve the efficiency of trade across the Southern Africa region? The number one constraint is the high cost of trading across borders. According to the World Bank s annual Doing Business Survey, out of 183 countries world-wide, Southern African countries perform poorly in the Trading Across Borders Index with scores ranging between 136 and 164, that is in the bottom quarter of countries around the world. This problem is particularly acute in the region s land-locked countries. For instance, more than 50% of Malawi s export prices are logistics costs. Compared to other regions, where these costs are typically only 8%, this factor alone reduces the region s competitiveness in the global marketplace.

3 3 The negative impact of these costs on economic growth, jobs, and poverty reduction has attracted the attention of the highest political and corporate offices in many Southern African countries. The challenge is to address trade constraints by selecting and implementing trade facilitation tools that reduce the costs of trading across borders. I am pleased that USAID s Southern Africa Trade Hub and the World Customs Organization have brought together presenters who will share international best practices and programs that are being used with positive results by countries around the globe, including some of your African neighbors. Among the tools you will hear about today are several that are being supported by USAID, such as National Single Window (NSW), a facility that allows parties involved in trade and transport to provide all the necessary documentation through a single entry point, fulfilling all import, export and transit-related regulatory requirements. This tool can dramatically improve competitiveness with shorter import and export clearance times and increase government revenues. Some African countries are already benefiting from this powerful tool.

4 4 Ghana was the first country in Sub-Saharan Africa to develop and launch a National Single Window. We are pleased Ghanaian officials are here to share their experience. Mozambique launched its National Single Window in December last year. MCNET [Em-See-NET], the Single Window operator, is generously sharing its experiences with other Southern African countries. Botswana, Namibia, and Malawi are in the process of obtaining formal government approval for the development of National Single Windows. Another important tool is Customs Connectivity systems that electronically connect Customs Management across borders. With support from the United States Government, Botswana and Namibia will launch a state-of-the art cloud-based Customs Connectivity System at their borders. This pilot allows traders to enter declaration data into the customs management system a single time at one border, cutting data entry and border dwell time in half. You will hear more about this pilot project during the presentations.

5 5 Other countries in the SACU and SADC regions are monitoring this pilot with a view to implementing customs connectivity solutions at borders across the region. A third tool you will hear about is Coordinated Border Management, which aims to improve border management efficiency. USAID s Southern Africa Trade Hub has undertaken border operations assessments and established Joint Border Committees with Action Plans to improve efficiency at the borders in Zambia and Malawi. Two border posts in Zambia recently launched joint inspections, which will significantly reduce the time taken to clear goods at the border. Again, you will hear more about Coordinated Border Management in the course of this conference. You will also hear about One-Stop Border Posts, which merge two stops into one by setting up joint customs and immigration procedures from two countries in the same location.

6 6 Increasing African regional integration can create larger markets, improve economies of scale, and reduce transaction costs for local, regional, and global trade. The U.S. Government is pleased to partner with the World Customs Organization to promote efficiency and reduce the cost of doing business in Southern Africa by adopting and implementing these trade facilitation tools. Best wishes for a successful meeting with lots of opportunities to discuss lessons learned on the importance of trade facilitation tools. Thank you.

7 7 Drafter: RGurley (USAID) Clearances: EPacific (REGO) RZurba (DOC) JHillmeyer (IO) DCormier (EXEC)