UNCTAD Trade Facilitation Strategy
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1 U Trade Facilitation Strategy Peter Faust Bangkok, Nov United Nations Conference on Trade and Development
2 Contents 1. Elements of a trade facilitation strategy 2. Elements of a work programme The example of «needs and priorities» subsequent to Art 27 of the Doha Ministerial Declaration and the July package
3 A vision of Trade Facilitation Trade Facilitation is a process towards better management of trade. It can provide an enabling environment for trade and transport by reducing the overall cost of international trade transactions through the alignment on internationally-agreed trade and transport instruments and commercial best practices
4 Basic considerations Trade Facilitation is pervasive. It covers institutional, regulatory & operational issues. It requires private and public involvement. It improves Government control efficiency. Sustainable facilitation capacity depends on: Information and Communications Technologies (ICTs); Linkages between regional trade routes/transport corridors and global transport services.
5 Implementation principles Rely on local knowledge rather than systematic international expertise; Build on regional trade & transport facilitation networks; Introduce ICT solutions along selected trade and transport corridors ; Use available ICT tools (e.g. ASYCUDA, ACIS).
6 Issues covered Institutional, legal and operational reforms. Institution building with private and public trade and transport communities. Trade routes and transport corridors in regional networks. Linkages between national/regional and global operators. Support to multilateral trade negotiations
7 Ongoing activities 1. Research and analysis. 2. Exchange of experiences & Consensus building. 3. Information systems development. 4. Technical assistance. 5. Training & Knowledge dissemination.
8 1. Research and analysis Improvement of the legal framework for transport and trade facilitation. Tools for assessing needs and priorities in TF. Support to transport and trade facilitation platforms. Trade and transport facilitation cluster development. Impact of security measures on developing countries trade.
9 2. Exchange of experiences and Consensus building Experts meetings: Trade Facilitation, November 2002 MT & logistics services, September 2003 Transit transport arrangements, November 2004 Intergovernmental meetings: Almaty Parallel Event on Trade Facilitation, August 2003 U XI Session on Trade and Transport Facilitation, June 2004
10 3. Information systems development ASYCUDA: installed in 84 countries. See website: ACIS: installed in 18 countries. See website:
11 4. Technical assistance Integrated country projects: AFG and PAK (in cooperation with the WB); ECO. IT-based management projects: ACIS; ASYCUDA. Inter-regional projects: Needs and priorities in trade facilitation; Transport and trade facilitation platforms; Sustainable T & TF capacity for LLDCs.
12 5. Training and Knowledge dissemination WTO-related workshops: Organized with WTO; UNIDO; EU, etc. Trade logistics events: ICT & transport (Rio, November 2003); Course on MT & Logistics. Longer-term training: U X Para.166 International Economic Agenda; Course on Logistics; Courses with WMU. Publications: Review of Maritime Transport 2003.
13 Need for Partnerships Partnerships can play an important role in the effective implementation of trade and transport facilitation measures. They contribute to increase developing countries participation in global trade. Multilateral platforms assist in achieving this goal: The UN-Trade Facilitation Cooperation Scheme; The Global Facilitation Partnership for Transportation and Trade (
14 Cooperative work With all UN Regional Commissions and other agencies such as: ITC, UNIDO, IMO, WB, IMF; With intergovernmental organizations such as WTO, WCO, OECD; With business sectors institutions such as ICC, FIATA, IAPH.
15 Trade Facilitation in the WTO Framework Agreement WTO member States agreed: to launch negotiations on trade facilitation, aiming at the establishment of an agreement to further expedite the movement, release and clearance of goods, including goods in transit by clarifying and improving relevant aspects of GATT Articles V, VIII & X. To ensure technical assistance and support for capacity building. Negotiations should aim at effective cooperation between Customs or any other appropriate authorities on TF and Customs compliance issues.
16 Existing WTO rules on trade facilitation GATT 1994: Article V Freedom of Transit Article VIII Fees and Formalities connected with Importation and Exportation Article X Publication and Administration of Trade Procedures
17 Modalities set out in Annex D S & D treatment Additional S&D treatment for LDCs Technical assistance and support for capacity building
18 Other provisions of Annex D Work on areas of particular interest to developing countries and LDCs: Identification of trade facilitation needs and priorities. Address concerns of developing and least developed countries related to cost implications of proposed measures.
19 Technical assistance and support for capacity building Recognized that TA & CB are vital for developing and least developed countries to fully participate in and benefit from negotiations Developed countries commit themselves to adequately ensure such support and assistance during the negotiations.
20 Technical assistance cont. Support and assistance also to help implement the commitments, in accordance with their nature & scope. Support for infrastructure development in certain cases. Linkage between provision of assistance and implementation requirement. Review of the effectiveness of the support and assistance provided and its ability to support the implementation of the results.
21 Scope for Agency cooperation In the identification of needs and priorities; In the establishment of a capacity to assess these needs and priorities, and analyze the cost implications of the negotiated commitments; In providing training/briefing to officials.
22 Needs and Priorities Trade facilitation has its own merits. It is often required and constitutes a win-win activity. Trade facilitation must be put into the context of the foreign commercial exchange of a given country - dependent on and complementary to the selected instruments of a national trade policy.
23 Needs & Priorities Assessment Trade context assessment: Review of current situation in a country; Analysis of local goods supply and distribution chains, transport corridors and trade logistics channels; Trading Channels obstacles identification. Assessment of obstacles and inefficiencies Quantification of their direct and indirect effects; Identification of responsible parties; Costs estimation of possible remedial actions and reforms;
24 TF programme formulation Plan and project formulation Design of institutional arrangements for remedial actions; Design of trade and transport facilitation programmes; Formulation of specific projects to be included in the trade and transport facilitation programmes as part of a national strategy.
25 Expected outcomes Trade context assessment Review of current situation - Analysis of goods supply and distribution chains, transport and trade channels. Obstacles identification Assessment of obstacles and effects; Identification of responsible parties; Cost estimation of remedial actions. Plan and project formulation Institutional arrangements; Design of trade and transport facilitation programmes; Projects formulation. Priorities established based upon national context. Needs according to obstacles found in achieving defined trade facilitation priorities. Projects formulated to cater for needs according to established priorities.
26 Technical Assistance and Capacity Building (TA & CB) Scope: Limited to the 3 Articles? Extended to a wider scope of TF? Time frame: Limited to the negotiations process? Extended to the implementation of TF programmes?
27 Effective Assistance requires: Integration & coordination of trade-related assistance (among donors and among implementing agencies). Broadest possible commitment from recipient Government institutions. Collective and professional support from the Business community. Creating institutional changes takes time.
28 TA & CB: Beyond negotiations? For an increased participation of most developing countries into global trade, TA & CB is an essential element; Should it be of short-term nature, aimed at enabling developing countries to better evaluate the implications of the negotiated rules on TF; or Should it be of longer-term nature, aimed at enhancing national capabilities to adopt and effectively implement TF measures?
29 Conclusion The scope of technical assistance and capacitybuilding in the area of trade facilitation should not be reduced to the WTO negotiations process. Trade facilitation is essentially about domestic capacity building Multilateral cooperative action, at national and regional levels, is required to assist developing countries in building the capacity to implement trade facilitation. 29
30 TF Contacts at U Mr. Peter Faust (peter.faust@unctad.org) Trade Logistics Branch ( ) Mr. Maxence Orthlieb (maxence.orthlieb@unctad.org) Trade Facilitation Section ( ) Mr. José Rubiato (jose.rubiato@unctad.org) Transport Section ( ) Ms. Mahin Faghfouri (mahindokht.faghfouri@unctad.org) Legal Section ( ) Mr. Carlos Cañamero (carlos.canamero@unctad.org) ACIS Programme ( ) Mr. Fabrice Millet (fabrice.millet@unctad.org) ASYCUDA Programme ( )
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