International Trade and Trade Facilitation in Landlocked Developing Countries

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1 International Trade and Trade Facilitation in Landlocked Developing Countries Oliver Paddison Chief, Countries with Special Needs Section Macroeconomic Policy and Financing for Development Division UNESCAP Ministerial Meeting of Landlocked Developing Countries on Trade and Transport Astana, Kazakhstan, May

2 Trade Costs of Asia-Pacific Countries with Special Needs Trade costs of Asia-Pacific countries with special needs and large developed economies, Reducing trade costs is critical to harness the opportunities presented by regional and global value chains. Besides reduced tariffs further reductions in non-tariff sources of costs such as enabling infrastructure and regulatory framework is necessary. Sources: ESCAP-World Bank Trade Cost Database (accessed June 2017). Note: The trade costs shown are tariff equivalents, calculated as trade-weighted average trade costs of countries in each group with the three largest developed economies (Germany, Japan and the United States). LDCs: Least developed countries; LLDCs: Landlocked developingcountries; SIDS: Small island developingstates. 2

3 Trade Facilitation and Paperless Trade Implementation 3

4 Trade Facilitation and Paperless Trade Implementation 4

5 Trade Facilitation and Paperless Trade Implementation 5

6 Trade Facilitation Measures Implementation of different Asian-Pacific of trade facilitation measures, % 80% 60% 40% 20% 0% Transparency Formalities Institutional arrangement and cooperation Paperless trade Cross-border paperless trade Transit facilitation Trade facilitation and SMEs LLDCs LDCs SIDS Asia-Pacific Trade facilitation and agriculture trade Women and trade facilitation Source: ESCAP, based on UN Global Survey on Trade Facilitation and Paperless Trade Implementation

7 Trade Facilitation Measures Asian LLDCs implementation of WTO-TFA related measures (excluding transit measures), 2017 Art. 8: National legislative framework and institutional arrangement are Art. 2: Stakeholders' consultation on new draft regulations (prior to their Art. 1.2: Publication of existing import-export regulations on the internet Art. 7.4: Risk management Art. 4: Independent appeal mechanism Art. 7.1: Pre-arrival processing Art. 7.5: Post-clearance audit Art. 10.2: Acceptance of paper or electronic copies of supporting documents Art. 2.1: Advance publication/notification of new regulations before their Art. 7.2: E-Payment of Customs Duties and Fees Art. 23: National Trade Facilitation Committee Art. 7.3: Separation of Release from final determination of customs duties, Art. 3: Advance ruling (on tariff classification) Art. 10.4: Electronic Single Window System Art. 7.6: Establishment and publication of average release times Art. 7.8: Expedited shipments Art. 7.7: Trade facilitation measures for authorized operators 0% 20% 40% 60% 80% 100% Fully implemented Partially implemented Pilot stage of implementation Not implemented Source: ESCAP, based on UN Global Survey on Trade Facilitation and Paperless Trade Implementation 2017 Note: The data cover seven Asia-Pacific LLDCs, who are also WTO members: Afghanistan, Armenia, Kazakhstan, Kyrgyzstan, Lao PDR, Mongolia, Nepal. 7

8 Trade Facilitation Measures Progress of trade facilitation implementation by measure group, 2015 and 2017 Source: ESCAP, based on UN Global Survey on Trade Facilitation and Paperless Trade Implementation 2015 and

9 Trade Facilitation Measures Expected gains from WTO TFA implementation in Asia-Pacific (update) Trade cost reductions almost double if full implementation of binding + not binding measures (-10%) ICT applications in TF (i.e. paperless trade measures) have high trade cost reduction potential (additional 7%) 9

10 Trade Facilitation Measures Moving up the trade facilitation ladder towards seamless international supply chains (Paperless trade measures) Performance Area Frontier (full implementation) Asia-Pacific LLDCs LDCs SIDS Paperless trade Cross-border paperless trade Formalities 60 Institutional arrangement and cooperation Transparency Source: ESCAP, based on UN Global Survey on Trade Facilitation and Paperless Trade Implementation 2017 Note: the figure shows cumulative trade facilitation implementation scores of CAREC for five groups of trade facilitation measures included in the survey. Full implementation of all measures =

11 Key challenges for making further progress in Asia and the Pacific 11

12 THANK YOU Please visit twitter.com/unescap facebook.com/unescap youtube.com/unescap urces/trade-facilitation-andpaperless-tradeimplementation-asia-pacificcountries-special-needs

13 Asia-Pacific region proactive in implementing next-generation trade facilitation solutions UN treaty to promote cross-border paperless trade in Asia-Pacific adopted in 2016 Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific opened to 53 ESCAP Member States A new support tool for better digital implementation of: The WTO Trade Facilitation Agreement (TFA) Growing number of bilateral / subregional agreements 24 countries actively engaged in preparing implementation road map (already formally signed by Armenia, Bangladesh, Cambodia, China and Iran) Accession/ratification phase started 1 October 2017; Entry into force once 5 countries ratify/acceed

Note on Asia-Pacific Landlocked Developing Countries 1

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