ITFC/IDB Group Efforts in facilitating intra-oic trade & trade cooperation

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1 I s l a m i c D e v e l o p m e n t B a n k Ankara, Turkey, March 09, th Meeting of the COMCEC Trade Working Group Meeting Single Window Systems in the OIC Member States for Facilitating Trade ITFC/IDB Group Efforts in facilitating intra-oic trade & trade cooperation Ayhan Karaca, Manager, Asia & CIS Office Trade & Business Development Department (T&BDD) International Islamic Trade Finance Corporation (ITFC) The Islamic Development Bank Group

2 Outline 1. Brief about IDB Group and Group Strategic Objectives 2. IDBG Strategic Objectives: Enhancing Regional Economic Cooperation & Integration 3. IDBG efforts in facilitating intra-oic trade & trade cooperation 4. WAY FORWARD I s l a m i c D e v e l o p m e n t B a n k 2 2

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4 TRADE FINANCE AND TRADE DEVELOPMENT WINDOW OF IDBG Established in January, 2008 with the objective of encouraging more intra-trade among OIC Member Countries (MCs) ITFC helps businesses in member countries gain better access to trade finance, which prompt more production and trade in and among MCs. ITFC manages Trade Cooperation and Promotion Program- TCPP - providing Trade Related Technical Assistance (TRTA) to promote trade and trade cooperation among MCs and with the rest of the World.

5 IDB GROUP PIONEER IN SUPPORTING TRADE LED ECONOMIC GROWTH Develop Key Economic Infrastructure Provide trade financing solutions Build capacity in member countries Support Private Sector Investments Enhance trade through export credit US$ 80 billion group trade financing since inception (50% of total financing) Over US$ 40 billion development financing of traderelated infrastructure: roads, ports, border posts, construction of dams, etc. Over US$ 30 billion business covered through export credit and reinsurance of trade operations and private sector investments by ICIEC Trade related technical assistance (TRTA) for institutional capacity development Support trade promotion and cooperation among MCs

6 CHALLENGES & REMEDIES FOR ENHANCED ECONOMIC COOPERATIONS I s l a m i c D e v e l o p m e n t B a n k 6 Main sources of trade costs for merchandise trade Type of actions reducing trade costs Intra- OIC Trade %18

7 10 YS: Economic Cooperation Pillar Performance Indicators Vision Integrated/prosperous OIC Region: Free movement of goods, services, capital, people & Info. Increase the intra-oic Trade Objectives Increase the Share of OIC in global FDI inflow Regional connectivity (Transport, Energy, and Communication) Reduction of time/cost of trade (in selected Trade/Transport Corridors) RCI Strategy and 4 Sub-Regional Programs (SSA, CWA, SSEA, and MENA) Inclusion of RCI related Pillar all future MCPSs IDB project approvals dedicated to RCI: $ 7 b Trade finance dedicated to intra-oic: $ 54 b Increasing Intra OIC Trade and Invest. Insured to $ 25 b. Financial facility dedicated to RCI: $2.5 b

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9 EXAMPLES OF TRADE RELATED TECHNICAL ASSISTANCE EXTENDED BY ITFC/IDB Study on Road Transport facilitation and implementation of TIR in Arab States (with AULT and IRU) Seminar on TF among Arab countries and their Integration into the MTS OIC Workshop/EGM on Roles of Transport Corridors in Trade and Tourism Workshop On the impact of Economic Partnership Agreements on Regional Integration in Africa OIC Regional Workshop on Trade Facilitation & Single Window for Enhanced Economic Cooperation The Regional Review Seminar on Reducing Trade Cost for Inclusive Sustainable Growth FRAGMENTD PEACEMEAL APPROACH

10 EXAMPLES OF TRADE RELATED TECHNICAL ASSISTANCE EXTENDED BY ITFC/IDB Arabic Translation of Trade Facilitation Implementation Guide (TFIG) & Training on the TF Measures Updating Euro-Asian Transport Links (EATL GIS Maps) ( for 12 IDB MCs) TA Grant to ECO for the implementation of Transit Transport Framework Agreement Study & Seminar on identifications of NTMs in the Arab Region The Regional Review Seminar on Reducing Trade Cost for Inclusive Sustainable Growth Study on the OIC Transport Corridors FRAGMENTD PIECEMEAL APPROACH

11 Regional & Global Integration Enhanced Competitiveness Strengthened Business Environment Improved Domestic & FD Investment increased BUILDING BLOCS FOR ENHANCED REGIONAL ECONOMIC COOPERATION Growth & Employment Collaborative Actions Collaborative Funding Physical Investment for TTF Holistic TTF Interventions Objective & Mandate Assist MCs to design and implement their National TTF Program Assist MCs to identify (and eliminate where possible) regulatory and procedural obstacles to trade Assist MCs to accede to relevant TTF agreements and to simplify and harmonize national trade and transport procedures Promote and support knowledge sharing and cooperation across MCs What we want What we need INTEGRATED HOLISTIC APPROACH

12 Integrated Regional TTF Program Country-Led Programs 1. Establishment of NTTFCs and Formulation of NTTF Programs 2. Capacity Development Support for the implementation of National TTF Programs 3. Design and implementation National Quality Infrastructure Program 4. Harmonization of standardization, trade and customs rules, regulation with international practices 5. Establishment of Trade Information/Market Access website 6. Establishment/Enhancement of Electronic Single Window Application Regional Policy Dialogue 1. Establishment of interagency intergovernmental coordination platforms & technical groups for regional TTF Dialogue; removal of NTMs, harmonization of rules, regulations, standards, 2. Establishment of Regional Market Access website and/or Regional Electronic Single Window Application for enhanced information & data exchange 3. Joint/Coordinated Border Gate Management Initiatives Physical Investment for TTF Financing Facilities for Development of Productive Capacities 1. Completion of missing link in land and maritime transport 2. Construction of Logistical Centers 3. Customs Gate Modernization, ICT Upgrading for Enhanced Regional Integration 4. Trade Finance & Investment Finance for production & export Key For Competitiveness, Economic Growth & Employment Key for Regional and Global Integration Key for Physical & Electronic Connectivity With productive capacities along the corridors

13 Linking Single Window Implementation with WTO TFA Number of Customs documents/procedures reduced/harmonized Clearance procedures simplified & clearance times reduced AS RESULT TRADE/TRANSPORT COST REDUCED Articles Article 1 Article 2 Article 3 Article 4 Article 5 Article 6 Article 7 Article 8 Article 9 Article 10 Article 11 Article 12 Provisions Publication and availability of information Opportunity to comment, information before entry into force and consultation Advance Rulings Procedures for appeal or review Other measures to enhance impartiality, non-discrimination and transparency Disciplines on fees and charges imposed on or in connection with importation and exportation and penalties Release and Clearance of Goods Border Agency Cooperation Movement of goods intended for import under customs control Formalities connected with importation, exportations and transit Freedom of transit Customs Cooperation Indirect Linkage with SW Direct Linkage with SW

14 WAF FORWARD I. ESTABLISH NATIONAL TRADE & TRANSPORT FACILITATION COMMITTEEs II. III. PREPARE NATIONAL TRADE & TRANSPORT FACILITATION PROGRAMS As part, Plan for NATIONAL SINGLE WINDOW (WTO TFA) establish National Single Window Implementation Steering Committee If needed IV. USE INTEGRATED-HOLISTIC APPROACH IN PLANNING FOR FINANCING NON FINANCING INTERVENTIONS TO EXTEND INFRASTRUCTURE INVESTMENT FINANCING TO TURN TRANSPORT CORRIDORS TO ECONOMIC CORRIDORS V. CREATE SYNERGY AMONG DIFFERENT TRADE FACILITATION PROGRAMS By DESIGNING MULTI-YEAR & MULTI-STAKEHOLDER COOPERATION PROGRAM VI. POOL THE RESOURCES TOGETHER; FINANCIAL, TECHNICAL, COOPERATION NETWORK FOR SUSTAINABLE INTERVENTIONS VII. ESTABLISH INTERGOVERMENTAL COOPERATION PLATFORMS:

15 THANK YOU QUESTIONS, COMMENTS? AYHAN KARACA