ESCAP FA and WTO TFA with Korean case Seung Hyun Cha 24 th March 2017
Contents 1. Comparison 2. Complement 3. Case study - Korea
1 Comparison
1. Comparison Background ESCAP FA WTO TFA July 2011, ESCAP CTI discussed trade facilitation May 2012, ESCAP resolution 68/3 was adapted April 2014, Inter-governmental meeting on regional arrangement - Establishment of a steering group April 2015, 1 st Steering group meeting - Establishment of LWG & TWG 1996, 4 Working groups were set - Government procurement - Trade facilitation - Trade investment - Trade competition 2004, WTO issued WT/L/549 to begin working on trade facilitation - Clarify and improve GATT article Ⅴ, Ⅷ, Ⅹ and others 2013, Bali package signed 2017, WTO TFA take effect
1. Comparison Structure ESCAP FA WTO TFA Preamble Background, rationale Preamble Justification, scope, necessity, support of DCs Article 1 ~ 5 Precedence Scope, definitions, interpretation, general principles Section Ⅰ. (Art. 1 ~ 12) provisions for expediting movement Clarifies and improves GATT article Ⅴ, Ⅷ, Ⅹ with technical specifications Provisions for customs cooperation Article 6 ~ 16 Substantive clauses Actual measurements for cross-border paperless trade Section Ⅱ. (Art. 13 ~ 22) Special and differential treatment Special and differential treatments for DCs and LDCs Resolution of dispute Article 17 ~ 25 Standard provisions UN treaty Standard provisions Section Ⅲ. (Art. 23 ~ 24) Final provisions Establishment of a permanent committee on TF and others
1. Comparison Similarities / Differences Foundation Nature Areas Feature ESCAP FA Improve efficiency of the existing trade environment for the AP region - Multilateral agreement - Focuses of facilitation - Voluntary agreement(un) - Regional ICT specific - Creating a new platform - Cross-border paperless trade - AP regional level - Mainly on G2G & G2B - Mostly international - Provides supports to LDCs & LLDCs - Road map for implementation WTO TFA Fundamental pursue to facilitate trade since GATT - Multilateral agreement - Focuses on facilitation with limited technical definition - Voluntary agreement(wto) - General administration - Improving existing measures - Mainly GATT article Ⅴ, Ⅷ, Ⅹ - Global level - Mainly on G2B and some G2G - Mostly domestic - Differential treatments for DCs & LDCs - Post-Bali work program
2 Complement
2. Complement Concept ESCAP resolution 70/6 work of the interim steering group on cross-border paperless trade facilitation would not duplicate but complement the work being done in relation to the implementation of the WTO TFA ESCAP FA Trade facilitation WTO TFA Implementation of an ICT measures often requires improving conventional trade facilitation measures such as laws and regulations
2. Complement Improvements WTO TFA Article 7 Release and clearance of goods Article 8 Border agency cooperation Article 10 Formalities connected with im/exportation and transit Article 12 Customs cooperation Improvements from ESCAP FA - Exchange of manifest information before arrival can reduce clearance time - More effective risk management through wider range and timely availability of information - Electronic transmission of certificates from border agencies significantly reduces clearance time and eliminates hassles involved with paper documents - Standardizes and minimizes document requirements and no need to present original copies - International standards simplifies and improves business processes - Significantly reduces transit time - Data and document can easily be exchanged and works as a medium to exchange information between different customs - Encourages bilateral and multilateral cooperation
3 Case study - Korea
3. Case story Current status Current status Preparations Current works ESCAP FA The agreement awaiting for presidential approval - National level cross-border paperless trade plan has been in talks since 2000s but very broad - More specific plans have been drawn by customs and other trade related government departments - Need more departmental cooperation for realization - Government under evaluation of the details of FA - Proposals have been made to support enterprises WTO TFA Implementation upon entry into force (Category A) The provisions in the agreement have been met - The government is drawing support plans for the enterprises especially for the SMEs - A support plan for DCs includes technical support and capacity building
3. Case story Implementation Korea (TFA) Country C (TFA) ESCAP FA Country B (TFA) Country D (No TFA) ESCAP FA Is a tool to set a medium to facilitate trade by adapting paperless technique in the business process of trade concentrating on cross-border data and documents exchange WTO TFA Is a tool to reduce or remove trade barriers such as regulations and restrictions that are different from conventional trade barriers such as tariffs and quotas
3. Case story Korea s Single Window and trade system Korea customs (NSW) Customs abroad (NSW) Abroad Clearance Korean trade system Foreign trade system Customs Logistics Payments 2 AEO System 1 e-document Standard Management system Standard Information Clearance Information Paperless Trade system Risk Information Foreign Information ESCAP WCO FA DM & WTO 기반TFA 3 Expand a Single Window System 4 Common code Management System Supplier Chamber of Commerce Buyer Logistics Network Integrated economic border management - Concept introduced in the KCS 4 th generation single window system - Manages and controls documents, transmission of data, code standards and target countries - The concept can be introduced to the ESCAP FA for further development
3. Case story Success factors Political Will High government officials should provide support and show continuous interest Capacity building Adapters should increase capacity to utilize the agreements ESCAP, WTO and developed countries should provide support Direction Adapters should have clear idea of what to do with them ESCAP and WTO should provide clear directions Sustainability End result should provide benefits to the public Should be manageable and sustainable
Thank you Seung Hyun Cha sonatacha@unipass.or.kr