Economic benefits of the TFA, implementation status, and private sector involvement

Economic benefits of the TFA, implementation status, and private sector involvement FIATA World Congress, 5 October, 2016 Ezequiel M. Guicovsky Lizarraga Senior Officer, Business Development Trade Facilitation and Policy for Business Division of Business and Institutional Support

Key topics addressed TFA impact on trade costs, trade flows and GDP growth TFA impact on export diversification TFA impact on revenue collection TFA impact on SMEs and consumers Status of implementation in the Americas Key measures Role of the Private sector in implementation

Most studies estimate that implementation of the TFA will lead to export and GDP growth 3 WTO ICC OECD Other 1 Export growth +750 to 1,000 billions $ 1,000 billions $ NA 1,000 to 1,500 billions $ GDP growth +0.35 to 0.55 % growth +960 billions $ +40 billions $ +0.50 % growth 1.Ferrantino and Tsigas (2013), Hufbauer and Schott (2013); World Trade Report 2015

Implementation of the TFA will reduce trade costs in all regions 4 Estimated reductions in ad valorem tariff equivalent trade costs due to TFA implementation (%) Africa LAC Commonwealth Middle East Asia Europe North America 17% 16% 14% 14% 14% 12% 11% Source: WTO Secretariat calculations, WTO World Trade Report 2015

And for countries at all development stages, with a premium for LDCs 5 Estimated reductions in ad valorem tariff equivalent trade costs due to FTA implementation by level of development (%) Least-developed 17% Other developing 15% G-20 developing 13% Developed 11%

6 for developed as well as developing countries in all possible scenarios Estimated increase in export under various TFA scenarios by level of development (billions $ increase) Least-developed 13% 13% 35% Other developing 11% 9% 20% G-20 developing Developed 12% 9% 7% 10% 10% 10% Full Liberal Conservative WTO Secretariat calculations, WTO World Trade Report 2015

Trade facilitation has a larger effect than removing tariffs 7 TF reforms could increase GDP up to 6x more than removing tariffs TF reforms could increase trade up to 40% more than removing tariffs Increase in GDP (trillion US$, %) Increase in trade (trillion US$, %) x6 +40% 2.6 1.5 x4 1.6 1 1.1 4.7% 2.6% 0.4 0.7% 14.5% 9.4% 10.1% Ambitious TF scenario Modest TF scenario Tariffs removal Ambitious TF scenario Modest TF scenario Tariffs removal Source: Enabling Trade Report 2013, World Economic Forum

Intra-Regional Trade, Total Exports, Exports to USA and Canada Reported figures from ITC Trade Map Case Latin-America Exports Intra- Regional Total Exports to the World Total Exports to USA Total Exports to Canada In 2013: 229 billion U$ 229,255,694,000 U$ In 2014: 202 billion U$ 202,338,115,000 U$ In 2013: 1117 billion U$ (1,117,096,784,000 U$) In 2014: 1082 billion U$ (1,082,508,912,000 U$) In 2013: 411,5 billion U$ (411,592,411,000 U$) In 2014: 457,4 billion U$ (457,459,988,000 U$) In 2013: 22.9 billion U$ (22,995,056,000 U$) In 2014: 22.8 billion U$ (22,899,783,000 U$)

9 Most studies estimate that implementation of the TFA will lead to export and GDP growth Impact by Measure Potential impact of the TFA according to the OECD Full implementation scenario: 14.1% of total costs for low income countries, 15.1% for lower middle income countries, and 12.9% for upper middle income countries. Limited scenario: LICs the potential trade cost reduction reaches 11.7% Examples my group of measures: - 2.4% for (h) enhancement of procedures, - 1.9% for (g) Automation, and - 1.2% for (c) Advance rulings

What are the costs of crossborder inefficiencies?

11 Trade Cost Quiz: how much does it cost to import and export a 20 foot container from Cost to Import ($) Cost to Export ($) 20 best performing countries? e.g. Singapore, Malaysia, Israel 20 lowest performing countries 1? e.g. Kenya, Brazil, Sudan 610$? 580$? x5 2,900$? 2,300$? x4 Cost to complete every official procedure in the country (excl. international transport) Exports: from packing the goods into the container at the warehouse to their departure from the port of exit (duties and taxes are excluded) Imports: from the vessel s arrival at the port of entry to the cargo s delivery at the warehouse (duties and taxes are excluded) 1. Excluding landlocked countries 2. Source: Doing Business 2015

Border inefficiencies translate into direct and indirect costs Direct costs Time and resources invested in managing export administrative activities Collect, produce, transmit and process required information and documents Increased operational costs Delays translate into extra transport, insurance or warehouse costs Indirect costs Increased working capital requirements Inventories immobilized are carried out by the exporter (except for EXW sales) Product deterioration Delays can lead to the degradation of products and render them unfit for sale Lost business opportunities Direct: joining a punctual regional trade Indirect: immobilized stock could have been sold to a local client

Cross-border procedures identified as key barriers to trade in the Caribbean Top barriers to trade Case in the Caribbean Burdensome import procedures Tariffs Corruption at the border Access to imported inputs at competitive prices Access to trade finance Identifying potential markets and buyers Cost / delays caused by international transportation Difficulties in meeting quality/quantity requirements Inappropriate production technology and skills Cost / delays caused by domestic transportation Domestic technical requirements and standards Crime and theft Technical requirements and standards abroad Inappropriate telecommunications infrastructure Rules of origin requirements abroad Source: WEF Enabling trade report, 2015

SME are particularly vulnerable to these additional costs! On a relative basis, SME dedicate more HR to export/import than large business! Intermediate financing required to cover working capital and inventory needs is very expensive! SMEs often export small volumes of low value-added product making it harder to reach the breakeven point

TFA promotes SMEs exports as they are particularly vulnerable to border inefficiencies! SMEs cannot afford quality logistics service providers who could speed up the border crossing process! SME are often classified as High risk operators by border agencies! and they rarely can join Authorized Economic Operator scheme

COUNTING THE TIME AND COST TO EXPORT Time to export Cost to export Sub-Saharan Africa Sub-Saharan Africa Latin America & Caribbean Middle East & North Africa Middle East & North Africa Latin America & Caribbean South Asia East Asia & Pacific East Asia & Pacific South Asia Europe & Central Asia Europe & Central Asia OECD high income OECD high income 0 50 100 150 200 250 Time to export: Border compliance (hours) Time to export: Documentary compliance (hours) 0 200 400 600 800 1000 Cost to export: Border compliance (USD) Cost to export: Documentary compliance (USD)

COUNTING THE COST TO IMPORT Time to import Cost to import Sub-Saharan Africa Sub-Saharan Africa Middle East & North Africa South Asia South Asia Middle East & North Africa Latin America & Caribbean Latin America & Caribbean East Asia & Pacific East Asia & Pacific Europe & Central Asia Europe & Central Asia OECD high income OECD high income 0 50 100 150 200 250 300 0 200 400 600 800 10001200 Time to import: Border compliance (hours) Time to import: Documentary compliance (hours) Cost to import: Border compliance (USD) Cost to import: Documentary compliance (USD)

Logistics costs are comparatively high in LAC and average 25% of product value 18 Logistics cost as % of total product value by regional groupings 32.0% 23.0% 26.0% 27.0% 18.0% 8.5% 9.0% 9.5% Singapore OECD USA Chile Colombia Brazil Argentina Peru 1. Source: UNECA 2004

TIME IS MONEY...IN PARTICULAR FOR GVCs Each day saved in shipping time is worth 1% of product value 1 Time delays reduce trade flows more significantly than trade tariffs Time-sensitive products are even more affected by delays Perishable: risks of product deterioration Just-in-time: high inventory costs and lost business opportunities Lack of predictability increases businesses operational costs E.g. need for larger inventory to mitigate supply chain risks 1 For manufactured products

Export diversification

Border inefficiencies limit business ability to integrate into global value chain 21 Economy is characterized by global value chains Production processes are being increasingly fragmented Ex. Barbie doll is produced in 5 different countries (Japan, Germany, Korea, USA and China) 30% of world trade is realized between subsidiaries of multinational companies 30% to 60% of G20 exports are intermediate products Inefficient cross-border procedures impact business competitiveness Companies need to import and export efficiently and at minimal cost to be able to integrate successfully in global value chain Every day saved in the shipment process translate into 0.8% advalorem cost reduction 1 Doing Business figures are a key decision criteria for MNC investments abroad Ex. fertilizer blending unit in Western Africa 1. For manufactured products

22 TFA implementation leads to diversification of exported products and export destinations Increases in # of products by destination (% change) Increases in # of destinations by product (% change) 36% Leastdeveloped Leastdeveloped 59% Other developing 20% Other developing 33% G-20 developing 12% G-20 developing 19% Developed 10% Developed 19% Source: WTO Secretariat calculations, WTO World Trade Report 2015

TRADE COSTS ARE A KEY DECISION CRITERION USED BY MNCs WHEN RELOCATING IN GVCs Private view on the main barriers in connecting firms to value chains (% answers) Transport costs & Customs procedures Licensing requirements Business environment Meeting standards Import duties Power supply Inadequate ICT networks Labour skills Access to finance Meeting deadlines Visa requirements Labour practices Ownership restrictions Security concerns 6% 6% 5% 5% 3% 3% 3% 9% 9% 25% 25% 28% 29% 36% 50% Source: OECD/WTO Questionnaire 2013

THE TFA WOULD NOT ADDRESS ALL YOUR PROBLEMS The TFA has not been concluded to do the following: 1 It will not improve the logistics infrastructure 2 It does not address commercial, financial and logistics procedures 3 It does not address too stringent trade regulations The TFA will reduce the time and cost for collecting, submitting and processing the information and documentation associated with cross-border transactions

SUMMARIZING: WHAT THE TFA EXPECTS TO ACHIEVE Impact on international trade 50% reduction in trade delays 15% reduction in trade costs 1 trillion US$ increase in merchandise exports per annum 15% increase in # of product by destination 20% increase in # of destination by product Impact on the business environment 500 billions US$ GDP growth Attracting more foreign direct investment Greater participation of SMEs in trade Reduction in trade-related corruption Better collection of government revenues

TFA could bring benefits to the poorest Trade costs are passed on to final consumers In LDCs households rely strongly on imports to satisfy their basic needs Trade cost reduction could directly impact their purchasing power Perishable goods are the main export product of the poorest By reducing cross-border delays, the TFA could allow rural communities to export their products more easily

Revenue collection

Implementation of the TFA increases government revenue in 3 ways 28 Trade Flows TFA reforms have a potential to increase trade flows and as a result, increase the tax base and revenue collection Compliance By simplifying procedures, TFA reforms encourage compliance, reduce informal trade and increase likelihood of duties being paid Fraud and corruption TFA reforms should improve revenue collection by better detection of customs fraud and corruption

Border inefficiencies lead to revenue losses Understatement of customs value Notably due to weak detection mechanisms and insufficient sanctions In Cambodia, comparison between ship manifest and declaration suggest that only 25% of the goods shipped are declared to customs Smuggling of goods Because of the complexity of formalities, it becomes financially rewarding to evade customs e.g. In Georgia in 2000, shadow imports accounted from 30% to 70% of domestic demand Diversion of revenues Into pockets of corrupt officials Studies suggest that inefficient border procedures lead to revenue losses = 5% of GDP 1 1. Moise and Sorescu 2013, OECD

30 Case studies Case Reforms Impact Improve customs legislation & practices Train customs officials Improve customs controls 2002-2003 revenues increased by 158% Reform and improvements in customs administration 2006-2010 revenues increased by 51% Improve automation systems and best practices in line with international standards 1990-1992 revenue increased by 105%

Intra-Regional Trade and opportunities in the TFA 31

Intra-Regional Trade Percentage of Intra-regional Trade per Region WESTERN EUROPE 63% ASIA NORTH AMERICA 50% 52% LATINAMERICA AFRICA 18% 20% EAC UEMOA MIDDLE EAST SADC 13% 11% 9% 8% CARICOM COMESA CEMAC 2% 5% 4% Sources: UN AfricaRenewal Online: http://www.un.org/africarenewal/magazine/august-2014/intra-africa-trade-going-beyond-political-commitments Regional Integration in ACP countries by ODI (Overseas Development Institute, UK) supported by European Commission: http://ec.europa.eu/development/icenter/repository/regional-integration-report-18-09- 2008_en.pdf Establishing CARICOM s Real Natural Trading Partner, CCMF-UWI: http://www.ccmf-uwi.org/files/publications/conference/2010/8_3-hosein_khadan-p.pdf WTO International Trade Statistics 2015

Who s guilty? Businesses according to governments The private sector is not thinking regional, it bask in the comfort of supplying domestic markets only, they fear competition from across the border and vested interests in particular stoke these fears Government representative Governments according to businesses Yes, we need to think regional, but what can we do, when we are unable to get our goods even to the domestic market due to procedural and infrastructure bottlenecks : going beyond borders in a non-starter Private sector representative

2 key success factors needed to go forward 34 1 Business logic must be at the heart of regional integration projects Regional integration projects are initiated at the political level but they require a buy in from the private sector to be achieved 2 Intra regional trade will intensify only if it makes sense economically for the businesses Coordination between governments and private sector must be strengthened Ensure adhesion of the businesses to the regional integration processes through awareness raising Common identification of barriers to trade and the required solutions to remedy it and boost commercial trade flows within the region

Regional approach to implementation will maximize the benefits of the TFA 35 Authority for rule making has often been transferred to the community level Areas where regional statutory framework and policies are directly affected: regional intervention should come before national legislation Example: UEMOA customs code There is a need for harmonization of practices and regulations Insufficiently coordinated national interventions can translate into disruptive and counterproductive practices ; e.g. internet publications, border agency coordination Economy of scales and sharing of resources can be achieved e.g. establishment of temperature controlled warehouses for perishable goods Only synchronized reforms allow businesses to fully benefit from the TFA Overall supply chain performance = performance of the weakest link

3 levels of regional intervention should be considered Regional Implementation RIO takes charge over the implementation of selected measure on behalf of its Member States (e.g. internet publication, enquiry points, border agency coordination) Regional Coordination RIO provides guidelines and ensures that implementation is synchronized over the region to ensure maximum benefits for the traders Regional harmonization RIO provides guidelines for the implementation of TFA measures but the country decide on an individual basis on the sequencing and timing of implementation

Implementation status 37

TFA status of implementation in the Americas Status of ratifications

TFA status of implementation in the Americas Status of Notification of measures Category A

Changing the mindset Facilitation vs. control Client vs. partners Ambitious implementation vs. Legal compliance Collaborative approach vs. Turf issues

CAUSES OF CROSS BORDER INEFFICIENCY These inefficiencies can be traced back to several key root causes: A control versus a facilitation mindset There are vested interests in upholding unnecessary procedures Lack of coordination between cross border agencies Formalities are outdated and have not been reviewed for many years Lack of automation and the use of ICT

PROCEDURAL OBSTACLES VS. REGULATORY OBSTACLES 75% of obstacles identified in cross border inefficiencies are linked to the procedural requirements of meeting the regulation rather than the stringency of the regulation itself The WTO defines Trade Facilitation as: ITC, NTM Studies

Going forward with implementation Prepare implementation Thoroughly structure TFA implementation roadmap Conduct national assessment on compliance status with TFA obligations Identify priority reforms and categorize TFA commitments Identify potential donors and implementation partners Institute public-private dialogue Involve private sector in finalizing the prioritization of the TFA commitment implementation Businesses are the main service users, and as such are best suited to point the main barriers to trade Ensure strong Inter-agency coordination Involve border regulatory agency for fine tuning the implementation of measures countries are partially compliant with As well as in the prioritization of category commitments National Trade Facilitation Committee could be the appropriate body to carry out these objectives

Private sector is at the core of border regulatory agencies missions Pays duties and taxes Fiscal Economical Invest, import and export Duty and Taxes Collection Control of flows of goods Private Sector Trade Facilitation Protect national interests Transport goods Security Fraud protection Actors and victims of frauds Businesses are the main users/clients of the border regulatory agencies and they should be involved in their reforms

Why is public-private dialogue important in the context of the trade policy making reforms What is public-private dialogue? Structured mechanisms aimed at facilitating the reform process by involving a balanced range of public and private sector actors Institutionalized tools to identify, filter, accelerate, implement, and measure policy reforms Trade policy reforms directly impact the business environment Why is it so important? Negotiators and policy makers are better informed on the business interests and needs Businesses are in the best position to identify reforms opportunities and implementation strategies When businesses are involved in the policy making they are more likely to comply with the new rules

Public-private dialogue must be leveraged at each stop of policy making process Structured dialogue Workable reforms Reforms that work Diagnostic Solution Design Implementation Monitoring and evaluation Engagement Definition Empowerment Consensus building Filtering Ongoing support Watchdog Resources Watchdog Feedback loop PPD contributes to all steps of reform process Source: International Finance Cooperation

3 provisions of the TFA specifically provide for strengthen PPD Art. 2.1 Opportunity to Comment and Information before Entry into Force Art. 2.2 Consultations Art. 23.2 National Committee on Trade Facilitation

Opportunity to comment, information before entry into force and consultations Measure description Provide traders and other interested parties 1 the opportunity and sufficient delay to comment changes to new or amended traderelated regulations 2 Art. 2.1 Publish or make publicly available new or amended traderelated laws or regulations (or information about it) as early as possible before entry into force Art. 2.2 Consult, on a regular basis, border agencies, traders and stakeholders within national territory 1 1. Potentially includes foreign traders / stakeholders in addition to domestic actors 2. Related to import, export or transit of goods

TFA key measures and its benefits 49

Trade Facilitation Principles Collaboration between public and private sectors Transparency Simplification Harmonization and Normalisation Modernisation 4 pillars of Trade Facilitation

MEASURES TO COMBAT CROSS BORDER INEFFICIENCY IN THE TFA Cross border co-operation Rewarding mechanisms Rapid release Review fees and formalities Pre-arrival processing More efficient inspections Modernization of systems

WHY IS TRANSPARENCY IMPORTANT? Lack of transparency leads to: Costs to collect the information Costs to mitigate formalities Lack of predictability Corrupt and discriminatory practices Multiple fees and charges Unfair and unpredictable decision making Mistrust in the trading system

HOW TRANSPARENCY WORKS? Transparency is the sunlight which is the best disinfectant Transparency is achieved in two ways: Transparency will contribute to: By providing equal and unfettered access to relevant information Certainty and predictability A healthy business environment By providing mechanisms that ensure fairness and nondiscrimination A reduction in corruption Fair application of rules

HOW DOES THE TFA ENSURE FAIRNESS AND NON- DISCRIMINATION? Fairness and non discrimination is provided for in the TFA in the following articles: Article 2 Prior publication and consultation Article 3 Advance rulings Article 4 Appeal and review procedures Article 5 Test Procedures Article 6 Fees, charges and penalties Article 10 Rejected goods

STILL NOT SATISFIED? YOU HAVE A RIGHT TO APPEAL CUSTOMS DECISIONS Governments shall provide businesses the right to an appeal or review of any customs decision The appeal or review shall be conducted by an official that is independent of the customs officer, or by an authority at a higher level. If the decision is unduly delayed the business has the right to appeal the next higher level of the administration or judicial authority. Decisions that can be appealed include: Tariff classification Assessment of administrative penalties Customs valuation Refusal or rejection of a claim for drawback or a refund TFA Article 4 Reference: Guide, page 77.

NO MORE DISPROPORTIONATELY HIGH, UNFAIR AND POORLY DOCUMENTED PENALTIES Rules customs should abide by Benefits for the traders Document the rational for the penalty and the rules for determining penalty amount You will not be subject to disproportionate or arbitrary customs penalty amounts Only penalize the person responsible for the breach Ensure that minor errors by businesses, such as clerical errors, do not result in excessive penalties Customs must give you a written explanation so that you can make an effective appeal or petition to reduce or cancel the penalty Consider a voluntary disclosure to be a mitigating factor Avoid scheme that awards customs officers with a percentage of penalties If you discover and disclose that you made errors, you will be able to avoid, or be subject to a reduced penalty TFA Article 6.3 Reference: Guide, page 84

ARE YOU GIVEN AN IDEA OF THE AVERAGE RELEASE TIME? THIS INFORMATION WILL BE PUBLISHED Governments are encourage to measure and publish periodically, and in a consistent manner, the average release time of goods Covers all border crossing requirements (i.e entire period between the arrival of the goods and their departure from the border crossing point) Average could be at a particular border entry point and/or a national average WCO - TRS is one of the tool that may be used to compute average release times Enhanced predictability Better planning Improved management of operations TFA Article 6.3 Reference: Guide, page 126.

FOCUSING CONTROLS WHERE AND WHEN THEY MATTER: RISK MANAGEMENT AND PCA Risk management Post clearance audit Agencies must concentrate their resources on high risk consignment and expedite release of low risk consignments Border agencies should shift part of their control away from the border Controls should be decided on objective, nondiscriminatory and non-arbitrary criteria such as: HS code Goods nature Country of origin Country from which the goods are shipped Value of the goods Compliance record of traders Type of means of transport Agencies would very accuracy and authenticity of declarations through the examination of the relevant books, records, business systems and commercial data held by the trader AFTER the release of the consignment TFA Articles 7.4 and 7.5 Reference: Guide, page 125

RISK MANAGEMENT CASE STUDIES ASYCUDA: Differentiated customs procedures based on risk Risk Management benefits in New Zealand 1 Green channel Automatic release for low risk consignment Fewer inspections Less than 5% of import shipments are subject to checks 2 Yellow channel Documentary control for medium risk shipments Faster release time 99% of compliant transactions are processed within 30 minutes 3 Red channel Documentary controls coupled with physical inspection Enhanced customs efficiency Increase in # of transactions (from 1M/y to 4M/y between 2000-2011) was managed without significant cost increase

Playing your part, the private sector role

GOVERNMENTS HAVE LEGITIMATE POLICY OBJECTIVES TO IMPLEMENT BORDER CONTROLS Revenue collection Prevent smuggling and entry of banned products Answer new demands for protection from society In developing countries duties and taxes can account up to 50% of governmen t revenues The increasing security threats (e.g. terrorism) and booming drug trafficking requires adequate response from border authorities Concern about public health, fauna and flora and the environment Protection from unfair international practices

AND BUSINESS HAVE LEGITIMATE REASONS TO REQUEST SIMPLE, CHEAP AND EFFICIENT BORDERS Business performance Input prices Business environment Inefficient borders lead to direct and indirect costs that jeopardize businesses financial and operational performance s Inefficient borders pushes imported inputs prices up and reduces business competitivenes s Inefficient borders drive out foreign direct investment that are critical to create a dynamic business environment

PUBLIC AND PRIVATE SECTOR HAVE A SHARED RESPONSIBILITY TO CREATE A FACILITATIVE TRADE ENVIRONMENT Public sector Private sector Personal vested interests Turf issues Avoidance Control mindset Individual over business community interests Evasion

SO WHO IS RESPONSIBLE FOR FACILITATION MINDSET? EVERYONE, INCLUDING YOU! All stakeholders must contribute to the shift from an inefficiency cycle to an efficiency cycle The inefficiency cycle The efficiency cycle Non facilitative mindset Overly complex and unfair rules Facilitative mindset Fairness & Transparency Greater inefficiency Evasion and personal vested interests Greater efficiency Less evasion and personal vested interests Excessive controls More reasonable controls

TWO AREAS OF FOCUS 1 What you can do at the company level 2 What you can do at the business community level

FIX THE ROOF WHILE THE SUN IS SHINING! The 4 step process to compliance Stay informed Participate in the consultative process Develop trusted relationships Getting your own systems in order and be compliant and honest

LEARN TO WORK WITH YOUR CUSTOMS BROKERS AND FREIGHT FORWARDERS 1 Understand the role of the agent, know what it is that they do 2 Be clear about liability, you are liable to the cross border agencies 3 Know how to instruct and do it formally (Forwarders Instruction) 4 Be aware of vested interests

SILOS ARE ONLY FOR GRAINS THE BUSINESS COMMUNITY SHOULD ACT TOGEHER There are four main types of actions to take as a business community Organize yourself as a voice Engage with cross border agencies Substantiate your position and recommendation with evidences: data and experiences Get involved in public-private dialogue platforms and know your rights

FIGHT FOR INCLUSIVE, COMPREHENSIVE, AND COORDINATED PPD FORUMS Inclusive Comprehensive Coordinated Ensure that all economic sectors and companies of all sizes are represented in the PPD process Be involved in the prioritization of reforms, policy formulation, implementation through PPP and monitoring To be effective and successful, businesses must coordinate amongst themselves

REMINDER: ARTICLE 2 OF THE TFA STRUCTURES PUBLIC-PRIVATE DIALOGUE Art. 2.2 Hold regular consultations between border agencies and traders Art. 2.1.a Provide traders opportunity and appropriate time to comment on new or amended trade laws and regulations Art 2.1.b Publish trade related laws and regulation as early as possible before their entry into force

NATIONAL TRADE FACILITATION COMMITTEES: HAVE YOUR SAY IN THE TF REFORM PROCESS Establishing a National Trade Facilitation Committee is a must! All border agencies and representative from the private sector must be represented to coordinate and facilitate trade facilitation reforms It is your right and your duty to be consulted and contribute Join the hand of the government to make the NTFC work

HOW CAN THE NATIONAL TRADE FACILITATION COMMITTEE CONTRIBUTE What is the mandate of the National Trade Facilitation Committee How can you contribute Identify bottlenecks to cross-border trade Have a seat at the table Formulate recommendation for regulatory and procedural reforms Ask that private sector be represented in the governance structure Monitor the effective implementation of trade facilitation reforms Participate in activities Contribute to financing

73 Presenting ITC s integrated TF program Improving SMEs Competitiveness for exports through implementing the Trade Facilitation Agreement Scheduling commitments under the WTO TFA Improving inter-agency coordination and SME involvement in PPD Enhancing transparency and access to information Improving efficiency of cross-border procedures Strengthening SMEs ability to cross borders Facilitating public-private dialogue in trade policy formulation Collaborating with leading public and private TF agencies Implementing TFA to promote and deepen regional integration In-house expertize and intellectual leadership

Focus: Comply with TFA short term requirements 74 Support TFA categorization process: Category A, B, or C and estimate indicative and definitive implementation dates Comply with TFA short term requirements Support domestic ratification process: for acceptance of protocol of amendment and notifications to the WTO Support evaluation of financial and technical assistance required for Category C provisions Assist in preparing bankable project plans to raise donor funds and mobilize technical assistance

75 Focus: Strengthen SMEs ability to cross borders Enhance SMEs ability to comply with existing trade procedures: training, networking with border officials Strengthen SMEs ability to cross borders Support informal cross-border traders to go formal: Building on WICBT project already on-going in Uganda and Burundi Enhance TSI capacities to support private sector in managing cross-border operations Connect SMEs with logistic providers: for integration of SMEs in global value chains

6 new publications on trade facilitation Enabling trade: catalyzing TFA implementation in Brazil In collaboration with WEF National Trade Facilitation Committees: Moving towards implementation In collaboration with UNCTAD and UNECE Enabling trade: increasing the potential of trade reforms In collaboration with WEF Global Survey on TF and Paperless Trade Implementation In collaboration with UN regional commissions SMEs and the WTO Trade Facilitation Agreement: a training manual In collaboration with ICC, UNCTAD and UNECE Paperless trade facilitation for Small and Medium-sized Enterprises Ongoing

77 Thank you! Ezequiel M. Guicovsky Lizarraga guicovsky@intracen.org