[email protected] geneva, may 2007 trade facilitation: global trends in trade logistics and...
TRANSCRIPT
Geneva, May 2007
Trade facilitation: Trade facilitation: Global trends in trade logistics and how Global trends in trade logistics and how they relate to trade facilitation measures they relate to trade facilitation measures and the WTO negotiations on Articles V, and the WTO negotiations on Articles V, VIII and X of GATTVIII and X of GATT
TRADE FACILITATION
Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures
Simplification Harmonisation
Alignment of national procedures, operations and documents with international conventions, standards and practices.
Standardisation
Process of developing internationally agreed formats for practices and procedures, documents and information.
TRADE FACILITATION
Standardisation
Process of developing internationally agreed formats for practices and procedures, documents and information.
International rules and standardsInternational rules and standards
• IMO• ISO• UN-CEFACT• WCO• WTO
UN Lay-out Key(UNECE Rec.#1)
TRADE FACILITATION
Harmonisation
Alignment of national procedures, operations and documents with international conventions, standards and practices.
TRADE FACILITATION
Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures
Simplification
More details: www.gfptt.org More details: www.gfptt.org
10 Global trends10 Global trends
1.1.Exports of manufactured goodsExports of manufactured goods• Today 80% of developing
countries’ exports are manufactured goods, up from only 20% two decades ago
2.2.Globalized productionGlobalized production• About 1/3 of global trade is
intra-company trade• Around 30% of trade is
trade in components and unfinished goods
3.3.Increased security concernsIncreased security concerns• Security measures along
the entire supply chain
4.4.New Geography of TradeNew Geography of Trade• Especially the share of South-South
trade has doubled since 1990
5.5. Regional integration Regional integration
• Increased regional and transit trade
… … intra-regional tradeintra-regional trade
[ESCAP, 2005, K Cullinane]
6.6.Within Logistics expenditureWithin Logistics expenditure…inventory
holding decreases, and Transport expenditure increases
Data for USA, via DOT
7.7.TechnologiesTechnologies• Containerization, shipping networks• Use of computers and Internet
8.8.Privatizations / concessionsPrivatizations / concessionsPorts, Shipping lines, Railways, Airlines,
Airports
8.8.Privatizations / concessionsPrivatizations / concessionsPrivate operations of container terminals
9.9.Tariff reductionsTariff reductions• For most developing countries’
exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in developed countries. Aver age
Ar gentina
Ur uguay
Par aguay
Br azil
Chile
Bolivia
Per u
Ecuador
Sur iname
Venezuela
Colombia
Tr inidad and Tobago
Bar bados
Gr enada
St Vincent and the Gr enadines
St Lucia
Dominica
Antigua and Bar buda
St Kitts and Nevis
Dominican Republic
Haiti
JamaicaBahamas
Panama
Costa Rica
Nicar aguaHondur as
El Salvador
Belize
Guatemala
Mexico
0%
2%
4%
6%
8%
10%
12%
14%
0% 2% 4% 6% 8% 10% 12% 14%
TARIFF/CUST
International freight
Import Customs duties USA
Source: Miccio/ Perez 2002
10.10.Negotiations on trade facilitation Negotiations on trade facilitation at the World Trade Organizationat the World Trade Organization
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Trade Facilitation MeasuresTrade Facilitation Measures
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
advance ruling, pre-arrival clearance
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
authorized traders
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Risk analysis, advance information
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Internet publication,Language of publication
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Transit regimes,Joint operations at borders
5. Regional
integration
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Separate release from clearance
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
7. Technologies
Automated payments,Electronic documents
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Customs to accept commercial information, information platforms
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Transport costs and trade facilitation more important than tariffs !
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
… a response to trends in international trade, transport, logistics and technologies !
Implications for DevelopmentImplications for Development
Trade and Transport Facilitation is not Trade and Transport Facilitation is not only good for trade but also has other only good for trade but also has other
positive side effectspositive side effects
The introduction of ICTs by Customs may encourage smaller companies to also connect to the internet.
Trade and Transport Facilitation is not Trade and Transport Facilitation is not only good for trade but also has other only good for trade but also has other
positive side effects (cont.)positive side effects (cont.)
Capacity building raises the country’s overall human capital.
Trade and Transport Facilitation is not Trade and Transport Facilitation is not only good for trade but also has other only good for trade but also has other
positive side effects (cont.)positive side effects (cont.)
A framework for bank guarantees for transit trade may also generally improve the financial system.
Trade and Transport Facilitation is not Trade and Transport Facilitation is not only good for trade but also has other only good for trade but also has other
positive side effects (cont.)positive side effects (cont.)
A single window experience for trade may help to introduce single windows elsewhere.
Trade and Transport Facilitation is not Trade and Transport Facilitation is not only good for trade but also has other only good for trade but also has other
positive side effects (cont.)positive side effects (cont.)
Reforms of legal regimes
that facilitate the use of
electronic documents may
also modernize other
business practices.
Trade and Transport Facilitation is not Trade and Transport Facilitation is not only good for trade but also has other only good for trade but also has other
positive side effects (cont.)positive side effects (cont.)
Mechanisms to consult
with stake holders may
be beneficial for other
policy decisions as well.
Trade and Transport Facilitation is not Trade and Transport Facilitation is not only good for trade but also has other only good for trade but also has other
positive side effects (cont.)positive side effects (cont.)
Increased transparency is good for good governance in general.
Trade and Transport Facilitation is not Trade and Transport Facilitation is not only good for trade but also has other only good for trade but also has other
positive side effects (cont.)positive side effects (cont.)
Are poor countries poor because of red tape?
OR
Is red tape the result of a lack of development?
ANSWER: It is both
More income to finance trade facilitation
-> Better trade facilitation-> More Trade-> More income to finance
trade facilitation
The “tipping point”: Start with The “tipping point”: Start with Trade and transport facilitationTrade and transport facilitation
Trade and transport facilitation is good
for trade and for development
Development is good for trade and for trade and transport
facilitation