Ms. Maria Misovicova

Trade Facilitation Section/Trade Logistics Branch

Division on Technology and Logistics

maria.misovicova@unctad.org

Policy drivers for trade facilitation instruments:

UNCTAD’s perspective

15th UN/CEFACT Plenary Session Palais des Nations, Geneva

9-12 November 2009

2

Global trade projected to fall by 9% in 2009 (UNCTAD)

Tariffs are low due to trade liberalization under the WTO and “spaghetti bowl” of RTAs world-wide

Non-tariff and administrative trade barriers create greater barrier than tariffs

Trade transaction costs associated with import and export procedures amount to 7 to 10 % of the value of goods traded (OECD, 2009)

Trade facilitation driving trade-led recovery agenda

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Trade facilitation driving trade-led recovery agenda

smetimes.indiatrade.com Speech of the Commerce & Industry Minister on the announcement of trade facilitation measures.Following is the text of speech of Kamal Nath, Union Minister of Commerce & industry, on

the announcement of Trade Facility Measures, in New Delhi on Feb 26:"I am happy to be present with you this morning for certain announcements of trade

facilitation measures. Unlike the last four years, when the global economic mood was

upbeat, today we meet against the backdrop of a global financial crisis. For the first

time in more than a generation, two of the engines of global integration—trade and

capital flows—are simultaneously expected to shift into reverse. In an interconnected

globalized world, when all nations are being impacted, India too cannot escape unscathed.

However, I believe that India will suffer less and recover faster due to the nature of

our trade, the diversification of our trade basket, our trade facilitation measures and

the proactive steps taken by our Government. Backed by strong economic fundamentals, the

stimulus packages announced by the Government will stimulate demand, increase confidence,

uplift business sentiment and give a fresh impetus to India’s trade and growth story.

China, ASEAN to further promote trade facilitation

2009-10-20 21:10:05   Print

NANNING, Oct. 20 (Xinhua) -- China and the Association of Southeast Asian Nations

(ASEAN) vowed here Tuesday to boost trade facilitation to build closer economic ties

amid the lingering global economic crisis. Surin Pitsuwan, Secretary General of ASEAN,

urged customs of China and ASEAN to sign cooperation memorandum as to

institutionalize cooperation at custom level to further boost bilateral trade.

www.chinaview.cn

ADB to increase trade facilitation programme

09 February 2009 ADB's President Kuroda announces significant boost to trade finance

facilitation programme and steps up lending operations in response to

crisis.

In order to stymie the fallout of global financial meltdown on developing countries,

the Asian Development Bank (ADB) will step up its lending operations by several

billion dollars to help Asian nations tide over the crisis.

In addition, the bank would increase the size of trade facilitation programme from

$150 million to $1 billion in 2009.www.tradefinancemagazine.com.

Leaders Stress Importance of Trade

Facilitation amid Downturn

Developing countries, though far fro

m the world’s major fin

ancial centres, are being hit hard by

the declines in aid, investm

ent and export revenues tri

ggered by the ongoing economic

crisis. Amid the downturn, world leaders a

re calling attention to trade facilitation – which

the WTO defines as “the simplific

ation and harmonisation of international trade

procedures” – arguing that progress on that fro

nt could be critical to helping developing

country economies emerge from the current crisis

. 

 Speaking at a meeting on trade facilita

tion last week, EU Trade Commissio

ner Catherine

Ashton called for the international community to help Africa’s sm

all and emerging

enterprises re

ach larger markets abroad.

 “Business is

telling us that tra

de facilitation needs to

be put squarely on the politic

al top

table,” Ashton said at the conference, which met in Rome on 22 April. “There is a

need

for simpler tra

de procedures so as to

reduce delays, cut costs, improve the services

offered to consumers, and even get into overseas m

arkets in the firs

t place.”

www.ictsd.org

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WTO negotiations on trade facilitation

Commitments Implementation capacity

Capacity Building

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Regional trade agreements

Over 421 RTAs world-wide: North-North, North-South, South-South (WTO, 2008)

The Asia-Pacific “noodle bowl”: 151 RTAs, out of which 104 in force with over 40+ containing TF provisions incl. simplification of trade procedures, use of int’l standards, customs cooperation, electronic data exchange (ESCAP, 2009)

6

Evolving concept of trade facilitation

Simplified and harmonized customs and trade procedures, documents and

controls

At-the-border measures

Behind-the-bordermeasures

Transport corridors

Supply chain management

Business facilitation

E-commerce

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Prevailing gaps in the level of trade facilitation reforms

Leaders vs. laggers

Great demand for traditional trade facilitation standards and instruments

IT should be an enabler of TF reforms, rather than a driver

0

1

2

3

4

5

6

7

8

9

10

East Asia& Pacific

EasternEurope &CentralAsia

LatinAmerica &Caribbean

Middle East& NorthAfrica

OECD South Asia Sub-Saharan

Africa

Num

ber o

f doc

umen

ts

0

5

10

15

20

25

30

35

40

45

Num

ber o

f day

s

Documents to export (number) Documents to import (number)

Time to export (days) Time to import (days)

Source: World Bank, Doing Business 2010

8

What international instruments?

Guides, handbook

s

International standards,

recommendations and best practices

International (multilateral, regional bilateral) treaties, conventions and

agreements

WTO, WCO, IMO, UNECE Transport…

UN/CEFACT, ISO, WCO, ICC…

UN/CEFACT, UNCTAD,ITC, UN RCs…

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Implementation remains a challenge…

Guides, handbo

oksInternational standards,

recommendations and best practices

International (multilateral, regional bilateral) treaties,

conventions and agreements

ImplementationUNCTAD, WB, UN RC’s

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…however, challenge can be an opportunity to

Conduct a gap analysis study on standards implementationIncrease deliverables for “traditional” trade facilitation (standards and recommendations)Target developing countries and countries in transitionIntroduce a more inclusive approach to give the potential user countries an ownership Introduce two-tiered capacity-building program on TF standards: – awareness-raising for senior-level policy makers; and – technical trainings for experts

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How UNCTAD fits in?

Advocacy

Analytical work

Technical assistance and capacity building

Collaboration

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Forthcoming events

Multiyear Expert Meeting “Public and Private Partnerships for the Development of Infrastructure for Trade and Transport, Geneva, 8-10 December 2009Ad Hoc Expert Meeting on Transit and Landlocked Countries, Geneva, 11 December 2009Private Sector Forum on WTO Negotiations on Trade Facilitation, Geneva, February 2010

THANK YOUwww.unctad.org

QUESTIONS?