© International Road Transport Union (IRU) 2008 Page 1 Barriers to International Goods Transport by Road Umberto de Pretto, IRU Deputy Secretary General IRU Luncheon Briefing to WTO Negotiators Geneva, 18 February 2008 Umberto de Pretto, IRU Deputy Secretary General IRU Luncheon Briefing to WTO Negotiators Geneva, 18 February 2008

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© International Road Transport Union (IRU) 2008 Page 3 Evolution of IRU Membership Updated January 2008 Created Founder States: Created Founder States: BelgiumDenmarkFranceNetherlands NorwaySwedenUKSwitzerland Members 72 Countries

© International Road Transport Union (IRU) 2008 Page 4 What is Globalisation? The combined efforts of 29 companies in 18 countries Source: IRU Road Transport has become a vital production tool! What does it take to have a cup of coffee in a café?

© International Road Transport Union (IRU) 2008 Page 5 Evolution of sea containers in ports

© International Road Transport Union (IRU) 2008 Page 6 Road transport tonnage distances in Europe

© International Road Transport Union (IRU) 2008 Page 7 Cost of Barriers Source: Hague Consulting Group * Includes lost opportunities

© International Road Transport Union (IRU) 2008 Page 8 IndicatorValue Average number of TIR carnets issued per year 2’923’481 Minimum number of border crossings in the TIR system per year 8’770’443 Total waiting time, hour per year, for TIR traffic 8’770’443 Value of an hour lost per truck, USD per hour 50 Total lost value per year, TIR traffic, USD 438’522’188 Total lost value** , TIR traffic, USD 3’508’177’500 * EU25 External, EU4, CIS & Balkan Borders, **Direct costs can double through losses to producers and traders, including lost opportunities due to longer and unreliable transport time, thus: total USD 7.0 billion. Source: IRU 2006 Border Crossing Facilitation Time Costs Money!

© International Road Transport Union (IRU) 2008 Page 9 IRU Border Waiting Times Observatory - BWTO

© International Road Transport Union (IRU) 2008 Page 10 BWTO Can Be Applied to any Region of the World

© International Road Transport Union (IRU) 2008 Page 11 BWTO Shows Specific Border Crossings

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© International Road Transport Union (IRU) 2008 Page 14 The IRU’s Views on GATT Article V and the WTO Members Textual Proposals for a New Trade Facilitation Agreement Peter Krausz, IRU - Head of Goods Transport / Facilitation Waldemar Czapski, Legal Expert

© International Road Transport Union (IRU) 2008 Page 15 ContentsContents  Introduction  GATT Article V Definition of TransitDefinition of Transit Freedom of TransitFreedom of Transit Most Convenient Routes, No delays and No RestrictionsMost Convenient Routes, No delays and No Restrictions Duties and Charges; Regulations and FormalitiesDuties and Charges; Regulations and Formalities  IRU Comments on WTO Members Textual Proposals  Introduction  GATT Article V Definition of TransitDefinition of Transit Freedom of TransitFreedom of Transit Most Convenient Routes, No delays and No RestrictionsMost Convenient Routes, No delays and No Restrictions Duties and Charges; Regulations and FormalitiesDuties and Charges; Regulations and Formalities  IRU Comments on WTO Members Textual Proposals

© International Road Transport Union (IRU) 2008 Page 16 IntroductionIntroduction  the facilitation of international road transport has not followed the path of international trade  trade facilitation is simply impossible without efficient transport systems  GATT Article V, has always been regarded as one of the best ever expressions of the Freedom of Transit  the facilitation of international road transport has not followed the path of international trade  trade facilitation is simply impossible without efficient transport systems  GATT Article V, has always been regarded as one of the best ever expressions of the Freedom of Transit

© International Road Transport Union (IRU) 2008 Page 17 Definition of Transit  covers even the most of recent changes and new modalities of transport technology  does not cover though the export and import leg of the transaction  two important notions of transit to distinguish: transit systems regulating transit movements and customs transit systems governed by int’l conventions  covers even the most of recent changes and new modalities of transport technology  does not cover though the export and import leg of the transaction  two important notions of transit to distinguish: transit systems regulating transit movements and customs transit systems governed by int’l conventions

© International Road Transport Union (IRU) 2008 Page 18 Freedom of Transit  cornerstone of the GATT – too often disregarded  non-discrimination - has suffered many infringements  Most Favoured Nation treatment - has also been subject to too many flagrant infractions  cornerstone of the GATT – too often disregarded  non-discrimination - has suffered many infringements  Most Favoured Nation treatment - has also been subject to too many flagrant infractions

© International Road Transport Union (IRU) 2008 Page 19 Most Convenient Routes, No delays and No Restrictions  shippers and transport operators are free to chose the itinerary  obviously limited to using appropriate customs houses  transit traffic shall not be subject to unnecessary delays or restrictions  shippers and transport operators are free to chose the itinerary  obviously limited to using appropriate customs houses  transit traffic shall not be subject to unnecessary delays or restrictions

© International Road Transport Union (IRU) 2008 Page 20 Duties and Charges; Regulations and Formalities  transit shall be exempt from customs duties and other charges except for services  drivers and operators are very often victims of failures in border control procedures (leading to unjustified customs claims) and of rent-seeking practices  transit shall be exempt from customs duties and other charges except for services  drivers and operators are very often victims of failures in border control procedures (leading to unjustified customs claims) and of rent-seeking practices

© International Road Transport Union (IRU) 2008 Page 21 IRU Comments on WTO Members Proposals  proposals should not to substitute just complement Article V  provisions of Article V should neither be freely summarised, nor their order changed  provisions of multilateral conventions (like on customs transit) should not be overwritten  regional transit agreements should be governed by international standards as defined in multilateral conventions  proposals should not to substitute just complement Article V  provisions of Article V should neither be freely summarised, nor their order changed  provisions of multilateral conventions (like on customs transit) should not be overwritten  regional transit agreements should be governed by international standards as defined in multilateral conventions

© International Road Transport Union (IRU) 2008 Page 22 Definition of Transit  no need for new definitions  distinguish “transit systems” from “customs transit systems”  complement Article V to apply to transport in particular situation (ports traffic, trans- shipment)  no need for new definitions  distinguish “transit systems” from “customs transit systems”  complement Article V to apply to transport in particular situation (ports traffic, trans- shipment)

© International Road Transport Union (IRU) 2008 Page 23 Freedom of Transit  reinforce the freedom of transit goods do not move alone, they must be conveyed by means of transport driven by driversgoods do not move alone, they must be conveyed by means of transport driven by drivers  no discrimination on any grounds  no quantitative limitations  prescribed routes or escort only exceptionally  NT or MFN: whichever is more favourable!  reinforce the freedom of transit goods do not move alone, they must be conveyed by means of transport driven by driversgoods do not move alone, they must be conveyed by means of transport driven by drivers  no discrimination on any grounds  no quantitative limitations  prescribed routes or escort only exceptionally  NT or MFN: whichever is more favourable!

© International Road Transport Union (IRU) 2008 Page 24 Most Convenient Routes, No delays and No Restrictions  routes must remain always most convenient  separate controls from physical inspections and separate the access lanes  new control technology or joint controls at borders will not produce the desired effects without lanes being separated – waste of money  routes must remain always most convenient  separate controls from physical inspections and separate the access lanes  new control technology or joint controls at borders will not produce the desired effects without lanes being separated – waste of money

© International Road Transport Union (IRU) 2008 Page 25 Duties and Charges; Regulations and Formalities  real expenses caused by transit must be covered by this traffic  should divergent opinions remain, it would be possible to insert a clause of the New York Convention of 1965 on Transit Trade of Land- locked States  real expenses caused by transit must be covered by this traffic  should divergent opinions remain, it would be possible to insert a clause of the New York Convention of 1965 on Transit Trade of Land- locked States

© International Road Transport Union (IRU) 2008 Page 26 ConclusionConclusion  the freedom of the sea routes has enormously contributed to the economic-social development of many countries  it is time to provide the same freedom in practical terms for inland transports such as road transport concerning all its components, the cargo, the vehicle and the driver  the freedom of the sea routes has enormously contributed to the economic-social development of many countries  it is time to provide the same freedom in practical terms for inland transports such as road transport concerning all its components, the cargo, the vehicle and the driver

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