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

© International Road Transport Union (IRU) 2008

Evolution of IRU Membership 2008 180 Members 72 Countries Created 1948 8 Founder States: Belgium Denmark France Netherlands Norway Sweden UK Switzerland Updated January 2008 © International Road Transport Union (IRU) 2008

The combined efforts of 29 companies in 18 countries What is Globalisation? What does it take to have a cup of coffee in a café? The combined efforts of 29 companies in 18 countries If to have one cup of coffee at an affordable price, it takes 29 companies in 18 countries, you imagine how much more it would cost if all items came from the country where the end product is consumed? If we know that it takes 10’000 suppliers, which in turn have their own suppliers, to create an affordable motor car, you can imagine the vital role of road transport in a liberalised economy. Therefore, to stay in business, we need to see globalisation as an opportunity and not as a threat. To do so, we need to develop together the entrepreneurial spirit currently lacking in Europe. Road Transport has become a vital production tool! Source: IRU © International Road Transport Union (IRU) 2008

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

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

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

Border Crossing Facilitation Time Costs Money! Indicator Value 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 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** 1998-2005, TIR traffic, USD 3’508’177’500 * EU25 External, EU4, CIS & Balkan Borders, 1998-2005 **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 © International Road Transport Union (IRU) 2008

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

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

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

© International Road Transport Union (IRU) 2008

© International Road Transport Union (IRU) 2008

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

Contents Introduction GATT Article V Definition of Transit Freedom of Transit Most Convenient Routes, No delays and No Restrictions Duties and Charges; Regulations and Formalities Comments on WTO Members’ Textual Proposals © International Road Transport Union (IRU) 2008

Introduction facilitation of int’l road transport has not followed the path of int’l trade & other transport modes trade facilitation is impossible without facilitated transport systems (cargo, vehicle & driver) GATT Article V has been the best of the available legal instruments providing for the Freedom of Transit © International Road Transport Union (IRU) 2008

covers the most recent changes in transport technology and techniques Definition of Transit covers the most recent changes in transport technology and techniques but does not cover the domestic export and domestic import legs of the transaction © International Road Transport Union (IRU) 2008

cornerstone of the GATT Art. V – too often disregarded Freedom of Transit cornerstone of the GATT Art. V – too often disregarded non-discrimination - has suffered many infringements MFN treatment - has been subject to too many flagrant infractions Article V - for how long a “Sleeping Beauty”? © International Road Transport Union (IRU) 2008

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

Duties and Charges; Regulations and Formalities transit must be exempt from customs duties and other charges except for services rendered drivers and operators are very often victims of procedural failures at borders (leading to unjustified customs claims) and of rent-seeking practices © International Road Transport Union (IRU) 2008

IRU Comments on WTO Members Proposals proposals not to substitute, simply complement Article V provisions of Article V should not be freely edited, complemented, reduced or 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 defined in multilateral conventions © International Road Transport Union (IRU) 2008

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

reinforce the freedom of transit goods do not move alone, they must be transported by vehicles and their drivers no discrimination on any grounds no quantitative limitations prescribed routes or escort only exceptionally NT or MFN: whichever is more favourable to facilitate movement © International Road Transport Union (IRU) 2008

Most Convenient Routes, No delays and No Restrictions routes must always remain most convenient separate routine 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

Duties and Charges; Regulations and Formalities only real costs caused by transit must be covered 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

Conclusion the freedom of the sea routes has enormously contributed to economic and social progress 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 let road transport contribute to wealth creation and distribution in developed and developing regions alike = Road Transport, Driving Peace and Prosperity! © International Road Transport Union (IRU) 2008

© International Road Transport Union (IRU) 2008