Experience of Bhutan in drafting the National Trade Facilitation implementation Plan By Pema Thinley Trade Officer Department of Trade Ministry of Economic Affairs Royal Government of Bhutan

Outline Introduction Trade Facilitation efforts in Bhutan Experience of Bhutan in drafting the NTF Conclusion

Introduction Trade is an essential part of the economy –engine of growth Bhutan being LDC - duty-free and quota- free access to European and US markets etc. Bhutan’s trade constraints–small domestic market, and difficulties in transportation-supply side constraint Need to increase our trade efficiency to enhance export competitiveness and market

Trade Facilitation(TF) efforts in Bhutan Trade Policy - focus on creating conducive and enabling environment for trade TF is an integral part of FYP Economic Development Policy -2010 – encompasses a mix measures and is intended to foster trade Diagnostic Trade Integration Study(DTIS)2012- charts out constraints and opportunities and course of action to remedy constraints and seize opportunities: - Trade Regulations and Customs - Transport infrastructure and services Accession to Revised Kyoto Convention by 2014 Development of Web based system in customs clearance Establishment of National Trade Facilitation Committee (NTFC)- ADB Project

Experience of Bhutan in Drafting the National TF Implementation Plan Bhutan being Landlocked - Trade Facilitation is important Fact finding mission to Bhutan was carried out in May,2012 from UNCTAD With assistance from UNDP office in Bhutan a consultant was recruited for drafting the TF Implementation plan report. Several consultation was held with government agencies,Pvt.Sectors and NGO for mapping of Bhutan’s trade facilitation issues and the current status.

Cont. National Validation workshop was held on December,2012 with financial assistance from UNCTAD The finding of the report was – One third of TF Measures are currently implemented (12 of 37 measures) 9 measures was categorized as B (need time for implementation) 16 measures was categorized as C (external technical and financial assistance required for implementation)

Expected Role of National Trade Facilitation Committee Recently established through an executive order with Finance Secretary as a Chair and various stake holder as a members To ensure whole of government coordination in the field of trade and transport facilitation To continuously review the procedures required in international trade To pursue the simplification and alignment of trade and transport documentation propose and review the laws of customs and other stakeholder that creates barrier to trade To address, as a national consulting body, questions related to the institutional de­ velopment of intermodal regional and international transport

Conclusion Geo Politics- inhibits the development of an effective intra regional multimodal transport arrangements along the trade transit corridors. Poor infrastructure facilities – transport vehicles, limited human and financial resources Bhutan is committed to take the follow up action on the implementation Plan

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