Negotiations on trade facilitation at the World Trade Organization Geneva, November 2012

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Presentation transcript:

Negotiations on trade facilitation at the World Trade Organization Geneva, November 2012

Draft agreement

10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO

10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO

1. Exports of manufactured goods Today 80% of developing countries exports are manufactured goods, up from only 20% two decades agoToday 80% of developing countries exports are manufactured goods, up from only 20% two decades ago

2. Globalized production Intra-company trade Trade in intermediate products Logistics part of production process

3. Increased security concerns Security measures along the entire supply chain

4. New Geography of Trade Especially the share of South-South trade has more than doubled since 1990

5. Regional integration Increased regional and transit trade

6. Within Logistics expenditure …inventory holding decreases, and Transport expenditure increases

7. Technologies Containerization, shipping networks Use of computers and Internet

8. Privatizations / concessions Ports, Shipping lines, Railways, Airlines, Airports

9. Tariff reductions For most developing countries exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in developed countries. Source: Miccio/ Perez 2002

10. Negotiations on trade facilitation at 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 reductions 10. WTO negotiations

10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO

1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations advance ruling

1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. 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 reductions 10. WTO negotiations Risk analysis 3. Security concerns

1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Internet publication 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography

1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations 5. Regional integration Regional approaches

1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. 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 reductions 10. 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 reductions 10. WTO negotiations National Trade Facilitation Committee

1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. 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 reductions 10. WTO negotiations … a response to trends in international trade, transport, logistics and technologies !

10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO

The introduction of ICTs by Customs may encourage smaller companies to also connect to the internet. Developing ICTs

Developing e-commerce Reforms of legal regimes that facilitate the use of electronic documents may also modernize other business practices.

Developing Transit A framework for bank guarantees for transit trade may also generally improve the financial system.

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

Lower Transport Costs -> More trade -> Economies of scale -> Lower Transport Costs

Better services -> More trade -> More income to finance infrastructure -> Better services

The tipping point: Start with Trade 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

10 global trends Trade facilitation measures Implications for development Trade Facilitation: Linking global trends and what happens at the WTO Questions?