Post-Hong Kong Research and Analytical Priorities for Low-income Countries: Discussions on Trade Facilitation Dr Ongolo Zogo Valérie ILEAP – University of Yaounde II Hong Kong 16 December 2005

1.Main issues in the Trade Facilitation Negotiations for Developing Countries 2. Assigned Objectives of the TF programme 3. Regional Analytical Priorities 4. Research Areas PRESENTATION STRUCTURE

I.1. MAIN ISSUES: Concept Definition Definition: “Series of measures taken to reduce costs related to trade” Accompanied by an aid for trade programme Implementing instruments vary with respect to the nature of the programme: WTO, UNCTAD, World Bank

I.2. MAIN ISSUES: Importance of the concept The TF programme directly influences the other aspects of trade: trade in goods, trade in services…

I.3. TRADE FACILITATION AT THE WTO Definition: “ Simplification and Harmonisation of the procedures of international trade ” Framework: Articles V, VIII and X of GATT (1994) Content: Transit; Fees and Formalities of external trade; and Publication and implementation of trade regulations

I.4. TRADE FACILITATION AT THE EU (EPA Perspective) Definition: “ Support for the promotion of trade and reinforcement of export corridors ” Framework: To be defined Content: System of rules of origin, legislation and customs procedures (including information exchange), and certification and Quality Assurance

I.5. TRADE FACILITATION IN OTHER COOPERATION AREAS: World Bank and UNCTAD Definition: “Support for trade promotion activities” Framework: (Transport & Trade programme, Support for Maritime Activities…) Contents: Port reforms; improvement in transit corridors; and reform of road transport activities

I.6. Trade Facilitation: Resume of Main TF Issues The implementation of this programme requires accompanying technical assistance programmes and capacity building for developing and least- developed countries

I.7. Resume of Main TF Issues WTO/EU (EPA) UNCTAD/WB AUTONOMOUS REFORMS REGIONAL INTEGRATION IMPLEMENTATION CAPACITY TRADE AND DEVELOPMENT PROGRAMME HARMONISATION

Importance of the negotiations on TF in this context II. EXPECTED OBJECTIVES OF TF NEGOTIATIONS Identify the content of the programmes Identify competent authorities Harmonise existing initiatives Take advantage of Aid for Trade opportunities

Regional integration is the central objective of TF programmes II.1. Objective of Regional Integration TF programmes should aim at reducing obstacles to trade and promoting intra-regional exchange in order to help reduce transaction costs

Difficulties related to implementation of programmes II.2. Facilitate the implementation of programmes A number of programmes exist but they suffer from implementation problems (i.e. administrative rigidity; lack of Coherence at the inter-state level; and absence of coordination)

Problems of programme harmonisation II.3. Harmonising TF programmes The programmes implemented by the aforementioned institutions are not always harmonised, due to: Risks of conflict of jurisdiction; Risks of dispersion of resources; and The need for harmonisation

IV- REGIONAL PRIORITIES NATIONAL STRUCTURES REGIONAL STRUCTURES HARMONISATIONCOORDINATION MODERNISATIONSIMPLIFICATION STANDARDISATION INFRASTRUCTURE

1.Consolidate the level of implementation of integrated transport networks 2.Improve technical capacity of ports to reduce delays IV.1. REGIONAL ANALYTICAL PRIORITIES

HARMONISATION & SIMPLIFICATION 1.Operationalise the relevant Conventions 2.Finalise and apply common customs codes 3.Diffusion of information on transport and customs procedures IV.2. REGIONAL ANALYTICAL PRIORITIES

MODERNISATION 1.Harmonisation of customs information systems through ASYCUDA 2.Installation and computerisation of single window systems 3.Integration of databases 4.Information system on transit IV.3. REGIONAL ANALYTICAL PRIORITIES

STANDARDISATION 1.Application of the revised Kyoto Convention 2.Framework of standards from the WCO 3.UN/EDIFACT standards 3.Computerisation of single window procedures at entry ports IV.4. REGIONAL ANALYTICAL PRIORITES

COORDINATION 1.Activate and invigorate juxtaposed border posts 2.Rationalise merchandise transport procedures (limit transit corridor controls) 3.Create regional systems for coordination of shared trade-related information IV.5. REGIONAL ANALYTICAL PRIORITIES

NATIONAL STRUCTURES 1.Port Services 2.Fiscal and Customs Services 3.Road & Rail Transport Services 4.National Freight Offices IV.6. REGIONAL ANALYTICAL PRIORITIES

REGIONAL STRUCTURES 1.Cooperation of landlocked countries in management of port facilities 2.Fiscal and Customs Cooperation (road & rail transport services) 3.Regional freight management offices IV.6. REGIONAL ANALYTICAL PRIORITIES

V- PROPOSALS FOR FURTHER RESEARCH ON TF 1.Article V: Transit 2. Article VIII: Fees & Formalities 3. Article X: Scope & Application

INITIATIVES IN FAVOUR OF LANDLOCKED COUNTRIES Adoption of integrated road network Fiscal and customs harmonisation 2.Harmonisation and Standardisation of procedures: (juxtaposed border posts; establishment of observatories; technical and legal studies) V.1. INITIATIVES RELATED TO TRANSIT

1.Coordination between relevant administrations 2.Cost-sharing 3.Common standards between countries 4.Clarification of transit-related costs 5.Coordination and harmonisation of documentation 6.Reliable regional information system 7.Adoption the Kyoto Convention 8. Effective harmonisation of decision-making WHY A REGIONAL AGENCY?

REGIONAL AGENCY REGIONAL INSTITUTIONS PRIVATE OPERATORS OPERATIONALISATION OF A REGIONAL AGENCY OPERATION DEFINITIONEXECUTION

ARTICLE V System to track merchandise in transit Juxtaposed border posts Freight management offices REGIONAL AGENCY: AREAS OF COMPETENCE ARTICLE X Regional information platform Creation of focal points Collections and updating ARTICLE VIII Updating Customs Information Systems Operationalisation of Regional Agency Common information systems

1.Regional Transit and Facilitation Agency: institutional framework, financing… 2.Provision for application of international conventions related to transit 3.Feasibility and conditions of harmonisation of transit documents V.3. AREAS OF RESEARCH ON ARTICLE V

HARMONISATION AND SIMPLIFICATION 1.Evaluation of port services reform 2.Computerisation of single windows 3.Modernisation of maritime procedures and auxiliaries 4.Initiatives for establishment of juxtaposed border posts V.4. INITIATIVES RELATED TO FEES AND FORMALITIES

1.Sectoral studies for evaluation of port reforms 2.Conditions for creation of observatories and technical and legal studies 3.Evaluation of costs of computerisation of customs procedures 4.Economic impact of consolidation of TF proposals: (‘single document’; new technologies for document publication and legislation; use of international standards for customs formalities) V.4. AREAS OF RESEARCH RELATED TO ARTICLE VIII