Achieving Compliance with WTO future Trade Facilitation Agreement: Learning from UNCTAD's Experience of Working with 25+ Developing Countries Dr. Mohammad SAEED Senior Technical Advisor, UNCTAD Expert Group Meeting on Transport and Trade Facilitation in ESCWA region 10 –11 April 2013, Dubai

1. Issues and Initiatives 2.UNCTAD Projects on implementing TF measures in developing countries 3.Methodology and national implementation Plan 4. Key Findings and Lessons Learnt 5.Way Forward Transport and Trade Facilitation in ESCWA region

Key Issues  Huge documentary requirements (approx 40) and large number ( Parties involved  Lack of cooperation - between custom & other border agencies and traders coupled with administrative inefficiencies  Scare use of automated processes and lack of human and financial resources  Deficiencies in the area of infrastructure

 Three separate but complimentary processes underway to improve levels of Trade Facilitation  NATIONAL – Countries have their own TF agenda (Reforms initiative for customs and other border regulatory agencies)  REGIONAL – As required under regional trade agreements or Customs Union e.g GCC or GAFTA  MULTILATERAL – WTO Process, aims to achieve binding TF commitments agreed internationally

Challenge  To achieve trade Facilitation reforms without compromising the compliance/ control  Prepare national authorities to take on the TF obligations arising out of international Agreements  Aligning of national TF initiatives with commitments at Regional and Multilateral level to bring synergies and efficiency.

TradeTransportation Customs and other border agencies Trade Facilitation

Reduce transaction costs Door-to-door Logistics Public Sector Ministry of Communications/Commerce/Finance Customs reform & modernization TRADE FACILITATION MEASURES Private Sector Importers & exporters, transport operators, banks, insurance cos.

Different Avenues of Trade Facilitation Simplified and harmonized customs and trade procedures, documents and controls Behind-the-gate measures Behind-the-border measures Transport corridors Supply chain management Business facilitation It can produce best results where cooperation between different ministries/agencies of the government work hand in hand with private sector At-the-border measures Inventory control Staff training & development In-house processes and procedures

1. Issues and Initiatives 2.UNCTAD projects on implementing TF measures in developing countries 3.Methodology and national implementation Plan 4. Key Findings and Lessons Learnt 5.Way Forward Transport and Trade Facilitation in ESCWA Region

2. UNCTAD project… Trade facilitation Research and analysis Consensus building Capacity Building UNCTAD’s three pillars

 To improve the national environment for international trade transactions;  In close coordination with Government and private sector concerns;  Through alignment with international conventions, regional arrangements, and national reform initiatives in line with recognized best practices  With particular reference to WTO future TF Agreement

 TWO multi-country projects;  Developing national implementation plans for future WTO TFA  Aligning national, regional and multilateral TF initiatives  Financed by the European Union, individual country donors and by UNDA  Duration : 2 years (2012–2013) for EU & UNDA Projects  In cooperation with other Annex D organizations (IMF, OECD, WB and WCO)  Over twenty five countries covered

 National implementation plans (confidential)  Current status of implementation  Action Plan and lead agency  Resource and time requirements  Priority and indicative categorization  The UNCTAD Consolidated Report:  Understanding the measures  Summary of findings without attribution  Implementation template and sequencing along with an implementation check list The project’s outputs

 Identify areas of non-compliance based upon current status and what needs to be done to achieve compliance  Updated needs assessment  Action plans, national priority and time requirement  Areas where additional support/funding may be necessary  Increased knowledge of TF measures negotiated in WTO  Reaffirmed/strengthened role of the TF committees  Basis to develop full fledged project proposals Support for Partner countries in WTO TF Negotiation

Angola Bangladesh Benin Burkina Faso Burundi Dominican Republic Gabon Guatemala Jordan Nepal Organization of Eastern Caribbean States (OECS) (6 WTO members) Paraguay Suriname Sudan Nicaragua A selection of the least developed countries, middle income developing countries, landlocked countries and small island economies. Geographical coverage and Bahrain

1. Issues and Initiatives 2.UNCTAD projects on implementing TF measures in developing countries 3.Methodology and national implementation Plan 4. Key Findings and Lessons Learnt 5.Way Forward Transport and Trade Facilitation in ESCWA Region

3. Methodology  Development/adjustment of Questionnaire  Selection of National Consultant  Fact Finding Mission in partnership with national authorities and national collaborative forums  Interviews of national stakeholders  Draft National Implementation plan  Validation Conference  National implementation Plan

 Step I: Interviews with the TF stakeholders (Members of the TF Committee)  To discuss the TF measures of particular importance to the interviewee using a standardized questionnaire  The response solicited is not the official position or commitment of the government but an informed opinion based on the knowledge and experience of the interviewee(s).  Step II: Drafting of the national implementation plan (national consultant, UNCTAD)  Based on the result of the interviews  Building on the needs assessment and current state of implementation  Assigning proposed categorization and national priorities Preparation of the national implementation plan

 Step III: National validation workshop to review and validate the draft plan, i.e.  Current status of implementation of each trade facilitation measures in the draft TFA;  Implementation priority and category for each measure  Actions required for the implementation of non or partially implemented measures  Needs for technical assistance  Scope for the regional action, if relevant Preparation of the national implementation plan

1. Issues and Initiatives 2.UNCTAD project on implementing TF measures in developing countries 3.Methodology and national implementation Plan 4. Key Findings and Lessons Learnt 5.Way Forward Transport and Trade Facilitation in ESCWA Region

4. Key Findings -A  TF is not an ‘alien’ concept (principles well understood)  No country starting from scratch  Significant progress since ‘Needs Assessment’  Many measures are implemented, but not ‘institutionalized’  Measures may require ‘fine tuning’ or ‘add-ons’ to achieve compliance with the final text  Customs is ‘ahead’ of other border agencies  Need to identify Lead Agency to drive change

4. Key Findings -B  Automation can be a key ingredient in providing the enabling environment necessary to support other measures  Most T.A. necessary will be in form of Capacity Building to assist in development and implementation of reform strategies  Need to aim beyond just achieving compliance with TFA to maximize returns  Concerns expressed about private sectors ability to engage in some measures / drive agenda

Lessons Learnt -A  Important not to underestimate Political Support still necessary, even at advanced stages  Need to aim beyond just achieving compliance with TFA  Need to identify and designate Lead Agency to help in achieving ownership of Reforms  The use of a National Consultant improves the quality of study especially in identification of suitable respondents  Need to consult with private sector frequently  The ‘Needs Assessment’ was a useful starting point to further develop the plans

Lessons Learnt -B  The desk research prior to conducting study helped in making it more effective /focused  Where implementation is already underway, need to monitor with regard to final text  ‘Costing’ remains a complex issue but amounts are not enormous  A well functioning national trade facilitation Committee can steer the implementation process in a better way  Aim at implementation plans with actions, budgets and calendars  Need to help guide respondents (keep focus) without appearing dismissive (not a debate on TFA merits)  Implementation plan remains a ‘Living’ Document

1. Issues and Initiatives 2.UNCTAD project on implementing TF measures in developing countries 3.Methodology and national implementation Plan 4. Key Findings Lessons Learnt 5.Way Forward Transport and Trade Facilitation in ESCWA Region

Policy recommendations for partner countries  Strengthen the National Trade Facilitation collaborative forum(s)  Look beyond TFA to broader National TF agenda  Develop or Update National TF Strategy  Develop Action Plan for updated TF Strategy  Design implementation Plans in consultation with the lead implementation Agency

Using experience in other countries  Methodology ( questionnaire, interviews & validation workshops) evolved and well tested  Partner countries’ response regarding process and utility of output further refined it.  Procedural steps (hiring of national consultants, travel plans, selection of participants) well practiced  Support from Annex D partners forthcoming & beneficial  Expertise (available with UNCTAD) combined with funding can help assisting more developing countries

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