1 Trade Facilitation In Central Asia Regional Economic Cooperation Asian Development Bank May 2009 Dushanbe, Tajikistan

2 What is CAREC? Partnership  8 countries and 6 IFIs, each with clear roles  Not a treaty but a serious commitment by all  Strong IFI collaboration, but leadership by countries Action-oriented  Based on clear strategies and action plans  Invest in transport, energy, and trade facilitation  Promote capacity development and networking

3 Participating countries IFIs Afghanistan, Azerbaijan, Kazakhstan, Kyrgyz Republic, Mongolia, PRC, Tajikistan, Uzbekistan ADB, EBRD, IMF, Islamic Development Bank, UNDP, World Bank Partners in CAREC

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5 CAREC Transport and Trade Facilitation Strategy (TTFS) Adopted in 2007Adopted in 2007 An integrated program of action to improve the region's transport infrastructure and reduce trade costsAn integrated program of action to improve the region's transport infrastructure and reduce trade costs Implementation Action Plan approved in 2008Implementation Action Plan approved in 2008

6 Integrated Transport and Trade Facilitation Strategy Goals  Establish competitive transport and trade corridors  Facilitate movement of people and goods across borders Reduction in transaction costs and time Improved administrative efficiency Harmonization of trade procedures  Develop safe, people-friendly transport systems  Enhance transparency of laws, regulations, and procedures

7 TTFS Trade Facilitation Two components aimed at reducing trade costs byTwo components aimed at reducing trade costs by – promoting concerted customs reform and modernization and –supporting an integrated trade facilitation approach

8 Customs Reform and Modernization Support for Customs Cooperation Committee (CCC) which serves as a regional forum to address issues of common interestSupport for Customs Cooperation Committee (CCC) which serves as a regional forum to address issues of common interest CCC 5 priority areasCCC 5 priority areas (i) simplification and harmonization of customs procedures and documentation, (ii) information and communication technology (ICT) customs modernization and data exchange, (iii) risk management and post-entry audit, (iv) joint customs control, and (v) regional transit development,

9 Integrated Trade Facilitation Prioritize support for designated CAREC corridorsPrioritize support for designated CAREC corridors Promote inter-agency cooperation and partnership with the private sectorPromote inter-agency cooperation and partnership with the private sector Establish national and regional mechanism to prepare trade facilitation action plansEstablish national and regional mechanism to prepare trade facilitation action plans

10 Ongoing Trade Facilitation Activities CAREC Corridor Performance Measurement and Monitoring (CPMM)CAREC Corridor Performance Measurement and Monitoring (CPMM) Establish or strengthen cooperation mechanisms (National Joint Committees/ Regional Joint Committee)Establish or strengthen cooperation mechanisms (National Joint Committees/ Regional Joint Committee) Capacity BuildingCapacity Building

11 CAREC Corridor Performance Measurement & Monitoring TTFS mandated that economic corridors performance be measured and monitored periodically to:TTFS mandated that economic corridors performance be measured and monitored periodically to: –ascertain the current situation along the links and nodes of each CAREC corridor –identify bottlenecks –determine courses of action to address bottlenecks

12 CPMM Time Cost Distance (TCD) is usedTime Cost Distance (TCD) is used Provides graphical representation of cost and time data associated with transport processesProvides graphical representation of cost and time data associated with transport processes The methodology allows policy makers toThe methodology allows policy makers to –analyze factors that affect cost & time required to transport goods using certain routes; –compare changes in cost and/or time required to transport goods on a certain route; –compare and evaluate competing modes of transport operating on same route; and –consider alternative transit routes.

13 CPMM Implementation arrangementsImplementation arrangements –Involvement of private sector - Freight forwarders associations (FFAs) and road carriers as partner associations who will collect data –MOUs have been signed with partner associations to define responsibilities of FFAs and ADB –Data aggregation and analysis will be done at ADB –Quarterly reports and twice year in-depth reports will be submitted to SOM and Ministerial Conference

14 Cooperation Mechanisms National Joint Transport and Trade Facilitation Committees (NJCs) toNational Joint Transport and Trade Facilitation Committees (NJCs) to –promote interr-agency collaboration –enhance partnerships between the public and private sectors –address broader issues of transport and trade facilitation To be composed of representatives of all government agencies in charge of transport, trade, and border-crossing activities and relevant private sector groupsTo be composed of representatives of all government agencies in charge of transport, trade, and border-crossing activities and relevant private sector groups

15 Cooperation Mechanisms (cont) Regional Transport and Trade Facilitation Committees (RJC) to provide regional leadership in the implementation of the joint transport and trade facilitation strategy/action plan.Regional Transport and Trade Facilitation Committees (RJC) to provide regional leadership in the implementation of the joint transport and trade facilitation strategy/action plan. RJC will serve as a regional forum to raise, discuss and resolve issues of common interest relating to barriers to trade and development RJC will serve as a regional forum to raise, discuss and resolve issues of common interest relating to barriers to trade and development To be comprised of representatives from NJCs and representatives of regional groupings such as unions or federations of national freight forwards or transport groupsTo be comprised of representatives from NJCs and representatives of regional groupings such as unions or federations of national freight forwards or transport groups

16 Capacity Building Training needs assessment (TNA) for customs and broader array of stakeholders involved in trade facilitation done in late 2008 and early 2009Training needs assessment (TNA) for customs and broader array of stakeholders involved in trade facilitation done in late 2008 and early 2009 Findings included:Findings included: –Adapt approaches to region’s needs and situation –Enhance available capabilities and facilities in the region – Balance common (regional) and specific (national) needs – Involve other agencies, private sector/non-government organizations

17 Capacity Building Recommendations:Recommendations: –Create a simple Regional Training Database accessible to all CAREC countries –Create a simple training development structure –Trade facilitation core curriculum Single windowSingle window Risk management techniquesRisk management techniques Post-customs controlPost-customs control Logistics developmentLogistics development Training for trainers on trade facilitationTraining for trainers on trade facilitation

18 ADB trade facilitation projects in Tajikistan Regional Customs Modernization Project and Infrastructure Development Project ($10.7 MLN) Approved 2004 Objective: –improve the efficiency and transparency of customs services, and reinforce the ongoing customs legal reforms and simplification of custom procedures –facilitate trade and promote regional customs cooperation through concerted customs reforms and modernization. Scope: –a unified automated information (UAIS) –customs border-post infrastructure.

19 ADB trade facilitation projects in Tajikistan Regional Technical Assistance on Cross Border Agreement Among Kyrgyz Republic, People's Republic of China, and Tajikistan ($500,000) Approved Objective: –increase regional traffic and facilitate trade –improve access to regional markets and social services for surrounding people Scope: –Establish a trilateral cross-border agreement among PRC, Kyrgyz Republic and Tajikistan

20 Thank you CAREC Secretariat 6 ADB Avenue, Mandaluyong City Metro Manila 1550, Philippines Telephone: /6368 Fax: ADB Tajikistan Resident Mission Dushanbe Telephone: