1. IADB Support for Customs in Latin America and the Caribbean and Our Partnership with the WCO “Enhancing the Global Dialogue on Capacity Building” Sandton, Gauteng (South Africa) April 4, 2007
Peter Kalil, Chief
Integration, Trade and Hemispheric Issues Division
Inter-American Development Bank
Washington, D.C.

2. Inter-American Development Bank
Regional Development Bank for LAC.
Main source of Multilateral Financing for Economic, Social and Institutional Development in LAC.
Lending US$6-9 billion/year (10% to private sector).
Technical Cooperation Grants: US$150 million/year.
2 Overarching Goals: Poverty Reduction & Growth with Equity.
4 Priority Areas: Social Sectors, Modernization of the State, Competitiveness and Regional Integration.

3. Regional Integration Trade and Functional Cooperation.
Not an end in itself but an additional policy tool.
Strengthen reforms (complementary agenda)
Economic transformation (job creation)
Attract FDI (enlarge markets)
Geopolitics (friendly neighbors)
Challenges:
Winners and losers (sectors, regions)
Trade diversion
“Spaghetti bowl”
Institutions

4. Main Challenges of Customs in LAC
Improve Risk Management.
Professionalize Human Resources.
Modernize Procedures and Organizational Structures.
Strengthen Valuation.
All in a context of Trade Facilitation and Security.

5. IADB Customs Projects (1994-2007)
IADB-financed Customs projects address main challenges cited, including strategic management, legal framework and ICT.
IADB focus is on Capacity Building.

6. IADB Customs Projects (1994-2007)
32 National Projects
- 27 Capacity Building Loans and Technical Cooperation
5 Loans Containing Policy Conditionality related to Customs
13 Regional Projects
Implemented in 17 Countries
(Argentina, Barbados, Bolivia, Costa Rica, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Nicaragua, Panama, Paraguay, Peru, Dominican Republic, Uruguay, Venezuela)

7. IADB Customs Projects (1994-2007)

8. IADB Customs Projects (1994-2007)
US$ 20 million
US$ 71 million

9. Regional IADB Projects
To efficiently and effectively address common challenges.
Harmonization and standarization of terminology and procedures.
Identification and dissemination of good practices.
Training.
Strengthening regional institutions.

10. Examples of IADB Regional Projects
IADB Interactive Customs Course.
Institutional Strengthening of COMALEP (Cooperation Agreement of Customs Directors of LA, Spain and Portugal).
Case Studies in Tax Policy and Customs Administration with Workshops.

11. IADB Cooperation with WCO
MOU between IADB and WCO, signed in 2001.
IADB & WCO approaches to diagnostics are similar.
Many areas and ways to work together.

12. IADB Cooperation with WCO (con’t)
1. Consolidation of Spanish as an official working language in the Harmonized System (HS) Committee of WCO ( ):
IADB financed consultants.
WCO provided support and official status to Spanish version of HS.
COMALEP will provide Spanish Version of HS to users in LA (financially sustainable).
This initiative will help Customs and facilitate trade in LA.

13. IADB Cooperation with WCO (con’t)
2. Columbus Program:
Translation to Spanish of WCO Customs Capacity Building Diagnostic Framework and promotion of its use in LA, along with IADB instruments.
Integration of WCO Diagnostic Framework and IADB diagnostic tools for project design, execution and evaluation.
IADB cofinancing and staff participation in WCO Workshops for Customs Diagnostic Facilitators (Peru, Trinidad & Tobago).

14. IADB Cooperation with WCO (con’t)
3. Other upcoming areas of cooperation:
Diagnostics jointly undertaken; joint action plans; expost evaluation of projects carried out together.
Cooperation in design of a regional project for Customs Indicators (Benchmarking and Performance) for approval in 2007.

15. Thank you