1. Barriers to International Goods Transport by Road
Umberto de Pretto, IRU Deputy Secretary General
IRU Luncheon Briefing to WTO Negotiators
Geneva, 18 February 2008
© International Road Transport Union (IRU) 2008

2. © International Road Transport Union (IRU) 2008

3. Evolution of IRU Membership
Members 72 Countries
Created 1948
8 Founder States:
Belgium
Denmark
France
Netherlands
Norway
Sweden UK
Switzerland
Updated January 2008
© International Road Transport Union (IRU) 2008

4. The combined efforts of 29 companies in 18 countries
What is Globalisation?
What does it take to have a cup of coffee in a café?
The combined efforts of
29 companies in 18 countries
If to have one cup of coffee at an affordable price, it takes 29 companies in 18 countries, you imagine how much more it would cost if all items came from the country where the end product is consumed?
If we know that it takes 10’000 suppliers, which in turn have their own suppliers, to create an affordable motor car, you can imagine the vital role of road transport in a liberalised economy.
Therefore, to stay in business, we need to see globalisation as an opportunity and not as a threat. To do so, we need to develop together the entrepreneurial spirit currently lacking in Europe.
Road Transport has become a vital production tool!
Source: IRU
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5. Evolution of sea containers in ports
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6. Road transport tonnage distances in Europe
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7. ___ __ _______ Cost of Barriers
___ __ _______
Cost of Barriers
Source: Hague Consulting Group
* Includes lost opportunities
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8. Border Crossing Facilitation Time Costs Money!
Indicator
Value
Average number of TIR carnets issued per year
2’923’481
Minimum number of border crossings in the TIR system per year
8’770’443
Total waiting time, hour per year, for TIR traffic
Value of an hour lost per truck, USD per hour 50
Total lost value per year, TIR traffic, USD
438’522’188
Total lost value**
, TIR traffic, USD
3’508’177’500
* EU25 External, EU4, CIS & Balkan Borders,
**Direct costs can double through losses to producers and traders, including lost opportunities due to longer and unreliable transport time, thus: total USD 7.0 billion.
Source: IRU 2006
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9. IRU Border Waiting Times Observatory - BWTO
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10. BWTO Can Be Applied to any Region of the World
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11. BWTO Shows Specific Border Crossings
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12. © International Road Transport Union (IRU) 2008

13. © International Road Transport Union (IRU) 2008

14. The IRU’s Views on GATT Article V and the WTO Members’ Textual Proposals for a New Trade Facilitation Agreement Peter Krausz, IRU - Head of Goods Transport / Facilitation Waldemar Czapski, Legal Expert
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15. Contents Introduction GATT Article V
Definition of Transit
Freedom of Transit
Most Convenient Routes, No delays and No Restrictions
Duties and Charges; Regulations and Formalities
Comments on WTO Members’ Textual Proposals
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16. Introduction
facilitation of int’l road transport has not followed the path of int’l trade & other transport modes
trade facilitation is impossible without facilitated transport systems (cargo, vehicle & driver)
GATT Article V has been the best of the available legal instruments providing for the Freedom of Transit
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17. covers the most recent changes in transport technology and techniques
Definition of Transit
covers the most recent changes in transport technology and techniques
but does not cover the domestic export and domestic import legs of the transaction
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18. cornerstone of the GATT Art. V – too often disregarded
Freedom of Transit
cornerstone of the GATT Art. V – too often disregarded
non-discrimination - has suffered many infringements
MFN treatment - has been subject to too many flagrant infractions
Article V - for how long a “Sleeping Beauty”?
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19. Most Convenient Routes, No delays and No Restrictions
shippers and transport operators must be free to choose the itinerary
obviously limited to using appropriate customs houses
transit traffic must not be subject to unnecessary delays or restrictions
© International Road Transport Union (IRU) 2008

20. Duties and Charges; Regulations and Formalities
transit must be exempt from customs duties and other charges except for services rendered
drivers and operators are very often victims of procedural failures at borders (leading to unjustified customs claims) and of rent-seeking practices
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21. IRU Comments on WTO Members Proposals
proposals not to substitute, simply complement Article V
provisions of Article V should not be freely edited, complemented, reduced or summarised, nor their order changed
provisions of multilateral conventions (like on customs transit) should not be overwritten
regional transit agreements should be governed by international standards defined in multilateral conventions
© International Road Transport Union (IRU) 2008

22. no need for new definitions
Definition of Transit
no need for new definitions
distinguish “transit systems” from “customs transit systems”
complement Article V to apply to means of transport (vehicles) in specific transit situations (ports traffic, trans-shipment)
© International Road Transport Union (IRU) 2008

23. reinforce the freedom of transit
goods do not move alone, they must be transported by vehicles and their drivers
no discrimination on any grounds
no quantitative limitations
prescribed routes or escort only exceptionally
NT or MFN: whichever is more favourable to facilitate movement
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24. Most Convenient Routes, No delays and No Restrictions
routes must always remain most convenient
separate routine controls from physical inspections and separate the access lanes
new control technology or joint controls at borders will not produce the desired effects without lanes being separated – waste of money
© International Road Transport Union (IRU) 2008

25. Duties and Charges; Regulations and Formalities
only real costs caused by transit must be covered
should divergent opinions remain, it would be possible to insert a clause of the New York Convention of 1965 on Transit Trade of Land-locked States
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26. Conclusion
the freedom of the sea routes has enormously contributed to economic and social progress
it is time to provide the same freedom in practical terms for inland transports such as road transport concerning all its components, the cargo, the vehicle and the driver
let road transport contribute to wealth creation and distribution in developed and developing regions alike = Road Transport, Driving Peace and Prosperity!
© International Road Transport Union (IRU) 2008

27. © International Road Transport Union (IRU) 2008