1. Jan.Hoffmann@UNCTAD.org Geneva, May 2007 Trade facilitation: Global trends in trade logistics and how they relate to trade facilitation measures and the WTO negotiations on Articles V, VIII and X of GATT

2. TRADE FACILITATION Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Simplification Harmonisation Alignment of national procedures, operations and documents with international conventions, standards and practices. Standardisation Process of developing internationally agreed formats for practices and procedures, documents and information.

3. TRADE FACILITATION Standardisation Process of developing internationally agreed formats for practices and procedures, documents and information.

4. International rules and standards IMO ISO UN-CEFACT WCO WTO

5. UN Lay-out Key (UNECE Rec.#1)

6. TRADE FACILITATION Harmonisation Alignment of national procedures, operations and documents with international conventions, standards and practices.

9. TRADE FACILITATION Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Simplification

12. More details: www.gfptt.org

13. 10 Global trends

14. 1. Exports of manufactured goods Today 80% of developing countries’ exports are manufactured goods, up from only 20% two decades ago

15. 2. Globalized production About 1/3 of global trade is intra-company trade Around 30% of trade is trade in components and unfinished goods

16. 3. Increased security concerns Security measures along the entire supply chain

17. 4. New Geography of Trade Especially the share of South-South trade has doubled since 1990

18. 5. Regional integration Increased regional and transit trade

19. … intra-regional trade [ESCAP, 2005, K Cullinane]

20. 6. Within Logistics expenditure …inventory holding decreases, and Transport expenditure increases Data for USA, via DOT

21. 7. Technologies Containerization, shipping networks Use of computers and Internet

22. 8. Privatizations / concessions Ports, Shipping lines, Railways, Airlines, Airports

23. 8. Privatizations / concessions Private operations of container terminals

24. 9. Tariff reductions For most developing countries’ exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in developed countries. Source: Miccio/ Perez 2002

25. 10. Negotiations on trade facilitation at the World Trade Organization

26. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations

27. Trade Facilitation Measures

28. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations advance ruling, pre-arrival clearance

29. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations authorized traders

30. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Risk analysis, advance information

31. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Internet publication, Language of publication

32. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Transit regimes, Joint operations at borders 5. Regional integration

33. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Separate release from clearance

34. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations 7. Technologies Automated payments, Electronic documents

35. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Customs to accept commercial information, information platforms

36. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations Transport costs and trade facilitation more important than tariffs !

37. 1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions 10. WTO negotiations … a response to trends in international trade, transport, logistics and technologies !

38. Implications for Development

39. Trade and Transport Facilitation is not only good for trade but also has other positive side effects The introduction of ICTs by Customs may encourage smaller companies to also connect to the internet.

40. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Capacity building raises the country’s overall human capital.

41. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) A framework for bank guarantees for transit trade may also generally improve the financial system.

42. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) A single window experience for trade may help to introduce single windows elsewhere.

43. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Reforms of legal regimes that facilitate the use of electronic documents may also modernize other business practices.

44. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Mechanisms to consult with stake holders may be beneficial for other policy decisions as well.

45. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Increased transparency is good for good governance in general.

46. Trade and Transport Facilitation is not only good for trade but also has other positive side effects (cont.) Are poor countries poor because of red tape? OR Is red tape the result of a lack of development? ANSWER: It is both

47. More income to finance trade facilitation -> Better trade facilitation -> More Trade -> More income to finance trade facilitation

48. The “tipping point”: Start with Trade and transport facilitation Trade and transport facilitation is good for trade and for development Development is good for trade and for trade and transport facilitation