1. Workshop on WTO –related issues for Government Officials in the SAARC region Bhutan and Trade Facilitation New Delhi, 1 st -3 rd May 2006 Pema R. Rinchen Department of Foreign Trade

2. Bhutan location

3. Country Profile Acceding member to the WTO Landlocked and LDC – Article V Agrarian economy – high value low volume exports Growing trade and services sector (issue of being more trade facilitative than revenue oriented) –Manufacturing - 18% –Trade and Transport - 17% –Tourism and Hydro power driven economy

4. Trade Facilitation (TF) and Bhutan TF an integral part of TP under 9FYP where enhancement/contribution of trade to social and economic development can be brought about TF an area where we believe that DC stand to gain in terms of enhancing competitiveness TF going beyond helping exporters/importers to become more competitive. Help entire communities by improving the conditions for doing business, attracting investment and creating employment Recent WB findings highlight issue of TF as a major boost to pvt. sector competitiveness and a backward linkage of ind. dev to export trade. –Global integration to WTO – opportunity to seek binding international assistance to address constraints to improve competitiveness –Regional Integration – SAFTA, BIMSTEC

5. Reference to WTO TF articles and Measures undertaken Article V: negotiations offer landlocked countries a valuable opportunity to deal with pressing transit issues in an objective multilateral forum. Intend to take good adv. of this opportunity and participate in the discussions. Highlight a number of key neg. issues aimed at improving Article V: –Dry port facilities –Air, sea, rail, road transit….extend to pipelines, power –Reasonable charges –E-clearance

6. Article VIII - Import and Export Related Fees and Formalities Streamline formalities –Synchronize timing of operations (customs clearance at the borders) –Cost of procedures –Clearance automation to reduce discretion –Quarantine, SPS rules transparency –Analysis and inspection

7. Article X – Publication and Administration of Trade Regulations Enhance transparency – websites, docs. Publication of regulations and laws before implementation of higher duties and more restrictive measures Customs valuation (acceptance of docs.) Single national focal point to respond to traders enquiries Establishment of inquiry point to giving advance notice.

8. Ongoing efforts towards TF in addition…. Development of physical infrastructure – provision of multimodal transport facilities RTA’s (transit agreements with India, Bangladesh), SAARC agreement on Customs matters, Regional initiative in area HR, Accreditation, Standards, TF amongst the SAFTA and BIMSTEC Customs work – adoption of harmonized customs codes and Implementation of automation (ASCUDA)

9. Challenges Ahead Geo politics – inhibits the development of an effective intra regional multimodal transport arrangements along the trade transit corridors Border crossing – right synergy missing and poor infrastructure facilities (transport vehicles, limited human and financial resources) Integrity of customs officials at the trade corridor borders – adds to the costs, delay and opportunity Absence of a single window clearance – supply side constraints to be improved

10. Challenges ahead TF program require long term vision and efforts to build capacity, to develop and implement policies/strategies and integrate international conventions/standards, measures and other trade specific tools into the national systems.

11. Conclusion Limited experience from the private sector perspective – importance of Govt. and Pvt. Sector joining forces to help streamline and bring about predictability/build measures that will set the basis for stronger, more competitive business Learn from experiences through dialogue and meetings Network set up to exchange views and experiences amongst the key players

12. Thank you