Key Issues in Trade Logistics

Key Issues in Trade Logistics The case of Saint Lucia IFC/World Bank Conference on Trade Logistics Washington DC - June 7, 2010 By Senator the Hon. Charlotte Tessa Mangal Minister for Commerce, Industry & Consumer Affairs

Saint Lucia’s Efficiency Principle for Trade Logistics • All facilities, arrangements and regulations must be satisfied in an efficient manner when moving goods and services from suppliers to consumers; • Goal: An efficient link between suppliers and consumers

Components of Trade Logistics in Saint Lucia • Relatively small market • Two (2) Airports • Two (2) Seaports • A modern ICT platform and banking systems • Automated Customs processing • Standards and Licences regimes • Functional business organizations

Saint Lucia’s Trade Facilitation Self Assessment • WTO compliance self-assessment done in December 2008 • Compliant & partially compliant in 35 out of 49 areas • Not compliant in 5 out of 49 areas • Not applicable in 9 out of 49 areas

Fully Compliant Areas • Import alerts/rapid alerts • Detention • Use of international standards • Acceptance of commercially available information and of copies; • Harmonization/standardization for transit (acceptance of commercially available information and copies of transit); • Phasing out mandatory use of customs brokers;

Co-ordination of activities and requirements of all border agencies (Internal Agency co-ordination) • Improved co-ordination and co-operation for transit; • Pre-arrival processing • Separating release from clearance procedures • Objective criteria for Tariff classification • Strengthened non-discrimination

Partially Compliant Areas • Publication and notification of trade regulators and of • Provision

Non- Compliant Areas • Provision of advance rulings • Single window/one-time submission • Authorized traders • Establishment and publication of average release and clearance times • Customs co-operation

Barriers to Compliance • Absence of administrative policy • Resource constraints – human, technical and financial resources • Constitutional constraints • Lack of co-operation and co-ordination between agencies (absence of a single window) • Lack of clearly outlined procedures in national legislation or administrative procedures.

Action to Remove Barriers • Develop and implement policy, strategies and procedures • Training and capacity building • Legislative Review • Enhance co-operation and co-ordination among agencies • Sensitization of policy makers and private sector on issues related to trade facilitation

Saint Lucia’s Top Priorities • Policy Reform 1.1 Fiscal 1.2 International Standards Compliance (WCO, WTO 1.3 Risk Management 1.4 Information Technology 1.5 Authorized Traders • Strategy for Communications and Information Management

Capacity Building: 3.1 Legal Drafting 3.2 Risk Management 3.3 WCO time release study recommendations • Funding and Advisory Needs: 4.1 Communications and IT 4.2 Capacity Building 4.3 Single Window implementation: equipment and services

Trade Facilitation Initiatives 1. Establishment of a National Trade Facilitation Task Force to: • Ensure effective government and business dialogue • Provide a forum to interact with the private sector to encourage their use of international standards and practices • Develop an action plan to improve trade facilitation initiatives in Saint Lucia 2. Comprehensive effort underway to review and simplify processes, procedures and documentation 3. ASYCUDA++ presently installed at Saint Lucia Customs and project underway to introduce ASYCUDA World by July 2010.

Trade Facilitation Areas to Address • The adoption of international standards and benchmarks • Harmonization of regional Customs legislation • Support of CARICOM initiative on Customs harmonization • Compilation into one easy read volume of all Customs laws, regulations and other trade related laws • Introduction of a fast track system for customs and trade laws within the legislative process • Regular review of trade and Customs legislation

Simplify regulatory regimes • Co-ordination between regulatory authorities • Single window to enable interfacing between regulatory authorities • Upgrade communication policies and practices to meet international benchmarks • The establishment of an enterprise friendly trading environment that promotes: - Business awareness programmes for government officials - Enhanced knowledge of trade regulations by traders • Lack of financial and technical resources to establish and operate electronic trade systems

System of Trade Logistics – Saint Lucia • Four (4) main ports of entry • Customs, Immigration, Saint Lucia Air & Sea Ports Authority • Laws, Regulations, Licensing, Concession • Saint Lucia Bureau of Standards • Government – Ministry of Finance, Ministry of Commerce, Industry & Consumer Affairs, Ministry of International Trade • Business – Chamber of Commerce, SLISBA, Manufacturers, Coalition of Service Industries • Banking – Bankers Association, ECCB • Consumers – Consumer Affairs Department, National Consumers Association, Saint Lucia Bureau of Standards

Saint Lucia’s Commitment • Easy access to our market with no impediments • Improving trade logistics for greater efficiency and economic benefit • Accessing and utilizing international support • Reciprocity and removal of trade prohibitions • However, we must protect our farmers and livestock producers from unfair/subsidized US competition

THANK YOU THE END

Key Issues in Trade Logistics