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Trade Facilitation and Development. [email protected], July 2014. Trade Facilitation and Development. 10 global trends in Trade and Logistics TF measures TF and development TF implementation. Trade Facilitation and Development. 10 global trends in Trade and Logistics TF measures

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trade facilitation and development1
Trade Facilitation and Development
  • 10 global trends in Trade and Logistics
  • TF measures
  • TF and development
  • TF implementation
trade facilitation and development2
Trade Facilitation and Development
  • 10 global trends in Trade and Logistics
  • TF measures
  • TF and development
  • TF implementation
1 exports of manufactured goods
1. Exports of manufactured goods

Developing countries have become major exporters of manufactured goods

developing countries share in seaborne trade
Developing countries’ share in seaborne trade

% Share of global seaborne trade (tonnes). Source: UNCTAD, Review of Maritime Transport, 2013

developing countries share in seaborne trade1
Developing countries’ share in seaborne trade

Old Scenario:

Developing countries exported large volumes of raw materials and imported high value (low volume) manufactured goods

% Share of global seaborne trade (tonnes). Source: UNCTAD, Review of Maritime Transport, 2013

developing countries share in seaborne trade2
Developing countries’ share in seaborne trade

Today’s Scenario:

Developing countries participate in globalized production. They also import raw materials and also export manufactured goods

% Share of global seaborne trade (tonnes). Source: UNCTAD, Review of Maritime Transport, 2013

slide8
“Developing economies’ market share increased the most (…) for the following export products”

Source: UNCTAD, Handbook of statistics 2012

2 globalized production
2. Globalized production
  • Intra-company trade
  • Trade in intermediate products
  • Logistics part of production process
slide10
World trade by stage of processing

Source: UNCTAD, Key Trends in International Merchandise Trade, 2013

slide11
Share of developing countries in value added trade and in gross exports

Source: UNCTAD, Global Value Chains and Development, 2013

3 security concerns
3. security concerns

Security measures along the entire supply chain

4 new geography of trade
4. New Geography of Trade

Growing South-South Trade

slide14
Growing South-South tradeDestinationof exports from the South(as share of total exports from the South)

Source: UNCTAD, South-South Trade Monitor #2, July 2013

5 regional integration
5. Regional integration
  • Increased regional and transit trade
slide16
Intra-Africantrade

Source: UNCTAD, Economic Development in Africa Report, July 2013

6 changing logistics expenditures
6. Changing logistics expenditures

Inventory holding expenditures decrease, and Transport expenditures increase

CSCM – State of Logistics Report various issues. Data for United States

7 technologies
7. Technologies
  • Containerization, shipping networks
  • Use of computers and Internet
containerization
Containerization

Bernhofen et al, 2013 The Economist, May 2013

8 private sector participation
8. Private sector participation

Port operators, shipping lines, railways, airlines, airports, Customs brokers, banks, ware-houses, traders, freight forwarders…

container port operators
Container port operators

Million TEU

fromDubai, Hong Kong, Philippines, Singapore, et al

9 tariff reductions
9. Tariff reductions

For most developing countries’ exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in the destinationcountries.

Source: Miccio/ Perez 2002

slide25
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 TFA

trade facilitation and development3
Trade Facilitation and Development
  • 10 global trends in Trade and Logistics
  • TF measures
  • TF and development
  • TF implementation
slide27
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 TFA

slide28
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 TFA

Advance rulings

slide30
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 TFA

Authorized Operators

slide32
3. Security concerns

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 TFA

Risk management

slide34
1. Manufactured goods

2. Globalized production

3. Security concerns

4. Trade geography

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 TFA

Internet publication

slide36
5. Regional integration

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 TFA

Freedom of transit.

“Transit” also included in several other Articles

slide38
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 TFA

Separate release from clearance

slide40
7. Technologies

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 TFA

Pre-arrival Processing,

Electronic Payments,

slide42
1. Manufactured goods

2. Globalized production

3. Security concerns

4. Trade geography

5. Regional integration

6. Logistics

7. Technologies

8. Private sector participation

9. Tariff reductions

10. WTO TFA

National TF Committee

slide43
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 TFA

Transport costs and trade facilitation more important than tariffs !

slide44
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 TFA

… a response to trends in international trade, transport, logistics and technologies !

trade facilitation and development4
Trade Facilitation and Development
  • 10 global trends in Trade and Logistics
  • TF measures
  • TF and development
  • TF implementation
developing icts
DevelopingICTs

The introduction of ICTs by Customs encourages SMEs to also connect to the internet

developing e commerce
Developing e-commerce

Reforms of legal regimes that facilitate the use of electronic documents help modernize other business practices

developing transit
Developing Transit

A framework for bank guarantees for transit trade helps improve the financial system

developing trust
Developing trust

Increased transparency is good for good governance in general

developing single windows
Developing Single Windows

A single window experience for trade may help to introduce single windows elsewhere

developing trade facilitation committees
Developing Trade Facilitation Committees

Mechanisms to consult with stake holders are good practice not onlyfor trade facilitation

slide52
Is red tape an obstacle to development?

OR

Is red tape the result of a lack of development?

ANSWER: It is both

slide53
More income to finance trade facilitation

-> Better trade facilitation

-> More Trade

-> More income to finance trade facilitation

slide54
Better services

-> More trade

-> More income to finance infrastructure

-> Better services

slide55
Lower Trade Costs

-> More trade

-> Economies of scale

-> Lower Trade Costs

the tipping point start with trade facilitation
The “tipping point”: Start with Trade Facilitation

Trade facilitation is good for trade and for development

Development is good for trade and for trade facilitation

trade facilitation and development5
Trade Facilitation and Development
  • 10 global trends in Trade and Logistics
  • TF measures
  • TF and development
  • TF implementation
unctad s trade facilitation programme 1
UNCTAD’sTrade Facilitation Programme (1)

Research

  • Basic data, annual and quarterly reports

2014 (forthcoming)

slide60
UNCTAD’sTrade Facilitation Programme (1)

Research

  • Basic data, annual and quarterly reports
  • Technical Notes
  • National trade facilitation committees
  • Regional agreements and TF
  • Multilateral negotiations
  • Implementation plans
slide61
UNCTAD’sTrade Facilitation Programme (2)

Consensus building

  • Multilateral
  • Regional
  • National task forces
slide62
UNCTAD’sTrade Facilitation Programme (3)

Technical Assistance and Capacity Building

  • Donors: European Union, Norway, Spain, Sweden, Switzerland, United Nations Development Account, World Bank.
  • Programmes: Multilateral, regional, national support groups
3 levels of tf implementation
3 levels of TF implementation
  • The TFA
    • Categories
    • Notifications
    • Ratification
  • Compliance with the TFA
    • National TF committee
    • Implementation plans
    • Almost 40 individual measures
  • Ambitious TF reforms, beyond the TFA
unctad trade facilitation implementation plans
UNCTAD Trade Facilitation Implementation Plans
  • 30 countries so far
  • in 2012-2013
  • LDCs and DCs; LLDCs, transit, and SIDs; LAC, Africa, and Asia
  • In collaboration with other Annex D
programme per country
Programme per country
  • Introductory seminar and recruitment of a national UNCTAD consultant
  • Systematic interviews and production of draft national implementation plan by consultant (2-4 months)
  • Validation conference with all stakeholders
  • Finalization of report by UNCTAD
  • Handing over to government
outcomes1
Outcomes
  • National TF implementation plan
outcomes2
Outcomes
  • National TF implementation plan
  • Strengthened nationalcapacity and nationaltrade facilitation committee
implementation is lower in ldcs
Implementation is lower in LDCs

Preliminary results – not to be quoted

ldcs require more tacb
LDCs require more TACB

Percentage of the measures requiring TACB

least implemented measures
Least implemented measures
  • Publication/Availability of Information (Art. 1)
  • Advance Ruling (Article 3),
  • Border Agency Cooperation (Article 9)
  • Prior Publication and Consultation (Article 2)
  • Customs Cooperation (Article 12)
how much would it cost
How much would it cost?

It depends…

  • Starting point
  • Each country is different (size, geography…)
  • Ambition
  • Trade-offs (time/money; national/international financing)
trade facilitation and development6
Trade Facilitation and Development
  • 10 global trends in Trade and Logistics
  • TF measures
  • TF and development
  • TF implementation
motivations for tf
Motivations for TF
  • It’s good for trade. And tradeisusually good for development.
  • It isalso good for Customs: It increases revenue collection and savesresources.
  • Plus: Most measures, on theirown, are good for development
beyond trade policies trade facilitation is good for development
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
  • empower women entrepreneurs,
  • strengthen regional integration,
  • modernize public administrations,
  • foster IT capacities, and
  • increase revenue collection.
beyond trade policies trade facilitation is good for development1
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
beyond trade policies trade facilitation is good for development2
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
beyond trade policies trade facilitation is good for development3
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
beyond trade policies trade facilitation is good for development4
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
  • empower women entrepreneurs,
beyond trade policies trade facilitation is good for development5
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
  • empower women entrepreneurs,
  • strengthen regional integration,
beyond trade policies trade facilitation is good for development6
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
  • empower women entrepreneurs,
  • strengthen regional integration,
  • modernize public administrations,
beyond trade policies trade facilitation is good for development7
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
  • empower women entrepreneurs,
  • strengthen regional integration,
  • modernize public administrations,
  • foster IT capacities, and
beyond trade policies trade facilitation is good for development8
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade
  • save time and frustrations
  • improve governance
  • empower women entrepreneurs
  • strengthen regional integration
  • modernize public administrations
  • foster IT capacities
  • Improve security
beyond trade policies ttf is good for development
Beyond trade policies… TTF is good for development

Trade and Transport Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
  • empower women entrepreneurs,
  • strengthen regional integration,
  • modernize public administrations,
  • foster IT capacities, and
  • increase revenue collection.
beyond trade policies trade facilitation is good for development9
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
  • empower women entrepreneurs,
  • strengthen regional integration,
  • modernize public administrations,
  • foster IT capacities, and
  • increase revenue collection.
beyond trade policies trade facilitation is good for development10
Beyond trade policies… Trade Facilitation is good for development

Trade Facilitation reforms help to …

  • formalize trade,
  • save time and frustrations,
  • improve governance,
  • empower women entrepreneurs,
  • strengthen regional integration,
  • modernize public administrations,
  • foster IT capacities,
  • Improve security, and
  • increase revenue collection.
trade facilitation and development7
Trade Facilitation and Development
  • 10 global trends in Trade and Logistics
  • TF measures
  • TF and development
  • TF implementation
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