1. TRADE FACILITATIONIN THE WTO DOHA ROUND John Clarke, Deputy Head of the EC Delegation To the WTO and the UN, Geneva

2. Overview of presentation • What is Trade Facilitation? • Does it matter? • Trade facilitation in the DDA • The development dimension • State of play of negotiations

3. What is Trade Facilitation ? Scope: Laws, procedures, fees and practices, documents for import, export and transit Objective: Simplification, standardisation, modernisation – to reduce business costs and time It is not (in WTO): Services liberalisation and infrastructure (building roads, ports, etc.)

4. Does it matter? Benefits for business • Saves money and time • “Just-in-time” production • Predictability • As trade increases, bottlenecks increase • Costs of “non-facilitation” high for competitiveness • SMEs and developing country firms gain most

5. Does it matter? Examples Morocco: Release in Casablanca port fell from 20 days to 1-2 hours Mozambique: In two years, revenues increased by over 50% despite significant tariff cuts Peru: Customs revenue more than doubled at same time as tariffs cut. Costa Rica : Clearance from 6 days to 12 minutes Singapore: Customs clearance in minutes. 1% on GDP

6. Does it matter? Benefits for government • Improve controls and security • Less corruption, higher revenue collection • Better investment climate • Land-locked countries have particular interest

7. Does it matter? Macro analysis • An additional 1% of world GDP or €300 billion • Bulk of gains, in relative terms, concentrated in South, especially Sub Saharan Africa

8. Trade Facilitation in the DDA:Why the WTO ? • Trade facilitation is already part of WTO • Boosts domestic reforms • Boosts export market reforms • Setsglobal standards • Mobilises international aid effort • WTO rules are binding and enforceable

9. Trade Facilitation in the DDA • TF negotiations launched “late”. July 2004 DDA Package. • 5 aims: • Improve transparency: GATT Article X(publication, consultation, appeals…) • Simplify and standardise procedures: GATT Article VIII(risk management, authorised traders, use of international standards, pre-arrival processing, abolition of PSI, …) • Simplify and modernise transit: GATT Article V (landlocked countries, energy…) • Enhance technical assistance • Improve customs co-operation

10. The development dimension • Need a development focus: technical assistance, flexibilities • To maximise benefit, TF should be part of broad reform programme • BUT significant benefits can result from targetted actions: Better transparency, lower fees; co-ordinated border opening hours; user-friendly documents…

11. The development dimension: Technical assistance • WTO commitments and technical assistance: • GATT principles tend to be resource light • Other commitments may require automation and be potentially resource intensive • Resources central element of DDA negotiations • Delivery of technical assistance key

12. The development dimension: Flexibilities • Outcome will be subject to extensive special and differential treatment • Beyond traditional transition periods, with commitments linked to implementation capacity • Tailor-made implementation plans linked to technical assistance

13. Third country positions Colorado Group – long-standing friends US, Australia, Canada, Chile, Colombia, Costa Rica, EC, Hong Kong China, Japan, Korea, Morocco, New Zealand, Norway, Paraguay, Singapore and Switzerland Core Group – the former sceptics Bangladesh, Botswana, Egypt, Cuba, India, Indonesia, Jamaica, Kenya, Malaysia, Mauritius, Nigeria, Philippines, Rwanda, Tanzania, Trinidad and Tobago, Uganda, Venezuela, Zambia and Zimbabwe

14. Third country positions China – constructive with offensive interests Latin Americans – increasingly engaged and influential Taiwan – very ambitious Pakistan – very supportive Africa Group, LDCs, ACP,Economies in transition,LLDCs all active as groups, with a focus on obtaining assistance and some flexibility

15. International organisations Integral part of negotiations: WCO – standards and assistance World Bankand IMF –supportive and active OECD – analysis of proposals UNCTAD – developing country voice and assistance WTO Secretariat

16. State of play of negotiations • On track • 100+ submissions from 100+ WTO Members • EC has made or co-sponsored 20+ submissions • Hong Kong Ministerial agreed (end 2005) good basis for development of multilateral commitments in 2007 • Aiming for first draft of new WTO Agreement by March • Conclusion later in 2008 along with the rest of the Doha Round