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Overview
- What is Trade Facilitation
- Importance of Trade Facilitation
- Trade Facilitation and the DDA
- The development dimension
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What is Trade Facilitation?
In WTO context:
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Focus on procedures in movement and release of goods
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Import, export and transit: simplify, reduce, standardise, modernise
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Strengthen and improve Article V, VIII and X of GATT
Broader definitions cover resolving challenges posed by:
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Technical barriers to trade (TBT Agreement)
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Sanitary and Phytosanitary standards ( SPS Agreement)
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Importance of Trade Facilitation
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Benefits for Traders:
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Reduce the costs of trade transactions (US$300bn)
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Time savings - in sync with just in time culture
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Developing country enterprises and SMEs
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Benefits for Governments:
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Improve revenue collection
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Maintain and improve customs control measures
Some Success Stories
Trade procedures cost between 2-10% of trade value
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Costa Rica: border crossing delays reduced from 6days to 12mins
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Bangladesh 3days to 3hours
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Chile: US$ 5mn invested, US$ 1 mn saved per month
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Peru: Quadrupled revenue collected between 1995-2000
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Trade Facilitation and the Doha Agenda
Negotiation Issues
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General principles
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Transparency and appeal
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Import and export formalities
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Transit
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Technical assistance and capacity building
Application of principles of GATT/WTO Agreements
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Transparency
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Non-discrimination
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Least trade restrictiveness
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Use of international standards
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Development provisions
Transparency and appeal – improve GATT article X:
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Transparency of all customs laws and procedures
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Advance notification of changes
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Consultation
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Periodic review and consolidation of customs rules
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Customs appeal procedures
Import and export requirements: revamp GATT Article VIII:
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Reduce complexity and diversity of fees and formalities
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Notify, bind and reduce standard release times
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Introduce simplified customs release and clearance; automation
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Simplify and standardise data and documents
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Integrated border management and one-stop borders
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Risk assessment, and profiling of authorised traders
Transit – improve GATT Article V:
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Simplify transit rules, procedures and requirements: critical for landlocked LDCs
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Transit should be less complicated than import
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Fees and charges proportionate to cost of services provided
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The Development Dimension
Development provisions:
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The ‘July Framework Agreement’ firmly links commitments to a country’s capacity to implement
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Flexibilities and exemptions esp. for LDCs important
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‘Contractual right provisions’ to capacity building and technical assistance needed.
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Proposed rules and commitments both resource -heavy and resource-light
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GATT principles:non-discrimination, transparency –relatively resource light
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New technologies e.g automation – resource heavy
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WTO commitments therefore need resources
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Technical assistance holds the keys for success in negotiations
For success capacity building and technical assistance:
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Programmes must be tailored to individual country needs
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Ownership and active participation by recipient crucial
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Recipients should be the ones who identify and prioritise their needs.
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Cooperation between donors and recipient important.
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