Cross Border Transport Agreement Cross Border Transport Agreement and Trade Facilitation in GMSand Trade Facilitation in GMS

Lingling DingLingling Ding

Senior Regional EconomistSenior Regional Economist

Thailand Resident Mission, Asian Development BankThailand Resident Mission, Asian Development Bank

13 March 200713 March 2007

Key PointsKey Points• GMS program and trade facilitationGMS program and trade facilitation• Main initiatives: Cross Border Transport Main initiatives: Cross Border Transport

Agreement and GMS Trade Facilitation Agreement and GMS Trade Facilitation FrameworkFramework

• The GMS program extends beyond cross The GMS program extends beyond cross border trade into poverty reduction and border trade into poverty reduction and promotion of sustainable developmentpromotion of sustainable development

• The ADB has taken the leading role in The ADB has taken the leading role in promoting trade facilitation through sub-promoting trade facilitation through sub-regional arrangements like the GMSregional arrangements like the GMS

The GMS ProgramThe GMS Program

• Ten year strategic framework: Ten year strategic framework: 1992, development of markets, 1992, development of markets, transport and economic corridorstransport and economic corridors

• Regional Cooperation Strategy and Regional Cooperation Strategy and Program (2004-2008): connectivity, Program (2004-2008): connectivity, competitiveness and community; competitiveness and community; three year rolling programthree year rolling program

GMS Program ComponentsGMS Program Components

• Transport Transport

• TelecomsTelecoms

• Energy Energy

• Environment Environment

• TourismTourism

• Trade facilitationTrade facilitation

• InvestmentInvestment

• Human resource Human resource development development

• AgricultureAgriculture

Trade Facilitation in GMSTrade Facilitation in GMS

• Defined: trade, customs and transport Defined: trade, customs and transport facilitation, to support accession and facilitation, to support accession and implementation of the international/regional implementation of the international/regional agreements and commitmentsagreements and commitments

• Focus of work: physical connectivity; legal Focus of work: physical connectivity; legal agreement (CBTA); framework for action on agreement (CBTA); framework for action on trade facilitationtrade facilitation

• Institutional mechanisms: trade facilitation Institutional mechanisms: trade facilitation working group meetings; committees under working group meetings; committees under CBTA; GMS Customs directors-generals CBTA; GMS Customs directors-generals meetingsmeetings

• Implementation of pilot projectsImplementation of pilot projects

The CBTAThe CBTA

Cross Border Transport Cross Border Transport AgreementAgreement

The CBTA InitiativeThe CBTA Initiative

• Inconsistent and difficult border crossing Inconsistent and difficult border crossing formalities and proceduresformalities and procedures

• Restrictive visa requirementsRestrictive visa requirements• Restrictions on entry of motor vehicles Restrictions on entry of motor vehicles • Different standards on vehicles and drivers Different standards on vehicles and drivers

across countriesacross countries• Transit traffic difficult/not allowed Transit traffic difficult/not allowed

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CBTA FeaturesCBTA Features

• Multilateral agreement that covers all aspects of Multilateral agreement that covers all aspects of cross border movement of goods, vehicles and cross border movement of goods, vehicles and peoplepeople

• Makes reference and in conformity with Makes reference and in conformity with international conventions: Conventions on international conventions: Conventions on Road Road traffic; Road Signs and Signals, TIR; Temporary traffic; Road Signs and Signals, TIR; Temporary Importation of Commercial Road Vehicles; Importation of Commercial Road Vehicles; Containers; Harmonization of Frontier Control of Containers; Harmonization of Frontier Control of GoodsGoods

• Comprises of one framework agreements+20 Comprises of one framework agreements+20 annexes and protocolsannexes and protocols

CBTA FocusCBTA Focus

• Facilitation of border crossing formalities (single window Facilitation of border crossing formalities (single window and single stop customs inspection, coordinating of and single stop customs inspection, coordinating of hours of operation; and exchange of advance hours of operation; and exchange of advance information and clearance)information and clearance)

• Facilitate cross-border movement of people (multi-entry Facilitate cross-border movement of people (multi-entry visa, recognition of driver license)visa, recognition of driver license)

• Facilitate cross-border movement of goods (regional Facilitate cross-border movement of goods (regional transit regime)transit regime)

• Exchange of traffic rightsExchange of traffic rights

• Requirements for admittance of road vehiclesRequirements for admittance of road vehicles

• Institutional ArrangementsInstitutional Arrangements

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CBTA Institutional MechanismCBTA Institutional Mechanism

NationalNational Subregional Subregional

Cambodia NTFCCambodia NTFC

PRC NTFCPRC NTFC

Viet Nam NTFCViet Nam NTFC

Lao PDR NTTFCLao PDR NTTFC

Myanmar NTFCMyanmar NTFC

Thailand NTFCThailand NTFC

ADB RETA ADB RETA SupportSupport

Ministerial Joint Ministerial Joint CommitteeCommittee

TransportTransport CustomsCustoms ImmigrationImmigration QuarantineQuarantine

subcommitteessubcommittees

CBTA- ChronologyCBTA- Chronology

• 1998: preparation of Framework Agreement1998: preparation of Framework Agreement

• 1998-2003: negotiation and signing of 1998-2003: negotiation and signing of Framework AgreementFramework Agreement

• 1999–2006: preparation and negotiation of 1999–2006: preparation and negotiation of Annexes and ProtocolsAnnexes and Protocols

• March 2007: 2March 2007: 2ndnd Joint Committee Meeting, Joint Committee Meeting, signing of remaining annexes and protocolsigning of remaining annexes and protocol

• 2005-2008: initial implementation of CBTA at 2005-2008: initial implementation of CBTA at selected border crossing pointsselected border crossing points

• 2009 onwards: full implementation2009 onwards: full implementation

• Ruili – Muse

• Mohan – Boten

• Veune Kham – Dong Kralor

• Hat Lek – Cham Yeam

• Mukdahan – Savannakhet

• Lao-Bao – Dansavanh

• Aranyaprathet – Poipet

• Bavet – Moc Bai

• Hekou – Lao Cai

• Myawaddy – Mae Sot

• Mae Sai – Tachilek

• Houayxay – Chiang Khong

• Nam Phao – Cau Treo

• Chongmek – Wang Tao

• Nongkhai – Thanaleng

Geographic Geographic Coverage of CBTACoverage of CBTA

FIRST PHASE (commencing in 2005/06)

SECOND PHASE (commencing in 2007)

THIRD PHASE (commencing in 2008/2009)

POTENTIAL NEW BORDER CROSSING POINTS

YOUYIGUAN (PRC) - HUU NGHI (VIE)

THAKHEK (LAO) – HA TINH (VIE)

LORK (CAM) – XA XIA (VIE)

BY 2009

FULL IMPLEMENTATION

SFA-TFI InitiativeSFA-TFI Initiative

Strategic Framework for Strategic Framework for Action on Trade Action on Trade Facilitation and Facilitation and

InvestmentInvestment

SFA-TFI InitiativeSFA-TFI Initiative

• While CBTA focuses on activities at the While CBTA focuses on activities at the border, effective trade facilitation extends border, effective trade facilitation extends beyond the border to cover the entire beyond the border to cover the entire supply chain activities used for importing supply chain activities used for importing and exportingand exporting

• SFA-TFI priority areas:SFA-TFI priority areas:Trade logistics developmentTrade logistics developmentCustoms procedures harmonizationCustoms procedures harmonizationSPS strengtheningSPS strengtheningBusiness mobility improvementBusiness mobility improvement

SFA-TFI InitiativeSFA-TFI Initiative

• SFA-TFI re-enforces FTAs, WTO SFA-TFI re-enforces FTAs, WTO agreements, Revised Kyoto agreements, Revised Kyoto Convention, and ASEAN Transit Convention, and ASEAN Transit AgreementAgreement

SFA-TFI: Implementation SFA-TFI: Implementation StatusStatus

Country consultationCountry consultation Preparation of technical report: Preparation of technical report:

identification of gaps identification of gaps supply chain analysis supply chain analysis ICT system evaluation ICT system evaluation legal and regulatory review of legal and regulatory review of

policy impedimentspolicy impedimentsnational and regional actions national and regional actions pilot project developmentpilot project development

SFA-TFI –Initial findingsSFA-TFI –Initial findings

• SFA-TFI needs to target the four SFA-TFI needs to target the four priority areas at the pilot project priority areas at the pilot project levellevel

• Alternatively, it could address Alternatively, it could address specific obstacles in each country, specific obstacles in each country, which could be more ad-hocwhich could be more ad-hoc

SFA-TFI: CustomsSFA-TFI: Customs

Regional themeRegional themecommon declaration formscommon declaration formssingle electronic window single electronic window regional intelligence and regional intelligence and

enforcementenforcementdata sharing and advance data sharing and advance

processingprocessingDevelop regional matrixDevelop regional matrix

SFA-TFI: SPSSFA-TFI: SPS

• Trade off between free flow of goods and SPS Trade off between free flow of goods and SPS risks risks

• Some options: Some options: effective risk assessment procedures and effective risk assessment procedures and

collaboration collaboration government working closely with private sectorgovernment working closely with private sectorsecure quarantine area for plant and animal secure quarantine area for plant and animal

introductionsintroductionsshare experiences on risk assessment share experiences on risk assessment improve lab diagnostics and certificationimprove lab diagnostics and certification

SFA-TFI: LogisticsSFA-TFI: Logistics• Logistics are to be addressed at the pilot project Logistics are to be addressed at the pilot project

levellevel• Some software options Some software options

Strengthen public sector capacityStrengthen public sector capacity Improve private sector management of supply Improve private sector management of supply

chainchainSelect and monitor logistics performance Select and monitor logistics performance

indicatorsindicators• Some hardware optionsSome hardware options

Support cold chain developmentSupport cold chain developmentProvide infrastructure at border crossings Provide infrastructure at border crossings

• Options will be discussed at the 5Options will be discussed at the 5thth TFWG meeting TFWG meeting in May 2007in May 2007

Summing UpSumming Up

GMS provides platform for cooperation in GMS provides platform for cooperation in trade facilitationtrade facilitationShort term: cooperation between heads of Short term: cooperation between heads of

agencies (e.g. in customs and transport)agencies (e.g. in customs and transport)Long term: facilitating implementation of Long term: facilitating implementation of

necessary regional and multilateral necessary regional and multilateral agreementsagreements

ADB is supporting both processes as they ADB is supporting both processes as they are closely linkedare closely linked

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Thank youThank you

For more information: For more information: www.adb.org/gmswww.adb.org/gms

Or email to: dingl@adb.org Or email to: dingl@adb.org

and yushufeng@adb.org and yushufeng@adb.org