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Transcript of Trade Facilitation and Development [email protected], July 2014.
![Page 2: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/2.jpg)
• 10 global trends in Trade and Logistics
• TF measures• TF and development• TF implementation
Trade Facilitation and Development
![Page 3: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/3.jpg)
• 10 global trends in Trade and Logistics
• TF measures• TF and development• TF implementation
Trade Facilitation and Development
![Page 4: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/4.jpg)
1. Exports of manufactured goodsDeveloping countries have become major exporters of manufactured goods
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Developing countries’ share in seaborne trade
% Share of global seaborne trade (tonnes). Source: UNCTAD, Review of Maritime Transport, 2013
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Developing countries’ share in seaborne trade
% Share of global seaborne trade (tonnes). Source: UNCTAD, Review of Maritime Transport, 2013
Old Scenario: Developing countries exported large volumes of raw materials and imported high value (low volume) manufactured goods
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Developing countries’ share in seaborne trade
% Share of global seaborne trade (tonnes). Source: UNCTAD, Review of Maritime Transport, 2013
Today’s Scenario: Developing countries participate in globalized production. They also import raw materials and
also export manufactured goods
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“Developing economies’ market share increased the most (…) for the following export products”
Source: UNCTAD, Handbook of statistics 2012
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2. Globalized production• Intra-company trade• Trade in intermediate products• Logistics part of production
process
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World trade by stage of processing
Source: UNCTAD, Key Trends in International Merchandise Trade, 2013
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Share of developing countries in value added trade and in gross exports
Source: UNCTAD, Global Value Chains and Development, 2013
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3. security concernsSecurity measures along the entire supply chain
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4. New Geography of TradeGrowing South-South Trade
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Growing South-South trade Destination of exports from the South(as share of total exports from the South)
Source: UNCTAD, South-South Trade Monitor #2, July 2013
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5. Regional integration • Increased regional and transit
trade
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Intra-African trade
Source: UNCTAD, Economic Development in Africa Report, July 2013
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6. Changing logistics expenditures
Inventory holding expenditures decrease, and Transport expenditures increase
CSCM – State of Logistics Report various issues. Data for United States
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7. Technologies
• Containerization, shipping networks
• Use of computers and Internet
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Containerization
Bernhofen et al, 2013 The Economist, May 2013
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8. Private sector participationPort operators, shipping lines, railways, airlines, airports, Customs brokers, banks, ware-houses, traders, freight forwarders…
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Container port operatorsMillion TEU
from Dubai, Hong Kong, Philippines, Singapore, et al
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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. Aver age
Ar gentina
Ur uguay
Par aguay
Br azil
Chile
Bolivia
Per u
Ecuador
Sur iname
Venezuela
Colombia
Tr inidad and Tobago
Bar bados
Gr enada
St Vincent and the Gr enadines
St Lucia
Dominica
Antigua and Bar buda
St Kitts and Nevis
Dominican Republic
Haiti
JamaicaBahamas
Panama
Costa Rica
Nicar aguaHondur as
El Salvador
Belize
Guatemala
Mexico
0%
2%
4%
6%
8%
10%
12%
14%
0% 2% 4% 6% 8% 10% 12% 14%
TARIFF/CUST
International freight
Import Customs duties USA
Source: Miccio/ Perez 2002
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10. WTO Trade Facilitation Agreement (TFA)
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1. Manufactured goods
2. Globalized production
3. Security concerns 4. Trade geography 5. Regional
integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
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• 10 global trends in Trade and Logistics
• TF measures• TF and development• TF implementation
Trade Facilitation and Development
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1. Manufactured goods
2. Globalized production
3. Security concerns 4. Trade geography 5. Regional
integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
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1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
Advance rulings
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1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
Authorized Operators
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1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
3. Security concerns
Risk management
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1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography Internet publication
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1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional
integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
5. Regional
integration
Freedom of transit.“Transit” also included in several other Articles
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1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
Separate release from clearance
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1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
7. Technologies
Pre-arrival Processing,Electronic Payments, …
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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 reductions10. WTO TFA
National TF Committee
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1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
Transport costs and trade facilitation more important than tariffs !
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1. Manufactured goods
2. Globalized production
3. Security concerns 4. Trade geography 5. Regional
integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO TFA
… a response to trends in international trade, transport, logistics and technologies !
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• 10 global trends in Trade and Logistics
• TF measures• TF and development• TF implementation
Trade Facilitation and Development
![Page 46: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/46.jpg)
The introduction of ICTs by Customs encourages SMEs to also connect to the internet
Developing ICTs
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Developing e-commerce
Reforms of legal regimes
that facilitate the use of
electronic documents help
modernize other business
practices
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Developing Transit
A framework for bank guarantees for transit trade helps improve the financial system
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Developing trust
Increased transparency is good for good governance in general
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Developing Single Windows
A single window experience for trade may help to introduce single windows elsewhere
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Developing Trade Facilitation Committees
Mechanisms to consult
with stake holders are
good practice not only
for trade facilitation
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Is red tape an obstacle to development?
OR
Is red tape the result of a lack of development?
ANSWER: It is both
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More income to finance trade facilitation
-> Better trade facilitation-> More Trade-> More income to finance
trade facilitation
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Better services-> More trade-> More income to
finance infrastructure-> Better services
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Lower Trade Costs-> More trade-> Economies of scale-> Lower Trade Costs
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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
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• 10 global trends in Trade and Logistics
• TF measures• TF and development• TF implementation
Trade Facilitation and Development
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UNCTAD’sTrade Facilitation Programme
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UNCTAD’sTrade Facilitation Programme (1)Research
• Basic data, annual and quarterly reports
2014 (forthcoming)
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Research
• Basic data, annual and quarterly reports
• Technical Notes
• National trade facilitation committees
• Regional agreements and TF
• Multilateral negotiations
• Implementation plans
UNCTAD’sTrade Facilitation Programme (1)
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Consensus building
• Multilateral
• Regional
• National task forces
UNCTAD’sTrade Facilitation Programme (2)
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Technical Assistance and Capacity Building
• Donors:
European Union, Norway, Spain, Sweden,
Switzerland, United Nations Development
Account, World Bank.
• Programmes:
Multilateral, regional, national support
groups
UNCTAD’sTrade Facilitation Programme (3)
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3 levels of TF implementation
1. The TFA– Categories– Notifications– Ratification
2. Compliance with the TFA– National TF committee– Implementation plans– Almost 40 individual measures
3. Ambitious TF reforms, beyond the TFA
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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
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Programme per country
1. Introductory seminar and recruitment of a national UNCTAD consultant
2. Systematic interviews and production of draft national implementation plan by consultant (2-4 months)
3. Validation conference with all stakeholders
4. Finalization of report by UNCTAD5. Handing over to government
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Outcomes
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Outcomes
• National TF implementation plan
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Outcomes
• National TF implementation plan
• Strengthened nationalcapacity and nationaltrade facilitation committee
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Lessons learned
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Implementation is lower in LDCs
0%
20%
40%
60%
80%
100%
Fully implemented Partially implemented
Preliminary results – not to be quoted
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LDCs require more TACB
Percentage of the measures requiring TACB
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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)
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Main hurdlesMost quoted reasons (all)
32
84
63
24 24
45
18
0
10
20
30
40
50
60
70
80
90
100
Lack ofunderstanding
or knowledge ofthe measure
Lack of legalframework
Lack ofresources
ICT andinfrastructure
issues
Lack of Gov.cooperation
Lack of org. andinst. framework
Other
%
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How long would it take?Number of countries
0
1
2
3
4
5
6
7
8
9
10
11
12
3-4 Years 5 years 10 years
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How much would it cost?
It depends…• Starting point• Each country is different (size,
geography…)• Ambition• Trade-offs (time/money;
national/international financing)
![Page 76: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/76.jpg)
How much would it cost?(per measure, average)
63
20
11
03 3
0
20
40
60
80
100
Under 100 Between 100 -500
Between 500 -1'000
Between 1'000- 2'000
Between 2'000- 3'000
Above 3'000
1000 US$
%
![Page 77: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/77.jpg)
• 10 global trends in Trade and Logistics
• TF measures• TF and development• TF implementation
Trade Facilitation and Development
![Page 78: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/78.jpg)
Motivations for TF
1) It’s good for trade. And trade is usually good for development.
2) It is also good for Customs: It increases revenue collection and saves resources.
3) Plus: Most measures, on their own, are good for development
![Page 79: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/79.jpg)
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.
![Page 80: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/80.jpg)
Beyond trade policies… Trade Facilitation is good for development
Trade Facilitation reforms help to …• formalize trade,
![Page 81: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/81.jpg)
Beyond trade policies… Trade Facilitation is good for development
Trade Facilitation reforms help to …• formalize trade, • save time and frustrations,
![Page 82: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/82.jpg)
Beyond trade policies… Trade Facilitation is good for development
Trade Facilitation reforms help to …• formalize trade, • save time and frustrations, • improve governance,
![Page 83: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/83.jpg)
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,
![Page 84: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/84.jpg)
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,
![Page 85: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/85.jpg)
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,
![Page 86: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/86.jpg)
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
![Page 87: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/87.jpg)
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
![Page 88: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/88.jpg)
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.
![Page 89: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/89.jpg)
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.
![Page 90: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/90.jpg)
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.
![Page 91: Trade Facilitation and Development Jan.Hoffmann@UNCTAD.org, July 2014.](https://reader033.fdocuments.in/reader033/viewer/2022051517/56649cc55503460f9498f76d/html5/thumbnails/91.jpg)
• 10 global trends in Trade and Logistics
• TF measures• TF and development• TF implementation
Trade Facilitation and Development