CEFTA Trade Facilitation AgendaMarket Access, Additional Protocol 5,Transparency

TFA Training for CEFTA PartiesGeneva, 14 March 2016

Umut ErgezerActing Director

INTRODUCTION

CEFTASECRETARIAT

POSITIONING OF CEFTA 

CEFTASECRETARIAT

WTO TradeFacilitationAgreement

EU Acquis

POSITIONING OF CEFTA PARTIES 

CEFTASECRETARIAT

EU Acquis

EC  (9)1973

EC (10)(1981)

EC (12)(1986)

EC (15)(1995)

EU (25)(2004)

EU (27)(2007)

EU (28)(2013)

Europe Norway (1973)Iceland (1973)Switzerland(1973)

Albania (2009)

Macedonia(2004)

Bosnia and Herzegovina (2008) Montenegro (2010)Serbia (2010)

Ukraine(2014)Georgia (2014)Moldova (2014)

Mediterranean Syria (1977) PalestinianAuthority (1997)Tunisia (1998)Morocco (2000)Israel (2000)Jordan (2002)Lebanon(2003)

Egypt (2004)Algeria (2005)

POSITIONING OF CEFTA PARTIES 

CEFTASECRETARIAT

EU Acquis

EC  (9)1973

EC (10)(1981)

EC (12)(1986)

EC (15)(1995)

EU (25)(2004)

EU (27)(2007)

EU (28)(2013)

Other Mexico (2000)South Africa (2000)Chile (2003)

CARIFORUMStates (2008)Madagascar , Mauritius, Seychelles,  and Zimbabwe (2009)Cameroon (2009)South Korea (2010)Papua New Guinea and Fiji (2011)Iraq (2012)Columbia (2012)Peru (2012)Central America (2012)

Ecuador(2015)

POSITIONING OF CEFTA PARTIES 

• As a country? (Bi‐lateral FTAs with EU, EFTA, Turkey, Russia etc)• As a country in the Region? ( PEM Convention, SAP + cumulation, Western Balkans cumulation– diagonal cumulation / prohibition of duty drawback)•As a Region? (CEFTA, full cumulation and duty drawback in the regional trade)

CEFTASECRETARIAT

EU Acquis

HOW TO DISTINGUISH CEFTA FROM OTHERS?

CEFTASECRETARIAT

Current Context in CEFTA 

CEFTASECRETARIAT

• Trade in industrial and agricultural goods isliberalised (no tariff‐ no quota)

• Alignment to the EU acquis is in progress with variable levels – no action in CEFTA to contradict with the acquis

• All signed FTAs with the EU, and TR and with theEFTA states (except Moldova and Kosovo*)

• Overall commitment to respect WTO rule book in the implementation of CEFTA independent from the status of membership to WTO

*This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo declaration of independence

Highlights of CEFTA Trade

EVOLUTION OF CEFTA PRIORITIES

CEFTASECRETARIAT

MAIN PILLARS of CEFTA TRADE FACILITATION AGENDA and THEIR EVOLUTION IN CEFTA PRIORITIES

CEFTASECRETARIAT

WTO TradeFacilitationAgreement

EU Acquis

UPDATE ON CEFTA STRUCTURES

CEFTASECRETARIAT

CEFTA Structures 

CEFTA TRADE FACILITATION AGENDA

CEFTASECRETARIAT

Overall Policy Context of CEFTA Priorities 

Economic Growth

Promote Trade and Investment

Trade Facilitation Liberalisation of Trade in Services

Interconnectivity

Capacity Building

Transparency

CEFTASECRETARIAT

General Principles of Trade Facilitation in CEFTA

Built upon the EU Acquis

(Acquis +)

No Region Specific Standards

All actions are to be in line with the Acquis

Additional legal instruments are to be created to utilise the Acquis for economic interest 

of the Region

Private Sector Oriented

Public‐private sector dialogue is to be strengthened

Private Sector is to play advisory role

Attention of private sector to play a role of watchdog to the implementation of CEFTA

Specific and Result Oriented

Product Specific Measures

Most Trade Distortive Barriers

Facilitate Access to Markets

CEFTASECRETARIAT

Regional Actions in CEFTA always aim to create regional legal instruments 

CEFTATrade

Facilitation

HarmonisationIdentifying and Eliminating NTBs(in all clearance stages)

SimplificationAdditional Protocol on 

Trade Facilitation (pre‐clearance and 

clearance) StandardisationElimination of overlapping and 

redundant documentary requirements(pre‐clearance)

CEFTASECRETARIAT

UPDATE ON NEGOTIATIONS OF ADDITIONAL PROTOCOL 5

CEFTASECRETARIAT

Interaction of AP5 CEFTAwith other Agreements and Processes

CEFTASECRETARIAT

WTO TradeFacilitationAgreement

EU Acquis

Additional Protocol 5

Berlin Process 

SEE 2020

EU AcquisCEFTA Agreement 

WTO TFA

Structure of AP 5

CEFTASECRETARIAT

WTO TradeFacilitationAgreement

EU Acquis

Securing implementation by creating direct link to CEFTA dispute settlement 

CEFTA specific obligations for the electronic exchange of information including all agencies 

involved in the clearance of goods

EU bilateral agreements with EFTA States for trade facilitation and mutual recognition of 

AEOs

WTO TFA +

WTO TFA (on the basis of self‐assessments of CEFTA Parties)

Update on the negotiations of CEFTA Additional Protocol 5on Trade Facilitation (1)  

CEFTASECRETARIAT

When  What  Remarks 

21 November 2014 Adoption of Ministerial Conclusions to launch negotiations on the Framework Agreement (Additional Protocol 5) 

January 2015 to May 2015 Technical assistance financed by the CPFto support the negotiations 

‐IT Consultancy for technical annexe of electronic exchange of data‐Workshop with the EU and WCO 

27 May 2015 1st Round of Negotiations  ‐Conclusions on the modus operandi ‐1st draft of Additional Protocol and Technical Annexe on Electronic Exchange of Information

26 June 2015 Circulation of follow‐up documents of the 1st Round

Update on the negotiations of CEFTA Additional Protocol 5 on Trade Facilitation (2)  

CEFTASECRETARIAT

When  What  Remarks 

June to September 2015 Appointing Chief Negotiators and Deputies 

All CEFTA Parties appointed their Chief Negotiator 

01 October 2015 Coordination meeting of Chief Negotiator ‐ 2nd draft text of AP 5‐Planning the upcoming rounds‐SEED +

13 November 2015 Invitation to the 2nd Round of negotiations

‐3rd draft of the Additional Protocol‐ Draft Action Plan‐Methodology to compile documentary requirements 

20‐21 January 2016 2nd Round of Negotiations  ‐ 3rd draft of the Additional Protocol (All text of AP 5 – 36 Articles‐reviewed) (based on WTO TFA SA, EU)‐ Agreed on the Action Plan

March‐June 3rd and 4th Rounds of negotiations  ‐ 4th draft of AP 5 (WTO TFA+ and EU +)‐To conclude negotiations‐ To conclude the technical annexe on electronic exchange of data

Challenges• EU Acquis ‐ EU Accession Process 

‐how to benefit / utilise the EU acquis? ‐ EU acquis – economic growth – competitiveness – trade facilitation ?

• High level commitment to mid‐level management ‐Who wants trade facilitation? Who want to facilitate trade? (Berlin Process, SEE 2020)

• Public‐ private sector dialogue?‐Capacity of private sector representatives ‐ How to reflect policy recommendations of private sector? How bottom‐up should be?

• Coordination?•Regional ( between regional organisations RCC‐CEFTA – SEETO – SEECEL – etc)• Regional to national (SEE 2020 and ERPs)• Intra‐national (Inter‐ministry and intra‐ministry)

CEFTASECRETARIAT

THANK YOU.