Global Enabling Trade Report 2008

World Economic Forum Geneva, Switzerland 2008

Sean Doherty Project Leader Qin He Project Manager

The Global Enabling Trade Report 2008

Robert Z. Lawrence, Harvard University Jennifer Blanke, World Economic Forum Margareta Drzeniek Hanouz, World Economic Forum John Moavenzadeh, World Economic ForumEditors

The Global Enabling Trade Report 2008 2008 World Economic Forum

The Global Enabling Trade Report 2008 is published by the World Economic Forum within the framework of the Global Competitiveness Network and the Industry Partnership Programme for Logistics & Transport.

World Economic Forum Geneva Copyright 2008 by the World Economic Forum Published by World Economic Forum www.weforum.org

Professor Klaus Schwab Executive Chairman, World Economic Forum

EDITORS

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise without the prior permission of the World Economic Forum. ISBN-13: 978-92-95044-06-7

At the John F. Kennedy School of Government, Harvard University:Robert Z. Lawrence, Albert L. Williams Professor of Trade and Investment

At the World Economic Forum:Jennifer Blanke, Senior Economist Margareta Drzeniek Hanouz, Senior Economist John Moavenzadeh, Senior Director, Sustainable Mobility and Strategy

LOGISTICS & TRANSPORT TEAM

Sean Doherty, Head of Logistics and Transport Industry Qin He, Project Manager, Logistics and Transportation Yasmina Makar, Team Coordinator, Mobility Industries

GLOBAL COMPETITIVENESS NETWORK TEAM

Fiona Paua, Senior Director, Head of Strategic Insight Teams Ciara Browne, Senior Community Manager Agustina Ciocia, Coordinator Thierry Geiger, Economist Irene Mia, Senior Economist Pearl Samandari, Research Assistant Eva Trujillo Herrera, Research Assistant

A special thank you to Hope Steele for her superb editing work and Ha Nguyen for her excellent graphic design and layout. The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis.


Contents

Partner Institutes

v

Part 2: Country/Economy Profiles and Data Presentation2.1 Country/Economy Profiles

85

Prefaceby Klaus Schwab, World Economic Forum

xi 87How to Read the Country/Economy Profiles ...............................89

Executive Summaryby Robert Z. Lawrence, Harvard University, and Jennifer Blanke, Sean Doherty, and Margareta Drzeniek Hanouz, World Economic Forum

xiii

by Eva Trujillo Herrera, World Economic Forum

List of Countries/Economies ........................................................91 Country/Economy Profiles............................................................92

2.2 Data Tables

329

Part 1: Selected Issues on Enabling Trade1.1 The Enabling Trade Index: Assessing the Factors Impeding International Tradeby Robert Z. Lawrence, Harvard University, and Jennifer Blanke, Margareta Drzeniek Hanouz, Thierry Geiger, and Qin He, World Economic Forum

13

How to Read the Data Tables ....................................................331 Index of Data Tables...................................................................333 Data Tables.................................................................................335

Technical Notes and Sources

393

About the Authors

397

iii

Acknowledgments 1.2 The Doha Round Negotiations on Trade Facilitationby Richard Eglin, World Trade Organization (WTO)

401

35

1.3 Additional Taxes and the Indirect Evidence on Trade Protectionby Mondher Mimouni, Xavier Pichot, and Lionel Fontagn, International Trade Centre (ITC)

41

1.4 Connecting to Compete: Trade Logistics in the Global Economyby Jean-Franois Arvis, Monica Alina Mustra, and John Panzer, The World Bank, and Lauri Ojala and Tapio Naula, Turku School of Economics, Finland

53

1.5 Facilitating Cross-Border Movement of Goods: A Sustainable Approachby Poul Hansen and Liliana Annovazzi-Jakab, United Nations Conference on Trade and Development (UNCTAD)

67

1.6 Countdown to 2015: Improving Access and Openness to Help Achieve the Millennium Development Goalsby Gene Huang, FedEx Corporation

77



Partner Institutes

Albania Institute for Contemporary Studies (ISB) Artan Hoxha, President Elira Jorgoni, Senior Expert and Project Manager Denalada Kuzumi, Researcher Algeria Centre de Recherche en Economie Applique pour le Dveloppement (CREAD) Youcef Benabdallah, Assistant Professor Yassine Ferfera, Director Argentina IAEUniversidad Austral Marcelo Paladino, Vice Dean Armenia Economy and Values Research Center Manuk Hergnyan, Chairman Sevak Hovhannisyan, Senior Research Associate Anna Makaryan, Research Associate Australia Australian Industry Group Nicholas James, Economist Tony Pensabene, Associate Director, Economics & Research Heather Ridout, Chief Executive Austria Austrian Institute of Economic Research (WIFO) Karl Aiginger, Director Gerhard Schwarz, Coordinator, Survey Department Azerbaijan Azerbaijan Marketing Society Fuad Aliyev, Executive Director Ashraf Hajiyev, Project Coordinator Saida Talibova, Consultant Bahrain Bahrain Competitiveness Council Jawad Habib, Member Bahrain Economic Development Board Rima Al Kilani, Director, International Marketing Bangladesh Centre for Policy Dialogue (CPD) Debapriya Bhattacharya, Executive Director Khondaker Golam Moazzem, Research Fellow Mustafizur Rahman, Research Director Belgium Vlerick Leuven Gent Management School Lutgart Van den Berghe, Professor, Executive Director and Chairman, Competence Centre Entrepreneurship, Governance and Strategy Harry P. Bowen, Professor of Economics and International Business Bieke Dewulf, Associate, Competence Centre Entrepreneurship, Governance and Strategy

Benin Micro Impacts of Macroeconomic Adjustment Policies (MIMAP) Benin Epiphane Adjovi, Business Coordinator Maria-Odile Attanasso, Deputy Coordinator Fructueux Deguenonvo, Researcher Bosnia and Herzegovina MIT Center, School of Economics and Business in Sarajevo, University of Sarajevo Zlatko Lagumdija, Professor Zeljko Sain, Executive Director Jasmina Selimovic, Assistant Director Brazil Fundao Dom Cabral Marina Arajo, Research Assistant Carlos Arruda, International Relations Director and Coordinator of the Innovation Center Movimento Brasil Competitivo (MBC) Jorge H. S. Lima, Project Coordinator Jos Fernando Mattos, President Claudio Leite Gastal, Director Bulgaria Center for Economic Development Anelia Damianova, Senior Expert Burkina Faso Socit dEtudes et de Recherche Formation pour le Dveloppement (SERF) Abdoulaye Tarnagda, Director General Burundi Center of Scientific Research in Economics (CURDES), National University of Burundi Ferdinand Bararuzunza, Professor of Economics and Dean of the Faculty of Economic and Management Sciences Cambodia Economic Institute of Cambodia Sok Hach, Director Tuy Chak Riya, Research Associate Hang Sambopisith, Researcher Cameroon Comit de Comptitivit (Competitiveness Committee) Lucien Sanzouango, Permanent Secretary Canada Institute for Competitiveness and Prosperity Roger Martin, Chairman and Dean of the Rotman School of Management, University of Toronto James Milway, Executive Director Chad Groupe de Recherches Alternatives et de Monitoring du Projet Ptrole-Tchad-Cameroun (GRAMP-TC) Antoine Doudjidingao, Researcher Gilbert Maoundonodji, Director Celine Nnodji Mbaipeur, Programme Officer


Partner Institutes

v

Partner Institutes

Chile Universidad Adolfo Ibez Andres Allamand, Dean, School of Government Catalina Mertz, Director, Institute of Political Economy Sergio Selman, Project Coordinator China Institute of Economic System and Management National Development and Reform Commission Zhou Haichun, Deputy Director and Professor Chen Wei, Research Fellow Dong Ying, Professor Colombia National Planning Department Orlando Gracia Fajardo, Entrepreneurial Development Director Vctor Manuel Nieto, Advisor Carolina Rentera Rodrguez, General Director Croatia National Competitiveness Council Martina Hatlak, Research Assistant Mira Lenardic, Secretary General Cyprus Cyprus College Research Center Bambos Papageorgiou, Head of Socioeconomic and Academic Research The Cyprus Development Bank Maria Markidou-Georgiadou, Manager, International Banking Services Unit and Business Development Czech Republic CMC Graduate School of Business Dagmar Glueckaufova, Interim President and Academic Dean Daniela Sedlackova, Executive Assistant to the President Veronika Stejskalova, Coordinator and Graphic Designer Denmark Copenhagen Business School Department of International Economics and Management Lars Hkanson, Head of Department Anne Sluhan, Administrative Director Ecuador Escuela Superior Politcnica del Litoral (ESPOL) Escuela de Postgrado en Administracin de Empresas (ESPAE) Virginia Lasio, Acting Director Juan Tinoco, Project Assistant Sara Wong, Professor Egypt The Egyptian Center for Economic Studies Hanaa Kheir-El-Din, Executive Director and Director of Research Estonia Estonian Institute of Economic Research Evelin Ahermaa, Head of Economic Research Sector Marje Josing, Director Ethiopia African Institute of Management, Development and Governance Tegegne Teka, General Manager Finland ETLAThe Research Institute of the Finnish Economy Petri Rouvinen, Research Director Pasi Sorjonen, Head of the Forecasting Group Pekka Yl-Anttila, Managing Director France HEC School of Management, Paris Bertrand Moingeon, Professor, Associate Dean for Executive Education Bernard Ramanantsoa, Professor, Dean of HEC School of Management

Germany WHUOtto Beisheim School of Management Michael Frenkel, Chair, Macroeconomics and International Economics Greece Federation of Greek Industries Thanasis Printsipas, Economist, Research and Analysis Antonis Tortopidis, Coordinator, Research and Analysis Guatemala FUNDESA Edgar A. Heinemann, President of the Board of Directors Humberto Olavarra, Treasurer of the Board of Directors Pablo Schneider, Director of the Development Initiative Centre (CIDES) Guyana Institute of Development Studies, University of Guyana Karen Pratt, Research Associate Clive Thomas, Director Hong Kong SAR The Hong Kong General Chamber of Commerce David ORear, Chief Economist Federation of Hong Kong Industries Alexandra Poon, Director Hungary Kopint-Datorg, Economic Research gnes Nagy, Project Manager va Palcz, Deputy General Director India Confederation of Indian Industry Tarun Das, Chief Mentor Ajay Khanna, Deputy Director General Shamsher S Mehta, Director General Indonesia Kadin Indonesia M.S. Hidayat, Chairman Tulus Tambunan, Director Ireland Competitiveness Survey Group, Department of Economics, University College Cork Eleanor Doyle Niall OSullivan Bernadette Power National Competitiveness Council Jason Cleary, Researcher Adrian Devitt, Manager Ronan Lyons, Economist Israel Manufacturers Association of Israel (MAI) Shraga Brosh, President Dan Catarivas, Director, Foreign Trade and International Relations Division Yehuda Segev, Managing Director Italy SDA Bocconi School of Management Olga E. Annushkina, SDA Professor, Strategic and Entrepreneurial Management Department, SDA Bocconi School of Management Secchi Carlo, Full Professor of Economic Policy, Bocconi University Paola Dubini, Associate Professor, Bocconi University Jamaica Mona School of Business (MSB), University of the West Indies Patricia Douce, Survey Coordinator Michelle Tomlinson, Survey Coordinator Neville Ying, Executive Director and Professor

vi


Japan Hitotsubashi University, Graduate School of International Corporate Strategy (ICS) in cooperation with Keizai Doyukai Yoko Ishikura, Professor Jordan Ministry of Planning & International Cooperation Jordan National Competitiveness Team Amjad Attar, Director Kazakhstan Center for Marketing and Analytical Research (CMAR) Dias Iskakov, Director of the Competitiveness Analysis Department Kenya Institute for Development Studies, University of Nairobi Paul Kamau, Research Fellow Dorothy McCormick, Director and Professor Walter Odhiambo, Research Fellow Korea, Republic of Graduate Institute of Management, Seoul School of Integrated Science and Technologies (aSSIST) Dean Cheol Ho Shin, Professor of Strategy and International Business Shin Hyo Kim, Senior Researcher So Young Lee, Researcher Kuwait Economics Department, Kuwait University Mohammad Ali Alomar, Assistant Professor Reyadh Faras, Assistant Professor Mohammed El-Sakka, Professor Kyrgyz Republic Economic Policy Institute Bishkek Consensus Lola Abduhametova, Program Coordinator Marat Tazabekov, Chairman Latvia Institute of Economics, Latvian Academy of Sciences, Riga Raita Karnite, Director Lesotho Mohloli Chamber of Business Refiloe Kepa, General Manager Lithuania Statistics Lithuania Ona Grigiene, Head, Economical Survey Division Algirdas Semeta, Director General Luxembourg Chamber of Commerce of Luxembourg Jean-Christophe Burkel, Attach, Economic Department Carlo Thelen, Member of the Managing Board Macedonia, FYR National Entrepreneurship and Competitiveness Council (NECC) Dejan Janevski, Project Coordinator Zoran Stavreski, President of the Managing Board Saso Trajkoski, Executive Director Madagascar Centre of Economic Studies, University of Antananarivo Pp Andrianomanana, Director Razato Raharijaona Simo, Executive Secretary Malaysia Institute of Strategic and International Studies (ISIS) Mahani Zainal Abidin, Director-General Dato Mohamed Jawhar Hassan, Chairman and Chief Executive Officer Steven C.M. Wong, Assistant Director-General National Productivity Corporation (NPC) Dato Nik Zainiah Nik Abdul Rahman, Director General Chan Kum Siew, Senior Manager

Mali Groupe de Recherche en Economie Applique et Thorique (GREAT) Massa Coulibaly, Coordinator Mauritania Centre dInformation Mauritanien pour le Dveloppement Economique et Technique (CIMDET/CCIAM) Chekroud Ould Bouhake Aminata Niang Mauritius Joint Economic Council of Mauritius Raj Makoond, Director Board of Investment, Investmauritius Dev Chamroo, Director, Investment Promotion Kevin Ramkaloan, Manager, Investment Promotion Mexico Center for Intellectual Capital and Competitiveness Ren Villarreal Arrambide, President Ren Alejandro Villarreal Ramos, General Director Instituto Mexicano Para la Competitividad (IMCO) Roberto Newell Garcia, General Director Juan Carlos Gonzalez Ibarguen, Analyst Manuel J. Molano Ruiz, Consultant Ministry of the Economy Veronica Orendain De Los Santos, Director of Promotion, Office for Investment Promotion Eduardo J. Solis Sanchez, Chief of the Office for Investment promotion Moldova Center for Strategic Territorial Development Ruslan Codreanu, Executive Director Andrei Smic, Program Coordinator Mongolia Open Society Forum (OSF) Munkhsoyol Baatarjav, Manager of Economic Policy Erdenejargal Perenlei, Executive Director Morocco Universit Hassan II Fouzi Mourji, Professor of Economics Mozambique EconPolicy Research Group, Lda. Peter Coughlin, Director Namibia Namibian Economic Policy Research Unit (NEPRU) Jonathan Adongo, Researcher Mariama Deen-Swarray, Researcher Klaus Schade, Acting Director Nepal Centre for Economic Development and Administration (CEDA) Ramesh Chandra Chitrakar, Executive Director Menaka Rajbhandari Shrestha, Researcher Santosh Kumar Upadhyaya, Researcher Netherlands Erasmus Strategic Renewal Center, Erasmus University Rotterdam Frans A. J. Van den Bosch, Professor Henk W. Volberda, Professor New Zealand Business New Zealand Marcia Dunnett, Manager, Business Services Phil OReilly, Chief Executive The New Zealand Institute David Skilling, Chief Executive Nigeria Nigerian Economic Summit Group (NESG) Felix Ogbera, Associate Director, Research Chris Okpoko, Senior Consultant, Research


Partner Institutes

vii

Partner Institutes

Norway BI Norwegian School of Management Eskil Goldeng, Researcher Torger Reve, Professor Oman The International Research Foundation Azzan Al Busaidi, Chief Executive Officer Salem Ben Nasser Al-Ismaily, Chairman Pakistan Competitiveness Support Fund Arthur Bayhan, Chief Executive Officer Amir Jahangir, Manager, Communications Paraguay Centro de Anlisis y Difusin de Economia Paraguaya (CADEP) Dionisio Borda, Director Jaime Escobar, Research Member Fernando Masi, Research Member Peru Centro de Desarrollo Industrial (CDI), Sociedad Nacional de Industrias Nstor Asto, Project Director Luis Tenorio, Executive Director Philippines Makati Business Club Alberto A. Lim, Executive Director Michael B. Mundo, Chief Economist Mark P. Opulencia, Deputy Director Poland Warsaw School of Economics Bogdan Radomski, Associate Professor

Slovenia Institute for Economic Research, Faculty of Economics Mateja Drnov ek s Art Kovacic Peter Stanovnik South Africa Business Leadership South Africa Michael Spicer, Chief Executive Officer Business Unity South Africa Jerry Vilakazi, Chief Executive Officer Vic Van Vuuren, Chief Operating Officer Spain IESE Business School, International Center for Competitiveness, Anselmo Rubiralta Center for Globalization and Strategy Eduardo Ballarn, Professor Mara Luisa Blzquez, Research Associate Sri Lanka Institute of Policy Studies Indika Siriwardena, Database Manager The Ceylon Chamber of Commerce Prema Cooray, Secretary General Sweden Center for Strategy and Competitiveness, Stockholm School of Economics Christian Ketels, Senior Research Fellow rjan Slvell, Professor Switzerland University of St. Gallen Monika Buetler, Director, Economic Department Syria Ministry of Economy and Trade Amer Housni Louitfi, Minister of Economy and Trade State Planning Commission Talal Bakfaloni, Deputy Head of State Planning Commission UNDP Damascus Nuhad Dimashkiyyah, National Project Director Towards Changing the Mindset for Competitiveness Taiwan, China Council for Economic Planning and Development, Executive Yuan Mei Yueh Ho, Chairman J. B. Hung, Director, Economic Research Department Chung Chung Shieh, Researcher, Economic Research Department Tajikistan The Center for Sociological Research Zerkalo Qahramon Baqozoda, Director and Sociologist Olga Eskina, Researcher Alikul Isoev, Sociologist and Economist Tanzania Economic and Social Research Foundation Irene Alenga, Commissioned Studies Department Haidari Amani, Executive Director and Professor Dennis Rweyemamu, Commissioned Studies Department Thailand National Economic and Social Development Board Ampon Kittiampon, Secretary-General Arkhom Termpittayapaisith, Deputy Secretary-General Tunisia Institut Arabe des Chefs dEntreprises Majdi Hassen, Executive Counsellor Chekib Nouira, President Turkey TUSIAD Sabanci University Competitiveness Forum A. Gunduz Ulusoy, Director and Professor Hande Yegenoglu, Project Specialist

viii

Portugal PROFORUM, Associao para o Desenvolvimento da Engenharia Ildio Antnio de Ayala Serdio, Vice President of the Board of Directors Qatar Qatari Businessmen Association (QBA) Issa Abdul Salam Abu Issa, Secretary-General Bassam Ramzi Massouh, General Manager Ahmed El-Shaffee, Economist Romania Group of Applied Economics (GEA) Anca Rusu, Program Coordinator Liviu Voinea, Executive Director Russian Federation Bauman Innovation, Academy of National Economy under the Government of the Russian Federation Alexei Prazdnitchnykh, Principal, Associate Professor Stockholm School of Economics, Russia Igor Dukeov, Research Fellow Carl F. Fey, Associate Dean of Research Saudi Arabia National Competitiveness Center (NCC) Awwad Al-Awwad, Deputy Governor for Investment Khaldon Mahasen, Manager, Investment Performance Assessment Senegal Centre de Recherches Economiques Appliques (CREA), University of Dakar Aly Mbaye, Director Singapore Economic Development Board Chua Kia Chee, Head, Research and Statistics Unit Bernard Nee, Director, Planning Slovak Republic Business Alliance of Slovakia (PAS) Robert Kicina, Executive Director


Uganda Makerere Institute of Social Research, Makerere University Robert Apunyo, Research Associate Delius Asiimwe, Senior Research Fellow Wilson Asiimwe, Graduate Fellow Ukraine CASE Ukraine, Center for Social and Economic Research Dmytro Boyarchuk, Executive Director Vladimir Dubrovskiy, Leading Economist United Arab Emirates Economic and Policy Research Unit, Zayed University Kenneth Wilson, Director United States US Chamber of Commerce Jana Cary, Senior Director, Marketing Communications David Hirschmann, Senior Vice President Susan Reardon, Executive Director, National Chamber Foundation Uruguay Universidad ORT Isidoro Hodara, Professor Uzbekistan ABN-TASMI INFORM Venera Khayrulina, Director Venezuela CONAPRINational Council for Investment Promotion Silvia Castillo, Consulting Manager Giuseppe Rionero, Research Manager Vietnam Central Institute for Economic Management (CIEM) Dinh Van An, President Phan Thanh Ha, Deputy Director, Department of Macroeconomic Management Pham Hoang Ha, Senior Researcher, Department of Macroeconomic Management Institute for Economic Research of HCMC Tran Du Lich, Director Doan Nguyen Ngoc Quynh, Researcher of the Research Management and International Cooperation Department Du Phuoc Tan, Head of the Research Management and International Cooperation Department Zambia Institute of Economic and Social Research (INESOR), University of Zambia Mutumba M. Bull, Director Patricia Funjika, Staff Development Fellow, Economics and Business Research Inyambo Mwanawina, Assistant Director and Coordinator, Economics and Business Research Zimbabwe Graduate School of Management, University of Zimbabwe A.M. Hawkins, Professor Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Nicaragua, Panama INCAE Business School Latin American Center for Competitiveness and Sustainable Development Roberto Artavia, Rector Arturo Condo, Dean Marlene de Estrella, Director of External Relations Latvia, Lithuania Stockholm School of Economics in Riga Karlis Kreslins, Associate Professor Anders Paalzow, Rector


Partner Institutes

ix


PrefaceKLAUS SCHWAB, Executive Chairman, World Economic Forum

The benefits of free trade are well known: trade opens new markets and allows countries to gain from specializing in producing those goods and services they do best, it provides greater choice for consumers at a lower cost, and it improves global efficiency in resource allocation.The past half century has seen a significant opening to international trade around the world, contributing substantially to global economic welfare and reducing poverty.Yet, despite the key role that international trade plays in economic development, many obstacles remain to realizing its full potential. Given the importance of trade for industrialized and developing countries alike, the fundamental objective of The Global Enabling Trade Report (GETR) is to explore the factors enabling trade in individual economies. Trade barriers extend beyond the tariffs and quotas traditionally considered to factors such as border administration, infrastructure, and the domestic business environment. Over the past year, the World Economic Forum has engaged key industry and thought leaders through its Logistics & Transport Industry Partnership Programme to carry out an in-depth analysis and assessment of the obstacles hindering trade in economies around the world.The goal is to construct a platform for multistakeholder dialogue to explore how best to remove these obstacles, in the interest of fostering international economic development. Drawing on our expertise in developing tools for benchmarking economic performance, the World Economic Forum has developed the first Enabling Trade Index (ETI), which is at the core of this Report. The aim of the ETI, which covers 118 economies, is to provide a strategic tool for measuring a range of policy-related issues that contribute to hindering trade. It ranks nations according to the factors and policies facilitating the free flow of goods across national borders and to destination. By providing detailed assessments of the trade-enhancing environments in countries worldwide, the results can be used by all stakeholders to work together to increase their economies participation in the global economy, thereby contributing to national growth and prosperity. The Report contains detailed profiles for each of the 118 economies featured in the study, as well as an extensive section of data tables with global rankings covering all of the indicators included in the ETI. In addition, the Report includes insightful contributions from a number of trade experts and industry practitioners.These essay contributions examine different aspects

of enabling trade, exploring issues such as the role of logistics and transport efficiency in facilitating trade and global efforts being made in the area of trade facilitation. The Global Enabling Trade Report could not have been put together without the distinguished thinkers who have shared with us their knowledge and experience.We are grateful to our data partnersthe Global Express Association (GEA), the International Air Transport Association (IATA), the International Trade Centre (ITC), the United Nations Conference on Trade and Development (UNCTAD),The World Bank, and the World Trade Organization (WTO)for helping us to design and develop the ETI and for providing many of the trade-related data used in its calculation.We thank our industry partners in this ReportABX LOGISTICS Worldwide, Agility, Deutsche Post World Net, DP World, FedEx Corporation, Stena,TNT N.V., and UPSfor their support in this important venture.We also wish to thank the editors of the Report, Robert Z. Lawrence of Harvard University and Jennifer Blanke, Margareta Drzeniek Hanouz, and John Moavenzadeh from the World Economic Forum, for their energy and their commitment to the project.We are also grateful to the management team of the Enabling Trade project, Sean Doherty and Qin He, for so effectively driving the process forward throughout the year. Appreciation also goes to Fiona Paua, Head of Strategic Insight Teams, and other team members: Ciara Browne, Agustina Ciocia, Thierry Geiger,Yasmina Makar, Irene Mia, Pearl Samandari, and Eva Trujillo Herrera. Finally, we would like to commend our network of 142 Partner Institutes worldwide, without whose enthusiasm and hard work the annual administration of the Executive Opinion Survey and this Report would not be possible.


Preface

xi


Executive SummaryROBERT Z. LAWRENCE, Harvard University JENNIFER BLANKE, SEAN DOHERTY, and MARGARETA DRZENIEK HANOUZ, World Economic Forum

International trade is widely recognized as an important driver of economic development.Trade is associated with higher growth and poverty reduction. It allows countries to reap the benefits of specialization, ushering competition into domestic markets and increasing choice for consumers and inputs for producers. It allows the exploitation of economies of scale, fosters innovation, and tends to encourage better policies. However, despite the recognized benefits of trade, many obstacles remain. Some of these obstacles are intentional, specifically aimed at limiting market access; some have been justified on the grounds of infant industry protection. But for the most part tariffs and other policy-related trade barriers are erected by governments wishing to shield those who lose in the short term because of increased foreign competition. Other obstacles to trade are unintended consequences related to the human and physical infrastructure, and to institutional frameworks that have been developed over the years in each country.Whatever their origins, these barriers have the consequence of limiting the flow of trade, generally lowering welfare at the aggregate. The World Economic Forum has embarked on a multiyear project of research and dialogue in collaboration with international trade experts and leaders from the logistics and transport industry.This Report serves as a concrete resource, providing a measure of the extent to which countries have in place all of the necessary attributes to enable the free flow of trade into a country and to destination. By bringing together the work of many institutions and other actors, we hope to highlight the numerous efforts and successes in this area, bringing them to new audiences so they may serve as building blocks for further improvements. We hope to raise awareness about the importance of trade for development, and the many factors that can hinder or facilitate trade. Our aim is to provide businesses and policymakers with insights into priorities for reform in each country, helping them to more fully benefit from the opportunities offered by global trade.

facilitating the free flow of goods over borders and to destination. The ETI was developed within the context of the World Economic Forums Industry Partnership Programme for the Logistics & Transport sector.This was done in close collaboration with our data partners: the Global Express Association (GEA), the International Air Transport Association (IATA), the International Trade Centre (ITC), the United Nations Conference on Trade and Development (UNCTAD),The World Bank, and the World Trade Organization (WTO).We have also received important feedback from a number of key companies that are industry partners in the effort, namely ABX LOGISTICS Worldwide, Agility, Deutsche Post World Net, DP World, FedEx Corporation, Stena,TNT N.V., and UPS. The Index breaks the enablers into four overall issue areas, or subindexes: (1) market access, (2) border administration, (3) transport and communications infrastructure, and (4) the business environment.The first subindex measures the extent to which the policy and cultural framework of the country welcomes foreign goods into the country. Once goods have been allowed in to the country, the second subindex assesses the extent to which the administration at the border facilitates their entry. Once goods have made it over the border, the third subindex takes into account whether the country has the transport and communications infrastructure necessary to facilitate the movement of the goods from the border to destination. Finally, the fourth subindex looks at the overarching regulatory and security environment impacting the transport business in the country. Each of these four subindexes is composed of a number of pillars of enabling trade, of which we use 10 in all.These are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Tariffs and non-tariff barriers Proclivity to trade Efficiency of customs administration Efficiency of import-export procedures Transparency of border administration Availability and quality of transport infrastructure Availability and quality of transport services Availability and use of ICTs Regulatory environment Physical security

The Enabling Trade Index A principal aim of this Report is to measure the extent to which countries around the world have in place the factors and policies for enabling trade. Chapter 1.1 introduces a new index, the Enabling Trade Index (ETI), which measures the factors, policies, and services


Executive Summary

xiii

Executive Summary

Each of these pillars is, in turn, made up of a number of individual variables.The dataset includes both hard data and Survey data from the World Economic Forums Executive Opinion Survey.The hard data were obtained from publicly available sources, international organizations, and trade experts (for example, IATA, the ITC, the WTO, and UNCTAD).The Survey is carried out among CEOs and top business leaders in all economies covered by our research.The Survey provides unique data on many qualitative institutional and business environment-related issues, as well as a number of specific issues related to trade.The exact methodology underlying the construction of the ETI is described in Chapter 1.1.

The Enabling Trade Index 2008 rankings Tables 15 show the rankings of all 118 countries in the overall ETI as well as in each of the four subindexes and each individual pillar.The top 10

xiv

Two Asian economiesHong Kong and Singapore occupy the top two positions in the ETI rankings.This result bears witness to these countries openness to international trade and investment as part of their successful economic development strategy. Hong Kongs positive outcome rests on very good results in all four subindexes.The economys very open market, mirroring a pro-trade attitude and a high dependence on exports and imports, as well as the secure and open business environment contribute to this good result. Hong Kong does not apply tariffs on imported products and the business environment is open to investment and foreign workers. At the same time, transport and telecommunications infrastructure is well developed and border administration is efficient, although businesses express some concerns about the level of corruption. Compared with Hong Kong, Singapore boasts a highly efficient and transparent border administration, an equally open business environment, and a well-developed transport and communications infrastructure. Customs procedures are assessed as the least burdensome and the cost of importing goods is the lowest among the countries covered. However, access to Singapores market is fairly difficult, as reflected in its 27th rank on the relevant subindex. Although tariff rates remain very low, access is hampered by non-tariff barriers (84th) and little openness to multilateral trade rules.The country boasts well-developed transport infrastructure and excellent transport services, and improvements to the ICT infrastructure could further increase the ease of getting goods across borders in Singapore.The countrys excellent business environment facilitates operations of traders through an investment regime that is open to FDI and hiring foreign labor, although more open bilateral Air Service Agreements would be beneficial.

Sweden is ranked 3rd, receiving top marks for its transport and communications infrastructure, where it is ranked 1st out of all 118 countries. Sweden has highquality transport infrastructure and excellent transport services, and the country has fully harnessed the use of ICTs so important for the logistics and transport industry. Swedens border administration is ranked 2nd, attributable to its high efficiency and transparency, with customs procedures that are not overly burdensome, requiring, for example, few days and documents to import goods into the country.With regard to market access, Sweden has few tariffs, as is the case of other European Union (EU) countries, placing it 3rd, although the country does impose significant non-tariff barriers (ranked lower at 64th). More generally, Sweden demonstrates a very strong proclivity to trade, ranked 3rd out of all countries. Norway, ranked 4th, demonstrates its greatest strengths in two areas: market access and border administration. Norway is ranked 2nd out of all countries for the ease of access into the countrys market, with low non-tariff barriers, a high share of duty-free imports allowed into the country, and demonstrated openness to multilateral trade rules through its participation in many trade-related international agreements. As well as allowing goods easy access into the market, Norway also ensures that the goods make it over the border with little hassle. The efficiency and transparency of its border administration are both ranked 8th, and the procedures required to import are so efficient as to place the country 5th. In addition, the business environment in the country is also in the top 10, a ranking particularly related to the high levels of physical security in the country that ensure the safe arrival of goods to destination. Canada is the top-ranked North American country at 5th, ahead of the United States by 9 ranks. Canada is ranked 3rd overall for its market access, with tariffs that are not significantly higher than in the European Union, relatively low non-tariff barriers, and a high share of duty-free imports allowed into the country. Canadas border administration is also among the top 10, with efficient clearance procedures and few documents required to import, as well as high levels of transparency in the border administrations activities. In addition, Canada is ranked 3rd for the availability and quality of its transport infrastructure, facilitating the movement of goods to market once they are allowed over the border. Denmark is ranked 6th. In addition to its low tariffs, the country also benefits from an excellent border administration, with import-export procedures that are so efficient as to place the country 1st in this category. The transparency of the border administration is also ranked 1st, with extremely low levels of trade-related corruption. In addition, Denmark has excellent transport infrastructure (ranked 4th) and strong communications infrastructure (ranked 7th).The country also benefits from very high levels of physical security, ranked 2nd


overall in this category, with low levels of crime and violence and a very reliable police force. The main strength of Finland, ranked 7th just after Denmark, is its business environment, which is ranked 1st out of all countries covered.The country benefits from rules fostering foreign ownership and greater ease in hiring foreign labor than in many other European countries, as well as an excellent security environment. Like the other Nordic countries, Finlands border administration also gets top marks, with customs procedures that are not burdensome and a particularly low cost to import, perhaps explaining the high transparency and low level of corruption related to its border administration (ranked 3rd). Germany and Switzerland round out the European countries in the top 10, ranking 8th and 9th, respectively. Germany benefits from an excellent business environment (ranked 4th), with a regulatory environment that is conducive to the functioning of the logistics and transport industry, and an excellent security environment for businesses operating in the country.The transport and communications infrastructure is also among the best in the world, with transport services in particular ranked 2nd out of all countries: the logistics industry gets excellent marks for competence (ranked 4th), shipping is easy and affordable (also ranked 4th), and its postal service is among the best in the world (ranked 3rd). Switzerland gets particularly good marks for market access (ranked 5th). Although its tariffs overall are slightly higher than EU countries, mainly because of higher tariffs on agricultural goods, its non-tariff barriers are comparatively low. As with the Nordic countries, Switzerlands security environment is also excellent, and it benefits from a supportive regulatory environment, with open bilateral Air Service Agreements and a relative ease of hiring foreign labor, particularly compared with several other European countries. Switzerlands border administration also gets good marks, particularly for its transparency and lack of corruption (ranked 6th). New Zealand closes the top 10 at 10th position. Its highly efficient and transparent border administration contributes to this good rating, as do the countrys low tariff and non-tariff barriers. New Zealand applies low tariffs, and imports almost 80 percent of products dutyfree.The countrys business environment is characterized by high levels of physical security and is fairly welcoming to foreign investment, although obstacles persist with respect to hiring foreign labor. Upgrading the quality of infrastructure, in particular roads and railroads, will be necessary to further facilitate the flow of goods to destinations in the country.Asia

Outside the top 10, in Asia, Japan occupies the 13th position in the ETI ranking. Free market access and the export orientation of local companies contribute to this rating, as well as the excellent physical security environ-

ment in the country. At the same time, some aspects of the regulatory environment are not conducive to enabling trade, in particular laws that do not encourage FDI and legal obstacles to hiring foreign labor. Although Japan is a very export-oriented economy, imports of goods appear to be hampered by administrative procedures. In particular, businesses consider customs procedures to be somewhat cumbersome, which are ranked 38th overall.This is also reflected in the fairly high cost to import: the cost of importing goods is almost three times higher than in Singapore, the best performer on this measure. Once goods are over the border, the country features excellent infrastructure-related services, ranked 7th for this indicator. In particular, postal and logistics services stand out for their quality and efficiency. However, it must be noted that Japans overcrowded roads and the fairly low airport density negatively affect the environment for trade. Taiwan and Korea follow at 21st and 24th overall. Both economies boast very good infrastructure. Infrastructure-related services are efficient and widely available, and the use of ICTs is widespread, which improves the connectivity of companies and the ability to track consignments.Weaknesses in both countries include obstacles to market access and a business environment that does not facilitate the entry of foreign investment and labor. China occupies the 48th position.This fairly low position for one of the worlds most successful exporters highlights a number of underlying weaknesses in Chinas economy and its trading regime. Above all, China is a fairly closed country. Although its economic success relies heavily on exports, imports are still severely inhibited by tariff and non-tariff barriers, despite the countrys accession to the WTO.The country ranks 108th out of 118 economies on tariff barriers, which amount to almost 15 percent.The countrys border administration is fairly efficient; importing products is not costly, although it can be quite time-consuming. A particular concern when exporting and importing is the lack of transparency of border administration, which can be particularly heavy for foreign businesses. Because of large export volumes, the country is well connected to international markets, yet its transport infrastructure is not on a par with the worlds best. In particular, airport density and the quality of air transport infrastructure are fairly low.The quality and availability of transport services, however, are among the best in the world, ranked 17th overall. Improvements to the regulatory and security environment would further enable trade. In particular, greater encouragement of FDI and more openness to foreign air transport service providers would help. Further down the rankings we find India, at 71st place. Indias weak position reflects a mixed performance on the four pillars of the ETI.While it boasts fairly good border administration and an acceptable business environment, market access continues to be severely


Executive Summary

xv

Executive Summary

Table 1: The Enabling Trade Index 2008SUBINDEXES OVERALL INDEX Country/Economy Rank Score Market access Rank Score Border administration Rank Score Transport and communications infrastructure Rank Score Business environment Rank Score

xvi

Hong Kong SAR Singapore Sweden Norway Canada Denmark Finland Germany Switzerland New Zealand Netherlands Luxembourg Japan United States Austria United Kingdom Australia Belgium France Ireland Taiwan, China Spain United Arab Emirates Korea, Rep. Estonia Portugal Chile Israel Malaysia Slovak Republic Slovenia Czech Republic Italy Hungary Lithuania Greece Bahrain Turkey Cyprus Mauritius Qatar Croatia Latvia Costa Rica Poland Panama Indonesia China Tunisia Oman Jordan Thailand Saudi Arabia Guatemala El Salvador Uruguay Romania Kuwait South Africa Bulgaria Armenia Moldova Dominican Republic Honduras Mexico

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

6.04 5.71 5.66 5.65 5.62 5.62 5.61 5.58 5.58 5.52 5.51 5.50 5.43 5.42 5.42 5.30 5.22 5.21 5.20 5.20 5.15 5.03 4.96 4.95 4.89 4.88 4.88 4.76 4.75 4.74 4.74 4.70 4.70 4.67 4.63 4.60 4.53 4.53 4.50 4.50 4.48 4.45 4.45 4.41 4.35 4.28 4.27 4.25 4.23 4.22 4.19 4.18 4.16 4.14 4.13 4.06 4.04 4.03 3.98 3.90 3.90 3.88 3.85 3.83 3.83

1 27 14 2 3 15 19 9 5 7 18 17 4 6 13 24 44 16 20 25 38 34 50 72 47 45 40 36 68 23 21 33 30 41 32 31 46 8 49 11 54 12 48 10 42 59 22 71 88 35 95 62 51 28 29 66 61 64 67 56 43 26 85 63 74

6.66 4.99 5.21 5.89 5.87 5.15 5.08 5.34 5.65 5.41 5.10 5.10 5.86 5.65 5.22 5.02 4.72 5.12 5.08 5.01 4.83 4.87 4.50 4.07 4.66 4.72 4.77 4.84 4.09 5.03 5.07 4.94 4.97 4.76 4.95 4.95 4.69 5.40 4.51 5.29 4.39 5.24 4.55 5.32 4.73 4.27 5.03 4.07 3.57 4.85 3.35 4.25 4.49 4.98 4.97 4.12 4.25 4.18 4.10 4.31 4.73 4.99 3.69 4.22 4.04

7 1 2 6 9 5 4 15 12 3 8 10 17 21 16 14 11 25 26 19 22 23 27 18 13 32 20 29 24 35 30 31 38 33 28 54 41 47 44 42 53 52 40 49 37 39 63 43 34 60 36 56 59 46 62 51 61 67 50 57 87 75 58 77 65

5.99 6.51 6.32 6.06 5.78 6.10 6.15 5.57 5.69 6.16 5.98 5.77 5.55 5.29 5.57 5.58 5.71 5.23 5.21 5.43 5.27 5.26 5.18 5.49 5.63 4.85 5.43 5.03 5.23 4.68 4.91 4.86 4.58 4.79 5.04 4.08 4.53 4.28 4.37 4.53 4.11 4.15 4.54 4.22 4.62 4.54 3.96 4.51 4.73 4.04 4.66 4.07 4.05 4.32 3.98 4.15 4.02 3.86 4.21 4.07 3.28 3.65 4.07 3.60 3.88

4 7 1 20 11 10 18 5 14 21 2 9 13 3 12 8 17 16 6 24 15 22 23 19 29 28 42 26 27 35 30 34 25 38 37 31 40 44 32 56 33 43 39 66 46 48 74 36 53 57 51 41 47 78 80 61 49 50 45 54 77 76 79 92 67

5.66 5.53 5.77 5.21 5.50 5.51 5.29 5.66 5.39 5.09 5.73 5.51 5.42 5.66 5.43 5.52 5.32 5.33 5.54 4.79 5.37 5.08 4.80 5.23 4.51 4.57 3.93 4.64 4.62 4.17 4.49 4.18 4.68 4.10 4.14 4.49 3.99 3.79 4.41 3.50 4.22 3.89 4.08 3.26 3.70 3.65 3.13 4.15 3.53 3.50 3.54 3.93 3.70 3.00 2.97 3.34 3.64 3.56 3.74 3.52 3.00 3.05 2.97 2.84 3.25

2 3 14 10 16 5 1 4 7 11 17 6 35 25 9 26 21 20 31 8 22 33 15 30 39 13 12 57 27 24 63 38 54 28 67 36 34 50 41 43 18 56 51 37 73 47 32 77 23 60 19 61 68 79 52 49 81 59 99 107 53 101 42 45 86

5.84 5.82 5.35 5.45 5.33 5.70 5.92 5.74 5.58 5.42 5.22 5.63 4.90 5.08 5.45 5.07 5.14 5.16 4.98 5.56 5.13 4.92 5.34 5.02 4.76 5.39 5.40 4.53 5.07 5.09 4.48 4.84 4.57 5.05 4.40 4.86 4.92 4.64 4.72 4.69 5.22 4.54 4.61 4.86 4.35 4.66 4.97 4.28 5.11 4.51 5.21 4.49 4.39 4.27 4.59 4.64 4.24 4.51 3.87 3.71 4.59 3.83 4.70 4.67 4.15

(Contd.)


Table 1: The Enabling Trade Index 2008 (contd.)SUBINDEXES OVERALL INDEX Country/Economy Rank Score Market access Rank Score Border administration Rank Score Transport and communications infrastructure Rank Score Business environment Rank Score

Jamaica Nicaragua Ukraine Peru Sri Lanka India Kazakhstan Albania Morocco Colombia Azerbaijan Namibia Argentina Uganda Brazil Macedonia, FYR Philippines Paraguay Pakistan Zambia Kenya Egypt Madagascar Bosnia and Herzegovina Mali Vietnam Cameroon Mongolia Bolivia Lesotho Ecuador Mauritania Benin Burkina Faso Senegal Mozambique Tanzania Russian Federation Tajikistan Uzbekistan Ethiopia Syria Algeria Kyrgyz Republic Bangladesh Nigeria Zimbabwe Cambodia Guyana Venezuela Nepal Burundi Chad

66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118

3.80 3.78 3.77 3.76 3.75 3.74 3.73 3.72 3.71 3.70 3.68 3.66 3.65 3.63 3.63 3.58 3.57 3.54 3.54 3.52 3.51 3.51 3.49 3.47 3.42 3.42 3.42 3.38 3.36 3.36 3.36 3.34 3.34 3.33 3.33 3.30 3.27 3.25 3.13 3.06 3.06 3.05 3.04 3.03 3.03 3.02 2.98 2.95 2.95 2.85 2.70 2.70 2.60

90 79 39 73 70 105 37 57 110 96 65 78 89 58 92 86 80 60 98 76 55 111 53 97 75 112 87 69 84 52 77 93 94 82 109 81 100 99 83 114 116 117 118 102 104 107 91 108 113 103 106 115 101

3.46 3.91 4.77 4.06 4.08 2.82 4.83 4.29 2.58 3.31 4.15 3.93 3.57 4.27 3.42 3.64 3.86 4.27 3.20 3.98 4.32 2.51 4.42 3.29 4.01 2.50 3.58 4.08 3.70 4.45 3.98 3.39 3.36 3.82 2.59 3.85 3.07 3.11 3.74 2.46 2.15 2.04 1.80 2.95 2.87 2.77 3.44 2.62 2.48 2.91 2.77 2.20 3.03

68 74 94 73 69 55 110 64 45 48 112 79 71 90 66 80 82 81 78 103 95 70 100 72 111 76 84 113 83 99 105 102 89 106 93 86 88 92 117 116 96 98 85 104 97 101 114 107 91 115 108 109 118

3.85 3.65 3.17 3.67 3.83 4.08 2.70 3.89 4.32 4.24 2.62 3.59 3.69 3.26 3.87 3.58 3.54 3.55 3.59 2.88 3.13 3.78 3.01 3.68 2.68 3.60 3.43 2.58 3.44 3.03 2.81 2.95 3.27 2.76 3.18 3.30 3.28 3.20 2.40 2.43 3.12 3.04 3.34 2.84 3.12 2.98 2.51 2.74 3.24 2.49 2.70 2.70 2.16

55 102 59 82 73 52 63 106 68 72 64 71 58 93 62 69 83 99 70 100 90 65 107 86 109 75 112 87 96 115 85 98 101 110 89 114 111 60 117 84 97 94 91 88 103 108 95 105 104 81 113 116 118

3.52 2.51 3.42 2.96 3.13 3.54 3.31 2.47 3.20 3.14 3.30 3.17 3.46 2.75 3.31 3.19 2.95 2.59 3.18 2.59 2.86 3.27 2.47 2.91 2.44 3.08 2.37 2.89 2.70 2.25 2.94 2.62 2.57 2.40 2.86 2.29 2.40 3.35 2.02 2.94 2.69 2.74 2.85 2.88 2.51 2.44 2.73 2.48 2.51 2.96 2.34 2.14 1.93

70 29 106 72 92 58 88 82 40 87 46 94 98 80 96 97 95 103 83 48 105 64 89 90 55 62 78 91 110 108 109 66 85 74 44 102 75 114 69 65 76 71 84 113 111 100 116 93 112 117 118 104 115

4.37 5.03 3.73 4.35 3.97 4.53 4.06 4.22 4.74 4.11 4.66 3.95 3.88 4.25 3.91 3.90 3.93 3.76 4.20 4.65 3.73 4.47 4.05 3.98 4.54 4.48 4.28 3.98 3.62 3.71 3.70 4.41 4.16 4.35 4.67 3.76 4.32 3.35 4.38 4.43 4.29 4.36 4.16 3.44 3.60 3.87 3.22 3.96 3.56 3.05 2.98 3.74 3.30


Executive Summary

xvii

Executive Summary

Table 2: The Enabling Trade Index: Market accessPILLARS MARKET ACCESS Country/Economy Rank Score 1. Tariff and non-tariff barriers Rank Score 2. Proclivity to trade Rank Score

xviii

Albania Algeria Argentina Armenia Australia Austria Azerbaijan Bahrain Bangladesh Belgium Benin Bolivia Bosnia and Herzegovina Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Chad Chile China Colombia Costa Rica Croatia Cyprus Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Ethiopia Finland France Germany Greece Guatemala Guyana Honduras Hong Kong SAR Hungary India Indonesia Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea, Rep. Kuwait Kyrgyz Republic Latvia Lesotho Lithuania Luxembourg Macedonia, FYR Madagascar Malaysia Mali

57 118 89 43 44 13 65 46 104 16 94 84 97 92 56 82 115 108 87 3 101 40 71 96 10 12 49 33 15 85 77 111 29 47 116 19 20 9 31 28 113 63 1 41 105 22 25 36 30 90 4 95 37 55 72 64 102 48 52 32 17 86 53 68 75

4.29 1.80 3.57 4.73 4.72 5.22 4.15 4.69 2.87 5.12 3.36 3.70 3.29 3.42 4.31 3.82 2.20 2.62 3.58 5.87 3.03 4.77 4.07 3.31 5.32 5.24 4.51 4.94 5.15 3.69 3.98 2.51 4.97 4.66 2.15 5.08 5.08 5.34 4.95 4.98 2.48 4.22 6.66 4.76 2.82 5.03 5.01 4.84 4.97 3.46 5.86 3.35 4.83 4.32 4.07 4.18 2.95 4.55 4.45 4.95 5.10 3.64 4.42 4.09 4.01

13 115 102 14 71 48 38 12 97 41 82 69 85 98 42 32 106 103 79 2 81 49 90 101 10 5 65 64 61 51 83 115 24 73 109 63 56 60 35 22 108 45 1 77 112 16 62 27 43 86 6 105 20 80 96 21 107 66 4 50 37 91 26 93 33

5.72 1.00 2.60 5.67 4.14 4.40 4.58 5.85 2.96 4.53 3.87 4.16 3.45 2.88 4.50 4.82 2.34 2.50 3.99 6.10 3.94 4.38 3.33 2.62 5.92 6.02 4.25 4.27 4.31 4.38 3.84 1.00 5.44 4.12 2.04 4.28 4.35 4.33 4.71 5.51 2.19 4.43 7.00 4.06 1.89 5.65 4.29 5.24 4.47 3.43 5.95 2.38 5.53 3.97 3.06 5.52 2.30 4.23 6.04 4.38 4.64 3.32 5.25 3.25 4.79

104 113 45 74 28 4 79 85 108 13 103 92 98 68 58 107 118 112 95 17 117 31 40 63 42 47 41 19 6 101 57 61 46 29 116 7 10 1 30 48 110 62 2 23 77 50 12 49 22 86 11 52 55 43 33 106 83 38 105 21 20 69 84 36 93

2.86 2.59 4.54 3.78 5.31 6.03 3.73 3.53 2.79 5.71 2.86 3.24 3.14 3.96 4.11 2.83 2.06 2.74 3.17 5.64 2.12 5.16 4.82 4.01 4.72 4.47 4.76 5.61 5.99 2.99 4.11 4.03 4.51 5.20 2.26 5.88 5.81 6.36 5.20 4.45 2.77 4.01 6.33 5.46 3.76 4.41 5.73 4.44 5.47 3.50 5.78 4.32 4.13 4.67 5.08 2.84 3.61 4.88 2.86 5.52 5.57 3.95 3.60 4.93 3.22

(Contd.)


Table 2: The Enabling Trade Index: Market access (contd.)PILLARS MARKET ACCESS Country/Economy Rank Score 1. Tariff and non-tariff barriers Rank Score 2. Proclivity to trade Rank Score

Mauritania Mauritius Mexico Moldova Mongolia Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Qatar Romania Russian Federation Saudi Arabia Senegal Singapore Slovak Republic Slovenia South Africa Spain Sri Lanka Sweden Switzerland Syria Taiwan, China Tajikistan Tanzania Thailand Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Venezuela Vietnam Zambia Zimbabwe

93 11 74 26 69 110 81 78 106 18 7 79 107 2 35 98 59 60 73 80 42 45 54 61 99 51 109 27 23 21 67 34 70 14 5 117 38 83 100 62 88 8 58 39 50 24 6 66 114 103 112 76 91

3.39 5.29 4.04 4.99 4.08 2.58 3.85 3.93 2.77 5.10 5.41 3.91 2.77 5.89 4.85 3.20 4.27 4.27 4.06 3.86 4.73 4.72 4.39 4.25 3.11 4.49 2.59 4.99 5.03 5.07 4.10 4.87 4.08 5.21 5.65 2.04 4.83 3.74 3.07 4.25 3.57 5.40 4.27 4.77 4.50 5.02 5.65 4.12 2.46 2.91 2.50 3.98 3.44

84 9 95 3 30 111 28 40 94 68 23 78 113 7 15 87 31 39 74 88 57 54 25 67 99 17 110 75 52 44 92 47 76 53 11 115 59 36 104 58 89 8 34 19 29 46 18 72 115 100 114 55 70

3.81 5.93 3.06 6.06 5.01 1.91 5.18 4.56 3.14 4.20 5.50 4.02 1.80 5.94 5.66 3.40 4.92 4.57 4.11 3.40 4.34 4.36 5.35 4.22 2.73 5.63 2.03 4.10 4.38 4.43 3.28 4.40 4.08 4.37 5.91 1.00 4.33 4.70 2.46 4.34 3.38 5.93 4.78 5.55 5.09 4.42 5.61 4.12 1.00 2.64 1.02 4.35 4.14

102 44 35 70 97 91 114 90 115 5 27 73 78 9 60 100 81 67 64 51 32 34 88 53 87 89 96 8 16 14 37 25 59 3 24 99 26 109 80 54 76 39 75 65 72 18 15 56 71 94 66 82 111

2.96 4.65 5.02 3.92 3.15 3.26 2.52 3.29 2.41 6.01 5.32 3.80 3.74 5.83 4.03 3.01 3.63 3.98 4.00 4.33 5.12 5.08 3.42 4.27 3.49 3.35 3.16 5.88 5.67 5.71 4.92 5.34 4.08 6.05 5.39 3.09 5.33 2.78 3.67 4.15 3.76 4.87 3.77 4.00 3.92 5.62 5.68 4.12 3.92 3.18 3.99 3.61 2.75


Executive Summary

xix

Executive Summary

Table 3: The Enabling Trade Index: Border administrationPILLARS BORDER ADMINISTRATION Country/Economy Rank Score 3. Efficiency of customs administration Rank Score 4. Efficiency of importexport procedures Rank Score 5. Transparency of border administration Rank Score

xx


64 85 71 87 11 16 112 41 97 25 89 83 72 66 57 106 109 107 84 9 118 20 43 48 49 52 44 31 5 58 105 70 62 13 96 4 26 15 54 46 91 77 7 33 55 63 19 29 38 68 17 36 110 95 18 67 104 40 99 28 10 80 100 24 111

3.89 3.34 3.69 3.28 5.71 5.57 2.62 4.53 3.12 5.23 3.27 3.44 3.68 3.87 4.07 2.76 2.70 2.74 3.43 5.78 2.16 5.43 4.51 4.24 4.22 4.15 4.37 4.86 6.10 4.07 2.81 3.78 3.98 5.63 3.12 6.15 5.21 5.57 4.08 4.32 3.24 3.60 5.99 4.79 4.08 3.96 5.43 5.03 4.58 3.85 5.55 4.66 2.70 3.13 5.49 3.86 2.84 4.54 3.03 5.04 5.77 3.58 3.01 5.23 2.68

58 102 60 103 13 34 67 43 78 29 95 93 80 73 56 94 97 110 68 12 116 17 39 37 65 53 30 23 18 50 118 84 72 5 82 7 40 32 87 19 99 77 10 35 48 46 33 44 47 66 20 36 70 89 2 86 52 49 115 9 15 106 114 11 100

3.76 2.56 3.70 2.56 5.47 4.72 3.49 4.30 3.17 4.80 2.79 2.83 3.13 3.28 3.83 2.80 2.74 2.30 3.48 5.53 2.00 5.35 4.49 4.60 3.57 3.97 4.78 5.03 5.17 4.00 1.74 3.07 3.32 5.81 3.09 5.73 4.48 4.77 3.02 5.16 2.64 3.20 5.59 4.65 4.07 4.12 4.73 4.16 4.09 3.50 5.15 4.61 3.42 2.96 6.03 3.02 3.98 4.03 2.22 5.64 5.36 2.49 2.22 5.57 2.63

67 89 69 74 25 9 115 58 86 27 88 80 51 61 63 107 112 98 82 18 110 30 28 73 53 60 95 37 1 47 87 49 64 11 104 6 23 7 46 81 75 77 4 40 57 39 13 15 32 56 14 52 118 97 22 71 113 31 90 34 12 59 100 21 109

4.41 3.88 4.36 4.21 5.43 5.91 1.81 4.60 3.96 5.37 3.93 4.10 4.76 4.55 4.53 2.19 2.00 3.62 4.07 5.64 2.06 5.24 5.33 4.24 4.72 4.56 3.66 5.07 6.47 4.86 3.96 4.82 4.49 5.80 2.99 6.09 5.52 5.99 4.87 4.09 4.18 4.17 6.29 5.04 4.60 5.06 5.78 5.70 5.19 4.61 5.71 4.74 1.47 3.63 5.55 4.27 1.90 5.22 3.83 5.13 5.79 4.58 3.46 5.58 2.14

70 66 96 92 9 13 114 32 118 20 91 75 88 58 56 79 76 117 109 10 116 18 62 55 42 54 34 38 1 78 108 71 49 23 80 3 19 15 43 63 101 74 12 33 68 110 17 25 40 72 16 35 86 105 31 46 113 44 94 45 11 65 77 37 83

3.49 3.59 3.01 3.07 6.23 6.07 2.57 4.69 2.22 5.52 3.08 3.39 3.16 3.78 3.85 3.30 3.37 2.30 2.73 6.18 2.41 5.69 3.73 3.89 4.37 3.90 4.67 4.47 6.65 3.34 2.74 3.45 4.13 5.26 3.29 6.64 5.63 5.95 4.36 3.72 2.91 3.42 6.09 4.68 3.56 2.70 5.78 5.23 4.46 3.45 5.79 4.63 3.20 2.80 4.90 4.28 2.63 4.36 3.05 4.36 6.16 3.66 3.35 4.54 3.26

(Contd.)


Table 3: The Enabling Trade Index: Border administration (contd.)PILLARS BORDER ADMINISTRATION Country/Economy Rank Score 3. Efficiency of customs administration Rank Score 4. Efficiency of importexport procedures Rank Score 5. Transparency of border administration Rank Score


102 42 65 75 113 45 86 79 108 8 3 74 101 6 60 78 39 81 73 82 37 32 53 61 92 59 93 1 35 30 50 23 69 2 12 98 22 117 88 56 34 47 90 94 27 14 21 51 116 115 76 103 114

2.95 4.53 3.88 3.65 2.58 4.32 3.30 3.59 2.70 5.98 6.16 3.65 2.98 6.06 4.04 3.59 4.54 3.55 3.67 3.54 4.62 4.85 4.11 4.02 3.20 4.05 3.18 6.51 4.68 4.91 4.21 5.26 3.83 6.32 5.69 3.04 5.27 2.40 3.28 4.07 4.73 4.28 3.26 3.17 5.18 5.58 5.29 4.15 2.43 2.49 3.60 2.88 2.51

111 42 63 76 101 27 90 92 117 6 3 85 109 8 69 83 41 64 113 88 28 45 51 74 61 81 96 1 24 38 57 14 71 4 21 98 16 104 107 59 31 55 62 108 26 22 25 75 105 112 79 54 91

2.29 4.43 3.66 3.20 2.62 4.98 2.93 2.88 1.92 5.73 6.01 3.03 2.38 5.68 3.48 3.07 4.45 3.61 2.24 2.97 4.82 4.13 4.00 3.28 3.70 3.10 2.77 6.48 5.03 4.58 3.76 5.42 3.37 6.00 5.10 2.68 5.36 2.51 2.47 3.72 4.77 3.90 3.69 2.42 5.00 5.07 5.00 3.26 2.51 2.28 3.17 3.95 2.90

99 41 76 84 108 72 94 85 101 8 10 65 93 5 68 66 20 83 55 48 35 33 102 38 105 29 96 2 62 54 70 36 45 3 19 91 26 117 78 43 42 44 103 92 24 17 16 79 116 106 50 111 114

3.49 5.00 4.18 3.99 2.17 4.25 3.76 3.97 3.37 5.92 5.81 4.48 3.79 6.25 4.41 4.44 5.58 4.02 4.65 4.85 5.13 5.15 3.16 5.06 2.79 5.27 3.64 6.45 4.54 4.72 4.33 5.11 4.88 6.36 5.61 3.80 5.38 1.75 4.15 4.96 4.96 4.93 3.15 3.80 5.49 5.65 5.68 4.12 1.76 2.65 4.79 2.04 1.88

93 48 57 60 98 61 87 52 103 7 2 73 106 8 47 82 67 95 50 104 53 22 27 64 90 59 89 5 39 21 36 24 84 4 6 111 30 100 85 69 41 51 99 81 29 14 26 28 97 115 102 112 107

3.06 4.15 3.82 3.75 2.96 3.73 3.20 3.91 2.83 6.29 6.65 3.44 2.78 6.25 4.24 3.26 3.59 3.03 4.12 2.81 3.90 5.27 5.17 3.71 3.12 3.77 3.14 6.61 4.47 5.45 4.54 5.24 3.24 6.61 6.36 2.65 5.06 2.93 3.21 3.52 4.45 4.00 2.96 3.28 5.06 6.00 5.19 5.07 3.00 2.53 2.85 2.64 2.76


Executive Summary

xxi

Executive Summary

Table 4: The Enabling Trade Index: Transport and communications infrastructurePILLARS TRANSPORT AND COMMUNICATIONS INFRASTRUCTURE Country/Economy Rank Score 6. Availability and quality of transport infrastructure Rank Score 7. Availability and quality of transport services Rank Score 8. Availability and use of ICTs Rank Score

xxii


106 91 58 77 17 12 64 40 103 16 101 96 86 62 54 110 116 105 112 11 118 42 36 72 66 43 32 34 10 79 85 65 80 29 97 18 6 5 31 78 104 92 4 38 52 74 24 26 25 55 13 51 63 90 19 50 88 39 115 37 9 69 107 27 109

2.47 2.85 3.46 3.00 5.32 5.43 3.30 3.99 2.51 5.33 2.57 2.70 2.91 3.31 3.52 2.40 2.14 2.48 2.37 5.50 1.93 3.93 4.15 3.14 3.26 3.89 4.41 4.18 5.51 2.97 2.94 3.27 2.97 4.51 2.69 5.29 5.54 5.66 4.49 3.00 2.51 2.84 5.66 4.10 3.54 3.13 4.79 4.64 4.68 3.52 5.42 3.54 3.31 2.86 5.23 3.56 2.88 4.08 2.25 4.14 5.51 3.19 2.47 4.62 2.44

102 74 80 65 15 17 50 38 99 8 109 93 108 91 76 112 116 98 113 3 118 45 36 83 68 49 21 43 4 73 89 57 94 40 82 5 2 9 24 84 103 70 14 62 48 86 28 39 51 52 23 58 44 78 30 63 69 33 115 35 7 85 97 22 114

2.78 3.46 3.36 3.71 5.17 5.13 4.09 4.33 2.81 5.37 2.50 3.07 2.50 3.12 3.43 2.45 2.00 2.81 2.44 5.75 1.70 4.14 4.42 3.32 3.65 4.10 5.02 4.17 5.70 3.49 3.23 3.89 3.00 4.27 3.33 5.55 5.81 5.31 4.92 3.31 2.68 3.57 5.18 3.72 4.11 3.28 4.63 4.29 4.07 4.06 4.98 3.88 4.15 3.41 4.60 3.72 3.62 4.45 2.01 4.43 5.42 3.30 2.86 5.00 2.23

118 112 51 89 18 5 70 53 94 9 72 85 62 42 60 92 104 101 103 15 114 38 17 67 88 54 41 44 20 109 87 56 68 49 79 25 10 2 28 84 117 105 4 32 35 43 26 33 21 99 7 45 81 86 12 59 78 46 93 58 23 61 110 14 73

2.29 2.69 3.80 3.11 5.09 5.79 3.35 3.78 3.00 5.48 3.32 3.15 3.54 3.94 3.61 3.02 2.88 2.94 2.88 5.20 2.57 4.16 5.10 3.39 3.12 3.65 3.99 3.92 5.02 2.75 3.14 3.64 3.37 3.86 3.22 4.91 5.42 6.08 4.62 3.15 2.46 2.86 5.96 4.38 4.32 3.94 4.90 4.35 5.02 2.95 5.75 3.91 3.20 3.14 5.31 3.61 3.24 3.90 3.01 3.62 5.01 3.56 2.74 5.21 3.32

81 78 49 86 11 19 76 39 109 23 98 101 65 56 44 107 116 112 105 14 117 45 55 63 52 35 31 29 7 66 75 82 73 17 118 16 18 13 36 72 79 90 6 32 85 87 26 20 24 43 15 59 68 93 8 46 104 37 110 30 2 62 102 41 106

2.33 2.41 3.21 2.18 5.70 5.38 2.45 3.85 1.72 5.14 1.89 1.87 2.69 2.88 3.54 1.75 1.56 1.69 1.79 5.55 1.54 3.48 2.92 2.72 3.01 3.93 4.23 4.44 5.82 2.66 2.45 2.29 2.52 5.40 1.52 5.41 5.38 5.58 3.92 2.53 2.38 2.09 5.84 4.21 2.19 2.17 4.84 5.28 4.97 3.56 5.54 2.83 2.59 2.03 5.78 3.35 1.80 3.90 1.72 4.38 6.12 2.72 1.80 3.64 1.78

(Contd.)


Table 4: The Enabling Trade Index: Transport and communications infrastructure (contd.)PILLARS TRANSPORT AND COMMUNICATIONS INFRASTRUCTURE Country/Economy Rank Score 6. Availability and quality of transport infrastructure Rank Score 7. Availability and quality of transport services Rank Score 8. Availability and use of ICTs Rank Score


98 56 67 76 87 68 114 71 113 2 21 102 108 20 57 70 48 99 82 83 46 28 33 49 60 47 89 7 35 30 45 22 73 1 14 94 15 117 111 41 53 44 93 59 23 8 3 61 84 81 75 100 95

2.62 3.50 3.25 3.05 2.89 3.20 2.29 3.17 2.34 5.73 5.09 2.51 2.44 5.21 3.50 3.18 3.65 2.59 2.96 2.95 3.70 4.57 4.22 3.64 3.35 3.70 2.86 5.53 4.17 4.49 3.74 5.08 3.13 5.77 5.39 2.74 5.37 2.02 2.40 3.93 3.53 3.79 2.75 3.42 4.80 5.52 5.66 3.34 2.94 2.96 3.08 2.59 2.73

110 32 87 79 66 60 107 27 111 10 20 96 105 12 46 53 26 101 92 88 71 34 31 75 64 55 77 13 42 37 47 11 56 1 18 72 25 117 104 29 41 59 90 67 16 19 6 61 54 95 100 106 81

2.45 4.53 3.27 3.39 3.69 3.84 2.56 4.75 2.45 5.29 5.10 2.89 2.57 5.22 4.13 3.99 4.76 2.80 3.08 3.23 3.51 4.43 4.59 3.44 3.71 3.95 3.42 5.21 4.22 4.36 4.12 5.28 3.92 5.89 5.11 3.50 4.80 1.89 2.65 4.62 4.27 3.88 3.13 3.65 5.17 5.10 5.53 3.77 3.95 3.00 2.81 2.57 3.35

76 96 55 77 95 82 113 111 97 3 24 107 106 27 52 63 57 100 69 75 50 29 40 47 80 39 98 1 31 36 34 16 71 13 22 116 11 115 108 30 64 37 65 66 19 8 6 83 102 91 48 74 90

3.26 3.00 3.65 3.25 3.00 3.17 2.68 2.73 2.97 6.03 4.94 2.76 2.82 4.81 3.80 3.51 3.63 2.94 3.36 3.28 3.82 4.59 4.07 3.90 3.21 4.15 2.95 6.17 4.42 4.23 4.35 5.12 3.33 5.27 5.01 2.53 5.36 2.54 2.75 4.47 3.51 4.18 3.41 3.40 5.06 5.69 5.75 3.15 2.89 3.03 3.89 3.30 3.11

88 54 58 74 95 67 114 92 115 5 21 100 97 12 69 91 70 94 77 80 40 28 34 42 50 53 83 22 38 25 61 27 89 1 3 84 4 113 103 64 60 47 111 48 33 9 10 51 96 57 71 99 108

2.16 2.99 2.84 2.50 1.99 2.59 1.62 2.03 1.61 5.86 5.24 1.88 1.94 5.61 2.57 2.05 2.56 2.03 2.43 2.34 3.76 4.68 3.99 3.58 3.13 2.99 2.22 5.22 3.86 4.88 2.77 4.83 2.13 6.16 6.04 2.19 5.96 1.64 1.80 2.70 2.81 3.32 1.70 3.22 4.17 5.77 5.71 3.10 1.99 2.85 2.54 1.89 1.73


Executive Summary

xxiii

Executive Summary

Table 5: The Enabling Trade Index: Business environmentPILLARS BUSINESS ENVIRONMENT Country/Economy Rank Score 9. Regulatory environment Rank Score 10. Physical security Rank Score

xxiv


82 84 98 53 21 9 46 34 111 20 85 110 90 96 107 74 104 93 78 16 115 12 77 87 37 56 41 38 5 42 109 64 52 39 76 1 31 4 36 79 112 45 2 28 58 32 8 57 54 70 35 19 88 105 30 59 113 51 108 67 6 97 89 27 55

4.22 4.16 3.88 4.59 5.14 5.45 4.66 4.92 3.60 5.16 4.16 3.62 3.98 3.91 3.71 4.35 3.74 3.96 4.28 5.33 3.30 5.40 4.28 4.11 4.86 4.54 4.72 4.84 5.70 4.70 3.70 4.47 4.59 4.76 4.29 5.92 4.98 5.74 4.86 4.27 3.56 4.67 5.84 5.05 4.53 4.97 5.56 4.53 4.57 4.37 4.90 5.21 4.06 3.73 5.02 4.51 3.44 4.61 3.71 4.40 5.63 3.90 4.05 5.07 4.54

73 104 87 47 51 41 50 34 90 28 93 102 101 70 103 79 107 74 63 23 110 12 84 46 7 78 88 26 22 2 96 72 1 65 95 19 56 18 57 4 76 3 9 35 64 16 5 52 67 8 61 42 97 85 44 111 113 71 105 89 11 106 92 36 69

4.26 3.75 4.11 4.58 4.56 4.62 4.56 4.81 4.08 4.91 4.02 3.77 3.79 4.28 3.75 4.18 3.73 4.24 4.36 5.02 3.68 5.38 4.13 4.59 5.43 4.19 4.10 4.96 5.07 5.75 3.90 4.27 5.87 4.35 3.91 5.18 4.47 5.18 4.44 5.60 4.22 5.61 5.40 4.80 4.36 5.23 5.58 4.56 4.32 5.41 4.39 4.62 3.88 4.12 4.62 3.52 3.46 4.28 3.73 4.08 5.39 3.73 4.06 4.77 4.30

78 62 98 61 15 5 50 37 112 23 71 104 79 101 93 64 86 90 77 18 115 25 67 99 74 45 28 52 2 95 103 59 110 36 57 1 21 3 30 114 116 88 4 29 56 54 19 65 48 109 26 14 76 108 24 20 106 41 91 53 10 80 83 27 49

4.19 4.58 3.64 4.61 5.73 6.27 4.76 5.03 3.13 5.42 4.31 3.47 4.16 3.54 3.66 4.51 3.76 3.69 4.20 5.64 2.91 5.41 4.44 3.64 4.29 4.89 5.34 4.72 6.34 3.65 3.50 4.66 3.31 5.18 4.67 6.66 5.50 6.31 5.29 2.94 2.89 3.73 6.28 5.29 4.70 4.72 5.54 4.51 4.81 3.34 5.41 5.80 4.24 3.34 5.42 5.51 3.41 4.95 3.68 4.72 5.87 4.07 4.03 5.37 4.79

(Contd.)


Table 5: The Enabling Trade Index: Business environment (contd.)PILLARS BUSINESS ENVIRONMENT Country/Economy Rank Score 9. Regulatory environment Rank Score 10. Physical security Rank Score


66 43 86 101 91 40 102 94 118 17 11 29 100 10 60 83 47 103 72 95 73 13 18 81 114 68 44 3 24 63 99 33 92 14 7 71 22 69 75 61 23 50 80 106 15 26 25 49 65 117 62 48 116

4.41 4.69 4.15 3.83 3.98 4.74 3.76 3.95 2.98 5.22 5.42 5.03 3.87 5.45 4.51 4.20 4.66 3.76 4.35 3.93 4.35 5.39 5.22 4.24 3.35 4.39 4.67 5.82 5.09 4.48 3.87 4.92 3.97 5.35 5.58 4.36 5.13 4.38 4.32 4.49 5.11 4.64 4.25 3.73 5.34 5.07 5.08 4.64 4.43 3.05 4.48 4.65 3.22

82 62 31 108 91 55 94 99 116 24 25 10 43 39 100 40 29 77 13 81 58 20 48 80 117 98 54 6 17 109 86 45 68 32 27 112 21 59 66 75 53 49 33 114 37 14 15 38 60 115 83 30 118

4.16 4.38 4.88 3.69 4.07 4.49 3.99 3.86 3.14 4.99 4.96 5.39 4.62 4.68 3.82 4.66 4.90 4.22 5.33 4.17 4.43 5.11 4.57 4.18 3.05 3.86 4.51 5.52 5.22 3.68 4.12 4.60 4.30 4.86 4.92 3.48 5.07 4.40 4.34 4.23 4.53 4.57 4.84 3.42 4.74 5.24 5.24 4.74 4.39 3.38 4.13 4.88 2.78

60 38 105 84 85 39 102 81 117 22 11 58 113 7 34 87 68 111 107 89 75 17 12 72 96 42 47 8 40 31 100 32 97 13 6 33 35 70 73 51 16 55 94 82 9 44 43 63 66 118 46 69 92

4.65 5.00 3.42 3.97 3.88 4.99 3.52 4.04 2.82 5.46 5.87 4.67 3.11 6.21 5.20 3.73 4.42 3.30 3.38 3.70 4.27 5.66 5.86 4.31 3.65 4.93 4.83 6.12 4.97 5.28 3.62 5.25 3.64 5.84 6.24 5.23 5.18 4.36 4.30 4.76 5.68 4.70 3.66 4.03 5.95 4.90 4.92 4.55 4.47 2.73 4.83 4.42 3.67


Executive Summary

xxv

Executive Summary

restricted. Indeed, India ranks 105th on the relevant component with, unlike most other countries, tariff barriers representing a more serious impediment than nontariff barriers. Only a small share of goods is imported duty-free. Indias border administration meets many needs of importers and exporters. Ranked 55th on this indicator, a vast number of customs-related services is available in India and clearance entails low pecuniary costs, although it is time-consuming. Border administration continues to be affected by corrupt practices, however, hampering an efficient transport of goods across borders.Trade-related infrastructure and the relevant services are equally fairly well developed in India, ranking 52nd in the overall sample. However, although the country is well connected through maritime routes, it needs more airports and high-quality roads. Indias business environment is in line with the countrys overall assessment, with the regulatory environment ranked 64th and security assessed at 56th among the countries assessed.Europe and North America

xxvi

The United States is ranked 14th.The country benefits from its transport and communications infrastructure, which is among the best in the world (ranked 3rd). It also offers good market access (ranked 6th), with relatively low tariffs and non-tariff barriers and a strong proclivity to trade, as demonstrated by its relative openness to multilateral trade rules. On the other hand, the countrys border administration is seen as lacking some efficiency. For example, customs procedures are seen as comparatively burdensome (ranked 42nd), and there is a relatively high cost to import (ranked 65th). In addition, there are some concerns about security in the country. The United Kingdom is ranked 16th.The country is endowed with a comparatively good transport and communications infrastructure (ranked 8th), particularly related to the quality of its transport services. Its border administration gets relatively good marks (ranked 14th), with low levels of trade-related corruption, clearance perceived to be relatively efficient (13th), and few documents required to import (3rd), although it is somewhat costly (77th) and requires more time than in several European countries (27th). Its evaluation in the area of market access is mixed: while it exhibits the same low tariffs as other EU countries, and allows a large share of exports over the border duty free (11th), its non-tariff barriers are high enough to place the country 58th. In addition, while elements of the business environment are conducive to moving goods over borders, with rules encouraging FDI and allowing for the employment of foreign labor, there are some concerns. Bilateral Air Service Agreements could be more open (ranked 35th), and there are some safety and security concerns in the country, particularly compared with the best-performing European countries.

France is ranked 19th.The countrys greatest strength is its transport infrastructure quality (ranked 2nd), with its excellent roads, railroads, ports, and air transport infrastructure.The country also shows a strong proclivity to trade (ranked 10th), with a large share of imports allowed duty-free into the country and demonstrated openness to multilateral trade rules, although non-tariff barriers are non-negligible (66th).The countrys border administration, while ranked among the top 20, is seen as somewhat less efficient and transparent than Europes leaders, with more time and cost to import than many other countries. Frances regulatory environment is an additional hindrance to the cross-border flow of goods, with bilateral Air Service Agreements that are not deemed open (66th), some restrictions on FDI (47th), and difficulties in hiring foreign labor in the country (76th). Estonia is the highest-ranked recent accession country to the European Union, at 25th. Most notable is the efficiency of the countrys border administration (5th) and of its specific import-export procedures (11th), with little time, cost, and hassle for importing goods.The countrys communications infrastructure compares well with that of its peers, although the transportation infrastructure and provided services could be improved.The picture in terms of market access is somewhat mixed, with low tariffs in line with EU rates (although higher than those that existed pre-EU-accession) and a high share of duty-free imports allowed into the country, but high non-tariff barriers (80th). Italy, at 33rd, is ranked lowest of the pre-2004 accession EU15 countries, bar Greece, and lowest of the G7 group of rich economies.The country compares relatively well in terms of market access to its peers, and benefits from relatively good transport services (21st). On the other hand, the transportation infrastructure requires upgrading (51st), and border administration could also be improved (38th), particularly by reducing the time and cost to import and improving its transparency (40th).The greatest obstacles lie in the business environment, particularly regulatory impediments to foreign direct investment (100th) and foreign ownership (93rd), as well as some concerns about safety and security in the country (48th). Turkey is ranked close behind Italy and Greece at 38th, and ahead of several countries that have recently joined the European Union.Turkey affords good market access (8th) with notably lower non-tariff barriers than in most EU countries. On the other hand, the countrys transport and communications infrastructure is less developed than in most European countries, and its border administration is rated as comparatively inefficient (55th) and lacking transparency (51st). In addition, the regulatory environment could be more conducive to the cross-border flow of goods with more supportive policies encouraging FDI and less restrictive policies on hiring of foreign labor.


Russia, at 103rd, is the lowest-ranked European country by a wide margin, trailing the nearest-ranked large emerging market BRIC country, Brazil, by 23 places. Russias main comparative strength is its transportation and communications infrastructure (60th), although by international standards it requires significant upgrading.The country impedes access to the market with very high tariffs (100th), and allows only a small share of goods to enter the market duty-free (95th).The countrys border administration receives poor marks (92nd), requiring much time and cost to import, and lacking transparency. In addition, Russias regulatory regime is one of the least conducive to cross-border trade out of all countries (ranked second to last, at 117th), and physical security in the country remains a serious concern (96th), particularly by European standards. Attention to these areas is warranted to improve the cross-border flow of goods into the country.Latin America and the Caribbean

Chile leads the ranking in Latin America, coming in at 27th position, and is ahead, by a wide margin, of secondranked Costa Rica at 44th. Part of Chiles economic success can be attributed to trade liberalization and improvements to the business environment made in recent years; this is reflected in the countrys good results on the ETI. It has also laid the foundations for Chiles export success. Border administration is efficiently organized and corruption in related agencies is under control. At the same time, the country boasts a favorable business environment, open to FDI and hiring foreign labor.The countrys weaknesses are to be found in the market access component and with respect to the transport and telecommunications infrastructure. Imports continue to be burdened with tariffs and non-tariff barriers, and although tariffs are not high in absolute terms, they apply to most imported products, or 69 percent of the total. In addition, the countrys infrastructure facilities are in need of upgrading. In particular, the countrys roads do not get good marks for quality, and the availability and quality of infrastructure-related services could be enhanced. Costa Rica is at 44th, the second-ranked country in Latin America.The overall rank disguises a mixed performance on the four categories assessed by the Index. Costa Rica stands out for its openness to imports with both tariff and non-tariff barriers being relatively low. The countrys border administration is quite efficient and transparent, although customs procedures are considered to be somewhat burdensome, which is also reflected in the fairly long time it takes to import goods. The countrys weak spot is its underdeveloped transport infrastructure and related services. Here, in particular, the quality of transport infrastructure, railroads, roads, and ports are poorly assessed by the business community.The countrys regulatory environment for importers is among the top 10 in the world, with open bilateral

Air Service Agreements and policies encouraging foreign investment, yet the relatively high levels of crime and violence are potentially problematic for getting goods to destination in the country. Costa Rica is followed by a number of Central American and Caribbean countries that cluster closely together in the middle ranking, ranging from Panama in 46th position to the Dominican Republic and Honduras at 63rd and 64th, respectively. Efficient border administration contributes to the good showing of Panama, but investment in infrastructure and the use of ICTs would improve the ease of getting goods across borders in the region. Mexico, which occupies the 65th position, shows even results across all four subindexes of the ETI. Market access is hampered by a fairly high tariff rate of about 11 percent. At the same time, however, this is levied on only about 20 percent of all imported products, with the large majority imported duty-free.This points to a certain openness to international trade, which is also reflected in the large number of bilateral trade agreements and multilateral trade-related treaties signed by the country. On the other hand, the countrys border administration could be streamlined (ranked 65th overall). It is also very costly to import goodsmoving one container over the border costs seven times more than in the best-performing country on this indicator, Singapore. Although the country does not boast a highquality transport infrastructure (of concern given Mexicos large size), infrastructure-related services as well as the telecommunications infrastructure are fairly well developed. And Mexicos regulatory environment is somewhat conducive to cross-border trade, with, in particular, its rules encouraging foreign ownership. However, the lack of security in the country is of significant concern, as it may cause additional costs to shippers. Argentina follows, at 78th position.The countrys particular strengths lie in relatively high proclivity to trade, and in fairly efficient import-export procedures. Despite these positive aspects, importing remains relatively costly, thereby hindering trade. Increasing transparency in institutions related to border administration would further facilitate trade operations and reduce the cost of trading across borders. Infrastructure services are widely available and telecommunications infrastructure is well developed, two factors that facilitate trade in Argentina.The low level of physical security, however, where Argentina ranks 112th out of 118 countries, is a major impediment to enhancing the countrys trade performance. Equally, the regulatory environmentin particular, FDI-related regulationsare not conducive to moving goods across borders. Just two positions further down the rankings is Brazil, at 80th position. Brazils markets continue to be fairly closed, with tariffs and, to a lesser extent, also nontariff barriers inhibiting goods imports.The countrys border administration is assessed fairly favorably, at 66th


Executive Summary

xxvii

Executive Summary

position, although businesses complain that customs procedures are burdensome. And although transport infrastructurein particular, railroads, roads, and portsis fairly underdeveloped, which is not surprising for a country of Brazils level of development, the logistics industry is well assessed in terms of competence and reliability. Equally, telecommunications infrastructure is relatively widely available and used.The country boasts an open and competitive air transport sector. However, as in other countries in the region, a significant impediment to fostering trade across borders remains the poor security situation in the country.Middle East and North Africa

xxviii

The United Arab Emirates (UAE) comes in at 23rd position globally, right after Spain and ahead of Korea and Estonia.This very good result at the global level is not surprising when one considers the impressive development of Dubai over recent years into the most important transport and logistics hub in the region, and the UAE has made significant efforts to improve the business environment for the transport and logistics sector.The good results in the ETI testify to the world-class transport infrastructure (23rd), very good infrastructure-related services, and a conducive and secure business environment, characterized in particular by its ease of hiring foreign labor.The most important obstacle to trading across borders in the UAE remains the restricted access to the countrys goods markets through pervasive tariffs (through a uniform 5 percent tariff rate).This is reflected in the fairly low 50th rank out of 118 countries on the market access pillar of the ETI.This high incidence of trade barriers appears to be rooted in the low standing of trade on the countrys agenda, as witnessed by the very small portion of imports that enters the country duty-free. Here, the UAE ranks 107th out of 118 economies. At 28th, Israel places second in the Middle East and North Africa region, between two countries that have successfully harnessed trade for development, Chile and Malaysia.With its high-quality infrastructure, firmly organized border administration, and intensive use of ICTs, the country presents a number of important advantages. It is a fairly open economy, with companies serving broad international markets and 80 percent of imports allowed into the country duty-free (8th rank). At the same time, Israels trade performance could benefit from improvements to the business environment, which, although open to foreign businesses, is penalized by the vulnerable security situation and barriers to hiring foreign labor. Bahrain, at 37th position, right behind Greece and ahead of Turkey and Cyprus, is the third-placed country from the region. Although Bahrain is fairly open to foreign investment and boasts a fairly good business environment, the country remains, despite its small size, relatively protected from international competition through

tariffs.The low share of duty-free imports and the reluctance to engage in multilateral trade rules coupled with low reliance on export markets points to a low priority that is attached to trade by the authorities. In particular, opening up the country to imports would provide significant benefitsthe increased competition would make the economy more productive, thereby reducing reliance on primary resources and boosting growth rates. Tunisia comes in 49th on the ETI, with high marks on the business environment and a fairly efficient border administration.Yet the countrys markets remain sheltered from international competition, with some of the highest tariff barriers in the entire sample ranked 114th out of 118 countries. At the same time,Tunisias border administration is fairly efficient and its business environment is secure, although additional opening up to FDI and labor migration would benefit the countrys trade performance. Equally, investment in infrastructure and the use of ICTs would further enable the country to take advantage of the benefits of trade. Saudi Arabia ranks 53rd and shows fairly even performance across all the four categories of the ETI. Although Saudi Arabia has very low non-tariff barriers, tariffs are somewhat higher and levied on 81 percent of all imports, which corresponds to a low 96th rank globally on this category.The country, which just recently acceded to the WTO, ratified only a small share of the relevant multilateral trading agreements. And although formal administrative procedures for importing are fairly easy, the overall efficiency of border agencies is not on a par with international standards. Improvements to the business environment would also benefit traders, in particular regarding regulations related to FDI, which appear to deter international businesses from engaging in the country. Egypt ranks a low 87th for the ease of getting goods across the border.The countrys relative strengths include a fairly conducive business environment, especially with regard to the ease of hiring foreign labor and the fairly well developed transport infrastructure, including the associated services. Egypt stands out positively for its maritime connectivity and the related services, where it ranks in the top 20, as well as for the quality of its roads. Although importing goods is neither costly nor time consuming, importers raise concerns about the efficiency of customs and other border agencies.The high tariffs, which apply to 70 percent of

Global Enabling Trade Report 2008

Documents

Transcript of Global Enabling Trade Report 2008