Post-Hong Kong Research and Analytical Priorities for Low-

income Countries: Discussions on Trade Facilitation

Dr Ongolo Zogo Valérie

ILEAP – University of Yaounde II

Hong Kong 16 December 2005

• 1.Main issues in the Trade Facilitation Negotiations for Developing Countries

• 2. Assigned Objectives of the TF programme

• 3. Regional Analytical Priorities

• 4. Research Areas

PRESENTATION STRUCTURE

I.1. MAIN ISSUES:Concept Definition

• Definition: “Series of measures taken to reduce costs related to trade”

• Accompanied by an aid for trade programme

• Implementing instruments vary with respect to the nature of the programme: WTO, UNCTAD, World Bank

I.2. MAIN ISSUES: Importance of the concept

The TF programme directly influences the other aspects of trade: trade in goods, trade in

services…

I.3. TRADE FACILITATION AT THE WTO

• Definition: “Simplification and Harmonisation of the procedures of international trade”

• Framework: Articles V, VIII and X of GATT (1994)

• Content: Transit; Fees and Formalities of external trade; and Publication and implementation of trade regulations

I.4. TRADE FACILITATION AT THE EU (EPA Perspective)

• Definition: “Support for the promotion of trade and reinforcement of export corridors”

• Framework: To be defined

• Content: System of rules of origin, legislation and customs procedures (including information exchange), and certification and Quality Assurance

I.5. TRADE FACILITATION IN OTHER COOPERATION AREAS:

World Bank and UNCTAD

• Definition: “Support for trade promotion activities”

• Framework: (Transport & Trade programme, Support for Maritime Activities…)

• Contents: Port reforms; improvement in transit corridors; and reform of road transport activities

I.6. Trade Facilitation: Resume of Main TF Issues

The implementation of this programme requires accompanying technical assistance programmes and capacity building for developing and least-

developed countries

I.7. Resume of Main TF Issues

WTO/EU (EPA)UNCTAD/WB

AUTONOMOUSREFORMS

REGIONAL INTEGRATION

IMPLEMENTATIONCAPACITY

TRADE ANDDEVELOPMENT

PROGRAMMEHARMONISATION

Importance of the negotiationson TF in this context

II. EXPECTED OBJECTIVES OF TF NEGOTIATIONS

• Identify the content of the programmes

• Identify competent authorities

• Harmonise existing initiatives

• Take advantage of Aid for Trade

opportunities

Regional integrationis the central objective

of TF programmes

II.1. Objective of Regional Integration

TF programmes should aim atreducing obstacles to trade

and promoting intra-regional exchangein order to help reduce

transaction costs

Difficulties relatedto implementation

of programmes

II.2. Facilitate the implementation of programmes

A number of programmes exist but they suffer from implementation problems(i.e. administrative rigidity; lack of Coherence at the inter-state level; andabsence of coordination)

Problems of programme harmonisation

II.3. Harmonising TF programmes

The programmes implemented by the aforementioned institutions are not always harmonised, due to:• Risks of conflict of jurisdiction; • Risks of dispersion of resources; and• The need for harmonisation

IV- REGIONAL PRIORITIES

NATIONAL STRUCTURES

REGIONALSTRUCTURES

HARMONISATIONCOORDINATION

MODERNISATIONSIMPLIFICATION

STA

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INFRASTRUCTURE 1. Consolidate the level of implementation of integrated transport networks

2. Improve technical capacity of ports to reduce delays

IV.1. REGIONAL ANALYTICAL PRIORITIES

HARMONISATION &SIMPLIFICATION

1. Operationalise the relevant Conventions

2. Finalise and apply common customs codes

3. Diffusion of information on transport and customs procedures

IV.2. REGIONAL ANALYTICAL PRIORITIES

MODERNISATION1. Harmonisation of customs

information systems through ASYCUDA

2. Installation and computerisation of single window systems

3. Integration of databases4. Information system on transit

IV.3. REGIONAL ANALYTICAL PRIORITIES

STANDARDISATION

1. Application of the revised Kyoto Convention

2. Framework of standards from the WCO

3. UN/EDIFACT standards3. Computerisation of single

window procedures at entry ports

IV.4. REGIONAL ANALYTICAL PRIORITES

COORDINATION 1. Activate and invigorate juxtaposed border posts

2. Rationalise merchandise transport procedures (limit transit corridor controls)

3. Create regional systems for coordination of shared trade-related information

IV.5. REGIONAL ANALYTICAL PRIORITIES

NATIONALSTRUCTURES 1. Port Services

2. Fiscal and Customs Services 3. Road & Rail Transport Services 4. National Freight Offices

IV.6. REGIONAL ANALYTICAL PRIORITIES

REGIONAL STRUCTURES 1. Cooperation of landlocked

countries in management of port facilities

2. Fiscal and Customs Cooperation (road & rail transport services)

3. Regional freight management offices

IV.6. REGIONAL ANALYTICAL PRIORITIES

V- PROPOSALS FOR FURTHER RESEARCH ON TF

1.Article V: Transit

2. Article VIII: Fees & Formalities

3. Article X: Scope & Application

INITIATIVES IN FAVOUR OF

LANDLOCKED COUNTRIES

• Adoption of integrated road network

• Fiscal and customs harmonisation2. Harmonisation and

Standardisation of procedures: (juxtaposed border posts; establishment of observatories; technical and legal studies)

V.1. INITIATIVES RELATED TO TRANSIT

1. Coordination between relevant administrations

2. Cost-sharing3. Common standards between countries4. Clarification of transit-related costs5. Coordination and harmonisation of

documentation6. Reliable regional information system7. Adoption the Kyoto Convention8. Effective harmonisation of decision-

making

WHY A REGIONAL AGENCY?

REGIONALAGENCY

REGIONALINSTITUTIONS

PRIVATEOPERATORS

OPERATIONALISATION OF A REGIONAL AGENCY

OPERATIONDEFINITION EXECUTION

ARTICLE V

• System to track merchandise in transit

• Juxtaposed border posts

• Freight management offices

REGIONAL AGENCY: AREAS OF COMPETENCE

ARTICLE X

• Regional information platform

• Creation of focal points

• Collections and updating

ARTICLE VIII• Updating Customs

Information Systems

• Operationalisation of Regional Agency

• Common information systems

1. Regional Transit and Facilitation

Agency: institutional framework,

financing…

2. Provision for application of

international conventions related to

transit

3. Feasibility and conditions of

harmonisation of transit documents

V.3. AREAS OF RESEARCH ON ARTICLE V

HARMONISATION AND

SIMPLIFICATION 1. Evaluation of port services reform

2. Computerisation of single windows

3. Modernisation of maritime procedures and auxiliaries

4. Initiatives for establishment of juxtaposed border posts

V.4. INITIATIVES RELATED TO FEES AND FORMALITIES

1. Sectoral studies for evaluation of port reforms2. Conditions for creation of observatories and

technical and legal studies3. Evaluation of costs of computerisation of customs

procedures 4. Economic impact of consolidation of TF

proposals: (‘single document’; new technologies for document publication and legislation; use of international standards for customs formalities)

V.4. AREAS OF RESEARCH RELATED TO ARTICLE VIII