Public-private partnership and organizational

structures in support of trade facilitation

Мario APOSTOLOV, Regional Adviser, UNECE

Contents of this presentation

• Necessity for interaction among various stakeholders in TF implementation.

• Why implement international TF standards?

• Options for Russia.

Timeliness of trade facilitation work in Russia determined by:

1. Importance of trade facilitation

2. Russian-World Bank Customs modernization project -> talks of the need for a TF programme

3. Necessity to harmonize procedures, standards and documents ion a regional scale (on the basis of UN standards)

4. Required by the market reforms in Russia

5. Interest in TF among Ministry of Economic Development and Trade, Customs, Chambers of Commerce, UNDP, Government of Moscow, the business community / freight forwarders, traders, banks, etc.

6. The struggle against terrorism needs better procedures and info exchange. ║

▼

Unique chance !

What should be done? How to organize support for TF implementation?

1. Problem – gaps in the positions and interests of various stakeholders• among various State agencies, • between public and private sectors, • among various companies and sectors in private businessSolution – Public-Private Partnership (PPP)

2. An organizational basis for the work is neededRecommendaiton 4: National Trade Facilitation Bodies

www.unece.org/cefact/recommendations/rec_index.htmYet this Recommendation suggests a too rigid structure / Not a good idea

3. Russia is a unique country, with unique geography, economic and political structure => the organizational structure will be unique too. Where should one start?

How to bridge gaps?

State agencies

Business

Ministries oftrade,

transport, etc.

Customs,Police, etc.

Big companiesand associations in various sectors

Exporters, importers,

freight forwarders,software companies

banks, SMEs etc.

How to bridge gaps?

State agencies

Business

Ministries oftrade,

transport, etc.

Customs,Police, etc.

Big companiesand associations in various sectors

Exporters, importers,

freight forwarders,software companies

banks, SMEs etc.

Accent on the function in support of TF

The functions of a TF body:

• A lobby group for TF,

• Forum for public private dialogue and cooperation, and for determining the priorities and policies for TF implementation.

• A body creating instruments and recommendations in the area of TF on the basis of international (UNECE) standards.

• Partner in joint TF implementation projects with the World Bank, UN/CEFACT, UNCTAD, etc.

• Organization of capacity-building courses in TF implementation for public and private players.

Driving force in the implementation of international standards

A function of a TF body: foster the implementation of international TF standards

• The UN Layout Key for trade and transport documents (UNLK); codes (UNTDED, LOCODE); UN EDIFACT, e-business standards, etc.

• Regional trade integration (EurAsEC, CIS) and integration of Rusia in the global market on the basis of UN standards.

• Security (automated supply of trade data and information for better risk analysis).

International functions of a TF body

1. Regional work on TF - essential

• Inter-State relations (e.g. EurAsEC)

• Among TF structures (EUROPRO, SECIPRO)

2. PPO committees represent their countries in international and regional structures for TF implementation, such as UNCEFACT, EUROPRO, World Bank, etc.

International functions

Long term perspective: Integrated management of international trade flows

“Single Window”

Harmonized electronic trade documentse.g.UNeDocs

Advance filing of trade information

Advance exchange of information across borders

Results: • more efficient trade: less bureaucracy (the goal of trade facilitation)• more security through better supply chain management inside and among countries –> better risk analysis• integration with Europe [EU’s Single Administrative Document, SAD, based on the UN Layout Key]

Types of TF bodies (PRO committees)

Two models: state-financed and self-financed (typically a combination)

Examples: SITPRO (UK), SWEPRO (Sweden), FITPRO (Czech Rep.), JASTPRO (Jap.), BULPRO, etc

SITPRO – financed by DTI to create tools for all (public goods)

FITPRO – technical cooperation project between the Czech Rep. and UNECE.

BULPRO – part of the Bulgarian Chamber of Commerce

JASTPRO, AUSTRIAPRO – promote UNEDIFACTThey can be under a Chamber of Commerce (rarely a

Ministry), or can be independent.

Financing TF bodies Difficult issue: TF is not profitable,

even if of great public value. TF products can be compared to

“international public goods”. Difficult to determine:- who contributes what? (everyone expects the other to deliver goods that all will use)- what exactly should be produced? (big and small firms, rich and poor countries have divergent objectives. - who owns the products?

Financing (the organizational structure)

1. Above all – public financing is a priority (from the budget) – to the benefit of the middle class and of stability – expression of political will

2. Private sector must help too (e.g. big companies). Hw to build a mechanism – key question in the provision of any public good.

3. World Bank project can make a contribution.4. Projects with strategic partners. 5. PRO committee’s own projects and instruments (e.g.

electronic documents, Single Window), consulting, etc.

Important: avoid dependency

Possible structure

Options in Russia1. Create a structure (under RF Chamber) incl. Ministry of

Economic Development and Trade, Customs, federal and regional Chambers, the business community: traders, freight forwarders, banks, business associations.

2. Start with a regional structure in Moscow (Moscow Chamber, Government of Moscow, Customs, business, UNDP)

3. Start by a single project (e.g. Single Window in Moscow) with the participation of the Moscow Chamber, Customs, Government of Moscow, business, UNDP, ECE expertise) => create a task force => gather skills => spread around the country.

Follow up to this workshop…(please fill in Evaluation Form in order to keep in contact)

• Create a TF body. This workshop is for raising awareness (in compliance with Recommendation 4).

• Single Window project in Moscow (Customs must participate, meeting in the Government of Moscow – 24 Nov.)

• Organize a 3-day capacity building seminar in the implementation of international TF standards (in the Chamber or the Customs Academy, Ministry of Economic Development and Trade or elsewhere)

Thank you !

Mario Apostolov Regional Adviser, UNECE Trade

tel.: +41 22 9171134, fax: +41 22 9170037, e-mail:

mario.apostolov@unece.org