SASECTrade Facilitation Strategic

FrameworkAileen PangilinanPrograms Officer

Regional Cooperation and Operations Coordination DivisionSouth Asia Department

Asian Development Bank

Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Key Messages• Why?

– An integrated and prosperous South Asia

• How?– Regional cooperation through SASEC– Implement the SASEC TF Framework– Strengthen Customs cooperation

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21st Century South Asia is the Least Integrated Region in the World

29.4

2.70.1

10.9

38.23

4.31 5.89.14

05

1015202530354045

ASEAN+3 South Asia Central andWest Asia

The PacificIslands

19902008

Intra-regional Trade Share (%)

Source: ADB ARIC Trade and Integration database (www.aric.adb.org); raw data from IMF DOTS.

100 hours for trucks to cross between Petrapole & Benapole

200 signatures in Nepal to trade goods with India

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Trade Facilitation Indicators

0 5 10 15 20 25 30 35 40 450

5

10

15

20

25

30

35

40

29

38

24

20

35

12

4

32

20

13

Time to export (days)

Tim

e to

impo

rt (d

ays)

Source: World Bank, 2010.

4

SAARC $41

PRC

East Asia $2,830

ASEAN $611

$168

$1147

$904

$169

$1047

$253

$87

$92

$93

$972

$325

$400

Source: ADB Staff estimates and ARIC Trade Integration Database

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N.B. The data inside boxes is intraregional trade of the region; data outside of the boxes refer to inter regional trade.

2012 Intra and InterRegional Trade in Asia (billion)

Centrality of SASEC in The Garland of an Integrated Asia

ASEAN Association of Southeast Asian NationsBIMP-EAGA Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth AreaBIMSTEC Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation CAREC Central Asia Regional Economic CooperationGMS Greater Mekong SubregionIMT-GT Indonesia Malaysia Thailand Growth TrianglePIF Pacific Islands ForumSAARC South Asian Association for Regional Cooperation

Asia is increasingly integrated economically stretching from the

shores of the Black Sea in the West to the Western shores of the Pacific in the East and stretching

from the Maldives and South Pacific to PRC and Central Asia in

the North

Disclaimer: In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

SASEC

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ADB’s Strategy 2020 & RCI

Infrastructure Environment Education Financial Sector Development

MAIN DRIVERS IN STRATEGY 2020Private Sector Development

GoodGovernanceKnowledge Partnerships

Regional Cooperation

and Integration

CORE AREAS IN STRATEGY 2020

FOUR PILLARS IN REGIONAL COOPERATION AND INTEGRATION STRATEGY

Regional/subregional Economic

Cooperation Programs

Monetary and Financial

Cooperation and Integration

Trade and Investment

Cooperation and Integration

Cooperation in Regional Public

Goods

Inclusive Growth

Environmentally Sustainable

GrowthRegional

Integration

By 2020, at least 30% of operations are in regional cooperation and integration

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Regional Cooperation in Practice in South Asia

Nepal

Sri Lanka

Afghanistan

BangladeshIndia

Bhutan

Pakistan

MaldivesThailand

Myanmar

BIMSTEC (1997)

SASEC (2001)

SAARC (1985)

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South Asia Subregional Economic Cooperation (SASEC)

• Members: BAN, BHU, IND, NEP; MLD, SRI - new• Institution-light; projects-heavy• Almost US$5 billion invested since 2001 • Focus on transport, trade facilitation, energy• Supports SAARC and BIMSTEC

Key SASEC Transport and Trade Facilitation Projects

Key SASEC Transport Projects

• India Road Connectivity Sector Project, $500m• Bhutan Road Connectivity Project, $57m• Bangladesh Road Connectivity Project• Nepal Road Connectivity Project

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Key SASEC Trade Facilitation Projects/ Activities

• SASEC Trade Facilitation Program Loans/ Grants

• Capacity Building and Discussion Platform

• SASEC Trade Facilitation Strategic Framework

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SASEC TF Program Loans/Grants• BAN ($21M); BHU ($11.67M); NEP ($15M)• Tranche release is triggered by specific policy actions• First tranche fully disbursed:

– Bangladesh: $10.7M loan in Q2/2013– Bhutan: $6.3M loan and grant in Q1/2013– Nepal: $8M grant in Q2/2013

• Milestones achieved:– Important steps taken toward accession to the Revised Kyoto Convention– Planning finalized for automation of trade facilitation business

procedures– National Trade Facilitation Working Committees being established

Capacity Building and Discussion Platform

• Training to support customs reforms

• Knowledge sharing on key TF issues

• SASEC Customs Subgroup established– agreed on work plan– serves as platform for knowledge sharing and training– advocacy for customs reform and modernization

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Increased trade, including intra-regional trade, of SASEC Countries

More efficient, transparent, secure and service-oriented trade in SASEC Countries

Customs Border FacilitiesStandards Transport

Facilitation

Simplify & expedite border

formalities, increase ICT applications,

develop NSWs

Strengthen cross-border

facilities

Identify SPS-sensitive products,

Strengthen National

Conformity Assessment

Boards

Develop & pilot transport facilitation

arrangements

Enhance cooperation and coordination mechanisms

Stra

tegi

c Th

rust

sCo

mpo

nent

sGo

als

Mis

sion

SASEC Trade Facilitation Framework

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Implementing the TFSF• Guiding principles

– Country owned– Pragmatic and results oriented– Flexible and responsive– Open cooperation with neighbors– Involves private sector and development partners

• Two-track process• South-South cooperation

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SASEC Customs Subgroup WP

17

• Strategic thrusts– Simplifying and expediting border formalities– Increasing the application of ICT– Developing national single windows

• Composition– 7 subregional projects– 20 national projects in all 3 strategic thrusts– 6 subregional training areas

Subregional Projects in the WP (1)• Sharing of experience on risk management and SAFE

application• Exchange of documents at major BCPs (taking

inspiration from the SAARC Agreement on Mutual Administrative Assistance on Customs Matters)

• Assessment of the readiness of regulatory framework and infrastructure facilities in SASEC countries for containerized movement of cargo through land borders

Subregional Projects in the WP (2)

• Institutionalize regular border meetings between/among the Customs authorities at major border crossing points

• Conduct of the SASEC Trade and Transport Facilitation Monitoring Mechanism

• Use of ICT in processing of the transit cargo for enhanced efficiency

• Conduct of feasibility study on electronic exchange of trade-related information

For more information:Visit www.sasec.asia oremail sasec@adb.org

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