Arab Countries & Trade FacilitationReform Priorities

Raed SafadiDeputy DirectorTrade & Agriculture Directorate

Bali package on Trade Facilitation is a good start, but needs to be implemented

• WTO BALI PACKAGE ON TRADE FACILITATION COVERS 12 TOPICS• 1. Publication and availability of information• 2. Opportunity to comment, information before entry into force and

consultation• 3. Advance rulings• 4. Appeal or review procedures• 5. Other measures to enhance impartiality• 6. Disciplines on fees and charges• 7. Release and clearance of goods• 8. Border agency cooperation• 9. Movement of goods under customs control• 10. Formalities connected with importation, exportation and transit• 11. Freedom of transit• 12. Customs cooperation

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Implementation can only start after next hurdles are overcome

• Bali package to be adopted by the WTO General Council by 31 July 2014

• Bali package needs to be ratified by two thirds of WTO members (expected to take up to 2 years)

• On-the-ground implementation period will differ by country and by type of measure Provisions divided into categories A, B, and C,

according to planned implementation timing Developing and Least Developed Countries allowed

differential treatment for implementation

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Overall potential trade costs reductions for MENA and selected groups

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Potential trade costs reductions for the “top three” sets of measures – MENA and selected groups

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OECD Trade Facilitation Indicators

Assessing the impact of TF measures on trade flows and trade costs

Following the structure of the WTO Trade Facilitation Draft Consolidated Negotiating Text

Aiming to provide a basis for prioritising trade facilitation actions by governments

Helping mobilise technical assistance in a targeted way

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OECD TFIs structure

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Extensive coverage

133 countries at different stages of development

Extensive data collection process: Customs websites and regulation, publicly available databases, collaboration with countries’ Permanent Delegations to the WTO

Focus on assessing impacts for different country groups: income groups, geographic groups, regional economic partnerships groups

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Objectives

The OECD Trade Facilitation Indicators are a tool that allows exploring

the state of trade facilitation performance across:

• income groups

• regions

• countries

quantitative impacts on:

• trade flows

• trade costs

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Arab countries covered

8 countries in the Middle East:

Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, United Arab Emirates

3 countries in North Africa

Algeria, Morocco, Tunisia

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Arab Countries: TF state of implementation

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Main sub-regions: TF state of implementation

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Arab focus: Impact on trade flows and trade costs

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• Automation

• Streamlining of procedures

• Involvement of the trade community (consultations)

• Simplification and harmonisation of documents

• Governance and impartiality

• Information availability

• Advance rulings

result most important for:

- increasing trade flows with the rest of the world

- lowering trade costs

- boosting intra-regional trade

- equally important for both exports and imports

Impact on trade costs – potential reductions

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How can these findings be put into practice?

The use of the indicators in this proposed framework should enable countries sharing similar characteristics to better assess which trade facilitation dimensions deserve priority

This empirical evidence provides useful information to guide policymakers, private sector practitioners and other stakeholders on which might be the areas for which resource allocation could bring the highest benefits

The set of variables identified shows that some measures for which costs are considerably lower than for larger infrastructure projects can bring high benefits (e.g. the simplification and harmonisation of documents, increasing information availability)

15OECD Trade and Agriculture Directorate