IMPROVING TRANSIT COOPERATION, TRADE AND TRADE FACILITATION FOR THE BENEFIT OF THE LLDCS: CURRENT STATUS AND POLICY IMPLICATIONS. 10 December 2015 Dr

IMPROVING TRANSIT COOPERATION, TRADE AND TRADE FACILITATION

FOR THE BENEFIT OF THE LLDCS: CURRENT STATUS AND POLICY IMPLICATIONS.

10 December 2015

Dr. Robert M. [email protected]

10 December 2015

LyciarDare to Know

VIENNA PROGRAMME OF ACTION

Africa Regional Report

1UN-OHRLLS

mailto:[email protected]

16 AFRICAN LLDCs

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UN-OHRLLS

PRIORITIES OF VPoA

10 December 2015 3

• Fundamental Transit Policy Issues.

• Infrastructure Development and Maintenance.

• International Trade and Trade Facilitation.

• Regional integration and cooperation.

• Structural economic transformation.

• Means of Implementation.

UN-OHRLLS

POLICY IMPLICATIONS – PRIORITY 1

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10 December 2015 4UN-OHRLLS

• Necessary Legal Frameworks are in place and effective:

African countries should put special emphasis on implementing the REC Protocols on Free Movement – which have stalled with –ve effect.

TAH Agreement should be signed to improve quality. African countries should make greater use of WTO

TFA by filing necessary Notifications to get technical assistance.


s


Issue for Harmonization

East AfricaEAC

COMESA

Southern AfricaSADC

Central AfricaECCASCEMAC

West AfricaECOWASUEMOA

Vehicle Load and Dimensions Control (Axle load and Gross Vehicle Mass limits)

Yes. Axle Load/GVMWeighbridges installed

Yes.Axle Load/GVMWeighbridges installed

Yes – Inter-State Road Transport (TIE).Axle Load/GVM

Road Transit Charges Harmonized with SADC Harmonized with COMESA and EAC

Carrier License and Transit Plates Yes

Third Party Motor Vehicle Insurance Schemes

Yellow Card Yellow Card (of COMESA) Orange Card ECOWAS Brown Card insurance scheme (Convention A/P1/5/82) -ECOWAS "Carte Brune" (Brown Card) and CIMA Code

Road Customs Transit Declaration Document COMESA Customs Declaration Document (CD-COM)

Single Administrative Document (SAD)

ECOWAS’ Interstate Road Transit Scheme (ISRT) – Convention A/P4/5/82 and SupplementaryConvention A/SP.1/5/90

Road check points Significant reduction ECOWAS Interstate Road Transport (IST) – Convention A/P.2/5/82

Regional Customs Bond Customs Bond Guarantee Scheme - Harmonized with SADC

Customs Bond Guarantee Scheme - Harmonized with COMESA and EAC

Customs Agreements on Inter-State Road Transit (TRIE Convention)

Border Posts Operations 15 OSBP envisaged; 7 under development

Chirundu OSBP Pilot; Other OSBP Projects in NSC

ICT for Vehicle Tracking and Fleet Management

Automated Sysytems for Customs Data (ASYCUDA)

ASYCUDA ASYCUDA ASYCUDA


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• Customs and Border Crossing Procedures: Customs Union eliminates unnecessary delays (SACU, EAC) =>

Greater push by RECs and AU towards CFTA/CU and African Passport Re. Protocols on Free Movement.

ICDs/DRY Ports and OSBP/JBP greatly improve transit efficiency => More required along all borders and corridors.

Application of ICT (ASYCUDA, Single Window, etc.) increases efficiency in border operations => More use of ICT is required.

Liberalization of Visa requirements improve movements and increase tourism (EAC UNIVISA, Rwanda Visa Policy) => Protocol on Free Movement should be implemented.

CUSTOMS AND BORDER CROSSING PROCEDURES - ONE STOP BORDER POSTS

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UN-OHRLLS


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• Infrastructure No. 1 Priority:• PIDA is agreed Regional Priority => National

programmes be aligned to PIDA • Leadership matters in regional infrastructure

development (PICI Progress) => More PIDA projects should be incorporated into PICI.

• Private sector appetite for investment in infrastructure development constrained by project development => More resources should be allocated to Project Preparation Process in order to attract financing.

PRIORITY 2: INFRASTRUCTURE DEVELOPMENT AND

MAINTENANCE – PIDA PAP Projects.s


Sector Number ofprojects

Cost (US$ billions) Region Number ofprojects

Cost (US$ billions)

Transport 24 25.400 Continental 7 3

Energy 15 40.300 North Africa 2 1.3

Water 9 1.700West Africa 16 6.2

ICT 3 0.5Central Africa 9 21.5

Southern

Africa6 12.6

East Africa 11 23.3

Total 51 67.9 Total 51 67.9


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• Africa Share International Trade Small and Stagnant: Exports Dominated by Commodities and Vulnerable

to Demand and Price => Expanding Service Sector Gains From Global Value Chains.

Intra-African Trade Lowest in World => AU Industrialization Policy to Boost Intra-African Trade through Complementarities?

Intra-African Trade in Intermediate Manufactured Goods More Diversified => Trade in Services and Regional Value Chains Opportunity for Expansion.


Africa Export Trade – Trends and Concentration


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100

200

300

400

500

600

700

All food items Agricultural raw materials Ores and metals

Fuels Manufactured goods Others n.e.c.

Africa Export Trade Share – Trends


1993 2003 2013 1993 2003 2013

Europe 45.3 45.9 36.3 44.4 45.0 35.8 ↓

Asia 26.0 26.1 31.5 23.6 23.5 31.8

North America 18.0 15.8 13.2 21.3 22.4 17.4 ↓

Middle East 3.5 4.1 7.4 3.3 2.8 4.2 Commonwealth of Independent States

1.5 2.6 4.3 1.2 1.7 3.1 South and Central America

3.0 3.0 4.0 3.3 2.5 4.2

Africa 2.5 2.4 3.3 2.6 2.2 3.4

Exports of goods Imports of goods

Share Intra-Regional Trade by Region 2013


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• Trade Facilitation Key to Africa’s Future Dev: Cost of Exports Highest in World => Continue

infrastructure Development through Corridor Development Approach (Experience in LLDCs of East & Southern Africa).

RECs Key to Trade Facilitation => Harmonization Transit Policies and Practices (; Documentation; Transit Operations; etc.)

National Actions in Transit Countries Important =>Application of ICT (ASYCUDA, Single Windows, etc.)


Trade Facilitation – Private Sector Participation – ICF Africa

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Project Name Expected Results

Senegal – PaperlessTrade & CustomsModernization Project

Cargo dwell times for imports have been reduced substantially from 17 days to 3 days. Derived private sector savings in 2014 alone to total almost US$ 42m. vis-à-vis combined ICF and Government of Senegal total investment of US$ 11m.

Burkina Faso –Facilitation of CustomProcedures

· Reduce time to undertake pre-clearance process from 15 daysto 3 days

· Reduce documents required for import from 10 to 7· Reduce documents required for export from 10 to 3

Ethiopia – SingleWindow

· Produce private sector savings amounting to US$ 794m within first two years of operations.· Increase trade volume by US$ 1.3b and revenue by US$ 172m within first two years of operations. · Reduce clearance document preparation time by 80%.

Kenya – NationalElectronic SingleWindow

· Reduce cargo dwell time at seaports from 8 days to 3 days· Reduce cargo dwell at airports from 5 days to 1 day· Reduce cargo dwell at key border posts from 2 days to 1 day

Tanzania –Modernization ofCustomsAdministration

· Reduce the average time for clearing goods at the port of Dares Salaam from 5 days to 1 day for export goods, and from 9 days to 5 days for import goods.

· Reduce the time to lodge and issue Customs release orders atthe port of Dar es Salaam from 4 days to 1 day


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• Means of Implementation: Global Support => Continued Advocacy Special Needs

of LLDCs in all International Actions (SDG, FinDev, etc.)

African Leadership => Prioritization and Implementation of Relevant Agreements (WTO TFA, Agenda 2063 CAP; REC Agreements; Corridor Agreements; PIDA, etc)

AfT => ODA support to trade related sectors for LLDCs (Development Corridors, Institutions, etc.)



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• Means of Implementation: IDFI => AfDB continued leadership in sourcing

financing (NEPAD, ICA, Infrastructure Dev. Funds, Emerging Economies – BRICS, etc.)

Extend Role of Private Sector Beyond Infrastructure Investment => Modernization of Ports of Dakar, DSM, etc. (ICF)

Expand Involvement of other Stakeholders => Port Community in Mombasa; PIDA Business Working Group (WEF); PIDA Continental Business Network (AfDB); Walvis Bay Corridor Group; MDCI; NSCCG; DCM; etc.


PRIORITY 6: MEANS OF IMPLEMENTATION

• VPoA is implemented in the current African regional framework for Development – Agenda 2063 Translates into:

Trade and Industrialization as Engines of Economic Growth

Infrastructure Development as Pre-Condition.• NEPAD Infrastructure Prioritization: PIDA, PAP, PICI,

DAA, etc. • Resource Mobilization – Domestic; IFI’s, ODA, Private

Sector.


Trade Facilitation – Implementation of WTO TFA

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• Simplification and streamlining border crossing procedures – Good progress along Corridors (OSBP/JBP; ICD/DRY PORTS; ASYCUDA; Single Window

• Improve transit facilities and their efficiency – Trade facilitating Infrastructures.

• Transit regulations, formalities and procedures for traffic in transit are published and updated - ???????

Trade Facilitation – Implementation of WTO TFA 2013

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• 16 African Countries Filed Category A Notifications: Botswana, Burundi, Cote d’Ivoire, Egypt, Gabon, Kenya, Mauritius, Morocco, Nigeria, Rwanda, Republic of Congo, Senegal, Seychelles, Tanzania, Tunisia and Uganda (4 LLDCs). Zambia and Ghana in process.

• Botswana, Niger and Togo have accepted the Additional Protocol to date.

•

10 December 2015 21

Thank You

[email protected]

UN-OHRLLS

mailto:[email protected]

Documents

IMPROVING TRANSIT COOPERATION, TRADE AND TRADE FACILITATION FOR THE BENEFIT OF THE LLDCS: CURRENT STATUS AND POLICY IMPLICATIONS. 10 December 2015 Dr