Workshop on WTO –related issues for Government Officials in the SAARC region

Bhutan and Trade FacilitationNew Delhi, 1st -3rd May 2006

Pema R. RinchenDepartment of Foreign Trade

Bhutan location

India

China

Nepal

Bangladesh

Bhutan

India

China

Nepal

Bangladesh

Bhutan

Country Profile

• Acceding member to the WTO• Landlocked and LDC – Article V• Agrarian economy – high value low volume

exports • Growing trade and services sector (issue of being

more trade facilitative than revenue oriented) – Manufacturing - 18%– Trade and Transport - 17%– Tourism and Hydro power driven economy

Trade Facilitation (TF) and Bhutan

• TF an integral part of TP under 9FYP where enhancement/contribution of trade to social and economic development can be brought about

• TF an area where we believe that DC stand to gain in terms of

enhancing competitiveness

• TF going beyond helping exporters/importers to become more competitive. Help entire communities by improving the conditions for doing business, attracting investment and creating employment

• Recent WB findings highlight issue of TF as a major boost to pvt.

sector competitiveness and a backward linkage of ind. dev to export trade.

– Global integration to WTO – opportunity to seek binding international assistance to address constraints to improve competitiveness

– Regional Integration – SAFTA, BIMSTEC

Reference to WTO TF articlesand Measures undertaken

• Article V: negotiations offer landlocked countries a valuable opportunity to deal with pressing transit issues in an objective multilateral forum. Intend to take good adv. of this opportunity and participate in the discussions. Highlight a number of key neg. issues aimed at improving Article V:– Dry port facilities– Air, sea, rail, road transit….extend to pipelines, power– Reasonable charges– E-clearance

Article VIII - Import and Export Related Fees and Formalities

• Streamline formalities– Synchronize timing of operations (customs

clearance at the borders)– Cost of procedures– Clearance automation to reduce discretion– Quarantine, SPS rules transparency– Analysis and inspection

Article X – Publication and Administration of Trade Regulations• Enhance transparency – websites, docs.• Publication of regulations and laws before

implementation of higher duties and more restrictive measures

• Customs valuation (acceptance of docs.)• Single national focal point to respond to traders

enquiries• Establishment of inquiry point to giving advance

notice.

Ongoing efforts towards TF in addition….

• Development of physical infrastructure – provision of multimodal transport facilities

• RTA’s (transit agreements with India, Bangladesh), SAARC agreement on Customs matters, Regional initiative in area HR, Accreditation, Standards, TF amongst the SAFTA and BIMSTEC

• Customs work – adoption of harmonized customs codes and Implementation of automation (ASCUDA)

Challenges Ahead

• Geo politics – inhibits the development of an effective intra regional multimodal transport arrangements along the trade transit corridors

• Border crossing – right synergy missing and poor infrastructure facilities (transport vehicles, limited human and financial resources)

• Integrity of customs officials at the trade corridor borders – adds to the costs, delay and opportunity

• Absence of a single window clearance – supply side constraints to be improved

Challenges ahead

• TF program require long term vision and efforts to build capacity, to develop and implement policies/strategies and integrate international conventions/standards, measures and other trade specific tools into the national systems.

Conclusion

• Limited experience from the private sector perspective – importance of Govt. and Pvt. Sector joining forces to help streamline and bring about predictability/build measures that will set the basis for stronger, more competitive business

• Learn from experiences through dialogue and meetings

• Network set up to exchange views and experiences amongst the key players

•Thank you