Negotiations on trade facilitation at the World Trade OrganizationGeneva, November [email protected]
Draft agreement
10 global trendsTrade facilitation
measuresImplications for
development
Trade Facilitation: Linking global trends and what happens at the WTO
10 global trendsTrade facilitation
measuresImplications for
development
Trade Facilitation: Linking global trends and what happens at the WTO
1.Exports of manufactured goods• Today 80% of developing
countries’ exports are manufactured goods, up from only 20% two decades ago
2.Globalized production• Intra-company trade• Trade in intermediate products• Logistics part of production process
3.Increased security concerns• Security measures along
the entire supply chain
4.New Geography of Trade• Especially the share of South-South
trade has more than doubled since 1990
5. Regional integration • Increased regional and
transit trade
6.Within Logistics expenditure…inventory
holding decreases, and Transport expenditure increases
7.Technologies• Containerization, shipping networks• Use of computers and Internet
8.Privatizations / concessionsPorts, Shipping lines, Railways, Airlines,
Airports
9.Tariff reductions• For most developing countries’
exports, international transport costs are 2 to 3 times higher than Customs tariffs on imports in developed countries. Aver age
Ar gentina
Ur uguay
Par aguay
Br azil
Chile
Bolivia
Per u
Ecuador
Sur inameVenezuela
Colombia
Tr inidad and Tobago
Bar bados
Gr enada
St Vincent and the Gr enadines
St Lucia
Dominica
Antigua and Bar buda
St Kitts and Nevis
Dominican Republic
Haiti
JamaicaBahamas
Panama
Costa Rica
Nicar aguaHondur as
El Salvador
Belize
Guatemala
Mexico
0%
2%
4%
6%
8%
10%
12%
14%
0% 2% 4% 6% 8% 10% 12% 14%
TARIFF/CUST
International freight
Import Customs duties USA
Source: Miccio/ Perez 2002
10.Negotiations on trade facilitation at the World Trade Organization
1. Manufactured goods
2. Globalized production
3. Security concerns 4. Trade geography 5. Regional
integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
10 global trendsTrade facilitation
measuresImplications for
development
Trade Facilitation: Linking global trends and what happens at the WTO
1. Manufactured goods
2. Globalized production
3. Security concerns 4. Trade geography 5. Regional
integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
advance ruling
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
authorized traders
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Risk analysis
3. Security concerns
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Internet publication
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional
integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
5. Regional
integration
“Regional approaches”
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Separate release from clearance
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
7. Technologies
Automated payments,Electronic documents
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
National Trade Facilitation Committee
1. Manufactured goods 2. Globalized production 3. Security concerns 4. Trade geography 5. Regional integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO negotiations
Transport costs and trade facilitation more important than tariffs !
1. Manufactured goods
2. Globalized production
3. Security concerns 4. Trade geography 5. Regional
integration 6. Logistics 7. Technologies 8. Privatizations 9. Tariff reductions10. WTO
negotiations
… a response to trends in international trade, transport, logistics and technologies !
10 global trendsTrade facilitation
measuresImplications for
development
Trade Facilitation: Linking global trends and what happens at the WTO
The introduction of ICTs by Customs may encourage smaller companies to also connect to the internet.
Developing ICTs
Developing e-commerce
Reforms of legal regimes that facilitate the use of electronic documents may also modernize other business practices.
Developing Transit
A framework for bank guarantees for transit trade may also generally improve the financial system.
Are poor countries poor because of red tape?
ORIs red tape the result
of a lack of development?
ANSWER: It is both
More income to finance trade facilitation
-> Better trade facilitation-> More Trade-> More income to finance
trade facilitation
Lower Transport Costs-> More trade-> Economies of scale-> Lower Transport
Costs
Better services-> More trade-> More income to
finance infrastructure-> Better services
The “tipping point”: Start with Trade and transport facilitation
Trade and transport facilitation is good
for trade and for development
Development is good for trade
and for trade and transport facilitation
10 global trendsTrade facilitation
measuresImplications for
development
Trade Facilitation: Linking global trends and what happens at the WTO
Questions?