The WTO Negotiations on Trade Facilitation 24 March
- Slides: 87
The WTO Negotiations on Trade Facilitation 24 March 2009 Birgit Viohl, Trade Facilitation Section, UNCTAD, birgit. viohl@UNCTAD. org Geneva, March 2009
Agenda • Introduction to Trade Facilitation • TF Negotiating Process at the WTO
Agenda • Introduction to Trade Facilitation • TF Negotiating Process at the WTO
The Trade Transaction GOODS S INFORMATION PAYMENT B
Data exchange in International Trade Exportation Importation Purchase • 20 actors; • > 200 data elements; • Manual procedures; • Multiple data systems; • > 30 documents or messages. Bill of lading, Documentation Vessel Booking Request Confirmed Line of Credit Importer’s Bank Vessel Booking Confirmation Exporter’s Bank Rated Bill of Lading Dock Receipt Original B/L, Invoice, PO, Packing List Fund Transfer Line of Credit Proforma Invoice LC Confirmation Purchase Order Proforma Invoice Letter of Instruction Invoice, PO Ocean Carrier Shipping & funding detail Release/Hol d Notice Inland Carrier Manifest Dock receipt Export Declaration AES Cargo Status Customs House Broker Pick-up & Delivery Order Freight Forwarder / NVOCC Import Terminal Operator Demurrage guarantee & payment Dock receipt Shipping & Funding Detail Marine Insurance Company Arrival Notice Export Terminal Operator Exporter Importer Release/Approval Bill of Lading Export Declaration Import Docs Cargo Status Customs ( Import ) Vessel Manifest Port Customs (Export) Importer Notice Converted Vessel Manifest Pick-up & Delivery Order Inland Carrier
INTERNATIONAL TRADE TRANSACTION PROCESS SHIP BUY Prepare For Export PAY Transport Prepare For Import INVOLVES Commercial Procedures Transport Procedures Regulatory Procudures • Establish Contract • Order Goods • Advise On Delivery • Request Payment • Establish Transport Contract • Collect, Transport and Deliver Goods • Provide Waybills, Goods Receipts Status reports • Obtain Import/Export Licences etc • Provide Customs Declarations • Provide Cargo Declaration • Apply Trade Security Procedures • Clear Goods for Export/Import Financial Procedures • Provide Credit Rating • Provide Insurance • Provide Credit • Execute Payment • Issue Statements
Days to complete each stage of importing Pre-arrival documents Port and terminal handling Customs and inspections Inland transport to warehouse Total days OECD high income 8 2 2 2 14 East Asia & Pacific 18 3 4 3 28 Latin America & Caribbean 24 4 5 3 36 Middle East & North Africa 25 5 9 4 43 Europe & Central Asia 25 4 7 7 43 South Asia 24 6 7 10 47 Sub-Saharan Africa 33 8 10 9 59 World 23 5 6 5 40 Region Source: World Bank Doing business 2006
What is Trade Facilitation? • No clear definition of trade facilitation • Facilitate: To make easy or easier • Set of actions by public and private sector to create a trade environment which is more predictable, secure and cost efficient
How to achieve trade facilitation • Simplification, Standardisation & Harmonization of trade documents, procedures • Improving logistics services • Improving infrastructure (transport: intermodal & interconnected!)
Trade Facilitation (revision …) Trade Facilitation Definition: “The simplification, standardization and harmonization of procedures and associated information flows required to move goods from seller to buyer and to make payment “
TRADE FACILITATION Simplification Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures Harmonisation Alignment of national procedures, operations and documents with international conventions, standards and practices. Standardisation Process of developing internationally agreed formats for practices and procedures, documents and information.
UN Lay-out Key (UNECE Rec. #1)
Rec: 19 Mode of Transport Rec: 16 UN/Locode ISO Country Code Rec: 17 Payment Terms Rec: 9 Currency Code Commodity Code Rec: 28 Means of Transport Rec: 21 Package Codes Rec: 20 Units of Measurement
United Nations Standards for Trade Documents… SAD
Trade facilitation reform • On-going reform process • Adapted to each country’s development context • Different level of trade facilitation reform is possible • Advanced stages (E-docs, Automated processing, Pre-arrival processing)
Step by Step Implementation Based on International Standards 33, Single Window Rec 34, 35 Cross Border Data Exchange UNe. Docs + WCO DM = CBRDM National Data UNTDED, Core Component UN LOCODE and code Harmonization Library, lists, UNe. Docs, Rec 34 Document Simplification UN Layout Key, Master Document, and Standardization UNTDED, TF Toolkit and Forms Repository Process Analysis and Simplification Business/Political Process - Collaboration Between Trader and Government (UN/CEFACT Rec. 4, Rec. 18), UN/CEFACT International Supply Chain Reference model, Unified Modeling Methodology (UMM), Global Facilitation Partnership for Trade and Transport (GFP) Audit Methodology
What are the Benefits • Estimates vary from 1 -15% of total trade transaction costs are due to procedures and formalities • Even if only 1%, OECD estimates total gains to world economy of US$40, billion • APEC estimates gains of US$46 billion from trade facilitation measures - adopted TF as key policy target.
Benefits …micro level • Predictability, cost and speed • Less direct and indirect transaction costs for private sector • Big implementers of trade facilitation are on top of the world competitiveness index • Investment dimension • Security dimension (advance information etc) • Increased public efficiency
UN Millennium Development Goals • UN`s work in Trade Facilitation supports UN Millennium Development Goal 8 “develop further an open trading and financial system that is rule-based, predictable and non-discriminatory and includes a commitment to good governance, development and poverty reduction – both nationally and internationally” •
But …. . • Implementation weak in many developing countries
Political Economy of TF • Benefits are split over a large group of beneficients – Private sector: Service provider, Producer (service users) – Consumer – Public sector – Ohlson: Collective Action. Too large a group of beneficients to have one group take an action • Reform resistance bcs of entrenched interests
Role assigned to Customs Revenue Collection of import taxes (duties & excise) Protection of Economic Interests (domestic production & services industry) Protection of society <health, safety> (drug trafficking, firearms, environment, counterfeit etc. ) Economic development <trade, investment> (trade facilitation) C U S T O M S F U N C T I Security <terrorism> (shifting focus to supply chain) O N
Trade Facilitation involves. . • Many different ministries and executive agencies –Ministry of Transport, Ministry of Finance, Ministry of Trade, Ministry of Health, –Customs, Bureau of Standards, Veterinary services, Laboratories • Private sector –Commercial banks –Freight forwarders, Im-exporters –Customs Brokers
Finances, Commerce Revenue Generation Duties; Taxes; Fees Entry Controls Quotas; Dumping Intellectual Property Prohibited Transactions Patent; Trademark; Copyright Drugs, narcotics; Pornography; Money laundering; Fraud Vehicle safety Transport Health and Safety Health, Agriculture, Industry Environmental Protection Interior Entry Controls Army Health and Safety International Security Insect/pest control; Toxic wastes; Production processes; Manufacturing emissions; Endangered species Food; Consumer goods; Animal disease; Plant disease; Generic safety Immigration Anti-terrorism; Gun controls; Arm trafficking; Weapons of mass destruction
Supplier Public sector requirements Application of trade regulations, Protection of society, Collection of fiscal revenue n o ti a. Ship Pay t i l i c Supply-chain management a F and processes e d a r T Source Make Buy Private sector requirements • Predictable, simple and transparent laws and procedures; • Facilitation - let low risk cargo flow freely Customer Integrated model
Questions ?
Trade Facilitation is • Is an urgent need • A challenge • An opportunity
Cooperation at the international level
Agenda • Introduction to Trade Facilitation • TF Negotiating Process at the WTO
Why multilateral rules?
TF work before WTO – from early 60’s to 1996… • Work of the UNECE and UNCTAD – UNECE Recommendations (UNLK, UN/EDIFACT, LOCODE, etc) – UNCTAD FALPRO • UN International Symposium on Trade Efficiency (UNISTE) in Columbus, Ohio (1994): – – – Banking & Insurance; Customs; Business Information for Trade; Transport; Telecommunications.
Why multilateral rules? 1) Lack of effective implementation of the instruments • Non-binding feature of these instruments • Lack of political will for implementation • Not only own reform efforts but trading partners‘ efforts are important
Why multilateral rules? 2) Gains to trade through trade facilitation reform potentially higher than through tariff reductions • Major increase in tariff reduction achieved in the Uruguay Round 3) Changing nature of trade – From access to time reliability, trade competitiveness – Reduce distance to markets
Inventory holding decreases Securing supply chain
Why multilateral rules? • International Standards
Rec: 19 Mode of Transport Rec: 16 UN/Locode ISO Country Code Rec: 17 Payment Terms Rec: 9 Currency Code Commodity Code Rec: 28 Means of Transport Rec: 21 Package Codes Rec: 20 Units of Measurement
Summary why multilateral rules? • Commitment to implement reform • Binding rules and standards • Gains to trade through reduction of transaction costs • Preparation for participation in „safer“ trade • Wide ranging standardisation
Focus on WTO negotiation process. . . but • WTO negotiation process is important – Creating harmonised rules system – Awareness – Political will and financial support for implementation • However, TF is a broader policy issue and effective trade facilitation reform requires more than compliance with rules. • Trade facilitation is embedded in national development strategies, regional integration process • Countries‘ trade facilitation needs and priorities and implementation capcity have to be seen in this context • WTO process complements and supports • Implementation resources
« Trade And » Issues • GATT provisions are negative provisions (agreement not to do something, not to discriminate against foreign products or producers) • Developed countries pushed for Positive provisions to address domestic regulatory issues. Singapore Issues were: – – Investment and related regimes Competition Policy related to Government procurement Trade related procedures = Trade Facilitation
History of TF in the WTO Singapore Issues 1996 1. WTO Ministerial Conference 200 x
History of TF in the WTO Singapore Issues 1996 1. WTO Ministerial Conference 2001
Doha Declaration (2001) 27. Recognizing the case for further expediting the movement, release and clearance of goods including goods in transit and the need for enhanced technical assistance and capacity building in this area, we agree that negotiations will take place after the Fifth Session of the Ministerial Conference on the basis of a decision, by explicit consensus, at that Session on modalities of negotiations. In the period until the Fifth Session, the Council for Trade in Goods shall review and as appropriate, clarify and improve relevant aspects of Articles V, VIII and X of the GATT 1994 and identify the trade facilitation needs and priorities of Members, in particular developing and least-developed countries. We commit ourselves to ensuring adequate technical assistance and support for capacity building in this area. (WT/MIN(01)/DEC/W/1, 14 November 2001)
Timeline of TF at WTO Singapore Issues 1996 1. WTO Ministerial Conference 2001 2003 200 x
Singapore Issues vs. Cancun At the Ministerial Conference 2003 in Cancun a coalition of developing countries refused to open negotiations on new topics • Government Procurement (§ 26 DD) • Investment (§ 20 -22 DD) • Competition (§ 23 -25 DD) • Trade Facilitation
Timeline of TF at WTO Singapore Issues 1996 1. WTO Ministerial Conference July Package 2001 2003 2004 200 x
« July Package » 2004 • On 1 August 2004, Members of the WTO General Council agreed on a Doha Work Programme (WT/L/579); a framework and agreements for the negotiations. Contains 4 Annexes • The General Council decided to commence negotiations on TF on the basis of the modalities set out in Annex D. Trade Facilitation negotiations part of the Single Undertaking • Annex D becomes the modalities text of the TF negotiations
Anned D Modalities: Scope of negotiations • Clarify and improve relevant aspects of Art V, VIII and X od GATT 1994 – GATT Art. V Freedom of Transit – GATT Art. VIII Fees and Formalities connected with Importation and Exportation – GATT Art. X Publication and Administration of Trade Regulations • Border Agency Coordination • Enhance Technical Assistance Delivery
Summary • • Negotiations since 2004 Part of the Single Undertaking Modalities text „Annex D July Package Scope : GATT Articles V, VIII, X
Challenges New Topic = New Agreement = New provisions Everything is possible. Requirements – Technical Knowledge: Customs and Cross-border trade procedure related issues – Legal Drafting: Define the structure of the agreement, and the provisions Implementation mechanism can be unique for the TF agreement – New reflection on SDT provisions
Negotiation Process Negotiating Group on Trade Faciltiation established in 2004 Delegations agreed to work on the basis of“submissions”. Bottom-up process Sponsorship: Proposals can be submitted by one delegation or by several delegations. Diverse partnerships
Negotiation Process
It’s not simple • Large and technical topic • What to propose • How to reach consensus
Trade Facilitation Measures What are they? Objective: improve and clarify Article V, VIII, X of GATT 1994 + Customs Cooperation • Procedures, tools, standards which are in practice or internationally developed • Definition of terms (e. g. fees)
Towards Consensus • Round of proposals: 1, 2, 3 generation 2005 -June 2006 • 1 Generation – country experiences, best practices, internationally agreed standards, practices • 2. Generation - consolidation of different proposals on one measure Since May 2006 • 3. Generation - move towards draft legal text • August 2006 73 proposals
Implemenation mechanism • Question of Special and Differential treatment is integral part of the negotiations • Technical Assistance delivery is integral part of negotiations • Decision on those issue change decision on substantive issues
Currently: Several processes 1. Main formal negotiation process • Revision of proposals by co-sponsors. Pb: Limitation of usefulness and progress • New revision – new round of comments – new revision • Co-sponsors can not take on board all comments. Problem: Cross-cutting elements • Many inconsistencies in texts
2. Informal negotiation process on worksheets Pb: linkage with the revision of proposals not clear. Sponsors listen and try to address in new proposals
3. S&D Treatment mechanismus or « Friends of the chair » process • Informal meetings • Chaired by delegate from Barbados • Focused only on SDT • Based on questions?
4. Cross-cutting issues or « Canadian » process • Questions related to the linkage of the new text to WTO agreements and institutions – TF committee, Linkage with other agreements Possibly 5. Question of reference to international standards
Challenges for participation • Needs assessment to assess need and benefits of mulitateral rules for each country • Before commitment to rule they want to now details of Technical Assistance delivery and SDT mechanism • Doha Round Negotiation process – Is there a possibility for early harvest?
Summary & Present situation • Secretariat’s compilation of members proposals TN/TF/W/43/Rev. 17 • 36 text based proposals • Next meeting of NGTF 27 April 1 May
ARTICLE X TRANSPARENCY Headings A-E of Secretariat Compilation TN/TF/W/43/Rev. 17
Proposals A-E (Article X) A. Publication and availability of information B. Prior Publication and Consultation C. Advance rulings D. Appeal procedures E. Other Measures to Enhance Impartiality. Non-Discrimination and Exportation Secretariat Compilation of proposals TN/TF/W/43/Rev. 17
Specific Proposals under: A. Publication and Availability of Information 1. Publication and Notification of Trade Regulations 2. Internet Publication 3. Establishment of Enquiry Points
Specific Proposals under: B. Prior Publication and Consultation 1. Interval between Publication and Entry into Force 2. Prior Consultation and Commenting on New and Amended Rules 3. Regular Consultation
ARTICLE VIII FEE$ and FORMALITIES Headings F-K of Secretariat Compilation TN/TF/W/43/Rev. 17
F-K Fees &Formalities F. FEES & CHARGES ON IMPORT/EXPORT G. RELEASE AND CLEARANCE OF GOODS H. CONSULARIZATION I. BORDER AGENCY COOPERATION J. FORMALITIES ON IMPORT/EXPORT K. TARIFF CLASSIFICATION
J. Formalities/Procedures and Data/Documentation Requirements Connected with Importation and Exportation Periodic Review of Formalities and Requirements W/124/Rev. 2 Reduction/Limitation of Formalities and Documentation Requirements W/124/Rev. 2, W/130/Rev. 1 Use of International Standards W/131/Rev. 1 Acceptance of Commercially Available Information and of Copies W/112 Single Window/One-Time Submission W/138/Rev. 2 Elimination of Pre-Shipment Inspection W/108 Phasing out of Mandatory Use of Customs Brokers W/110 Option to return rejected Goods to Importer W/121
G. Expedited /Simplified Release and Clearance of Goods Pre-arrival Processing W/117 Expedited Shipments W/144/Rev. 2 Risk Management/Analysis, Authorized Traders W/109, W/121, W/140, W/148 Separating Release from Clearance Procedures W/136/Rev. 1 Post-clearance Audit W/134 Add. 1 Establishment and Publication of Average Release and Clearance Times W/139/Rev. 1+ Add. 1 and
ARTICLE V TRANSIT Heading L of Secretariat Compilation TN/TF/W/43/Rev. 17
L – Transit Proposals 1. 2. 3. 4. Operationalization and Clarification of Terms Non-discrimination and Policy Objectives Disciplines on Fees and Charges (covered under F) Disciplines on Transit Formalities and Document Requirements 5. Improved Coordination and Cooperation 6. Discipline on Restrictions to Freedom of Transit
M - Customs Cooperation • Multilateral Mechanism for the Exchange and Handling of Information – National and cross-border
Other elements of negotiations • Enhance Technical Assistance Delivery • S&DT provisions beyond transitional period • Identification of members trade facilitation needs and priorities
Special and Differential Treatment (SDT)
Reason for SDT • Provide LDCs and developing coutnries with more flexibility when it comes to the implementation of the agreements • Allow LDCs and developing countries to acquire the capacities necessary for the implementation of the agreements and their better integration
The WTO July Package (2004) Annex D - SDT • S&D treatment – SDT should extend beyond traditional transition periods for implementing commitments. – Extent and timing of commitments shall be related to implementation capacities of developing countries and LDCs. – Developing countries and LDCs are not obliged to undertake investments in infrastructure beyond their means.
Members‘ proposals on S&DT Docume Countries Key elements nt W/137 Some (July 06) Latinameri can and developpe d countries • Categorisation of measures in two listes, preagreed i) Set of minimal measures applying for all countries immediately ii) Set of measures for which SDT is possible (negative liste) SDT should not extend max (N) years W/142 „Core (July 07) Group“ • Categorisation of measures in two listes, preagreed i) Application either immediately, or after SDT (transition period and TACB) ii) Best Endeavour. Apres W/147 Core (July 07) Group, ACP, African, LDC groupes • Possibility for Members to categorise measures in two listes after signature i) Measures for immediate application or after SDT(positive list) ii) Remainig meaures are Best Endeavour only GATS-similar approach (mininal level of
Main elements of S&DT proposals • Flexible Scope of commitment (Critics: uniformity of rule) • Criteria for flexibility: implementation capacity of country which is self-determined • Technical Assistance for capacity acquisition. (Pb: De jure vs. De facto commitment)
Implementation Signature of agreement Entry into force (n) Years
Measures Category a) Immediate Signature of agreement Entry into force Flexibility of commitment: 3 different categories of measures. Measures Category b) Deferred. Timeframe in schedule Measures Category c) Deferred. Timeframe in schedule
Measures Category a) Immediate Notification of Schedule Signature of agreement Measures Category b) Deferred. Timeframe in schedule Entry into force Self-determination of capacity Schedule of commitments Implementation Plan Notification of Implementation Plan Measures Category c) Deferred. Timeframe in schedule
Technical Assistance delivery Currently de facto commitment „If countries do not receive TA than they are not bound by the rule“ • But is this in the interest of developing countries? • Options: In implementation plan potential donors can be named • Some form of monitoring mechanism
Identification of Members‘ trade facilitation needs and priorities • Uncertainty over how to work on this element • What are needs and priorities • Current focus on assessment of implementation requirements • Self-assessment of trade facilitation technical assistance needs and priorities
Implementation Notification of Schedule Signature of agreement Notification of Implementation Plan Entry into force « Active participation » « Establish schedule » « Establish notification plan» • Introducing proposals • Measures a • Timeframe • Reacting to proposals • Measures b • TA & CB required • Measures c • Donor Trade Facilitation needs Current TF situation Overall reform & development context • Implementation agency Level of compliance ? ? (n) Years
Questions?
- Poland national anthem lyrics
- Trade facilitation meaning
- Oecd trade facilitation indicators
- Trade facilitation support program
- Oecd trade facilitation indicators
- Trade facilitation meaning
- Ebrd e-learning programme
- Procurement management pmi
- A behavioral theory of labor negotiations
- One's negotiation objective should be:
- Project procurement management process
- Types of negotiations
- Expanding the pie negotiation example
- Cross cultural communication and negotiation
- Managing difficult negotiations
- How agents, constituents and audiences change negotiations?
- Organs of wto
- Explain the objectives of wto
- Structure of wto
- Struktura wto
- Objectives of imf
- Function of world trade organization
- Objectives of wto
- Wto tugasnya
- Wto
- Wto dispute settlement mechanism
- Wto
- Generalised system of preferences wto
- Wto functions and objectives
- Principles of wto
- Wto functions
- Negara pendiri wto
- Peta konsep kebijakan perdagangan internasional
- Wto
- Gatt+
- Nafta and wto
- Function of wto
- Trade diversion and trade creation
- Trade diversion and trade creation
- Trade diversion and trade creation
- Liner shipping and tramp shipping
- The trade in the trade-to-gdp ratio
- Triangle trade map
- Trade diversion and trade creation
- Fair trade not free trade
- Facilitation techniques in project management
- Group polarization simple definition
- Co-design facilitation
- Enterprise facilitation
- Workshop checklist template
- Thank you facilitator
- Facilitation sociale
- Social inhibitoon
- Cp facilitation cleaning
- Interpersonal facilitation
- Basic risk management facilitation methods
- Kaizen process map
- Proprioceptive neuromuscular facilitation definition
- Facilitation sur zoom
- Thank you message to training facilitator
- Bart complied with his friends
- Business facilitation program visa
- Primary care practice facilitation curriculum
- Facilitation 101
- Interpersonal facilitation
- Facilitator teaching style examples
- Facilitation techniques ppt
- Facilitation among species
- Social loafing
- Thank you message for the facilitator
- Social facilitation
- Define social facilitation
- Cluster facilitation team
- Facilitation methods for adults
- Interpersonal facilitation
- 12 step facilitation handbook
- Social facilitation vs social loafing
- Developing facilitation skills
- Social facilitation
- Facilitation model
- Thơ thất ngôn tứ tuyệt đường luật
- Chúa yêu trần thế
- Khi nào hổ mẹ dạy hổ con săn mồi
- Từ ngữ thể hiện lòng nhân hậu
- Diễn thế sinh thái là
- Vẽ hình chiếu vuông góc của vật thể sau
- 101012 bằng
- Tỉ lệ cơ thể trẻ em