TRADE FACILITATION BUILDING COMPETATIVENESS IN THE GLOBAL TRADE

TRADE FACILITATION BUILDING COMPETATIVENESS IN THE GLOBAL TRADE ENVIRONMENT Workshop on Trade Facilitation Kiev, 10 October 2005 Tom Butterly Deputy Chief Global Trade Solutions Branch United Nations Economic Commission for Europe

Trade Facilitation – Building Competitiveness in a Global Trade Environment • • Trade Facilitation overview Benefits of Trade Facilitation TF Tools available Strategic Approach to Implementing TF United Nations Economic Commission for Europe

What is Trade Facilitation • Facilitate: to make easy or easier • The simplification, standardization and harmonization of procedures and associated information flows required to move goods from seller to buyer and to make payment United Nations Economic Commission for Europe

INTERNATIONAL TRADE TRANSACTION PROCESS SHIP BUY Prepare For Export PAY Transport Prepare For Import INVOLVES Commercial Procedures Transport Procedures • Establish Contract • Order Goods • Advise On Delivery • Request Payment • Establish Transport Contract • Collect, Transport and Deliver Goods • Provide Waybills, Goods Receipts Status reports Regulatory Procudures • 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

Role of Government Regulate or Facilitate ?

Facilitate • Changed mind set • Strong Political Will • Dialogue with Private Sector United Nations Economic Commission for Europe

Economic Benefits • Estimates vary from 1 -15% of total trade transaction costs • 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. United Nations Economic Commission for Europe

Economic Benefits • Benefits higher for developing countries and for SMEs • Greater than the potential value of increased tariff reductions under future multilateral trade negotiations. • Investment link (Ireland) United Nations Economic Commission for Europe

Recent UNECE Study on TF • TF plays a crucial role in deriving benefits from overall trade liberalisation policy • Even in non-liberalised economies significant benefits cold be gained • The introduction of trade liberalisation measures without parallel trade facilitation initiative might fail to realise their full economic potential. United Nations Economic Commission for Europe

Trade Facilitation at the WTO • Trade Facilitation under the Doha Work Programme is helping to build the POLITICAL WILL – Over 50 proposals

Tools Available

UN/CEFACT Standards and Recommendations • Over 30 Recommendations and International Standards • Some Key Recommendations – Rec, 1, UN Layout Key for Trade Documents (ISO 6422) – Rec, 33, Single Window – UNe. Docs

Mode of transport Destination

Single Administrative Document (SAD)

UN Trade Facilitator Toolkit • Practical tools that help trade facilitators to align trade documents • Guidelines for Trade Facilitators • UNLK Grid in Adobe Acrobat • Background material (UNLK, UNTDED. . ) • Beta version available from our website at http: //unece. unog. ch/etrade/

Office PC Back-end Server Provides specialised services Cost Recovery basis Standard user software, Internet Browser XML Exporter Digital Document Web Services PAPER Importer EDIFACT • Electronic Signature UNe. Docs Trade & Transport Documents • Document Validation Internet • Electronic Post Mark • Language switching • National Requirements Importers Bank • Time Stamping…. HTML/PDF F Forwarder Security, efficiency, speed, best business practice, ICT integration Adds

UN/CEFACT Recommendation Number 33 Single Window to enhance the efficient exchange of information between trade and government

Submission of Trade Documents The current situation

Single Window Approach • a simple, one-stop solution offering official control with trade facilitatio n

Single Window Features • allow traders to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements • sharing of information amongst government agencies in respect of international trade transactions • allows payment of duties and other charges • provides coordinated controls and inspections of the various governmental authorities. • source of trade related government information

Costs and Benefits of a Single Window Benefits for government and trade Ø Faster processes, clearance and release Ø Reduced costs of compliance Ø Reduced corruption Ø Reduction in bureaucratic processes Ø Better collection of government revenues Ø Improved trader compliance Ø risk management techniques for control and enforcement purposes Ø Predictable application and explanation of rules Ø Better planning Implementation costs Ø From less than one million US dollars (Guatemala) to Ø Between 1 and 4 million dollars (Finland, Senegal, Malaysia). In the US, the cost was significantly higher but the system is quite extensive and covers many additional areas. Benefits outweigh costs ……

UN/CEFACT SW REPOSITORY – Overview of existing Single Window facilities in • • • Finland Germany Guatemala Hong Kong SAR (China) Mauritius • • • Malaysia Senegal Singapore Sweden United States. More case studies to come …….

Standards and Tools Available from Other Organisations • • • WCO World Bank UNCTAD UNIDO ICC IRU www. gfptt. org

Strategic Approach to Realising the Benefits of Trade Facilitation • Establish TF as a key component of trade and economic policy – facilitate trade • Develop national and regional implementation strategies, with clear goals and benchmarks - APEC • Ensure open dialogue with the business community – from the beginning • Utilise existing trade tools and international standards United Nations Economic Commission for Europe

. . make trade facilitation happen!

UNECE Resources · All UNECE Recommendations, codes, standards and publications are available for free on our website at: www. unece. org/trade www. unece. org/cefact · For other inquiries, please contact: tom. butterly@unece. org United Nations Economic Commission for Europe

THANK YOU FOR YOUR ATTENTION United Nations Economic Commission for Europe