negotiations on trade facilitation at the world trade organization geneva, november 2012...

Negotiations on trade facilitation at the World Trade Organization

Geneva, November 2012Jan.Hoffmann@UNCTAD.org

Draft agreement

10 global trends

Trade facilitation measures

Implications for development

Trade Facilitation: Linking global trends and what happens at the WTO

10 global trends

Trade facilitation measures

Implications 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 iname

Venezuela

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 trends

Trade facilitation measures

Implications 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 trends

Trade facilitation measures

Implications 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?

OR

Is 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 trends

Trade facilitation measures

Implications for development

Trade Facilitation: Linking global trends and what happens at the WTO

Questions?