session 3 best practices in establishing …...2018/04/24 · your ntfc scope of action: ntfc must...

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SESSION 3 –BEST PRACTICES IN

ESTABLISHING NTFCs

Alexandre Larouche-Maltais Senior Trade & Investment Expert

Conference Board of Canada

Jakarta, April 24-25 2018

Outline: Best Practices in establishing NTFCs

• First, what is trade facilitation, again?

• … and what’s a NTFB?

• Why establishing an NTFB?

Background: 3 questions on NTFCs

•Membership

•Objectives and scope of action

• Institutional framework

• Communication and promotion

• Funding

Global practices

•Main obstacles

• Recommendations

Takeaways

Part 1

Part 2

Part 3

+

Background on NTFC

1. Trade Facilitation

Public and Private stakeholders

• Ministries of trade, transport, health, agriculture or foreign affairs

• Customs authorities

• Customs brokers

• Traders

• Transport operators

• Freight forwarders

Trade Facilitation

• Great deal of coordination and cooperation

• Reforms at multiple stages

Simplification and harmonization of activities, practices and

formalities involved in collecting, presenting, communications and processing data required for the

movements of goods in international trade

Source: UNCTAD Trade

Facilitation experts & documents

First, what is trade facilitation, again?

2. TF Bodies

A trade facilitation body is a multi-agency permanent

platform where public & private stakeholders discuss and

coordinate trade facilitation measures at a national level.

• Policymakers, regulators,

• ministries, agenciesand officials involvedin cross-border trade

Government

• Users of trade services

• Service providers –customs brokers, freight forwarders, carriers, banks, etc.

Private sector

• National, regional and international institutions, including development banks, the WTO and the UN

• Partner countries

Development partners

• Trade unions, consumer associations, NGOs, women’s groups, academics

Civil Society



… and what’s a NTFB?

They’re not all the same, indeed.

• Mainly in Europe, some in Asia

• Outlined in UNECE Rec. No. 4

• Focus on PPPs, ratherthan on inter-agencycoordination

PRO Committees

• Usually to comply withFTAs

• Collaborative platformsto streamline tradeprocedures and implement TF measures

National Trade Facilitation Committees

• Supported by UNCTAD and WB

• Based on UNECE Rec. No. 4 with broader scope

• Consultative mechanism

• Double-layer structure

National Trade and Transport Facilitation Committees

• Support negotiatingteams through technicalexpertise and feedback

• Temporary, but formalized to someextent

WTO Negotiations on Trade Facilitation Groups

Historical overview

1st PRO-committees in

Europe – focus on PPPs

NTTFCs in context of TRTA Projects –

focus on promoting facilitation, making recommendations

WTO negotiations on trade

facilitation support groups

proliferation in Doha round context

NTFCs spreading following the

adoption of the Bali Agreement

1950s

1980-2000

After 2004

After 2013

Rationale for the establishment of NTFBs

56%

44

%

E X T E R N A L I N T E R N A L

Internal Motivations:

• Need for coordination (37%)

• Creating a trade-friendly environment (12%)

• Improving logistics services (10%)

• Promote public-private dialogue (9%)

• Importance of trade facilitation (7%)

External Motivations

• WTO Trade Facilitation Agreement (56%)

• Maybe development partners

Source: UNCTAD, “National Trade

Facilitation Committee: Beyond

compliance with the WTO TFA, 2017

Why establishing an NTFB?

+

Global practices

2. TF Bodies

• Policymakers, regulators,

• ministries, agenciesand officials involvedin cross-border trade

Government

• Users of trade services

• Service providers –customs brokers, freight forwarders, carriers, banks, etc.

Private sector

• National, regional and international institutions, including development banks, the WTO and the UN

• Partner countries

Development partners

• Trade unions, consumer associations, NGOs, women’s groups, academics

Civil Society



Membership

2. TF Bodies

The average overall membership is 17 members

Government

Transport22%

Trade & Economy

21%

Agriculture15%

Customs11%

Others31%




11 6

MEMBERSHIPPublic Private

2. TF Bodies

The average overall membership is 17 members

Private sector




11 6

MEMBERSHIPPublic Private

Traders & Associations

58%

Transporters30%

Others12%

Objectives and scope of action

The objectives and scope of action of a trade facilitation body will determine the goals pursued when establishing this group as well as the main functions allocated to it.




1. Objectives

Coordination and consensus building amongst stakeholders

• Coordination amongst agencies involved in TF and enhance partnership and confidence between public and private stakeholders

• Disseminating information and raising awareness

Fostering trade facilitation reforms

• Simplify, standarize and harmonize trade procedures

• Providing technical advice or recommendations to the government

Monitoring the implementation of the

WTO TFA

• Monitor reforms and international assistance projects on TF

• Providing information to the WTO focal point63%

56%

54%

Monitoring

Fostering

Coordinating

% OF NTFCS PURSUING THESE OBJECTIVES




Objectives and scope of action

Scope of action

Sustainable

Measurable

Attainable

Realistic

Time-boud

1. Do not restrict to much

your NTFC scope of

action: NTFC must have

flexibility to adapt and

focus on issues over time

2. Be SMART when setting

up the objectives and

scope of a national trade

facilitation body.




Institutional framework

How to formalize our

NTFC?

Legal backing

ToRs

Work plan, M&R

Coordinating agency

Meetings



NTFC?

Legal backing

ToRs

Work plan, M&R

Coordinating agency

Meetings

• President order• Government or

cabinet-level decision

• Ministerial level



NTFC?

Legal backing

ToRs

Work plan, M&R

Coordinating agency

Meetings

• “Common understanding” of objectives, scope of action and its working structure, among others.



NTFC?

Legal backing

ToRs

Work plan, M&R

Coordinating agency

Meetings

• Plan, monitor and report progress to ensure efficiency and future funding



NTFC?

Legal backing

ToRs

Work plan, M&R

Coordinating agency

Meetings

MoT70%

Customs12%

Other agency

18%



NTFC?

Legal backing

ToRs

Work plan, M&R

Coordinating agency

Meetings• At least 4 times per

year !

Communicationand Promotion

Communication channels withstakeholders

Interaction withother groups

Information for the public

Don’t forget that trade

facilitation is all about

breaking silos !


Communication channels with stakeholders



Variety of communications channels and toolsSuch as events, websites, e-mails, facsimiles, mail, reports and background information, official communications, minutes of meetings, advertising, press releases, newsletters and/or magazines, television, radio, telephones and short message services.




TF requires close and strong interaction between many different actors It is essential to the successful implementation of trade facilitation measures that subjects dealt with or addressed by NTFCs be linked to the actions of other groups dealing with transport facilitation.





TF reforms have profound implications for the general public and many trade and transport stakeholdersTrade facilitation bodies should therefore develop a strategy for communications with these audiences.


Financing

54%

30%

4%

12%

MAIN SOURCES OF FUNDING

Government / Statebudget

Foreign funds providers/ Development projects

Private sector

No answer

NTFBs’ financing is crucial for their sustainability. Many trade facilitation bodies were in operation while financially supported by donors, but dissolved

once such funding ceased.




+

Key takeaways

Main obstacles

$

Stakeholders’ involvement

High turnover

Lack of coordination




49%

28%

19%

19%

UNCTAD’s recommendations

Not only about TFA compliance

Choosing the right membership

Address gender equality

Diversify sources of funding

Be SMART in setting objectives

Always involve private sector

Make it official

Be transparent, inclusive, and vocal




Many thanks for your attention !

session 3 best practices in establishing …...2018/04/24 · your ntfc scope of action: ntfc must...

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