trade facilitation in the wto:
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Trade Facilitation in the WTO:. Samer Seif El Yazal Head, Arab & Middle-East, Central & Eastern Europe and Central Asia Regional Desk, Institute for Training and Technical Cooperation World Trade Organization. Contents. Key issues Legal Framework DDA negotiations. 1. Key issues. - PowerPoint PPT PresentationTRANSCRIPT
Trade Facilitation in the WTO:
Samer Seif El YazalHead, Arab & Middle-East, Central
& Eastern Europe and Central Asia Regional Desk, Institute for Training and Technical Cooperation
World Trade Organization
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Contents
Key issues
Legal Framework
DDA negotiations
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Main problems for traders
Lacking transparency and predictability
Lack of automation and scare use of IT
Burdensome border-crossing procedures
Lack of cooperation and coordination
Excessive documentation requirements
1. Key issues
Outdated legislation inhibiting change
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1 extra day in clearance represents 1 percent of tariff
According to the World Bank... (9 billion documents are necessary each year to process movement of goods)
1. Key Issues
Documentation requirements
Companies sometimes spend more money complying with customs regulations than customs earn in revenue
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1. Key Issues
Documents required to import goods (average number)
Time to comply with all procedures to export and import goods (days)
East Asia & Pacific7.123.1 24.3CEECAC7.826.8 28.4OECD4.910.5 11.0
Sub-Saharan Africa8.833.6 39.4
Source: World Bank, Doing Business 2010
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reliance by customs on transaction-based controls
scarce use of “green channels” wide array of discretionary powers for customs no effective redress against decisions by
customs lack of co-operation between customs and
traders, and between customs and other government agencies
Border crossing problems
1. Key issues
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Lack of automated processes and scarce use of information technology has potential to cause delays and reduce
efficiency of administration Time lost at borders accounts in some
countries for 20 % of overall transport time 1 extra day in clearance represents 1
percent of tariff
1. Key issues
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2. Introduction – Objective of TradeFacilitation negotiations in the WTO
Making trade procedures as efficient as possible through the simplification, rationalization and harmonization of procedures, documentation, and information flows
Specific focus of work:
Articles V, VIII and X of GATT 1994
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2. Legal framework
GATT 1994:Freedom of Transit
Publication and Administration of Trade Regulations
Fees + Formalities connected with Importation & Exportation
Art. V
Art. VIII
Art. X
Existing WTO rules on TF
GA
TT 1
994
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Existing WTO Legal FrameworkGATT Article X – Transparency Publication Administration of laws Right to appealGATT Article VIII – Fees and
Formalities Fees reflect cost of services
rendered Reduce # and kind of fees Simplify formalities and
documents Minor penalty for minor errors
GATT Article V – Freedom of Transit
Most convenient route No discrimination No unnecessary delays or
restrictions No duties
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Claimed shortcomings Lack of clarity and precision Lack of operationality Lacking enforceability Lacking transparency and predictability Absence of requirements for cooperation
and coordination amongst the various stakeholders
2. Legal Framework
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Clarify and improve V, VIII, X
SDT - Longer transition periods
No obligation for infrastructure
Identify needs and priorities
Technical Assistance & supportWT/L/579- Annex DWT/L/579- Annex D
Mandate:Mandate:
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Substantive number of proposals
Current discussions on draft-text
Significant number of meetings so far
State-of-play: Trade Facilitation
Negotiations should bear overall outcome of DDA – Early harvest
Thank you for your attention