WTO Negotiations on Trade Facilitation: Issues and Concerns

1
WTO Negotiations on Trade Facilitation Issues
and Concerns

• Dr. Mostafa Abid Khan
• Bangladesh Tariff Commission

2
Why Trade Facilitation?

• Due to liberalization under WTO and RTA,
  traditional barriers to trade such tariffs and
  NTBs reduces and cost of international trade
  transaction is increasingly becoming visible
• Increase of Intra-industry trade
• Development of information technology
• Pressure on enhancing the competitiveness of the
  products
• Managing the increased volume of inter-national
  trade

3
Definition of Trade facilitation

• No agreed definition
• any measure aimed at expediting the movement of
  goods and reducing the costs of cross-border
  exchange and transaction of goods.
• customs procedures and formalities, customs
  valuation, infrastructure, transport and
  communication, technical regulations, sanitary
  and phyto-sanitary measures, port management,
  electronic commerce, banking and insurance
  facilities
• WTO- simplification and harmonization of
  activities, practices and formalities involved in
  collecting, presenting, communicating and
  processing data required for the movement of
  goods in international trade

4
WTO and Trade Facilitation

• Singapore Ministerial with other issues
• Not agreed in Doha
• Attempt to Unbundle Trade facilitation with
  other Singapore issues
• July Package- Modalities agreed

5
Modalities on Trade Facilitation

• Coverage Articles V, VIII and X
• Implementation of the commitments by developing
  and least developed countries Implementation
  capacity and TA
• Identification of needs and priorities

6
Negotiating Group on TF and Its Agenda

• Established on 12 October 2004, so far held 3
  meetings
• Agenda
• Clarification and improvement of relevant aspects
  of Articles V, VIII and X of the GATT 1994
• SD treatment for developing and LDCs
• Identification of trade facilitation needs and
  priorities
• Concerns related to cost implications of proposed
  measures
• Technical assistance and support for
  capacity-building and
• Working with and the work of other relevant
  international organizations.

7
Current Level of Commitment under Articles V,
VIII and X

• Article V
• refers to freedom of transit and calls for
  allowing freedom of transit
• non-discriminatory treatment of vessels,
• obligation not to impose "any unnecessary delays
  or restrictions",
• obligation not to impose charges other than
  charges for transportation and administrative
  expenses caused by transit or services rendered
  etc

8
Current Level of Commitment under Articles V,
VIII and X

• Article VIII
• limit the fees and charges
• obliges the Members not to impose substantial
  penalties for minor breaches of customs
  regulations
• recognizes but not obliges
• to reduce the number and diversity of the fees
  and charges
• to minimize the incidence and complexity of
  import and export formalities, and
• to decrease and simplify import and export
  documentation requirements.

9
Current Level of Commitment under Articles V,
VIII and X

• Article X
• publish laws, regulations, judicial decisions and
  administrative rulings
• publish the agreements with other members
  affecting international trade
• abstain from enforcing measures of general
  application prior to their publication
• to institute or maintain independent tribunals or
  procedures for prompt review

10
Proposals on Trade Facilitation

• Internet Publication
• Notification of Trade Regulations
• Establishment of Enquiry Points /SNFP/
  Information Centers
• Interval between Publication and Entry into Force
  and Consultation prior to new rules
• Uniform Administration of Trade Regulations
• Maintenance and Reinforcement of Integrity and
  Ethical Conduct Among Officials

11
Proposals on Trade Facilitation

• General Disciplines on Fees and Charges
• Expedited/Simplified Release and Clearance of
  Goods
• Objective Criteria for Tariff Classification
• Disciplines on Transit Formalities and
  Documentation Requirements
• risk assessment and management procedures
• Post clearance audit

12
Bangladesh Experience

• Total Trade increased from US 5 billion in 1990
  to over US 16 billion in 2003
• Trade-GDP ratio from 20 to 32
• No increase in number of customs officials
• PSI System
• Introduction of ASYCUDA
• Electronic form
• 10 physical inspection

13
Bangladeshs Experience

• average processing time for clearance of goods
  from customs was reduced to 1- 3 days for import
  and 3-8 hours for exports
• Cargo handling time by port authority around 6
  days
• Huge cost for improving customs procedures

14
Concerns

• Is it worthy to address customs procedures
  without port?
• Will cost of improvement of customs procedures
  divert attention from other priority areas?
• Identification of needs and priorities of LDCs in
  Trade Facilitation