Title: Trade Facilitation
1 International Civil Society Forum 2005 FOR
ADVANCING LDC INTERESTS IN THE SIXTH WTO
MINISTERIAL 3-5 October 2005 Dhaka Sheraton Hotel
- Trade Facilitation
- Farooq Ahmed
- Secretary
- Metropolitan Chamber of Commerce and Industries
(MCCI)
CENTRE FOR POLICY DIALOGUE (CPD) B A N
G L A D E S H
a c i v i l s o c i e t y t h i n k t a n
k
2Background
- 1st taken up as an agenda at Singapore Conference
in 1996 along with three other issues - Prior work by WB, WCO, UNCTAD
- Removal of administrative/logistical obstacles to
facilitate move of goods - Article V, VIII X of GATT 1994
- Widening of Trade Facilitation concept
modernization automation of export/import
procedures
3Definition
- As per WTO
- The simplification and harmonization of
international trade procedures, with trade
procedures being the activities, practices and
formalities involved in collecting, presenting,
communicating and processing data required for
the movement of goods in international trade
4Perceived Benefits of Trade Facilitation
- Efficient border management process, up-to-date
administrative methods, revenue collections,
detection of illicit goods trafficking - Cost effective trade-related infrastructure
development - Faster movement of goods
- Government/business/consumer benefits from a
lower trade transaction cost resulting from
elimination of duplicative and unnecessary border
management activities
5Perceived Benefits of Trade Facilitation
- Easier access not only to developed country
markets but also the markets of developing and
advanced developing countries - FDI will be encouraged by the creation of a more
open and effective trade regime.
6Initial Progress on Trade Facilitation Negotiation
- Doha Declaration further expediting the
movement, release and clearance of goods,
including goods in transit, and the need for
enhanced technical assistance and capacity
building - Negotiations after the 5th Ministerial at Cancun
- CTG to review Article V (Freedom of Transit),
VIII (Fees and formalities connected with
Importation and Exportation) X (Publication and
Administration of Trade Regulations) of GATT 1994
73 Tasks for CTG
- To review, clarify and improve relevant aspects
of Article V, Article VIII and Article X of the
GATT 1994 - To identify the trade facilitation needs and
priorities of Members, in particular developing
and LDCs - To examine the issue of technical assistance and
capacity building
8Current Status of Negotiation
- July Package
- ? Clarify, improve relevant aspects of Articles
- ? Technical assistance and support for capacity
building - ? Effective cooperation between customs or any
other appropriate authorities on trade
facilitation and customs compliance issues
9Current Status of Negotiation
- Exemption
- ?LDCs exempted from undertaking commitments
inconsistent with their individual development,
financial and trade needs or their administrative
and institutional capabilities.
10LDCs Concern on Trade Facilitation
- Special and Differential Treatment
- Support for capacity building
- Transparency
- Sound Border Management
- Transit
- Development and implementation issues
11LDCs Call at the 5th Hong Kong Ministerial
- LDCs should identify their trade facilitation
needs and priorities - Operationalization of S D provisions
- Support for technical assistance and capacity
building - Simplification of custom procedures
- Time frame commitment from developed and advanced
developing countries - Harmonization of commodity standards/codes
- Special attention for the landlocked and small
island developing countries
12Trade Facilitation Bangladesh Perspective
13South Asia South East Asia
14Bangladesh Bridge between SA ASEAN
Chittagong port connecting Colombo, Madras,
Calcutta Thailand
China
Nepal
Bhutan
Pakistan
Chittagong Port
Mayanmar
India
Calcutta
Thailand
Bangladesh
Madras
Sri Lanka
15Chittagong Port
- 80 of the trade flows of Bangladesh pass
through Chittagong port - High shipping and port costs
- Inadequate handling equipment
- Lack of efficient port management system
16Chittagong Port
- Capacity is to handle 2 laks TEUS (twenty feet
equivalent units per annum) handled 6.88 laks of
TEUS in 2004 - With average 15 export growth per annum,
should be required to handle 1.175 million TEUS
by 2011 - Cost of handling a 20 feet container in
Chittagong port is around US 600 - whereas in other regional hub ports like
Singapore, Colombo, Mumbai and Bangkok, the cost
is around US 216, US 220, US 450 and US 360 - Turn round time 5 to 7 days - compared to
Colombo is 1-2 days, Madras 4 5 days, Bangkok 2
days and Singapore 1 2 days. - 48 endorsement for release of goods
- Long turn round time inefficient handling
cost additional US 20,000 per vassel
17Development of Chittagong Port as part of Trade
Facilitation
- Infrastructure development
- Modern cargo handling equipment
- Skill development of port operators
- Cost cutting strategy
- System automation
- Cargo space to lessen congestion
- Support for Technical Assistance Capacity
building
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