UNECE Integrated Approach to Trade Facilitation Tom Butterly Deputy Chief Global Trade Solutions Branch UNECE Capacity-Building Workshop on the WTO Trade Facilitation Negotiations 12-13 June 2006, Chisinau, Republic of Moldova

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UNECE Integrated Approach to Trade
FacilitationTom Butterly Deputy ChiefGlobal
Trade Solutions BranchUNECE Capacity-Building
Workshop on the WTO Trade Facilitation
Negotiations 12-13 June 2006, Chisinau, Republic
of Moldova
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Agenda

• UNECE Integrated Model of Trade Facilitation
• Best Practice Examples - UN/CEFACT Standards,
  Recommendations and Tools
• International Trade Single Window
• Capacity Building

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UNECE Integrated Model of Trade Facilitation
UNECEs objective in international trade to
facilitate and strengthen the integration of
member States, and especially countries in
transition, into the European and global
economy.Trade Facilitation is a key tool of
UNECE to achieve this objective
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Trade Facilitation

• The simplification, standardization and
  harmonization of procedures and associated
  information flows required to move goods from
  seller to buyer and to make payment
• Facilitate - to make easy or easier

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INTERNATIONAL TRADE TRANSACTION PROCESS
SHIP
PAY
BUY
Prepare For Export
Prepare For Import
Export
Transport
Import
INVOLVES

• Commercial
• Procedures
• Establish Contract
• Order Goods
• Advise On Delivery
• Request Payment

• Transport
• Procedures
• Establish Transport Contract
• Collect,Transport and Deliver Goods
• Provide Waybills, Goods Receipts Status reports

• Regulatory
• Procudures
• Obtain Import/Export Licences etc
• Provide Customs Declarations
• Provide Cargo Declaration
• Apply Trade Security Procedures
• Clear Goods for Export/Import

• Financial Procedures
• Provide Credit Rating
• Provide Insurance
• Provide Credit
• Execute Payment
• Issue Statements

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The UN/CEFACT Vision
Total Trade Transaction Integrated supply-chain
Competitiveness trade efficiency
Trade facilitation
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Economic efficiency
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Why focus on Trade Facilitation ?

• Economic Benefits - shift in focus from technical
  to trade/economic policy perspective
• Greater demands from business for predictability
  and speed
• Information requirements
• Investment Link
• Trade Facilitation at the WTO

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Economic Benefits

• Estimates vary from 1-15 of total trade
  transaction costs
• Even if only 1, OECD estimates total gains to
  world economy of US40, billion
• APEC estimates gains of US46 billion from trade
  facilitation measures - adopted TF as key policy
  target.

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Economic Benefits

• Benefits higher for developing countries and for
  SMEs
• Greater than the potential value of increased
  tariff reductions under future multilateral trade
  negotiations.
• Inefficient or unnecessary process and controls
  add no value whatsoever

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UNECE Study on TF

• TF plays a crucial role in deriving benefits from
  overall trade liberalisation policy
• Even in non-liberalised economies significant
  benefits cold be gained
• The introduction of trade liberalisation measures
  without parallel trade facilitation initiative
  might fail to realise their full economic
  potential.

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Strategic Approach to Realising the Benefits of
Trade Facilitation

• Undertake detailed needs analysis and set
  priorities at both the national and regional
  level
• Involve the business community from the outset
• Cultivate the necessary political will
• Develop national and regional implementation
  strategies, with trade facilitation as a key
  trade and economic development instrument
• Total trade transaction approach
• Use existing trade facilitation standards, tools
  and instruments