Trade Facilitation:

1
Trade Facilitation Opportunities and Challenges
The Way Forward to Real Progress
Global Facilitation Partnership Brussels, January
26, 2005
2
Doha Round
3
Trade Facilitation in Doha

• Trade facilitation is needed to ensure benefits
  of mutual tariff concessions
• Important determinant of market access
• Failure to facilitate nullifies tariff
  concessions
• Direct link to development agenda of Doha Round
• World Bank study shows direct GDP effect
• Greatest gains in developing world
• Important determinant of FDI

4
Trade Facilitation Means
Better revenue collections GDP and export
growth Increased foreign direct
investment Consumer benefits Capacity building
5
Trade Facilitation Does Not Mean
Forced uniformity in customs procedures Dispute
resolution for individual complaints Lost
revenues Diminished enforcement
6
The Goal of Trade Facilitation
Facilitation cannot be measured solely by
adherence to specified procedures The objective
measure of trade facilitation is
arrival-to-release time (cycle time) Cycle time
can be measured WCO tool/World Bank project to
digitize
7
Uses of Cycle Time Measurement
System-wide measurement of cycle time can be a
basis for negotiating obligations for
improvement Obligations based on cycle time are
an objective basis for dispute resolution that
addresses system-wide issues, not individual
incidents
8
Advantages of Cycle Time Focus
Accepts status quo as starting point for each
country, thus avoiding unrealistic obligations
Allows each country to adopt measures best
suited to achieve meaningful improvement Avoids
phantom progress of procedural changes that do
not contribute to cycle time reduction
9
Capacity Building
Project oriented Sustainable improvement Coordin
ation of donor activities Measurable benefits
10
Dispute Resolution Revisited

• Not for individual disputes for systemic
  failures
• Mitigate effects
• Time out for corrective measures
• Condition on capacity building
• Credit for measurable progress

11
Security
12
WCO Security Framework

• Potential Benefits
• Harmonization of security standards
• Harmonization of data elements
• Business benefits for participation
• Potential Dangers
• Unrealistic expectations re supply chain
• Insufficient flexibility
• Inconsistent programs or administration

13
WCO Security Framework

• Stakeholder Participation
• Framework
• Annexes
• On-going program administration
• C-TPAT program development as a model