Syed Saifuddin Hossain

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International Civil Society Forum 2005 For
Advancing LDC Interests in the Sixth WTO
Ministerial
presentation on
WTO Negotiations on Trade Facilitation Where Do
the LDCs Stand?
presented by
Syed Saifuddin Hossain Research Associate, CPD
05 October 2005
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Contents

• Introduction
• Trade Facilitation in the WTO
• CPD Study on Trade Facilitation The Bangladesh
  Perspective
• Trade Facilitation and the LDCs
• Concluding Remarks

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I. Introduction
Trade Facilitation A Coherent Approach
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I. IntroductionContd
Perceived benefits from Trade Facilitation
For the trading community - Imports reduction
in overall delivered cost - Exports increased
competitiveness through reduced
transaction costs For service providers - new
options for improved door-to-door logistics For
public sector - increased customs revenue and
greater control
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II. Trade Facilitation in the WTO
Existing Legal Texts
GATT 94

• Article V Freedom of transit
• Article VIII Fees/formalities connected to
  import/export
• Article X Publication and administration of
  trade regulations

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II. Trade Facilitation in the WTOContd
Major Milestones

• Singapore Ministerial (1996) Inclusion in the
  WTO agenda
• Doha Ministerial (2001) Negotiations to take
  place after the 5th Ministerial
• Cancun Ministerial (2003) Developing countries
  once again out-maneuvered Trade Facilitation
  side-lined.
• July Framework (2004) Specific negotiating
  modalities adopted
• GC Meeting (July 2005) New bottle, same old wine

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II. Trade Facilitation in the WTOContd
Submissions on Trade Facilitation in the WTO

• Publication and dissemination of (Customs)
  information
• Consultative and feedback mechanisms with traders
• Review and appeal procedures and due process
• Advance lodgment (of goods declaration) and
  processing of data
• Procedures for assessment, collection, and
  repayment of duties
• Risk assessment
• Audit based controls
• Special Procedures for authorised traders
• Separation of release from clearance
• Security for duties and taxes
• Co-operation and coordination among different
  authorities

Source OECD
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III. CPD Study on Trade Facilitation The
Bangladesh Experience
Recent achievements in Trade Facilitation

• Introduction of PSI Physical inspection of
  consignments reduced from 100 in 1999 to 10 in
  2002.
• Reduction in number of signatures 25 in 1999 to
  5 at present.
• Export clearance time for 95 of consignments has
  been reduced from 72 hours in 1999 to 3 hours in
  2002.
• Introduction of Direct Trader Input (DTI)
  facility in September 2003
• Establishment of Trial Centre has simplified
  documentation processing.

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III. CPD Study on Trade Facilitation The
Bangladesh Experience Contd
Decomposition of Bangladeshs External Sector
Performance
Source CPD Database

• FY05 vis-à-vis FY90
• Total Trade Growth 4 times
• Export Growth 6 times (apprx)
• Import Growth 3.5 times

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III. CPD Study on Trade Facilitation The
Bangladesh Experience Contd
Facts from Private Sector Survey
Customs regulations and procedures result in
significant costs to business Yes 65 No 32
In the context of export/import, major
difficulties faced are Domestic 90 Foreign
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Source CPD-ARTNeT Trade Facilitation Survey 2005
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III. CPD Study on Trade Facilitation The
Bangladesh Experience Contd
Facts from Private Sector Survey.Contd
Most Problematic Factors in Conducting Trade
Source CPD-ARTNeT Trade Facilitation Survey 2005
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III. CPD Study on Trade Facilitation The
Bangladesh Experience Contd
Facts from Private Sector Survey.Contd
Identifying Trade Facilitation Needs and
Priorities in Bangladesh
Note 3 High priority 4Very high priority 5
Highest priority
Source CPD-ARTNeT Trade Facilitation Survey 2005
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III. CPD Study on Trade Facilitation The
Bangladesh Experience Contd
Some suggestions for improvement from the Private
Sector

• Customs valuation procedures need to be straight
  forward
• Payment of penalties must be on merit Not on
  export judgement
• Port facility (infrastructural) needs be more
  scientific
• Berthing delay should be minimised
• Import clearance need to be decentralised i.e.
  outside the CPA
• Documentation should be simplified.
• Procedure/steps (for approval) should be reduced
  in the PSI valuation.
• Customs automation needs to be strengthened
  further.
• Single window facility should be initiated at the
  earliest.
• Internal transport and communication
  infrastructure has to be developed.

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IV. Trade Facilitation and the LDCs
July Package (August 2004)
Least-developed country Members will only be
required to undertake commitments to the extent
consistent with their individual development,
financial and trade needs or their administrative
and institutional capabilities.
Livingstone Declaration (June 2005)
Operationalising the flexibilities agreed in the
Modalities for Negotiations on Trade
Facilitation. Full and faithful implementation of
the Modalities for Negotiations on Trade
Facilitation that ensure adequate financial and
technical assistance and capacity building
including support for infrastructure development
of LDCs, through coordinated and sustained flow
of funding that also address cost implications of
proposed measures affecting LDCs.
July 2005 GC Meeting Report of the TNC Chair
For Trade Facilitation, SDT and support for
capacity building will need to be a particular
focus in the upcoming negotiations.
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IV. Trade Facilitation and the LDCsContd
Major LDC concerns in view of the on-going
negotiations

• Identification of needs and priorities
• Operationalisation of SD provisions
• Technical assistance and capacity building
  support
• Flexibility in implementing commitments
• Simplification of documentation requirements
• Assessment of cost implications prior to
  negotiations
• Assessment of proposals related to legal
  obligations
• Special attention to landlocked developing
  countries and SIDs

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IV. Trade Facilitation and the LDCsContd
Upcoming Important Dates
19-20 October, 2005 General Council Meeting 1-2
December, 2005 General Council Meeting 13-18
December, 2005 Sixth WTO Ministerial at Hong Kong
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V. Concluding Remarks

• Reactions by developing countries on GATT
  Articles have been generally very constructive.
  However, it needs to be seen how acceptable the
  proposals might eventually turn out to be.
• Unity of the LDC front is a must to gain the most
  from the current round of negotiations.
• LDC voice must be raised and demands pressed at
  every single forum during the run-up to the Hong
  Kong Ministerial.

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V. Concluding Remarks Contd
Things may seem to be just fine..
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V. Concluding Remarks Contd
..but are they really?
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Thank You for Your Attention