Assessing Trade Related Needs, Resources and Tools

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Assessing Trade Related Needs, Resources and Tools
March 12 14, 2008 Siem Reap, Cambodia
Anne Simmons-Benton Booz Allen Hamilton
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Take Away Points

• Defining Trade Capacity Building
• Why TCB really does matter
• How to design TCB projects- What works and what
  we have learned from experience

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Identifying Trade Capacity Building (TCB)

• Conceptual Framework
• participation, implementation and economic
  responsiveness
• Challenges facing developing and least developed
  economies
• technically complex trade agenda
• necessary to identify economic interests
• dialogue and wide participation
• will reduce domestic policy space

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Some of the Disciplines in Trade Agreements

• Tariffs, Preferential Rules of Origin
• Agriculture, Textiles
• SPS Measures, TBT
• Investment
• Services
• Intellectual Property Rights
• Trade Remedies (Anti-Dumping, Safeguards)
• Trade Facilitation (Customs Procedures)
• Dispute Settlement

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Diagnostic Trade Integration Study (DTIS)
Cambodia

• Executive Summary and Action Matrix
• Overview and Main Conclusions
• Trends in Integration (Economic Background and
  Trade Performance)
• External and Internal Barriers to Integration
• Potential for Export Diversification and Greater
  Integration
• Enhancing Trade Capacity and Coordination
• How increased integration can reduce poverty

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The Expanding TCB Agenda

• Trade Capacity Building

Trade Opportunities
Supply Side Constraints
Participation in Trade Negotiations
Building Productive Capacity Business
Services Financial Sector Trade Infrastructure
Customs Transport TBT/SPS Communications
Policy Capacity
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Negotiating an Agreement is only the Starting
Point

• Following negotiation ratification
• Implementation is key
• Monitoring rights and obligations
• Ensuring compliance
• Monitor impact
• Realizing the benefits and addressing adjustment
  costs

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Managing the Trade Liberalization Process

• Requires comprehensive macroeconomic, sectoral
  and microeconomic adjustments.
• Macro stable macro economy is necessary
  condition (inflation must be under control, real
  exchange rate must not be over valued, fiscal
  reform)
• FTA will create margins of preference but it is
  not a silver bullet. Local firms will need to
  improve efficiency
• Good Governance is a necessary part of the
  enabling environment

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Trade Capacity BuildingBottlenecks to Delivering
trade assistance

• Trade responsibilities not mainstreamed
  (disconnect with other key Ministries e.g.
  Finance)
• Trade Related Ministries do not articulate their
  needs

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Donors also have constraints

• Often not mainstreamed overshadowed
• Lack an integrated view of TCB needs, respond to
  requests
• Coordination among donors remains a challenge
  (IF)
• Capacity to effectively evaluate has a long way
  to go

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Designing Trade Capacity Building (TCB)
Interventions

• Principles
• National Ownership
• Mainstreaming
• Sustainability
• Coordination
• Design Elements
• National, sub regional or Regional
• Needs Assessments and Areas for TCB intervention
• Participation
• Evaluation and Monitoring

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Designing a TCB project- Checklist

• Existing structure of trade and investment
• Trade and investment policy
• Administration of trade and border issues
• Business and regulatory environment
• Existing capacity and implementation of trade
  agreements
• Role of trade in National Development Strategy
• Existing donor commitment to trade and investment
  issues

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Process for planning a TCB project

• Widespread consultation across government and
  private sector and civil society
• Ensure multi-disciplinary approach
• Ensure participation and local ownership of the
  planned activity
• Build in flexibility
• Coordinate with other donors

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Focal Areas for TCB projects

• Policy research and trade strategy development
• Participatory policy development process
• Coordination of trade policy with national
  development strategies
• Participation in international trade negotiations
• Effective Implementation of trade agreements
• Business Regulatory environment
• Trade Facilitation

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Policy Research and Trade Strategy Development

• Training for government and private sector
  advocacy groups in policy analysis skills
• Consulting support for strategy development and
  trade sector reviews
• Support for local think-tank institutions to
  develop capacity to undertake high quality
  applied research to facilitate domestic dialogue

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Supporting Participatory Development Process

• Disseminate research findings to government
  officials, business, labor and civil society
  through effective communications strategy
  (Knowledge for Development)
• Publicize trade issues to a wide audience
  increase capacity of trade journalists
• Provide training for government officials on
  participatory policy process

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Participation in International Trade Negotiations

• Flexible draw down of technical experts
• Training on trade issues (institutional, legal
  and economic) develop analytic skills
• Training in negotiating skills
• Financial support (computer equipment etc.)

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Implementation of Trade Agreements

• Drafting of new WTO consistent legislation
• Training on WTO agreements
• Establishment of WTO National Enquiry Points
• Technical assistance for meeting WTO notification
  requirements
• New institutional processes, equipment, training
  

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Guidelines for Ensuring TCB is Appropriate

• Sensitivity to TCB when USTR is engaged in active
  trade negotiations
• Differing perceptions of needs and priorities
• Differences between host country, USAID and other
  USG agencies
• Legal and regulatory requirements for USAID
  trade-related assistance

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Monitoring and Evaluation What Have We Learned?

• Difficult to determine long term impact
  (attribution problem)
• Half of the assessed programs Positive
  contribution
• Doing better
• - Promote country ownership
• - Understand local/regional/international
  context
• - Ensure linkages to poverty reduction
• - Manage for results
• - Ensure Flexibility

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References and Further Reading

• OECD (2006), Trade Related Assistance-What do
  Recent Evaluations Tell Us?
• USAID (2003), Building Trade Capacity in the
  Developing World, USAID Strategy, USAID,
  Washington DC
• USAID, Bureau for Policy and Program Development
  (2004), An Evaluation of Trade Capacity Building
  Programs, Overview, PPC Evaluation Working Paper
  12, Washington DC
• TCB database.
• Note All these reports are available on the
  Internet