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Transit? Whose interest is it? Bilateral transport agreements in Europe

Transit? Whose interest is it? Bilateral transport agreements in Europe . Eva Molnar Director, Transport Division UNECE. Intro: Liberalisation of Road Freight and Air Transport started back in the seventies. The regulatory framework. 1. GATT , WTO , GATS 2. Bilateral agreements

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Transit? Whose interest is it? Bilateral transport agreements in Europe

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  1. Transit? Whose interest is it? Bilateral transport agreements in Europe Eva Molnar Director, Transport Division UNECE

  2. Intro: Liberalisation of Road Freight and Air Transport started back in the seventies

  3. The regulatory framework 1. GATT, WTO, GATS 2. Bilateral agreements 3. The ECMT quota 4.The Road freight Single Market in the EU - qualitative criteria 5. UNECE conventions UNCTAD Conference, 2007

  4. 1. GATT and the right for transit; WTO and GATS • Freedom of transit: what does this mean ? • Handicaps of GATS • WTO – the Doha Round – Trade Facilitation • Status quo given by the bilateral agreements UNCTAD Conference, 2007

  5. 2. Bilateral agreements UNCTAD Conference, 2007

  6. Bilateral Regulations, reciprocity and controlled traffic • Phase I. – Bilateral Road Transport Agreements (road transport diplomacy) • Phase II. - implementation: Joint Committees, annual quotas • Type of agreements: freight, passenger, both; land transport UNCTAD Conference, 2007

  7. Standard features of Bilateral Road Transport Agreements • Mutual exemption from duties and taxes, • Unified customs procedures (+products that are not subject to customs duties), • Identification/designation of competent authorities, • Journeys that do not need road permits, • Types of permits, ways and means to exchange permits, • Size and weight restrictions, • Dispute resolution, • The scope and rights of the J/Cs etc. UNCTAD Conference, 2007

  8. Journeys and permits • Transit • Loco/bilateral • Third country • In the vicinity of the border *************************************************** • Tax-free permits and “permits” subject to taxes • Single journey permits, permits for a certain time *************************************************** • Cabotage – not allowed in bilateral agreements UNCTAD Conference, 2007

  9. Two generations of bilateral road transport agreements • In the 50/60-ies: • Simple, basic rules (exemptions, types of permits) • In the 80/90-ies • More complex, • Signs for liberalization • Eco-points replacing permit quotas • In the mid 90-ies - ECMT recommendation for a sample agreement UNCTAD Conference, 2007

  10. Journeys exempt from permits • Products for exhibitions • Race-horses, race cars, goods for sport events • Things for theaters, Musical instruments, materials for TV and radio programs • Corps • Own account transport • Rescue vehicles • Transport carried out by small vehicles • Moving • Cargo for Humanitarian purposes UNCTAD Conference, 2007

  11. Advantages - Regulated conditions in the post-war era - uncertainties, transparency  - Reciprocity - State intervention - e.g. Austrian RoLa Disadvantages - Quantitative restrictions /protectionism leading to monopolistic situations  makes trade costly - International vulnerability Costly administration Potentials for corruption Pros and Cons - Bilateral Agreements UNCTAD Conference, 2007

  12. Liberalization in the bilateral agreements • When? • In what stages ? What is the future for the bilateral agreements ? UNCTAD Conference, 2007

  13. 3.ECMT road quota • Advantages of the ECMT quota • Environment protection and traffic safety • Conditions and barriers to quota increase UNCTAD Conference, 2007

  14. Reforming the ECMT quota - incorporation of EU criteria • The only pan-European framework : • In 1974 # of permits: 385 • In 2005: 6060 (basic) permit – valid in 42 countries • Quota increase through harmonization: • Environment protection: „green”, „greener” vehicles • Safety • Driving and rest time • Admission to profession • Monitoring – controls and checks UNCTAD Conference, 2007

  15. 4. Single Road Freight Market in the EU - qualitative criteria instead of quantitative restrictions UNCTAD Conference, 2007

  16. Changes of the Rules on Market Access : bilateral and pluri-lateral framework 1962. EEC: First Common Rules on road transport 1969. EEC: Community road quota 1974.ECMT road quota 1984. EEC: automatic increase of the Community road quota 1986:decision on the Road SM 1993/95/98: SM achieved Bilateralagreements UNCTAD Conference, 2007

  17. EU SM on road freight transport achieved • EU: Qualitative criteria replace quantitative barriers - conditions on admission to profession (COUDIR 96/26 – modifying 98/76; COUREG 881/92) • Freedom of cabotage (1998), if it is temporary… (COUREG 3118/93) • Accelerates harmonization of qualitative criteria UNCTAD Conference, 2007

  18. Admission to profession - euro license • 3 criteria: good will, financial standing, professional competence • Unified rules within EU-25 • But: some can compete more easily; threat for over-regulation; „over-mature rules of the guilt” ; competition handicap of EU carriers vs. 3. country carriers UNCTAD Conference, 2007

  19. Fears, problems and their remedy within the EU • Liberalization impact: atomized road market (94%micro firms - with less than 10 employees, 64 % of which is self employed ) • „social dumping” (driver certificate - COUREG 881/92) • Right for intervention if structural crisis: when, how to recognize – what intervention • State aid – should not distort competition UNCTAD Conference, 2007

  20. Harmonization of general conditions within and beyond the EU • Three dimensions: 1/ UNconventions and regulations (e.g. AETR); 2/ EU regulations and directives for EU MSs; 3/ extra-territorial application of EU regulations (e.g. admission to profession • Main areas: taxes and RUCs, safety, social rules, ecological issues, size and weight limits. UNCTAD Conference, 2007

  21. Shift in emphasis – three reform elements of liberalization Competition rules Admission to profession, market access, price setting…. Liberalization Infrastructure UNCTAD Conference, 2007

  22. What does the EU liberalization mean in practice? …. • Instead of the need for permits before each journey: right for a license for anyone if the three criteria met + increased importance on enforcement + control ex-post • Market monitoring and industry analysis • This requires: • Good statistics and analytical skills • New functions and skills of controllers • Multiple poles of controls by the authority: Transport Ministry, Competition Authority, ngos and other interest groups, road hauliers`association • True functioning of the market UNCTAD Conference, 2007

  23. 5. UNECE International Legal Instruments (Agreements and Conventions) UNCTAD Conference, 2007

  24. UNECE • Unifying role in transport regulations in Europe: East-West EU-and 3rd countries • Some rules and regulations used globally (e.g.dangerous goods) • Some are used in other regions (e.g. UNESCAP countries) • EU expansion, ECMT Reform – creation of ITF, new roles for UNECE UNCTAD Conference, 2007

  25. UN Agreements and Conventions on transport infrastructure, …. • European Agreement on Main International Traffic Arteries - AGR, 1975 • European Agreement on Important International Combined Transport Lines and Related Installations - AGTC, 1991 UNCTAD Conference, 2007

  26. …. On road transport and traffic safety, …. • Convention on Road Traffic, 1949 • Protocol on Road Signs and Signals, 1949 • Convention on Road Traffic, 1968 (amended in 1971) • Convention on Road Signs and Signals, 1968 • European Agreement supplementing the 1968 Convention on Road Traffic, 1971 • European Agreement supplementing the 1968 Convention on Road Signs and Signals, 1971 • Protocol on Road Markings, Additional to the European Agreement supplementing the Convention on Road Signs and Signals, 1973 UNCTAD Conference, 2007

  27. … on road vehicles, ... • Agreement concerning the Adoption of Uniform Technical Prescriptions for Wheeled Vehicles, Equipment and Parts which can be fitted and/or be used on Wheeled Vehicles and the Conditions for Reciprocal Recognition of Approvals granted on the Basis of these Prescriptions, 1958 • Agreement concerning the Adoption of Uniform Conditions for Periodical Technical Inspections of Wheeled Vehicles and the Reciprocal Recognition of Such Inspections, 1997 • Agreement concerning the Establishing of Global Technical Regulations for Wheeled Vehicles, Equipment and Parts which can be fitted and/or be used on Wheeled Vehicles, 1998 UNCTAD Conference, 2007

  28. … on B/C facilitation and harmonisation, …. • Customs Convention on the Temporary Importation of Private Road Vehicles, 1954 • Customs Convention on the Temporary Importation of Commercial Road Vehicles, 1956 • Customs Convention on the International Transport of Goods under Cover of TIR Carnet (TIR Convention), 1975 • International Convention on the Harmonization of Frontier Controls of Goods, 1982 • Convention on Customs Treatment of Pool Containers Used in International Transport (Container Pool Convention), 1994 UNCTAD Conference, 2007

  29. …on transport of dangerous goods,… • European Agreement Concerning the International Carriage of Dangerous Goods by Road (ADR), 1957 • Protocol amending article 1(a), article 14 (1) and article 14 (3)(b) of ADR, 1993 UNCTAD Conference, 2007

  30. … on transport of perishable foodstuff,…. • Agreement on the International Carriage of Perishable Foodstuff and on the Special Equipment to be used for such Carriage (ATP), 1970 UNCTAD Conference, 2007

  31. … on conditions of road transport services! • European Agreement Concerning the Work of Crews of Vehicles Engaged in International Road Transport (AETR), 1970 • Convention on the Contract for the International Carriage of Goods by Road (CMR), 1956 • Protocol to the Convention on the Contract for the International Carriage of Goods by Road, 1978 UNCTAD Conference, 2007

  32. UN ECE Recommendations on • Trade standards • Trade Facilitation UNCTAD Conference, 2007

  33. Summary • The rules of the game have changed considerably: • Within the EU no quantitative barriers, but qualitative criteria • Beyond the EU and between EU and third countries: bilateral agreements • ECMT resolutions (soft) and the ECMT quota • EU acquis: admin. To prof., market access, financial, social, technical, safety, ecological rules • UNECE Conventions UNCTAD Conference, 2007

  34. Transport & Public – Private Removing trade Telecom reforms: Cooperation and barriers to Consultation Demonopolisation international Deregulation, (pro-committees) - transport Privatisation What is Trade and Transport Facilitation? Reforming customs and Cross border other border agencies Increasing by introducing modern cooperation availability of high MIS, new procedures quality training in and new Human logistics, transport, Resource Management, customs brokerage, better inter - agency telecom and IT and cross border - cooperation UNCTAD Conference, 2007

  35. Thank you for your attention! UNCTAD Conference, 2007

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