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Trade Facilitation In Central Asia Regional Economic Cooperation Asian Development Bank

Trade Facilitation In Central Asia Regional Economic Cooperation Asian Development Bank 11-13 May 2009 Dushanbe, Tajikistan. What is CAREC?. Partnership 8 countries and 6 IFIs, each with clear roles Not a treaty but a serious commitment by all

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Trade Facilitation In Central Asia Regional Economic Cooperation Asian Development Bank

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  1. Trade Facilitation In Central Asia Regional Economic Cooperation Asian Development Bank 11-13 May 2009 Dushanbe, Tajikistan

  2. What is CAREC? Partnership • 8 countries and 6 IFIs, each with clear roles • Not a treaty but a serious commitment by all • Strong IFI collaboration, but leadership by countries Action-oriented • Based on clear strategies and action plans • Invest in transport, energy, and trade facilitation • Promote capacity development and networking

  3. Participating countries IFIs Partners in CAREC Afghanistan, Azerbaijan, Kazakhstan, Kyrgyz Republic, Mongolia, PRC, Tajikistan, Uzbekistan ADB, EBRD, IMF, Islamic Development Bank, UNDP, World Bank

  4. CAREC Transport and Trade Facilitation Strategy (TTFS) Adopted in 2007 An integrated program of action to improve the region's transport infrastructure and reduce trade costs Implementation Action Plan approved in 2008

  5. Integrated Transport and Trade Facilitation Strategy Goals • Establish competitive transport and trade corridors • Facilitate movement of people and goods across borders • Reduction in transaction costs and time • Improved administrative efficiency • Harmonization of trade procedures • Develop safe, people-friendly transport systems • Enhance transparency of laws, regulations, and procedures

  6. TTFS Trade Facilitation • Two components aimed at reducing trade costs by • promoting concerted customs reform and modernization and • supporting an integrated trade facilitation approach

  7. Customs Reform and Modernization • Support for Customs Cooperation Committee (CCC) which serves as a regional forum to address issues of common interest • CCC 5 priority areas (i) simplification and harmonization of customs procedures and documentation, (ii) information and communication technology (ICT) customs modernization and data exchange, (iii) risk management and post-entry audit, (iv) joint customs control, and (v) regional transit development,

  8. Integrated Trade Facilitation Prioritize support for designated CAREC corridors Promote inter-agency cooperation and partnership with the private sector Establish national and regional mechanism to prepare trade facilitation action plans

  9. Ongoing Trade Facilitation Activities • CAREC Corridor Performance Measurement and Monitoring (CPMM) • Establish or strengthen cooperation mechanisms (National Joint Committees/ Regional Joint Committee) • Capacity Building

  10. CAREC Corridor Performance Measurement & Monitoring • TTFS mandated that economic corridors performance be measured and monitored periodically to: • ascertain the current situation along the links and nodes of each CAREC corridor • identify bottlenecks • determine courses of action to address bottlenecks

  11. CPMM • Time Cost Distance (TCD) is used • Provides graphical representation of cost and time data associated with transport processes • The methodology allows policy makers to • analyze factors that affect cost & time required to transport goods using certain routes; • compare changes in cost and/or time required to transport goods on a certain route; • compare and evaluate competing modes of transport operating on same route; and • consider alternative transit routes.

  12. CPMM • Implementation arrangements • Involvement of private sector - Freight forwarders associations (FFAs) and road carriers as partner associations who will collect data • MOUs have been signed with partner associations to define responsibilities of FFAs and ADB • Data aggregation and analysis will be done at ADB • Quarterly reports and twice year in-depth reports will be submitted to SOM and Ministerial Conference

  13. Cooperation Mechanisms • National Joint Transport and Trade Facilitation Committees (NJCs) to • promote interr-agency collaboration • enhance partnerships between the public and private sectors • address broader issues of transport and trade facilitation • To be composed of representatives of all government agencies in charge of transport, trade, and border-crossing activities and relevant private sector groups

  14. Cooperation Mechanisms (cont) Regional Transport and Trade Facilitation Committees (RJC) to provide regional leadership in the implementation of the joint transport and trade facilitation strategy/action plan. RJC will serve as a regional forum to raise, discuss and resolve issues of common interest relating to barriers to trade and development To be comprised of representatives from NJCs and representatives of regional groupings such as unions or federations of national freight forwards or transport groups

  15. Capacity Building • Training needs assessment (TNA) for customs and broader array of stakeholders involved in trade facilitation done in late 2008 and early 2009 • Findings included: • Adapt approaches to region’s needs and situation • Enhance available capabilities and facilities in the region • Balance common (regional) and specific (national) needs • Involve other agencies, private sector/non-government organizations

  16. Capacity Building • Recommendations: • Create a simple Regional Training Database accessible to all CAREC countries • Create a simple training development structure • Trade facilitation core curriculum • Single window • Risk management techniques • Post-customs control • Logistics development • Training for trainers on trade facilitation

  17. ADB trade facilitation projects in Tajikistan • Regional Customs Modernization Project and Infrastructure Development Project ($10.7 MLN) • Approved 2004 • Objective: • improve the efficiency and transparency of customs services, and reinforce the ongoing customs legal reforms and simplification of custom procedures • facilitate trade and promote regional customs cooperation through concerted customs reforms and modernization. • Scope: • a unified automated information (UAIS) • customs border-post infrastructure.

  18. ADB trade facilitation projects in Tajikistan • Regional Technical Assistance on Cross Border Agreement Among Kyrgyz Republic, People's Republic of China, and Tajikistan ($500,000) • Approved 2007. • Objective: • increase regional traffic and facilitate trade • improve access to regional markets and social services for surrounding people • Scope: • Establish a trilateral cross-border agreement among PRC, Kyrgyz Republic and Tajikistan

  19. Thank you CAREC Secretariat6 ADB Avenue, Mandaluyong CityMetro Manila 1550, PhilippinesTelephone: + 632 632 5857/6368Fax: + 632 636 2387ADB Tajikistan Resident Mission Dushanbe Telephone: + 992 372 2210558

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