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Trade Facilitation in the WTO Context

Trade Facilitation in the WTO Context. Mike Doran - CERN, UN/CEFACT Vice Chair & Tom Butterly - UNECE Geneva, 26 May 2005. Agenda. 1. UN/CEFACT 2. International Trade Transaction Process 3. Trade Facilitation & eBusiness Standards

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Trade Facilitation in the WTO Context

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  1. Trade Facilitation in the WTO Context • Mike Doran - CERN, UN/CEFACT Vice Chair • & • Tom Butterly - UNECE • Geneva, 26 May 2005

  2. Agenda 1. UN/CEFACT 2. International Trade Transaction Process 3. Trade Facilitation & eBusiness Standards 4. UN/CEFACT Instruments Related to GATT Articles VIII and X 5. Capacity Building and Implementation

  3. International Standards – The UN Role The United Nations promotes trade for its potential to foster economic development and eradicate povertyUNECE develops, maintains and leads the implementation of trade-related recommendations, standards and toolsThis activity is carried out through UN/CEFACT (the United Nations Centre for Trade Facilitation and Electronic Business) which is open to the participation of any business or governmentUNECE developed standards are open and technology neutral, and will cater to the needs of large or small companies and of developed and developing countries alike.

  4. UN/CEFACT Mission To deliver trade facilitation recommendations & e-business standards which can improve the ability of business, trade and administrative organizations within developed, developing and transitional economies, to trade products and relevant services more effectively - and so contribute to the growth of global commerce. Focus The worldwide facilitation of national AND international trade transactions, through the simplification and harmonization of business processes, procedures and information flows.

  5. UN/CEFACT’s Future Strategy

  6. UN/CEFACT Programme of Work • Details all the specific work items of UN/CEFACT • Project Title • Description • Target Audience • Target Date for Completion • Link to CTIED Programme of Work • Lead Group • Submitted for approval of the UN/CEFACT Plenary in June

  7. Agenda 1. UN/CEFACT 2. International Trade Transaction Process 3. Trade Facilitation & eBusiness Standards 4. UN/CEFACT Instruments Related to GATT Articles VIII and X 5. Capacity Building and Implementation

  8. International Trade Transaction Process Intermediary BUY SHIP PAY Customer Supplier Authority The International Trade Transaction Process consists of The International Trade Transaction Process consists of integrated and coordinated flows of information, goods & payments Source: UN/CEFACT International Supply Chain Reference Model

  9. INTERNATIONAL TRADE TRANSACTION PROCESS SHIP PAY BUY Prepare For Export Prepare For Import Export Transport Import INVOLVES • Commercial • Procedures • Establish Contract • Order Goods • Advise On Delivery • Request Payment • Transport • Procedures • Establish Transport Contract • Collect,Transport and Deliver Goods • Provide Waybills, Goods Receipts Status reports etc. • Regulatory • Procudures • Obtain Import/Export Licences etc • Provide Customs Declarations • Provide Cargo Declaration • Apply Trade Security Procedures • Clear Goods for Export/Import • Financial Procedures • Provide Credit Rating • Provide Insurance • Provide Credit • Execute Payment • Issue Statements

  10. Agenda 1. UN/CEFACT 2. International Trade Transaction Process 3. Trade Facilitation & eBusiness Standards 4. UN/CEFACT Instruments Related to GATT Articles VIII and X 5. Capacity Building and Implementation

  11. UN/CEFACT Instruments - UN Layout Key for Trade Documents - UN/EDIFACT - UNeDocs - ebXML - Single Window - Compendium of Trade Facilitation Recommendations

  12. eBusiness Standards Development SMDG Bolero Togaf HR-XML EHD xCat UBL Rosettanet OTA IATA cXML E-construct CATXML PIDX GCI UNeDoc XAML Opentrans xCBL HL7 Acord CIDX xBRL BSML agXML VICS SWIFT GML Need for a common, agreed, international standard!

  13. ebXML UN/CEFACT + OASIS Combining 30 yrs trade facilitation, 15 yrs of traditional EDI and 20 yrs of SGML electronic documentation standards Launched in Canberra September 1999 ebXML is now ISO 15000

  14. Agenda 1. UN/CEFACT 2. International Trade Transaction Process 3. Trade Facilitation & eBusiness Standards 4. UN/CEFACT Instruments Related to GATT Articles VIII and X 5. Capacity Building and Implementation

  15. GATT Article VIII(Fees &) Formalities Connected with Import/Export • Recognizes the need to minimize the incidence and complexity of import and export related formalities and documentary requirements

  16. Proposals on Article VIII • Standardization of Trade Documents using international standards (many countries) • Use of UN Layout Key (UN/CEFACT Recommendation1) – Korea, New Zealand, Norway, Switzerland • Establishment of a repository or bank of trade documents - New Zealand, Norway, Switzerland • Standardization of Data Elements • Single Window (one time submission, one agency, single entry point) – Peru, Korea, Japan, Mongolia

  17. Article VIII: UNECE Instruments available • United Nations Layout Key for Trade Documents (UNLK/ ISO 6422) - most key trade documents • UN Trade Data Element Directory (UNTDED) • Codes: UN/LOCODE, Currency, Modes of Transport, ISO Country Code... • UN/EDIFACT • UN eDocoments for trade (UNeDocs)

  18. Mode of transport Destination

  19. United Nations Standards for Trade Documents… SAD

  20. Article VIII: UNECE Instruments available • Recommendation and Guidelines on establishing a Single Window (UN/CEFACT Recommendation 33) • Repository of Single Window Implementations: http://www.unece.org/cefact/recommendations/rec33/sw_present_cases.htm • Standards for Single Windows - September ‘05

  21. Article VIII: UNECE Instruments available • UN/CEFACT Recommendation 18 (Facilitation Measures related to the simplification of International Trade Procedures) • UN/CEFACT Recommendations 4 (TF Pro Committees)

  22. Article X: Publication & Administration of Trade Regulations Imposes obligations regarding: • Transparency and Predictability – publish trade laws, regulations etc promptly and in an accessible manner • Not to enforce measures prior to publishing • Impartiality in administration of laws, regulations and administrative rulings of general application

  23. Proposals on Article X • Use of the Internet for publishing • Single Window (one stop service, single entry point, single inquiry point) – Canada, China, European Community, Hong Kong China, Japan, Korea, Mongolia, Peru, • Establishment of consultative mechanism between trade and government (several)

  24. Article X: UNECE Instruments available • Recommendation and Guidelines on establishing a Single Window (UN/CEFACT Recommendation 33) • UN/CEFACT Recommendations 4 (TF Pro Committees)

  25. Agenda 1. UN/CEFACT 2. International Trade Transaction Process 3. Trade Facilitation & eBusiness Standards 4. UN/CEFACT Instruments Related to GATT Articles V, VIII and X 5. Capacity Building and Implementation

  26. Capacity Building Approach • Help countries to understand our recommendations and standards and where they can fit their needs • One Size does not fit all – but standards essential • National and Regional strategies • Partnership approach • National Experience

  27. UNECE - UN/CEFACT UNECE in partnership with other organizations UNCTAD,WB,UNIDO, etc Technical Assistance (Donors decide what is to be done) - UNECE does not provide long term TA Recommendations/ Standards Development and Maintenance Capacity Building (Helping governments elaborate a national TF strategy) WTO UNECE’s role is to create the standards through participation of UN member States and the business community in UN/CEFACT Working Groups. We engage in an active Capacity Building programme to help countries understand how best to implement these standards, given their unique needs, priorities and resources while other organizations assist in long –term technical assistance (UNCTAD, WB etc). The WTO sets the rules

  28. Capacity Building and Cooperation • UN Development Account Project on Trade Facilitation Implementation, with all five Regional Commissions (ECE, ECA, ESCWA, ESCAP, ECLAC) – 2005 to 2007 • 15 Regional Workshops (3 in ECE, 2 of which in CIS) • 2 Inter-regional Workshops (one in Geneva) • African Group Workshop (March 2005) • Asia and the Pacific Region (March 2005) • Latin and Central America Region (July 2005) • Single Window Workshop (September 2005) • Global Facilitation Partnership (GFP) – World Bank, UNCTAD, WCO... • WTO PARTNERSHIP APPROACH

  29. Capacity Building Tools • Tool for the Alignment of Trade Documents • Repository of Aligned Trade Documents • Repository of Single Window Implementations • Guide to Trade Facilitation Implementation • Benchmarking Guide • Case Studies of PPP in TF Implementation

  30. A Policy Framework for Paperless Trade • UN Forum on Paperless Trade, Geneva 20, 21st June 2005 • UN High Level Stakeholder Group • National and Regional Capacity Building • in cooperation with UN Regional Commissions • UNeDocs Regional Competence Centre • joint project plan with ESCAP

  31. Summary Points • Trade Facilitation key element in Trade and Economic Development • UN/CEFACT instruments provide a solid foundation for implementation • UN/CEFACT Capacity building programme working with key partners to assist in these efforts • Strong momentum now for more and better implementation

  32. .. now we have to make trade facilitation happen!

  33. THANK YOU ! tom.butterly@unece.org

  34. Follow-up • All UNECE Recommendations, codes, standards and publications are available for free on our website at: • www.unece.org/trade • www.unece.org/cefact/ • www.unece.org/etrades/unedocs/

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