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Ad Hoc Expert Group Meeting on Intra-African Trade Facilitating Intra-African Trade 21-22 March 2005, Addis Ababa

PRESENTATION OUTLINE. Evolving definition and scope of trade facilitationKey issues of trade facilitationTrade facilitation initiatives in Africa Trade facilitation in a multilateral framework: challenges to African countriesWay forward. Evolving Definition and Scope of Trade Facilitation. Logis

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Ad Hoc Expert Group Meeting on Intra-African Trade Facilitating Intra-African Trade 21-22 March 2005, Addis Ababa

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    1. Ad Hoc Expert Group Meeting on Intra-African Trade Facilitating Intra-African Trade 21-22 March 2005, Addis Ababa

    2. PRESENTATION OUTLINE Evolving definition and scope of trade facilitation Key issues of trade facilitation Trade facilitation initiatives in Africa Trade facilitation in a multilateral framework: challenges to African countries Way forward

    3. Evolving Definition and Scope of Trade Facilitation Logistics of moving goods through ports or documentation associated with cross-border trade Environment in which trade transaction takes place Transparency of customs, regulatory agencies Harmonisation of standards, conformity with international and regional regulations Natural barriers to trade Non-tariff barriers

    4. KEY ISSUES OF TRADE FACILITATION High transport costs Complicated customs procedures Inadequate usage of information and communication technology Payments, insurance and other financial requirements International trade standards

    5. HIGH TRANSPORT COSTS

    6. CONTRIBUTING FACTORS TO HIGH TRANSPORT COSTS IN AFRICA Inadequate infrastructure network Inefficient transport services Multiplicity of rules governing international transportation of goods Numerous roadblocks

    7. VARIATIONS IN TECHNICAL STANDARDS FOR VEHICLES HAMPER MOVEMENT OF GOODS

    8. ROADBLOCKS ARE A MAJOR OBSTACLE TO TRADE IN AFRICA

    9. CUMBERSOME CUSTOMS AND ADMINISTRATIVE PROCEDURES HAMPERS TRADE EXPANSION Excessive documentary requirements Insufficient use of automated systems Lack of transparency, predictability and consistency Lack of cooperation among customs and other governmental agencies Separated border posts, differences in working hours, visa requirements for transport crew members New maritime security measures

    11. INSUFFICIENT USE OF ICT INCREASES TRADE TRANSACTION COSTS Telecommunication services are inadequate, inefficient and very expensive Strong linkage between customs delays and telephone charges and internet distribution: Botswana and Namibia: 4 days delay; $4.8 and $4.28 per 3 minutes international call respectively Ethiopia and Cameroon: 30 and 20 days delays; $7.44 and $7.7 per 3 minutes international calls respectively Low level of awareness of e-commerce Insufficient physical infrastructure Deficient electronic transaction infrastructure Inadequate legal and regulatory framework

    12. Mobile Telephone and Internet connectivity in African RECs

    13. INEFFICIENT INTERNATIONAL PAYMENT MECHANISMS RESULT IN LONG DELAYS Documentary credit is the most popular international payment system in Africa Half of all payment requests are rejected because of documentary inconsistencies. High insurance premiums for African countries Customs guarantee payments represent a high cost for transport operators Multiplicity of currencies and exchange rate arrangements

    14. MULTIPLICITY OF INTERNATIONAL TRADE STANDARDS CONSTITUTE A BARRIER TO TRADE Standards have potential to substitute tariffs and quantitative restrictions Standards impose higher production costs for firms in developing countries EU standards on agricultural products are of great concern to Africa

    15. EFFORTS TO FACILITATE TRADE IN AFRICA Efforts at sub regional level Several RECS have trade facilitation programmes Bilateral cooperation Several bilateral agreements exist Cameroon has signed conventions with Chad and CAR; special facilities provided to landlocked countries at seaports Efforts at country level - One stop shops Efforts by international organisations Corridor management committees Observatories of abnormal practices Joint border posts

    17. TRADE FACILITATION IN A MULTILATERAL FRAMEWORK: Challenges to African countries Impact of WTO rules on existing TF obligations Establishing which African TF rules and regulations relate to GATT Articles V,VIII and X Feeding existing African obligations into WTO rules

    18. THE WAY FORWARD 1. Strengthen Africa’s infrastructure network to support international trade 2. Improve the efficiency of transport services by 3. Remove illegal roadblocks 4. Speed up customs and border crossing procedures 5. Promote the use of new technology 6. Strengthen regional initiatives 7. Reduce negative impact of multiplicity of standards:

    19. Thank you!

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