Trade Facilitation in the WTO:

1. Trade Facilitation in the WTO: Samer Seif El Yazal Head, Arab & Middle-East, Central & Eastern Europe and Central Asia Regional Desk, Institute for Training and Technical Cooperation World Trade Organization

2. Contents • Key issues • Legal Framework • DDA negotiations

3. 1. Key issues Main problems for traders • Excessive documentation requirements • Burdensome border-crossing procedures • Lack of automation and scare use of IT • Lacking transparency and predictability • Lack of cooperation and coordination • Outdated legislation inhibiting change

4. 1.Key Issues Documentation requirements According to the World Bank... (9 billion documents are necessary each year to process movement of goods) • 1 extra day in clearance represents 1 percent of tariff • Companies sometimes spend more money complying with customs regulations than customs earn in revenue

5. 1.Key Issues Source: World Bank, Doing Business 2010

6. 1. Key issues Border crossing problems • reliance by customs on transaction-based controls • scarce use of “green channels” • wide array of discretionary powers for customs • no effective redress against decisions by customs • lack of co-operation between customs and traders, and between customs and other government agencies

7. 1. Key issues Lack of automated processes and scarce use of information technology • has potential to cause delays and reduce efficiency of administration • Time lost at borders accounts in some countries for 20 % of overall transport time • 1 extra day in clearance represents 1 percent of tariff

8. 2. Introduction –Objective of TradeFacilitation negotiations in the WTO • Making trade procedures as efficient as possible through the simplification, rationalization and harmonization of procedures, documentation, and information flows • Specific focus of work: Articles V, VIII and X of GATT 1994

9. GATT 1994 2.Legal framework Existing WTO rules on TF GATT 1994: • Art. V • Freedom of Transit • Art. VIII Fees + Formalities connected with Importation & Exportation • Art. X • Publication and Administration of Trade Regulations

10. GATT Article X – Transparency Publication Administration of laws Right to appeal GATT Article VIII – Fees and Formalities Fees reflect cost of services rendered Reduce # and kind of fees Simplify formalities and documents Minor penalty for minor errors GATT Article V – Freedom of Transit Most convenient route No discrimination No unnecessary delays or restrictions No duties Existing WTO Legal Framework

11. 2. Legal Framework • Claimed shortcomings • Lack of clarity and precision • Lack of operationality • Lacking enforceability • Lacking transparency and predictability • Absence of requirements for cooperation and coordination amongst the various stakeholders

12. Mandate: Negotiations!!! • Clarify and improve V, VIII, X • SDT - Longer transition periods • No obligation for infrastructure • Identify needs and priorities • Technical Assistance & support WT/L/579- Annex D

13. State-of-play: Trade Facilitation • Significant numberofmeetingsso far • Substantive number of proposals • Current discussions on draft-text • Negotiations should bear overall outcome of DDA – Early harvest

14. Thank you for your attention