Transcript TRADE FACILITATION - United Nations Economic Commission

Workshop on Trade Facilitation and Aid for
Trade: Sustaining Trade Facilitation Gains
Through Effective Aid for Trade Strategies
Joseph Atta-Mensah
NEPAD and Regional Integration Division
United Nations Economic Commission for Africa
12-13 March 2009, Addis Ababa, Ethiopia
PRESENTATION OUTLINE

Evolving definition and scope of trade
facilitation
 Key issues of trade facilitation
 Trade facilitation initiatives in Africa
 Way forward
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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
 Harmonization of standards, conformity with international
and regional regulations

Natural barriers to trade

Non-tariff barriers
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Weak Intra-African Trade
REC
Intracommunity
Rest of
Africa
EU
US
Others
CEMAC
1.9
2.2
41.2
30.5
24.2
COMESA
6.0
8.2
39.3
20.8
25.7
EAC
18.1
12.4
40.5
3.6
25.4
ECCAS
1.9
2.5
45.2
27.7
22.8
ECOWAS
10.3
2.9
39.0
26.1
21.8
SADC
12.8
4.6
26.6
14.0
42.0
Africa
6.8
5.8
49.7
15.1
22.7
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Marginalisation in the Globalisation
Process
 Volume
of goods across borders has increased
exponentially in recent years: 50 times higher in 1999 than
in 1960
 Africa has failed to benefit from
international trade
steady increase in
 In 1950, Africa delivered 10% of world exports, by 2000 this
share had declined to <3%
 Situation worse in sub-Saharan Africa whose share of world
exports of goods and services is < 1.5%
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KEY ISSUES OF TRADE FACILITATION
1.
2.
3.
4.
5.
High transport costs
Complicated customs procedures
Inadequate usage of information and communication
technology
Payments, insurance and other financial requirements
International trade standards
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HIGH TRANSPORT COSTS
Country
Transport cost as a
share of value of
exports (%)
Central African Republic
33
Chad
52
Malawi
56
Mali
36
Rwanda
48
Least developed countries
17
Developing countries
9
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CONTRIBUTING FACTORS TO HIGH
TRANSPORT COSTS IN AFRICA

Inadequate infrastructure network
 Inefficient transport services
 Multiplicity of rules governing international
transportation of goods
 Numerous roadblocks
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VARIATIONS IN TECHNICAL STANDARDS FOR
VEHICLES HAMPER MOVEMENT OF GOODS
RECs
Axle load limit
(tonne)
Max.
load
Max.
length
Max
height
Max.
width
Single
axle
Tandem
axle
Triple
axle
(tonne)
(metre)
(metre)
(Meters)
CEMAC
13
21
27
50
18
4
25
COMESA
10
16
24
NA
22
NA
NA
ECOWAS
12
21
25
51
22
4
25
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ROADBLOCKS ARE A MAJOR OBSTACLE
TO TRADE IN AFRICA
Distance (km)
Number of
Checkpoints
Checkpoints per
100 km
Lagos-Abidjan
992
69
7
CotonouNiamey
LomeOuagadougou
1036
34
3
989
34
4
AccraOuagadougou
972
15
2
AbidjanOuagadougou
1122
37
3
NiameyOuagadougou
529
20
4
Highways
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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
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Industrial
ec.
Asia
Transition
ec.
W.Europe
L.America
SSA
14
12
10
8
6
4
2
0
Africa
Days
AFRICAN CUSTOMS HAVE THE LONGEST DELAYS
IN WORLD
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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
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Mobile Telephone and Internet connectivity
in African RECs
RECs
Cellular
subscribers per
100 people
Internet users per
10,000 people
CEMAC
5.2
21.8
COMESA
5.8
35.0
IOC
15.6
115.5
SACU
11.3
490.5
SADC
10.1
147.1
UMA
5.2
129.3
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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
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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
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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 organizations
 Corridor management committees
 Observatories of abnormal practices
 Joint border posts
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Regional TF Activities








Corridors recognized/benefiting from SSATP
Djibouti-Addis Ababa Corridor
Northern Corridor
Dar es Salaam Corridor
North South Corridor
Point Noire-Brazzaville/Matadi-Kinshasa-Bangui Corridor
Douala-Bangui-N’jamena Corridor
ECOWAS-UEMOA Corridors (Lagos-Abidjan; Tema-OuagaNiamey &Bamako; Lome-Ouaga-Niamey & Bamako)
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Regional TF Activities: Establishment of
Corridor Committees (con’t)

Technical Committee for Djibouti- Addis Ababa
Corridor (being) established in Ethiopia/
Djibouti(?)
 Charter for Douala-N’jamena-Bangui Corridor
reviewed; National Facilitation Committee created
in Chad
 Standard text for National Facilitation and Corridor
Committees established in ECOWAS and 8
National Committees set up
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Regional TF Activities : Creation
of Observatories

Committee need relevant information to
function effectively
 Observatories could play an important role in
that regard
 Observatory exist in Abidjan-Lagos Corridor
 Baseline survey for Northern Corridor
observatory completed
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Regional TF Activities :
Establishment of Joint Border Posts








Prominent among TF projects
Several pilot projects introduced, including:
Malaba (Kenya/Uganda border)
Seme/ Krake Plage (Benin/Nigeria)
Cinkase (Burkina Faso/Togo)
Chirundu (Zambia/Zimbabwe)
Having an appropriate legal framework is a constraint to
establishment of joint border post
Study on legal status of joint border posts undertaken by
ECOWAS
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Trade Facilitation measures in COMESA,
ECOWAS and CEMAC
COMESA
ECOWAS
CEMAC
Hamonised:
-Transit charges
-Carrier license and
transit plates
-Axle load limits
Introduced:
-ACIS, ASYCUDA
-Customs bond
guarantee scheme
Introduced:
-Inter-State road
transport convention
-Inter-State road
transit convention
-Brown Card
insurance scheme
-ASYCUDA
Hamonised:
-Highway code
Introduced:
-Common insurance
scheme
-Multimodal transport
Convention
-Concept of corridors
-TIPAC
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THE WAY FORWARD
1. Strengthen Africa’s infrastructure network to support
international trade
2. Improve the efficiency of transport services
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:
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Thank you!
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