Trade Facilitation: A Regional Perspective

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Trade FacilitationA Regional Perspective

• Regional Policy Forum on Trade Facilitation in
  Times of Crisis
• 20-22 May 2009, Beijing, China

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Trade has been a main engine of growth in
Asia-Pacific
Comparison of trade growth and GDP growth
2000-2007
Sources WTO, 2008
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High Trade Dependence of ESCAP member countries
Sources WTO, 2008
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Asia-Pacific Region still the fastest growing
Sources ESCAP, 2009, data for 2008 are estimates
and for 2009 are forecasts
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But export performance in many developing ESCAP
economies has faltered
Sources compiled by ESCAP based on CEIC database
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How can trade facilitation help?

• Trade facilitation Any measure, or set of
  measures, that aims to increase the
  cost-effectiveness of international trade
  transactions. http//www.gfptt.org/Entities/Topic
  Profile.aspx
• Hidden trade costs can make up to 10 of value of
  goods traded
• ? Tackling inefficiencies in trade transaction
  procedures and regulations can be key to
  sustaining trade competitiveness, particularly
  during downturn

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How well are ESCAP members doing in trade
facilitation?
Landlocked countries (Afghanistan, Armenia,
Azerbaijan, Bhutan, Kazakhstan, Kyrgyz Republic,
Lao PDR, Mongolia, Nepal, Tajikistan and
Uzbekistan) are excluded from subregional
averages.Source Calculated based on data from
Doing Business 2009, World Bank
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Time for Export
Source Calculated based on data from Doing
Business 2009, World Bank
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Business Cost of Corruption
Note Score based on question on whether illegal
payments influence impose costs or otherwise
negatively affect their companies (1 yes, they
have a significant negative impact, 7 no, they
have no impact) Source Global Competitiveness
Report 2007-2008
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Port Infrastructure
Note Score based on the questionnaire on Port
facilities and inland waterways in a country are
(1 underdeveloped, 7 as developed as worlds
best). For landlocked countries, this measures
the ease of access to port facilities and inland
waterways Source Global Competitiveness Report
2007-2008
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Timeliness (likelihood of on-schedule delivery)
Notes Developed ESCAP consists of Australia,
Japan and New Zealand. East and Northeast Asia
average does not include Hong Kong, China.
Southeast Asia average does not include
Singapore. Source Calculated based on data from
the World Bank Logistic Performance Index (2007)
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How well are ESCAP members doing in trade
facilitation?

• There are many dimensions/ways to facilitate
  trade and not all countries have chosen the same
  approach
• Most countries have made progress and/or are
  engaged in trade facilitation reforms, but
  significant room for improvement remains
• Although there are many regional trade
  facilitation initiatives, a lot of potential
  remain on facilitating intra-regional trade (at
  land borders)

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How well are ESCAP members doing in trade
facilitation?

• Trade facilitation performance varies greatly
  between and within Asian sub-regions, but also
  within countries
• Domestic (behind-the-border) regulations and
  procedures often seem to be most problematic for
  traders

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How well are ESCAP members doing in trade
facilitation?
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Promoting trade facilitation ESCAP approach

• Promote the use of global standards and
  innovative solutions ? collaboration with
  UN/CEFACT, WCO
• Create a community of knowledge and best
  practices through a pool of experienced experts
  both in-house and from countries that have
  successfully implemented trade facilitation
  reforms ? UNNExT
• Conduct analytical work and develop
  implementation tools and methodologies for
  practitioners to ease the implementation of
  global standards ? Collaboration with WTO, ADB,
  and ARTNeT

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Conclusion and Recommendations

• Asia-Pacific region is a highly trade dependent
  region
• Trade facilitation performance varies widely
  across Asia-Pacific countries and subregions
• Countries have made progress, but still room for
  improvement in many countries
• Reducing trade transaction costs is important
• to increase trade competitiveness
• to enable participation by more firms in
  international trade

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Conclusion and Recommendations

• International Trade is a tool for development,
  not an end in itself
• Governments should promote a more inclusive
  participation in trade
• One way to do so is to cater more to the need of
  SMEs when facilitating trade
• Trade facilitation needs and priorities differ
  across countries, and may also differ across
  industries and firms
• Pragmatic and holistic approach required
• Strong inter-agency and public-private sector
  cooperation required

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Thank you