Ad Hoc Expert Group Meeting on IntraAfrican Trade Facilitating IntraAfrican Trade 2122 March 2005, A - PowerPoint PPT Presentation

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Ad Hoc Expert Group Meeting on IntraAfrican Trade Facilitating IntraAfrican Trade 2122 March 2005, A

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(tonne) Single axle. Max. width. Max height. Max. length. Max. load. Axle load limit (tonne) RECs. ROADBLOCKS ARE A MAJOR OBSTACLE TO TRADE IN AFRICA. Highways ... – PowerPoint PPT presentation

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Title: Ad Hoc Expert Group Meeting on IntraAfrican Trade Facilitating IntraAfrican Trade 2122 March 2005, A


1
Ad Hoc Expert Group Meeting on Intra-African
TradeFacilitating Intra-African Trade21-22
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

10
(No Transcript)
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

16
Trade Facilitation measures in COMESA, ECOWAS
and CEMAC
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 Africas 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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