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Trade Facilitation in the WTO Context

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Title: Trade Facilitation in the WTO Context


1
Trade Facilitation in the WTO Context
  • Mike Doran - CERN, UN/CEFACT Vice Chair
  • Tom Butterly - UNECE
  • Geneva, 26 May 2005

2
Agenda
  • 1. UN/CEFACT
  • 2. International Trade Transaction Process
  • 3. Trade Facilitation eBusiness Standards
  • 4. UN/CEFACT Instruments Related to GATT
    Articles VIII and X
  • 5. Capacity Building and Implementation

3
International Standards The UN Role
The United Nations promotes trade for its
potential to foster economic development and
eradicate poverty UNECE develops, maintains and
leads the implementation of trade-related
recommendations, standards and tools This
activity is carried out through UN/CEFACT (the
United Nations Centre for Trade Facilitation and
Electronic Business) which is open to the
participation of any business or
government UNECE developed standards are open
and technology neutral, and will cater to the
needs of large or small companies and of
developed and developing countries alike.
4
UN/CEFACT
  • Mission
  • To deliver trade facilitation recommendations
    e-business standards which can improve the
    ability of business, trade and administrative
    organizations within developed, developing and
    transitional economies, to trade products and
    relevant services more effectively - and so
    contribute to the growth of global commerce.
  • Focus
  • The worldwide facilitation of national AND
    international trade transactions, through the
    simplification and harmonization of business
    processes, procedures and information flows.

5
UN/CEFACTs Future Strategy
6
UN/CEFACT Programme of Work
  • Details all the specific work items of UN/CEFACT
  • Project Title
  • Description
  • Target Audience
  • Target Date for Completion
  • Link to CTIED Programme of Work
  • Lead Group
  • Submitted for approval of the UN/CEFACT Plenary
    in June

7
Agenda
  • 1. UN/CEFACT
  • 2. International Trade Transaction Process
  • 3. Trade Facilitation eBusiness Standards
  • 4. UN/CEFACT Instruments Related to GATT
    Articles VIII and X
  • 5. Capacity Building and Implementation

8
International Trade Transaction Process
Intermediary
BUY
SHIP
PAY
Customer
Supplier
Authority
The International Trade Transaction Process
consists of
The International Trade Transaction Process
consists of integrated and coordinated flows of
information, goods payments Source UN/CEFACT
International Supply Chain Reference Model
9
INTERNATIONAL TRADE TRANSACTION PROCESS
SHIP
PAY
BUY
Prepare For Export
Prepare For Import
Export
Transport
Import
INVOLVES
  • Commercial
  • Procedures
  • Establish Contract
  • Order Goods
  • Advise On Delivery
  • Request Payment
  • Transport
  • Procedures
  • Establish Transport Contract
  • Collect,Transport and Deliver Goods
  • Provide Waybills, Goods Receipts Status reports
    etc.
  • Regulatory
  • Procudures
  • Obtain Import/Export Licences etc
  • Provide Customs Declarations
  • Provide Cargo Declaration
  • Apply Trade Security Procedures
  • Clear Goods for Export/Import
  • Financial Procedures
  • Provide Credit Rating
  • Provide Insurance
  • Provide Credit
  • Execute Payment
  • Issue Statements

10
Agenda
  • 1. UN/CEFACT
  • 2. International Trade Transaction Process
  • 3. Trade Facilitation eBusiness Standards
  • 4. UN/CEFACT Instruments Related to GATT
    Articles VIII and X
  • 5. Capacity Building and Implementation

11
UN/CEFACT Instruments
  • - UN Layout Key for Trade Documents
  • - UN/EDIFACT
  • - UNeDocs
  • - ebXML
  • - Single Window
  • - Compendium of Trade Facilitation
    Recommendations

12
eBusiness Standards Development
Need for a common, agreed, international standard!
13
ebXML
  • UN/CEFACT OASIS
  • Combining 30 yrs trade facilitation,
  • 15 yrs of traditional EDI and
  • 20 yrs of SGML electronic documentation standards
  • Launched in Canberra September 1999
  • ebXML is now ISO 15000

14
Agenda
  • 1. UN/CEFACT
  • 2. International Trade Transaction Process
  • 3. Trade Facilitation eBusiness Standards
  • 4. UN/CEFACT Instruments Related to GATT
    Articles VIII and X
  • 5. Capacity Building and Implementation

15
GATT Article VIII (Fees ) Formalities Connected
with Import/Export
  • Recognizes the need to minimize the incidence and
    complexity of import and export related
    formalities and documentary requirements

16
Proposals on Article VIII
  • Standardization of Trade Documents using
    international standards (many countries)
  • Use of UN Layout Key (UN/CEFACT Recommendation1)
    Korea, New Zealand, Norway, Switzerland
  • Establishment of a repository or bank of trade
    documents - New Zealand, Norway, Switzerland
  • Standardization of Data Elements
  • Single Window (one time submission, one agency,
    single entry point) Peru, Korea, Japan, Mongolia

17
Article VIII UNECE Instruments available
  • United Nations Layout Key for Trade Documents
    (UNLK/ ISO 6422) - most key trade documents
  • UN Trade Data Element Directory (UNTDED)
  • Codes UN/LOCODE, Currency, Modes of Transport,
    ISO Country Code...
  • UN/EDIFACT
  • UN eDocoments for trade (UNeDocs)

18
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19
Mode of transport
Destination
20
United Nations Standards for Trade Documents SAD
21
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22
Article VIII UNECE Instruments available
  • Recommendation and Guidelines on establishing a
    Single Window (UN/CEFACT Recommendation 33)
  • Repository of Single Window Implementations
    http//www.unece.org/cefact/recommendations/rec33/
    sw_present_cases.htm
  • Standards for Single Windows - September 05

23
Article VIII UNECE Instruments available
  • UN/CEFACT Recommendation 18 (Facilitation
    Measures related to the simplification of
    International Trade Procedures)
  • UN/CEFACT Recommendations 4 (TF Pro Committees)

24
Article X Publication Administration of Trade
Regulations
  • Imposes obligations regarding
  • Transparency and Predictability publish trade
    laws, regulations etc promptly and in an
    accessible manner
  • Not to enforce measures prior to publishing
  • Impartiality in administration of laws,
    regulations and administrative rulings of general
    application

25
Proposals on Article X
  • Use of the Internet for publishing
  • Single Window (one stop service, single entry
    point, single inquiry point) Canada, China,
    European Community, Hong Kong China, Japan,
    Korea, Mongolia, Peru,
  • Establishment of consultative mechanism between
    trade and government (several)

26
Article X UNECE Instruments available
  • Recommendation and Guidelines on establishing a
    Single Window (UN/CEFACT Recommendation 33)
  • UN/CEFACT Recommendations 4 (TF Pro Committees)

27
Agenda
  • 1. UN/CEFACT
  • 2. International Trade Transaction Process
  • 3. Trade Facilitation eBusiness Standards
  • 4. UN/CEFACT Instruments Related to GATT
    Articles V, VIII and X
  • 5. Capacity Building and Implementation

28
Capacity Building Approach
  • Help countries to understand our recommendations
    and standards and where they can fit their needs
  • One Size does not fit all but standards
    essential
  • National and Regional strategies
  • Partnership approach
  • National Experience

29
UNECE - UN/CEFACT
UNECE in partnership with other organizations
UNCTAD,WB,UNIDO, etc
   

Technical Assistance (Donors decide what is to be
done) - UNECE does not provide long term TA
Recommendations/ Standards Development and
Maintenance
Capacity Building (Helping governments elaborate
a national TF strategy)

WTO
 
UNECEs role is to create the standards through
participation of UN member States and the
business community in UN/CEFACT Working Groups.
We engage in an active Capacity Building
programme to help countries understand how best
to implement these standards, given their unique
needs, priorities and resources while other
organizations assist in long term technical
assistance (UNCTAD, WB etc). The WTO sets the
rules
30
Capacity Building and Cooperation
  • UN Development Account Project on Trade
    Facilitation Implementation, with all five
    Regional Commissions (ECE, ECA, ESCWA, ESCAP,
    ECLAC) 2005 to 2007
  • 15 Regional Workshops (3 in ECE, 2 of which in
    CIS)
  • 2 Inter-regional Workshops (one in Geneva)
  • African Group Workshop (March 2005)
  • Asia and the Pacific Region (March 2005)
  • Latin and Central America Region (July 2005)
  • Single Window Workshop (September 2005)
  • Global Facilitation Partnership (GFP) World
    Bank, UNCTAD, WCO...
  • WTO

PARTNERSHIP APPROACH
31
Capacity Building Tools
  • Tool for the Alignment of Trade Documents
  • Repository of Aligned Trade Documents
  • Repository of Single Window Implementations
  • Guide to Trade Facilitation Implementation
  • Benchmarking Guide
  • Case Studies of PPP in TF Implementation

32
A Policy Framework for Paperless Trade
  • UN Forum on Paperless Trade, Geneva 20, 21st June
    2005
  • UN High Level Stakeholder Group
  • National and Regional Capacity Building
  • in cooperation with UN Regional Commissions
  • UNeDocs Regional Competence Centre
  • joint project plan with ESCAP

33
Summary Points
  • Trade Facilitation key element in Trade and
    Economic Development
  • UN/CEFACT instruments provide a solid foundation
    for implementation
  • UN/CEFACT Capacity building programme working
    with key partners to assist in these efforts
  • Strong momentum now for more and better
    implementation

34
.. now we have to make trade facilitation happen!
35
THANK YOU ! tom.butterly_at_unece.org
36
Follow-up
  • All UNECE Recommendations, codes, standards and
    publications are available for free on our
    website at
  • www.unece.org/trade
  • www.unece.org/cefact/
  • www.unece.org/etrades/unedocs/
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