Download Trade facilitation

Regional Policy Forum on Trade Facilitation in Times of Crisis
20-22 May 2009, Beijing, China
Trade Facilitation:
A Regional Perspective
Trade has been a main engine of
growth in Asia-Pacific
30
Comparison of trade growth and GDP growth 2000-2007
25
20
15
10
5
In
di
a
M
al
di
ve
s
Pa
ki
st
an
Az
er
b
Ka aij a
n
za
kh
Ky sta
n
rg
yz
st
an
Ta
ji k
is
t
U
zb an
ek
is
ta
n
Ko
C
re
hi
a
(R na
ep
.o
f)
Br
un
e
C
am i
bo
di
In
do a
ne
si
a
M
al
ay
si
Ph
a
i li
pp
in
Th es
ai
la
nd
Vi
e
Ba tna
ng m
la
de
sh
Bh
ut
an
0
Sources: WTO, 2008
annual percentage change of real GDP
annual percentage chang of exports
High Trade Dependence of ESCAP
member countries
Trade to GDP ratio in Asia compared to EU and US, 2005-2007
Central Asia
East and Southeast
Asia
South Asia
Developed economies
Country
Ratio
Country
Ratio
Country
Ratio
Country
Ratio
Azerbaijan
105
China
71.3
Bangladesh
45
EU (27)
26.4
Kazakhstan
93.3
Mongolia
127.1
Bhutan
97.3
US
27.2
Kyrgyzstan
126
Korea (Rep.
of)
85.7
India
44.7
Tajikistan
139
Brunei
96.9
Maldives
184.2
Uzbekistan
65.1
Cambodia
139.2
Nepal
46.9
Indonesia
60.4
Pakistan
41.6
Lao
73.5
Sri Lanka
70.7
Malaysia
209.6
Philippines
92.3
Singapore
443.7
Thailand
143.9
Vietnam
156
Sources: WTO, 2008
Asia-Pacific Region still the fastest growing
10
Growth (per cent)
8
6
4
2
0
-2
1995
1997
1999
2001
Developing Asia-Pacific
2003
EU-15
2005
2007
2009c/
US
Sources: ESCAP, 2009, data for 2008 are estimates and for 2009 are forecasts
But export performance in many developing
ESCAP economies has faltered
Year-on-Year Export Growth
60%
20%
-20%
-40%
China
India
Indonesia
Korea
Singapore
Thailand
-60%
Sources: compiled by ESCAP based on CEIC database
Feb-09
Jan-09
Dec-08
Nov-08
Oct-08
Sep-08
Aug-08
Jul-08
Jun-08
May-08
Apr-08
Mar-08
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
May-07
Apr-07
Mar-07
Feb-07
0%
Jan-07
YoY Percentage Change
40%
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/TopicProfile.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
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
Time for Export
Time for export (days: 07/08)
Afghanistan
Lao PDR
Mongolia
Nepal
Bangladesh
Timor-Leste
Vietnam
Pakistan
Cambodia
Indonesia
Sri Lanka
China
Malaysia
India
Philippines
Thailand
Korea
Singapore
OECD Member Countries
Developed ESCAP Economies
0
10
20
30
40
50
Source: Calculated based on data from Doing Business 2009, World Bank
60
70
80
Business Cost of Corruption
Business cost of corruption (07/08): Scaling (1 - 7)
OECD Member Countries
Developed ESCAP Economies
Singapore
Indonesia
Korea
Malaysia
Thailand
India
Sri Lanka
China
Pakistan
Mongolia
Philippines
Vietnam
Timor-Leste
Nepal
Cambodia
Bangladesh
0
1
2
3
4
5
6
7
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
Port Infrastructure
Port Infrastructure (07/08): Scaling (1 - 7)
OECD Member Countries
Developed ESCAP Economies
Singapore
Malaysia
Korea
Thailand
Sri Lanka
China
Pakistan
India
Cambodia
Nepal
Vietnam
Philippines
Indonesia
Mongolia
Bangladesh
Timor-Leste
0
1
2
3
4
5
6
Note: Score based on the questionnaire on Port facilities and inland waterways in a country are (1 = underdeveloped, 7 = as
developed as world’s best). For landlocked countries, this measures the ease of access to port facilities and inland waterways
Source: Global Competitiveness Report 2007-2008
7
Timeliness
(likelihood of on-schedule delivery)
Score of Timeliness Indicator; WB Logistic Performance Report
5.00
4.50
Developed ESCAP (4.16)
4.00
3.50
Developing ESCAP (2.93)
3.00
2.50
2.00
1.50
2.25-4.18
2.08-3.95
1.38-3.47
2.30-3.14
2.11-2.76
Southeast Asia***
South and Southwest Asia
Pacific Island
North and Central Asia
1.00
0.50
0.00
East and Northeast Asia**
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)
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)
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
How well are ESCAP members doing in
trade facilitation?
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
Conclusion and Recommendations
 Asia-Pacific region is a highly trade dependent region
 Trade facilitation performance varies widely across AsiaPacific 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
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
Thank
you