Sector development across borders: ITC’s approach to regional trade

12th CEI Summit Economic Forum, Bucharest, 12 Nov. 2009 Session 3.1, Hall 3, 10:45 – 12:15

Daniel Ivarsson, Senior AdviserInternational Trade Centre, Geneva

HIGHLIGHTS

1. ITC and its activities at large

2. Importance of regional trade

3. Integrated sector development

4. Support for regional integration for trade

EXPORT IMPACT FOR GOOD

Economic growth &related distribution

of wealth

Social, Economic &

EnvironmentalSustainability

Job creation

Equal access forwomen, youth &

poor communities

IMPACTS MDG Goals

EXPORT IMPACT

FOR GOOD

ITC

OUTPUTS

We want our beneficiary countries to get a favourable, sustainable social, environmental and economic impact from exports:

ITC CORE COMPETENCES

GLOBAL PROGRAMMES• Flagship events:

� World Export Development Forum (WEDF)

• Web-based trade intelligence:

� ITC’s library services, Market Analysis Tools

• Capacity development programmes (business processes; sectors):

� Supply chain management; cotton/textiles/clothing; coffee; etc.

• Support for networks:

� Trade information; trainers

• Publications:

� Trade Forum; manuals

• On-line learning

• larger ‘home market’

• more and better cross-border business opportunities

• specialisation at enterprise level (stronger profile in the market, economies of scale, better profitability)

• product and market diversification at country level (greater resilience, more stable and favourable trade balance)

• better efficiency and resource allocation in the economy

• more employment opportunities, higher tax revenues

• etc.

BENEFITS OF REGIONAL TRADE

• Foreign market exposure; readiness to take risks

• Market knowledge, customer orientation of enterprises

• Product development, quality management, marketing skills

• Trade support services; institutional & regulatory framework

• Supportive business environment (finance, infrastructure)

• Agreed principles, common approaches to trade development

• Transparent rules and regulations, predictable application

• Low transaction costs

CONDITIONS FOR SUCCESS(especially from an enterprise point of view)

• select sector: build on supply strengths, market openings

• match demand: engage committed local counterparts

• analyse sector level value chains, audit enterprises’business processes, work out sectoral export strategy

• develop capacity of trade support institutions, centres of excellence, build on existing skills and successes

• work with TSIs to help enterprises raise skills, increase market knowledge, find and use business opportunities

• improve infra-structure; e.g. quality management: develop capacity, secure international recognition

INTEGRATED, SECTORAL APPROACH

• Market access: trade agreements, organisations

• Harmonised business environment: similar rules, regulations; reduced barriers, compatible standards, mutual recognition

• Trade facilitation: forwarding/transport; document exchange; border procedures; e-trade framework

• Legal environment; conditions of contract; dispute resolution; enforcement of judgements and awards

• Financial system: financing, insurance, payments

• Transparency; access to information

REGIONAL INTEGRATION FOR TRADE(Supply side measures necessary, not sufficient!)

• larger ‘home market’

• more and better cross-border business opportunities

• specialisation at enterprise level (stronger profile in the market, economies of scale, better profitability)

• product and market diversification at country level (greater resilience, more stable and favourable trade balance)

• better efficiency and resource allocation in the economy

• more employment opportunities, higher tax revenues

• etc.

ITC SUPPORT TO REGIONAL TRADE

THANK YOU !Daniel Ivarsson, Senior Adviser ivarsson@intracen.org

Elena Boutrimova, Chief boutrimova@intracen.org

Office for Eastern Europe and Central Asia

International Trade Centre

Geneva, Switzerland

Tel. +41 22 730 0579

www.intracen.org