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Trade Facilitation In Trade Facilitation In Central Asia Regional Central Asia Regional Economic CooperationEconomic Cooperation

Asian Development BankAsian Development Bank

11-13 May 200911-13 May 2009Dushanbe, TajikistanDushanbe, Tajikistan

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What is CAREC?

Partnership 8 countries and 6 IFIs, each with clear roles Not a treaty but a serious commitment by all Strong IFI collaboration, but leadership by

countries

Action-oriented Based on clear strategies and action plans Invest in transport, energy, and trade

facilitation Promote capacity development and networking

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Participating countries

IFIs

Afghanistan, Azerbaijan, Kazakhstan, Kyrgyz Republic, Mongolia, PRC, Tajikistan, Uzbekistan

ADB, EBRD, IMF, Islamic Development Bank, UNDP, World Bank

Partners in CAREC

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CAREC Transport and CAREC Transport and Trade Facilitation Trade Facilitation Strategy (TTFS)Strategy (TTFS)

• Adopted in 2007Adopted in 2007• An integrated program of action to An integrated program of action to

improve the region's transport improve the region's transport infrastructure and reduce trade costsinfrastructure and reduce trade costs

• Implementation Action Plan approved Implementation Action Plan approved in 2008in 2008

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Integrated Transport and Trade Facilitation

StrategyGoals Establish competitive transport and trade corridors Facilitate movement of people and goods across

borders• Reduction in transaction costs and time• Improved administrative efficiency• Harmonization of trade procedures

Develop safe, people-friendly transport systems Enhance transparency of laws, regulations, and

procedures

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TTFS Trade FacilitationTTFS Trade Facilitation

• Two components aimed at Two components aimed at reducing trade costs byreducing trade costs by– promoting concerted customs reform promoting concerted customs reform

and modernization and and modernization and – supporting an integrated trade supporting an integrated trade

facilitation approachfacilitation approach

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Customs Reform and Customs Reform and ModernizationModernization

• Support for Customs Cooperation Committee Support for Customs Cooperation Committee (CCC) which serves as a regional forum to (CCC) which serves as a regional forum to address issues of common interestaddress issues of common interest

• CCC 5 priority areas CCC 5 priority areas (i) (i) simplification and harmonization of customs simplification and harmonization of customs

procedures and documentation,procedures and documentation,

(ii) (ii) information and communication technology information and communication technology (ICT) customs modernization and data (ICT) customs modernization and data exchange,exchange,

(iii) (iii) risk management and post-entry audit, risk management and post-entry audit,

(iv) (iv) joint customs control, and joint customs control, and

(v) (v) regional transit developmentregional transit development,,

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Integrated Trade Integrated Trade FacilitationFacilitation

• Prioritize support for designated Prioritize support for designated CAREC corridorsCAREC corridors

• Promote inter-agency cooperation Promote inter-agency cooperation and partnership with the private and partnership with the private sectorsector

• Establish national and regional Establish national and regional mechanism to prepare trade mechanism to prepare trade facilitation action plansfacilitation action plans

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Ongoing Trade Facilitation Ongoing Trade Facilitation ActivitiesActivities

• CAREC Corridor Performance CAREC Corridor Performance Measurement and Monitoring (CPMM)Measurement and Monitoring (CPMM)

• Establish or strengthen cooperation Establish or strengthen cooperation mechanisms (National Joint Committees/ mechanisms (National Joint Committees/ Regional Joint Committee)Regional Joint Committee)

• Capacity BuildingCapacity Building

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CAREC Corridor CAREC Corridor Performance Performance

Measurement & Measurement & MonitoringMonitoring• TTFS TTFS mandated that economic mandated that economic

corridors performance be measured corridors performance be measured and monitored periodically to: and monitored periodically to: – ascertain the current situation along ascertain the current situation along

the links and nodes of each CAREC the links and nodes of each CAREC corridorcorridor

– identify bottlenecksidentify bottlenecks– determine courses of action to address determine courses of action to address

bottlenecksbottlenecks

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CPMMCPMM• Time Cost Distance (TCD) is usedTime Cost Distance (TCD) is used• Provides graphical representation of cost Provides graphical representation of cost

and time data associated with transport and time data associated with transport processesprocesses

• The methodology allows policy makers to The methodology allows policy makers to – analyze factors that affect cost & time required analyze factors that affect cost & time required

to transport goods using certain routes;to transport goods using certain routes;– compare changes in cost and/or time required compare changes in cost and/or time required

to transport goods on a certain route;to transport goods on a certain route;– compare and evaluate competing modes of compare and evaluate competing modes of

transport operating on same route; andtransport operating on same route; and– consider alternative transit routes. consider alternative transit routes.

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CPMMCPMM• Implementation arrangementsImplementation arrangements

– Involvement of private sector - Freight forwarders Involvement of private sector - Freight forwarders associations (FFAs) and road carriers as partner associations (FFAs) and road carriers as partner associations who will collect data associations who will collect data

– MOUs have been signed with partner associations MOUs have been signed with partner associations to define responsibilities of FFAs and ADB to define responsibilities of FFAs and ADB

– Data aggregation and analysis will be done at ADB Data aggregation and analysis will be done at ADB – Quarterly reports and twice year in-depth reports Quarterly reports and twice year in-depth reports

will be submitted to SOM and Ministerial will be submitted to SOM and Ministerial ConferenceConference

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Cooperation MechanismsCooperation Mechanisms• National Joint Transport and Trade National Joint Transport and Trade

Facilitation Committees (NJCs) Facilitation Committees (NJCs) to to – promote interr-agency collaboration promote interr-agency collaboration – enhance partnerships between the public and enhance partnerships between the public and

private sectorsprivate sectors– address broader issues of transport and trade address broader issues of transport and trade

facilitation facilitation

• To be composed of representatives of all To be composed of representatives of all government agencies in charge of government agencies in charge of transport, trade, and border-crossing transport, trade, and border-crossing activities and relevant private sector groups activities and relevant private sector groups

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Cooperation Mechanisms Cooperation Mechanisms (cont)(cont)

• Regional Transport and Trade Facilitation Regional Transport and Trade Facilitation Committees (RJC) Committees (RJC) to provide regional leadership to provide regional leadership in the implementation of the joint transport and in the implementation of the joint transport and trade facilitation strategy/action plan. trade facilitation strategy/action plan.

• RJC will serve as a regional forum to raise, RJC will serve as a regional forum to raise, discuss and resolve issues of common interest discuss and resolve issues of common interest relating to barriers to trade and developmentrelating to barriers to trade and development

• To be comprised of representatives from NJCs To be comprised of representatives from NJCs and representatives of regional groupings such and representatives of regional groupings such as unions or federations of national freight as unions or federations of national freight forwards or transport groupsforwards or transport groups

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Capacity BuildingCapacity Building

• Training needs assessment (TNA) for customs Training needs assessment (TNA) for customs and broader array of stakeholders involved in and broader array of stakeholders involved in trade facilitation done in late 2008 and early trade facilitation done in late 2008 and early 20092009

• Findings included:Findings included:– Adapt approaches to region’s needs and situation Adapt approaches to region’s needs and situation – Enhance available capabilities and facilities in the Enhance available capabilities and facilities in the

region region – Balance common (regional) and specific (national) Balance common (regional) and specific (national)

needsneeds– Involve other agencies, private sector/non-government Involve other agencies, private sector/non-government

organizations organizations

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Capacity BuildingCapacity Building• Recommendations:Recommendations:

– Create a simple Regional Training Create a simple Regional Training Database accessible to all CAREC Database accessible to all CAREC countriescountries

– Create a simple training development Create a simple training development structurestructure

– Trade facilitation core curriculum Trade facilitation core curriculum • Single windowSingle window• Risk management techniquesRisk management techniques• Post-customs controlPost-customs control• Logistics developmentLogistics development• Training for trainers on trade facilitationTraining for trainers on trade facilitation

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ADB trade facilitation projects in Tajikistan

• Regional Customs Modernization Project and Infrastructure Development Project ($10.7 MLN)

• Approved 2004• Objective:

– improve the efficiency and transparency of customs services, and reinforce the ongoing customs legal reforms and simplification of custom procedures

– facilitate trade and promote regional customs cooperation through concerted customs reforms and modernization.

• Scope:– a unified automated information (UAIS)– customs border-post infrastructure.

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ADB trade facilitation projects in Tajikistan

• Regional Technical Assistance on Cross Border Agreement Among Kyrgyz Republic, People's Republic of China, and Tajikistan ($500,000)

• Approved 2007. • Objective:

– increase regional traffic and facilitate trade – improve access to regional markets and social

services for surrounding people

• Scope: – Establish a trilateral cross-border agreement

among PRC, Kyrgyz Republic and Tajikistan

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Thank youThank you

CAREC SecretariatCAREC Secretariat6 ADB Avenue, Mandaluyong City6 ADB Avenue, Mandaluyong City

Metro Manila 1550, PhilippinesMetro Manila 1550, PhilippinesTelephone: + 632 632 5857/6368Telephone: + 632 632 5857/6368

Fax: + 632 636 2387Fax: + 632 636 2387

ADB ADB Tajikistan Resident MissionTajikistan Resident Mission

DushanbeDushanbe

Telephone: + 992 372 2210558Telephone: + 992 372 2210558