Transport Services Liberalisation and Trade Facilitation
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Transcript of Transport Services Liberalisation and Trade Facilitation
Transport Services Liberalisation and Trade
Facilitation
SADC Transport Services Liberalisation Forum
Riverside Hotel, Durban South Africa11th -13th September, 2012
Prepared by: Natasha Ward &Viola Sawere
Introduction Definition and coverage
Trade facilitation Transport services
SADC Legal Framework Trade Protocol Protocol on Transport, Communication and
Meteorology Protocol on trade in Services
Which policy instrument for which Issue? Conclusion
Outline
Prime economic activity in itself (trade in transport services)
Infrastructure for most other economic activities High cost of trading in the region is partly due to
and challenges in services industry (transport, communication etc.
Hence the need for: trade facilitation and Trade in services libelisation agreements
Transport liberalization is an objective of trade and transport officials
Introduction: Transport Services
Users prefer liberal policy that offers wide choice Competitive, efficient and quality transport services
(thus delivery of goods and passengers at right place at the right time, & price)
Operators interest Fulfilling shippers’ demand & profits and wish to protect
home market from foreign competition Government (ministry & regulator)
Enabling Policy & regulation to the interest of each group Common goal is to address challenges in transport
industry limited interaction and limited understanding of the
differences and linkages of trade facilitation and trade liberalisation agenda
Important Note
No global agreed definition of trade facilitation but SADC Trade Protocol
“the coordination and rationalisation of trade procedures and documents relating to the movement of goods in international trade from the place of consignment to the destination”
to improve border and transit management procedures and their implementation
The main focus is to facilitate movement along the eighteen officially recognised corridors can be facilitated
Definition
Trade facilitation
• ‘identifying and addressing bottlenecks that are imposed by weaknesses in trade related logistics and regulatory regimes and that prevent the timely, cost effective movement of goods”
Transport Services liberalisation
• “enhancing access to the various transport markets and to substantially reduce or eliminate discriminatory measures which favour domestic service providers over foreign ones”
Definition
Transport services liberalisation agenda can be considered to be a subset of the broader trade facilitation agenda
The Coverage
Trade Facilitation
Competitiveness•Export promotion•Meeting international standards
Physical infrastructure•Roads, ports •Telecommunication infrastructure
Logistics and transport services•Promoting competition
Customs and boarder management
Transport services liberalisation
all measures that affect supply of transport services• Laws, regulations,
rules, guidelines etc.
in the various sub-sectors• Maritime, internal
water ways, Air, space, rail, road, pipeline & auxiliary services
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Classification of Transport ServicesA. Maritime Transport Services Passenger transportation Freight transportation Rental of vessels with crew Maintenance and repair of vessels Push and towing services Supporting services for maritime transport
B. Internal Waterways Transport Passenger transportation Freight transportation Rental of vessels with crew Maintenance and repair of vessels Push and towing services Supporting services for maritime transport
C. Air transport Services Passenger transportation Freight transportation Rental of vessels with crew Maintenance and repair of vessels Supporting services for maritime transport
D. Space Transport
E. Rail transport Passenger transportation Freight transportation Maintenance and repair of vessels Push and towing services Supporting services for maritime transport
F. Road Transport Passenger transportation Freight transportation Rental of vessels with crew Maintenance and repair of vessels Push and towing services Supporting services for maritime transport
G. Pipeline Transportation of fuel Transportation of other goods
H. Services auxiliary to all modes of transport Cargo handling services Storage and warehouse services Freight transport agency services Other
I. Other transport services
Trade Protocol Annex III: Simplification and harmonisation of trade
documentation and procedures Sub-comittee on Trade Facilitation
exportation and importation; export and import licensing; insurance of goods; transit operations; international transport and licensing of carriers; and statistical control and dissemination of information on trade documents
Transit Trade and Transit Facilities licensing of transistors and carriers; approval of
means of transport; bonds and securities; transit documents; transit procedures; and other provisions (customs and bonded warehouses
Legal Framework
Protocol on Transport Communication and Meteorology framework for cooperation in all modes of regional
transport Infrastructure development (hard and soft) and related
technical standards; Regulatory mechanisms on:
quantity (bilateral agreements; and quota and capacity management)
quality (vehicle standards and dimensions, loads and fitness testing)
safety (abnormal loads, hazardous/dangerous goods, and environmental protection)
market liberalisation for road and air transport services
Legal Framework Ctd.
Protocol on Trade in Services
elaborates the rules governing trade in services ( incl. transport services) through progressively liberalise
Provides for MFN and National Treatment Provides for the mutual recognition of
standards, requirements and qualifications; and transparency in domestic regulation to promote
trade
Legal Framework Ctd
Which instrument for which issue?
Trade Facilitation & Transport Services: Contrast
Discriminatory measures Cabotage
restrictions Recognition
(certificates, qualification and licences)
Investment related Establishing a
business in the other countries
Completion related issues Competition rules Anticompetitive
behaviours
Infrastructure issues Physical
infrastructure (eg. road & rail network, port facilities)
ICT Customs-related issues Transit Management
systems (bonds and guarantees)
Red tape, documentation (standards systems and requirements)
Other Standards & requirements Vehicle standard & dimensions Safety requirements
(abnormal load & dangerous goods)
Insurance Road user
charges Access to
facilities (ports & packing bays)
Mode of Supply
Description Example Measures which Restrict Trade
Mode 1 Cross-border trade
A domestic operator transports goods or people from its home base to a destination in another country
Quotas on the number of foreign vehicles/ planes/ ships entering the destination country
Mode 2 Consumption abroad
Nationals or companies from one country use transport services within another country to move people or merchandise within that territory
Foreign exchange restrictions in the consumers’ country of origin that prohibit him from purchasing a service abroad
Mode 3 Commercial presence
A transport operator from one country sets up a business in another country to supply services from within that country (either domestically or cross-border)
Joint venture/partnership requirements that limit the foreign ownership permitted in locally established and registered businesses
Mode 4 Temporary movement of natural persons
A transport operator uses a local driver/pilot/ crew to deliver cargo or people in a foreign territory or a transport operator uses foreign personnel in the operation of a commercial presence
Requirements to obtain a visa or work permits/ lack of recognition of pilots/ captain’s/ drivers’ qualifications or licenses across or between countries
Examples of Trade Restrictions in Transport Services by Modes of Supply
Measures which restrict Mode 3 Trade in Transport Services
PHASE 1 :Abolition of restrictions on carriers of two member states to carry goods on a defined route between (a) such states or (b) in transit across the territory of another member state en route to a third member state or non-member state. (Third country rule permitted and cabotage prohibited).
PHASE 2: Abolition of restrictions on carriers of one member state to carry goods on a defined route between another member state and a third member state or non-member state, irrespective of whether the carrier's vehicle traverses the territory of its home state. (Third country rule permitted and cabotage prohibited).
PHASE 3 Abolition of restrictions on carriers of one member state to carry goods between another member state and a third member state or a non-member state. (Abolition of the third country rule).
PHASE 4 • Allow cabotage.
Road Market liberalization agenda (PTCM)
Trade facilitation and transport services
liberalisation agendas are addressed in separate SADC instruments
Protocol on Transport, Communications and Meteorology appropriate legal framework in SADC for
addressing trade facilitation issues related to transport
Protocol on Trade in Services market access issues
Conclusion
Both the trade facilitation and the trade in services
agendas offer useful avenues for addressing key issues in the transport industry
a complementary processes to promote increased trade in goods and in transport
services Benefits from the two processes can only be
realized through policy coherence Essential to this co-ordination is the task of clearly
establishing the notion the overlapping agendas can be complementary as opposed to competing
Key Message
all transport stakeholders have a role to play in the
effort to capitalise on the synergies private sector (operators)
identify the challenges and suggest solution transport regulators
create and sustain an enabling environment to foster the growth of trade in both goods and services
policy makers (trade and transport) develop suitable policies and negotiate fair and
balanced agreements
Way forward