UNUnited Nations Economic Commission for Europe
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How can trade facilitation be enhanced in a new security environment?
Solution may lie in adopting collaborative approach

(Second International Forum on Trade Facilitation, Geneva, 14 and 15 May)

Geneva, 16 May 2003
The United Nations Economic Commission for Europe (UNECE) organized, in cooperation with 12 other international organizations, a second International Forum on Trade Facilitation – a topical event in the light of the preparations for the forthcoming Fifth WTO Ministerial Meeting in Cancún, Mexico, in September.

Participants from industrialized and some transition and developing countries, as well as representatives of the business community, strongly supported the idea of including trade facilitation in the WTO negotiations. This would be a new step in trade liberalization that would save billions of dollars to the sluggish world economy. Yet representatives of certain developing countries, notably Ambassador Puri of India, while recognizing the benefits of trade facilitation reiterated their reservations regarding the need for binding rules. However, they did not exclude completely the possibilities of changes in this position before the next WTO Ministerial Meeting.

Even though a large part of the debates at the Forum focused on the positions of various actors in the WTO, it was emphasized that while the WTO remit remains focused on the legal framework, practical work on developing international standards and recommendations remains the responsibility of other organizations, such as the UNECE and the World Customs Organization.

The Forum indicated the urgent need for technical assistance and capacity building for transition and developing countries, in order to spread the benefits of trade facilitation more fairly among the different participants in international trade. A number of efforts are already being underway. European Union Trade Commissioner, Pascal Lamy, told the Forum that the EU has earmarked 500 million Euro for capacity building in trade facilitation. The World Bank has developed a number of initiatives to promote trade facilitation through public/private partnerships with private business.

UNECE and the other UN regional commissions have prepared an interregional project for capacity building, which will be financed from the UN Development Account. A number of contributions focused on the UNECE-led project aimed at creating electronic trade documents, based on the UN standards for paper documents, which can be easily transferred from electronic to paper versions and vice versa.

The second major issue discussed at the Forum was the relationship between trade facilitation and supply chain security. The Deputy Customs Commissioners of the United States, Douglas Browning, and of Russia, Leonid Lozbenko, pointed out that this was a new issue which needed further exploration. They commended the UNECE on initiating a discussion on loopholes that could exist in supply chain security and on possible solutions.

Douglas Browning said that the conditions for global trade had deteriorated in the last two years. "Customs administrations are obliged to look for processes that protect both our people and the trade on which our people depend. What is important is that we continue working together towards a harmonious balance between real security and real facilitation."

Participants in the Forum concurred that today’s increased security measures in international trade are imposed for reasons external to the trading system and are not an issue of protectionist trade policy. The major issues are technical. The Forum reached the conclusion that the technical improvements aimed at more reliable controls of international trade flows may also help trade facilitation.

Participants in the Forum agreed that even if international supply chains cannot be made entirely secure, it is necessary to begin work on developing urgently needed global standards for security in international trade, for example a new standard for container security. Mr. Lozbenko stressed that Customs administrations are not alone in guaranteeing the security of the international supply chain. Not only the World Customs Organization, but also other organizations, such as UNECE and ISO, and all Governments have responsibilities in securing harmony between trade facilitation and security.

Ministers of Trade from Tunisia and Angola and Deputy Customs Commissioners from Ghana and Malaysia spoke about the significance of trade facilitation measures in their countries. The UNECE Trade Facilitation Forum confirmed the potential of multilateral organizations to create conditions for economic growth and security for all. The UNECE Forums have become the major global networking event in the area of trade facilitation, which encompasses customs, administrative, security, financial and various sectorial issues. The Chairman of the Forum, Ambassador Wasescha of Switzerland, reaffirmed in his Conclusions the will of most participants in the Forum to maintain this platform for a global exchange of views in the future.


For further information, please contact:

Mario Apostolov, Forum Coordinator
Tel. + 4122 9171134
e-mail: [email protected]

 

Ref: ECE/TRADE/03/P06