UNUnited Nations Economic Commission for Europe

Trade Development

In 2004 the United Nations continued to promote trade as a means to foster economic development and eradicate poverty. UNECE's role in trade is to strengthen the trade policy infrastructure, develop and maintain effective trade-related standards and recommendations, help establish fair and business-friendly regulatory environments, and promote the implementation of recommended trade facilitation and electronic business measures. During 2004, the UNECE saw significant achievements in three areas: standards setting; implementation; and the development of supporting networks of institutions and experts.

In October 2004, the Centre for Trade Facilitation and Electronic Business (UN/CEFACT) approved a "Single Window" recommendation, whose implementation will facilitate the participation of small and medium-sized companies in international trade by providing them with a single location for import and export formalities. In addition, UN/CEFACT approved the Core Components Specification, which is expected by many to form the cornerstone of the next generation of electronic business standards.

The UN Code for Trade and Transport Locations (UN/LOCODE), used around the world by major postal, customs and shipping organizations, was updated and approximately 6,000 entries added or revised.

In the area of agricultural quality standards, a new standard for bovine meat (beef) was approved and almost 20 existing standards and recommendations were updated to meet new requirements from consumers and traders.

In 2004 the EU decided to completely harmonize the technical content of 36 of its directives on the marketing of agricultural goods, covering 95% of trade in fruit and vegetables in the EU, with the corresponding UNECE standards. Together with the expansion of the EU and the corresponding expansion in the application of these standards to 25 countries, these developments represent a significant increase in the use and application of UNECE standards in trade.

Twelve members of the Commonwealth of Independent States (CIS) signed an agreement on regulatory convergence based on recommendation L (on regulatory harmonization) from the Working Party on Regulatory Cooperation and Standardization Policies. Implementation of this agreement will create a harmonized regulatory regime for domestic and imported products and thus contribute to the development of both intra-regional and international trade flows.

Templates (detailed specifications) were completed for 12 documents used in international trade under the United Nations Electronic Documents project (UNeDocs) and published on the Internet. These constitute a proof of concept of UNECE's approach to improving paper documents and creating an online environment that is friendly to SMEs and will allow them to move seamlessly between the use of paper and electronic documents.

A compendium of work undertaken by the Committee for Trade, Industry and Enterprise Development was published, containing over 500 documents and providing an important reference work for practitioners in the field.

During 2004 the creation of an updated Internet site for the network of national organizations promoting the work of the Committee as well as the organization of a number of meetings - both in Geneva and in the field - facilitated the development of UNECE's unique network comprised of practitioners, business, and policy-makers. The most important of these meetings included: the May 2004 Executive Forum on Competing in a Changing Europe, which discussed policies and strategies for better integrating the "new neighbours" of the EU into an enlarged trading community; a High-level Workshop on Economic Security in Europe, organized jointly with OSCE, which addressed threats and challenges to trade and economic security; and a Workshop on Trade Facilitation that saw participants from throughout the world discuss how to implement tools and techniques designed to facilitate trade and foster development.

Major challenges for 2005 will include further intensifying trade facilitation activities. Experts believe that trade facilitation can bring even greater benefits than further reductions in customs duties. For this to become a reality, close collaboration with other international organizations, and focus on concrete, easy to implement results, is key. Economic development and political stability in the region will depend on helping less developed transition economies better integrate into the regional and global economy.

Promoting trade and economic development will include such activities as an International Forum on Trade Facilitation (20-21 June) which will deal with such issues as managing the demands of security and trade facilitation. Efforts will also be made to support less advantaged countries in implementing trade facilitation under Articles V, VIII and X of GATT in the WTO negotiations. The cooperation between UNECE, EU and the OSCE Economic Dimension will be enhanced, especially regarding CIS and South East Europe trade issues, including regional trade agreements and free trade arrangements.

The problems of facilitating trade in landlocked countries in the region will be addressed. In the context of the forthcoming World Summit on the Information Society (Tunis 2005) the UNECE will help in bridging the digital divide by working with the other UN regional commissions in the UN ICT Task Force. New external resources to continue and expand the scope of trade and environment linkages in the Russian Federation and the CIS will be raised.

In the context of creating and maintaining standards in support of trade, the UNECE will develop a Memorandum of Understanding with the OECD to define a mutually supportive cooperation. It will identify a legal framework for intellectual property rights issues within UN/CEFACT, so that software companies can participate in the development of standards and tools for electronic business. It will deliver core components based on UN/CEFACT Modelling Methodology (UMM) to support a fully usable e-business framework for private and public organizations. A UN/CEFACT task force to define the standards for electronic documents for trade will be established as well as a task force on "Single Window" standards and interoperability.

In order to help to harmonize regulations and practices, an international forum will be organized on market surveillance to assist countries in transition adopt best practices relating to market control.

The UNECE will also build on the action plan for agricultural trade and quality in the Republic of Moldova and promote similar development in Azerbaijan and Georgia. It will provide assistance to countries in the region in implementing regulatory harmonization. The UNECE will promote the implementation of UNeDocs as an instrument to ease the transition to paperless trade, especially electronic invoicing, in cooperation with regional and business-sector partners.