OVERVIEW OF THE PROGRESS IN IMPLEMENTING ALMATY PROGRAMME OF ACTION

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1 OVERVIEW OF THE PROGRESS IN IMPLEMENTING ALMATY PROGRAMME OF ACTION Thematic Meeting on International Trade, Trade Facilitation, and Aid for Trade, September 2012, Almaty, Kazakhstan Sandagdorj Erdenebileg Tel: , fax: ,

2 Almaty Programme of Action APoA comprehensive development agenda yet focused on transit cooperation. Priority Areas (i) Fundamental transit policy issues, (ii) Infrastructure development and maintenance, (iii) International trade and trade facilitation, (iv) International support measures, and (v) Implementation and review.

3 Progress on social and economic development + LLDCs as a group achieved an avg. annual growth rate of 7.8% over , it slowed down to 5.8% in 2008, and 3.1% in 2009 recovery 2010 to 6.6%. + Improved macro-economic policy and governance reforms + Positive trend in the Human Development Index + LLDCs have made some advances on some MDGs + primary education, + gender parity - primary education & women in decision-making, + stemming the spread of HIV/AIDS In 15 LLDCs, more than 20% of the population is undernourished There is still wide-spread poverty in many LLDCs.

4 There is a growing recognition of and interest in special needs of LLDCs and transit issues for international trade since Almaty Conference in 2003.

5 Fundamental transit policy issues - Selected Achievements Increased harmonisation of transport and transit policies, laws, procedures and practices with transit countries. Regional and sub-regional agreements including the Intergovernmental Agreement on the Asian Highway Network and the Railway, Africa also developing one. Supportive institutional framework eg: transport and trade facilitation bodies or coordination committees, road funds. Ratification of international conventions / agreements - eg. TIR Border facilities and procedures have been streamlined and harmonized leading to increased efficiency and fewer delays. EG: one stop border controls eg. Zambia Zimbabwe Chirundu Border, at Malaba, between Kenya and Uganda; a yellow or white card motor vehicle insurance schemes - COMESA; common visa sticker for drivers eg. ECO region; the use of ICTs for customs clearance.

6 LLDCs have made progress in facilitating transport and trade across borders Required Percentage Change Import Number of Documents % Number of Days % Export Number of Documents % Number of Days % Transit countries: number of days to export in 2012 = 23 number of days to import in 2012 = 27 According to the Doing Business 2012 Report, Rwanda and Kazakhstan were among the top performers.

7 Infrastructure development and maintenance some achievements Development and upgrading of both the Asian Highway and the Trans-Asian Railway networks. Africa is implementing the Programme for Infrastructure Development in Africa (PIDA). Implementation of the Initiative for the Integration of Regional Infrastructure in South America. Increased cellular subscription and Internet users Dry ports are being established in all regions eg. Nepal, Burkina Faso, Mongolia and Ethiopia. Efforts to elaborate and conclude intergovernmental agreement on the Trans-African Highway.

8 International trade and trade facilitation LLDC exports increased from $42 billion in 2003 to $154 billion in 2008 Declined in 2009 financial/economic crisis. In 2010, exports increased to $158 billion, shows some recovery. LLDCs share of the world s overall trade remains close to 1%. Two countries Azerbaijan and Kazakhstan accounted for >50% of the group s total. LLDC heavily rely on the export of few low-value high-bulk commodities - therefore vulnerable to commodity price volatility. LLDCs have low productive capacities Currently: 22 LLDCs are Members of the WTO and 8 are Observers

9 Trade Facilitation under the DOHA Round Trade Facilitation in the Doha Development Round has the potential to address many of the fundamental transit policy issues that affect LLDC exports. Negotiations aim to clarify and improve relevant aspects of Articles V, VIII and X of the GATT 1994 with a view to further expediting the movement, release and clearance of goods, including goods in transit. Article V: Freedom of Transit Article VIII: Fees and Formalities connected with Importation and Exportation Article X: Publication and Administration of Trade Regulations

10 Trade Facilitation under DOHA Round (contd.) LLDC relevant text in current draft: expedited release and clearance of goods in Article 7; improved border agency cooperation in Article 9; review of formalities connected with importation and exportation and transit in Article 10; and freedom of transit in Article 11 of the draft consolidated text on trade facilitation The ultimate objective must be the lowering of transaction costs by reducing transport time and increase efficiency of transit operations, clarity, predictability and transparency of rules and procedures.

11 International support measures Support by the international community to LLDCs increased

12 Net ODA received by LLDCs has been increasing since 2003 Millions US$ 25.3B 11.8 B 16.4 B 3.7B

13 Aid for Trade to LLDCs Aid for Trade disbursements to LLDCs, increased from US$4 billion in 2005 to US$6 billion in 2010 Aid for trade helped improve trade facilitation and trade related infrastructure Examples: A regional project in East Africa improved transit times at the border from three days to three hours. Zambia and Zimbabwe s Chirundu One Stop Border Post An Asian Development Bank project helped cut travel time between Lao PDR and Vietnam from hours to 2-3 hours

14 FDI net inflows to LLDCs

15 Unfinished Agenda Cost of being landlocked: Study applied a gravity model to data from 150 countries including LLDCs and coastal countries over the period The LLDCs on average had a lower trade volume when compared to a representative coastal economy in 2010 the LLDCs trade was just 61% of the trade volume of coastal countries. In 2004 it was 57%. In 2010, LLDCs incurred transport costs that are 45 percent higher than the representative coastal economy. In 2004 it was 42% of the coastal economy. Transport costs for LLDCs have increased over time.

16 Renewed Partnerships New landscape for international cooperation Bigger role played by emerging economies in international trade, technology transfer, investment and policy making. New conference should provide win-win solution. Transit cooperation should be considered not only about access of LLDCs but also access for others to LLDCs markets and resources.

17 Parallel Thematic Roundtables Side Events COMPREHENSIIVE REVIIEW CONFERENCE OF THE ALMATY PROGRAMME OF ACTIION May/June 2014 (Venue TBC) Parallel Private Sector Track (Investment Forum) Exhibition P R E P A R A T O R Y P R O C E S S Inter-Agency Consultative Group Meetings 10 February 2012 December IACG Meetings in IACG Meeting in 2014 Pre- Conference Thematic Events May 2012 through Spring 2014 Intergovernmental Preparatory Committee January and April 2014 New York Regional Review Meetings: Africa (ECA) Asia and Europe (ECE and ESCAP) Latin America (ECLAC) 2013 Private Sector Track Events Relevant Intergovernmental Processes : UN GA sessions (66 th, 67 th and 68 th ) UNCTAD XIII Rio +20 Conference UNCTAD TDB sessions Regional Commissions sessions National and Sub-Regional Preparations 2012

18 Thank You

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