OVERVIEW ON THE IMPLEMENTATION OF THE ALMATY PROGRAMME OF ACTION

Transcription

1 OVERVIEW ON THE IMPLEMENTATION OF THE ALMATY PROGRAMME OF ACTION Sixth Inter-Agency Meeting on the Implementation of the Almaty Programme of Action 2 November 2010 New York Sandagdorj Erdenebileg, Chief, Policy Development, Coordination, Monitoring and Reporting Service, OHRLLS

2 Since the last IACG Meeting LLDCs special needs and the importance of the implementation of the Almaty Programme of Action have gained broader support and recognition Increased research on LLDC-specific topics, Increased mainstreaming of the APoA in the Agencies. increasingly broader approach to the APoA in the UN and the General Assembly Away from looking at APoA as sectorial transport issue, towards understanding its overall impact on trade, economic development and achievement of the MDGs, Secretary General s Report on APoA in 2010 features, for the first time, an overview of the Achievement of the MDGs within the LLDCs. tangible progress has been achieved in building an international consensus on the further implementation of the APoA Midterm Review Outcome, GA Resolution 64/214.

3 Progress towards the MDGs + Solid Economic Growth: LLDCs as a group achieved an average annual growth rate of 7.8 per cent in the period , which slowed down to 6 per cent in 2008, + The rate of cellular subscription and Internet users significantly increased in all countries the same period, + Primary education: almost 70% of LLDCs have improved primary education between , + Gender parity in primary education: almost 80% of LLDCs have improved gender parity in primary education, + The number of adults living with HIV in LLDCs fell by 12.7% (weighted average) between 2001 and 2007, + Between 2000 and 2008, the weighted average of the mortality rate of children under five dropped by 24% in LLDCs, In 14 LLDCs, more than 20% of the population is undernourished, 42 per cent of the countries still have a maternal mortality ratio that is higher than 500 per 100,000 live births, In 18 landlocked developing countries the gross domestic product (GDP) per capita is below $1,000, There is still wide-spread poverty in many LLDCs.

4 Almaty Programme of Action: selected achievements Fundamental Transit Policy Issues Implementation of risk-based inspection regime and post-destination clearance programme for pre-approved traders in Malawi. Implementation an electronic export system and improvement of the risk-based inspection system in Paraguay. Introduction of an automated import and export customs clearance system at the Chittagong port in Bangladesh. Establishment of one-stop border post initiatives between Kenya and Uganda at Malaba, between Zambia and Zimbabwe; between Zimbabwe and Mozambique; and in West Africa on borders of Ghana, Burkina Faso, Togo and Mali.

5 which have borne remarkable fruit. Fundamental Transit Policy Issues According to the Doing Business 2010 Report, Rwanda and Kyrgyzstan were among the top performers. Landlocked and transit developing countries in all regions have continued to make substantial progress in facilitating transport and trade across borders: Import Export Required. Number of Documents Number of Days Number of Documents Number of Days Percentage Change -31% -14% -17% -16% Source:

6 Some key achievements Infrastructure Development and Maintenance Ethiopia has set up the Dry Port Services Administration and has started to construct of a dry port on the gateway to Djibouti. Further dry ports are being constructed in Burkina Faso, serving Côte d Ivoire and the Niger, as well as another on that will link Burkina Faso to seaports in Ghana by railways. Railway integration has recently made progress in South America: in May 2010, Paraguay and Brazil formalized a project funded by the Brazilian Development Bank to link Paraguay s railway system with the railroad linking Paranagua in Brazil and the Chilean city Antofagasta, in effect creating an inter-oceanic railway corridor.

7 Some key achievements (contd.) Infrastructure Development and Maintenance Establishment of road funds in 27 African countries. Amendments to the Intergovernmental Agreement on the Asian Highway Network were adopted in September 2009, providing as a result road connectivity to all landlocked countries in the region. Concerted efforts are under way by the ECA, AUC and UN- OHRLLS to elaborate and conclude an intergovernmental agreement on the Trans-African Highway.

8 LLDCs share in world trade remains low International Trade and Trade Facilitation The impressive export growth witnessed in LDCs in this decade can be attributed to only a handful of them and driven largely by the surge in commodity prices, which saw oil and mineral prices rising significantly. While trade has expanded in LDCs, their share of the world s overall trade remains below 1%. Landlocked developing countries World in % of world Transit developing countries in % of world Exports and Imports of merchandise (millions of current US$) % % % % % %

9 Vulnerability owing to heavy reliance on export of price-volatile commodities International Trade and Trade Facilitation The recent global economic crisis has pointed out the structural weaknesses of landlocked developing countries, in particular relating to their low productive capacities and heavy reliance on the export of few low-value high-bulk commodities. Jan2005 Jul2005 Agricultural Raw Material Minerals, Ores and Metals Crude Petroleum Food Jan2006 Jul2006 Selected Commodity Prices (index: 2000=100) Jan2007 Jul2007 Jan2008 Jul2008 Jan2009 Jul2009 Jan2010 Jul2010

10 Tariff preferences and their utilization in 2008 International Trade and Trade Facilitation Utilization of tariff presences remains low, largely owing to complicated Rules of Origin and Cumulation requirements. All in Million United States dollars Exporting group Developing countries excluding BRIC Least developed countries Landlocked developing countries Total exports Duty-free exports - MFN=0% Dutiable exports Exports eligible for preferences Exports actually entered under preferential regime Utilization percentage rate Utilization percentage rate (excluding minerals and arms) Source: International Trade Centre. Note: BRIC stands for Brazil, Russian Federation, India and China.

11 Trade Facilitation under the DOHA Round International Trade and Trade Facilitation One of the only areas in the currently ongoing negotiations that has reported progress. A draft consolidated negotiating text is available based on all members suggestions and proposals Pledge by World Trade Organization members to provide extensive technical assistance to help developing countries to negotiate effectively in the negotiations and to assist with implementation. The negotiating mandate states that if technical assistance is not forthcoming a member needing this assistance will not be required to implement. Currently: 22 LLDCs are Members of the WTO and 8 are Observers

12 Trade Facilitation under the DOHA Round (contd.) International Trade and Trade Facilitation 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 Key Provisions of Article V: Freedom of Transit Goods ( ) shall be deemed to be in transit across the territory of a contracting party when the passage across such territory ( ) is only a portion of a complete journey beginning and terminating beyond the frontier of the contracting party across whose territory the traffic passes. Traffic of this nature is termed in this article traffic in transit. There shall be freedom of transit through the territory of each contracting party, via the routes most convenient for international transit ( ), for traffic in transit to or from the territory of other contracting parties No distinction shall be made which is based on the flag of vessels, the place of origin, departure, entry, exit or destination, or on any circumstances relating to the ownership of goods, of vessels or of other means of transport. ( ) such traffic coming from or going to the territory of other contracting parties shall not be subject to any unnecessary delays or restrictions and shall be exempt from customs duties and from all transit duties ( )

13 Trade Facilitation under the DOHA Round (contd.) International Trade and Trade Facilitation Key Provisions of Article VIII: Fees and Formalities connected with Importation and Exportation 1. (a) All fees and charges of whatever character ( ) imposed by contracting parties on or in connection with importation or exportation shall be limited in amount to the approximate cost of services rendered and shall not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes. (b) The contracting parties recognize the need for reducing the number and diversity of fees and charges referred to in subparagraph (a). (c) The contracting parties also recognize the need for minimizing the incidence and complexity of import and export formalities and for decreasing and simplifying import and export documentation requirements. Key Provisions of Article X: Publication and Administration of Trade Regulations 1. Laws, regulations, judicial decisions and administrative rulings of general application ( ) shall be published promptly in such a manner as to enable governments and traders to become acquainted with them. Agreements affecting international trade policy which are in force between the government or a governmental agency of any contracting party and the government or governmental agency of any other contracting party shall also be published. ( ) 2. No measure of general application taken by any contracting party effecting an advance in a rate of duty or other charge on imports under an established and uniform practice, or imposing a new or more burdensome requirement, restriction or prohibition on imports, or on the transfer of payments therefore, shall be enforced before such measure has been officially published.

14 Massive investments in transboundary infrastructure are needed International Support Measures ESCAP estimates an investment requirement of about $24 billion to put in place 8,200 km of missing links in the Trans-Asian Railway Network, including around $9 billion for 2,600 km of missing links in landlocked developing countries. For the Asian Highway, an investment needs study in 2005 estimated the required funds to improve and upgrade 26,000 km of the Asian Highway US$ 18 billion. In sub-saharan Africa, about 30 per cent of the corridors connecting the 15 landlocked countries to major seaports needs to be upgraded. This is estimated to cost about $1.5 billion, with maintenance costs close to $1 billion annually. Total external financial commitments to African infrastructure projects rose to nearly $40 billion in The share of ODA allocated to the transport, storage and communications sectors in landlocked developing countries increased to 8 per cent on average for the group in 2008, with peaks of over 30 per cent in the cases of Mongolia, Paraguay, Swaziland and Uzbekistan.

15 Net ODA received in 2008, in % of GNI International Support Measures Af ghanist an 45.7% Bur undi 43.7% Malawi Rwanda Cent ral Af rican Republic Et hiopia Bur kina Faso Uganda Zimbabwe Niger Mali Lao P.D.R. Zambia Kyr gyz Republic Bhut an Lesot ho Chad Tajikist an Nepal Bot swana Mongolia Republic of Moldova Bolivia Ar menia Swaziland Macedonia, FYR Par aguay Uzbekist an Azer baijan Kazakhst an Tur kmenist an

16 LLDCs special needs and the importance of the implementation of the Almaty Programme of Action have gained broader support and recognition Midterm Review Declaration (Res.63/2): broadly recognized LLDCs specific challenges Implementation and Review Noted progress made in transit policy reforms, increased international support (ODA, market access, debt relief) and greater support by international community to LLDCs Identified specific bottlenecks related to trade facilitation: Excessive number of documentation for import/export Multiplication of scheduled and unscheduled roadblocks Lack of adjacent border controls Unnecessary customs convoy Insufficient application of IC Non transparency of trade and customs laws Underdeveloped logistics sector Absence of competition in transit transport services sector

17 The Midterm Review Declaration identified specific actions to be undertaken by all stakeholders to accelerate implementation under each priority: Implementation and Review LLDCs and transit developing countries: strengthen legal frameworks for transit transport operations effectively implement trade facilitation measures make efforts towards eliminating customs convoy practice Improve border infrastructure facilities Widen and deepen public and private sector cooperation Mobilize investment from all sources Donors and multilateral, regional, financial and development institutions: provide appropriate, substantial and better coordinated technical and financial assistance, notably in the form of grants or concessionary loans effectively operationalize the Aid for Trade Initiative, so as to support trade facilitation measures and trade-related technical assistance facilitate access to and encourage transfer of technologies related to transit transport

18 Resolution adopted by the General Assembly, A/RES/64/214 Implementation and Review Acknowledges progress made by landlocked and transit developing countries in policy and governance reform efforts and recognizes greater attention to the establishment of efficient transit systems. but notes that landlocked developing countries continue to be marginalized in international trade and face challenges in their efforts to achieve their development goals Identifies priority areas: Recognition of Freedom of Transit of LLDCs Need to provide landlocked and transit developing countries with appropriate, substantial and better-coordinated technical and financial assistance Need to attract private investment, including foreign direct investment Importance of international trade and trade facilitation, including the harmonization of trade and transit transport facilitation procedures Operationalization of Aid for Trade Transfer of technology, including information and communications technology South-South and triangular cooperation

19 Efforts by the LLDCs Implementation and Review Institutionalized biannual meeting of Trade Ministers 2005: Asunción, Paraguay 2007: Ulaanbaatar, Mongolia 2009: Ezulwini, Swaziland Institutionalized annual meeting of Foreign Ministers 9 th Annual Ministerial Meeting of Landlocked Developing Countries, 24 September 2010, New York Establishment of the International Think Tank on LLDCs in Ulaanbaatar, Mongolia Text of the Draft Agreement was adopted at the Ministerial Meeting in October Secretary General of the United Nations will be depository. The Agreement will be open for signature this year.

20 The Way Forward - Priorities 1. Revitalize the work for the implementation of the Almaty Programme of Action 2. Assist LLDCs in strengthening their analytical capacities Commission specific studies, particularly on trade facilitation, to support LLDCs effective participation in the WTO negotiations Support the International Think Tank 3. Implement technical assistance programmes in the areas of trade and trade facilitation, border-crossings and capacity buildings 4. Prepare for the High-Level Meeting on the Role of International Cooperation, Infrastructure Development, Aid for Trade and Trade Facilitation for the Effective Integration of Landlocked Developing Countries into the Global Economy, Kazakhstan, June Update the Road Map and the Matrix

21 Thank you