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EuropeAid
Delivery of EC Assistance in field of Trade Facilitation
Michaela Dodini, EC1 July 2009
EuropeAidPolicy Context for EC Aid
• 2000 Millennium Development Goals (MDGs)o Fixing objectives for poverty reduction for 2015
• 2005 Paris Declaration on Aid Effectivenesso 50 donors and 60 partner countries o Ownership, Alignment, Harmonisation, Mutual
Accountability, Results Oriented Frameworko 12 progress indicators
• 2005 European Consensus on Development o EU development policyo Applicable to both EC and EU Member States
EuropeAidProgramming of EC Aid
•Work together with more than 150 countries/ regions
•Multi-annual planning in countries/regions (2007-2013 CSP/NIP, RSP/RIP*)
• In principle not more than 2 focal sectors per country ………
• Priorities in accordance with national strategic development objectives (PRSPs/NDPs)
*Country/Regional Strategy Papers and National/Regional Indicative Programmes
EuropeAid EU Aid for Trade Strategy Oct 2007
o Support to DC integration in the world trading system as part of poverty reduction efforts
o Support greater competitiveness and efficiency of the production systems
o Support for regional economic integrationo AfT Strategy focuses on more resources and
better impact on development objectiveso EU commitments to increase TRA translated into
reality: EC TRA €1 bn in 2007, AfT €2,4 bn (EC+EU MS overall TRA €1.9bn/AfT €7.12bn)
o Follow up to the recommendations of the WTO AfT Task Force of summer 2006
EuropeAid
EC support to Trade Facilitation - Key objectives
Trade facilitation activities to enhance DCs' trade competitiveness, and support the establishment of fully functioning free trade areas and customs unions:
simplification and harmonisation of national customs procedures and systems,
reduce time of customs clearance and facilitate the transit of the goods (notably through the computerization of customs systems)
development of customs related infrastructures (creation of one stop border posts for bordering countries).
EuropeAid
• Demand driven: Regional integration processes give a strong impetus to trade facilitation
• Local ownership: need high level political will and solid implementation structures. Trade facilitation, e.g. customs reforms - a sensitive political issue, may encounter strong resistance to change
• Thorough needs assessment diagnostic/gap analysis carried out using e-g.TAXUD customs blueprint approach
• Institutional sustainability – local/regional: short & long term support
• Co-ordination: coherence with activities of other donors, reduce administrative burden
• Preparation takes time!
EC support to Trade Facilitation – Key Principles
EuropeAidHow can we support implementation of
new Trade Facilitation Agreement
• Possible to incorporate appropriate activities into ongoing EC TRA projects in a country if so requested by relevant local authorities (TF needs to be high in their priorities)
• Future programmes: TF needs assessments/ implementation plans can be taken into account in the design of new EC interventions in the field of TRA / trade facilitation, if considered a priority by beneficiaries (focal areas)
EuropeAidHow can we support implementation of new
Trade Facilitation Agreement (contd)
• Contacts to be made with EC Delegations in DCs (bottom up)
• Essential to have effective communication and decision making channels within beneficiaries (Geneva-based negotiators, capital-based responsible for TF implementation, managers of aid programmes and of relations with donors)
EuropeAidOverview of TF programmes
Trade Facilitation by region - EC ongoing project portfolio
7.3%
21.1%17.7%
28.8%
8.9%
0
50
100
150
200
250
300
350
Africa America Asia Europe Oceania
TF
Co
mm
ittm
en
ts i
n M
EU
R
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
ap
pro
x %
of
AfT
in t
he
re
gio
n
EuropeAid
Trade Facilitation in practice:Identification of needs in the Caribbean
- EPA signed in 2008 (Chapter 4 on Customs and TF)
- Regional Preparatory Task Force – CARIFORUM/EU
- Launch of studies for implementation of the EPA, incl a Study on Customs and Trade Facilitation
http://www.caricomonline.org/rptfstudiesto assess level of conformity of Customs Adm, identify capacity constrains
- Methodology: surveys to Customs, Gov. Admin and Private Sector, field visits
- 19 programmes identified, based on needs, existing support, national/regional processes
- Implementation based on Regional integration roadmap
EuropeAid
EuropeAidTools for identification of needs:
EU Customs Blueprints
4 AreasGeneral management issues-
related to administration/organisation of an organisationCooperation/Communication
mainly related to external partners Customs specific Customs specific
operational/technical areasSupporting- relating to Customs Infrastructure
Gap Analysis Needs Analysis Action Plan
http://ec.europa.eu/taxation_customs/common/publications/info_docs/customs/index_en.htm
EuropeAidTools for identification of needs:Integrating existing assessments
Ensure inclusion of findings from existing studies for actions which are considered a priority by local authorities
- Trade Facilitation Needs Assessment for TF Agreement- Diagnostic Trade integration Studies- WCO Columbus Programme- Other studies at national/regional level
EuropeAid
Focus mainly at regional level
Several comprehensive programmes with particular emphasis on developing Customs Unions eg. regional integration support programmes for CEMAC and for West Africa, harmonisation of customs for COMESA etc.
Projects funded under 9th and 10th EDF
Assistance under 10th EDF is be based on results / evaluations of ongoing programmes. Support EPA implementation. Identification/design 2009/2010.
TF projects portfolio: € 380 million
EC Trade Facilitation – overview per region Africa, Caribbean, Pacific
EuropeAidTrade Facilitation for EPA implementation
• Harmonization & simplification of customs procedures, including
transit aspects: all regions except the Pacific
• Customs processing systems inter-connexion (ASYCUDA/UNCTAD):o Central Africa: FASTRAC (€ 12.5 million); SADC : Customs
modernization programme (€ 18 million); COMESA (ICT programme)
• One stop border posts: West Africa (PARI II)
• Training: all regions
• Regional networking (Customs liaison committees) and exchanges of
experience/coordination between Regional Organisations (ESA, SADC and
SACU regions)
• Compensation mechanism for the implementation of the Customs
Union (CET): o West Africa (9th EDF ECOWAS €19.4m, UEMOA €11m within
programmes supporting Regional Integration)o COMESA (Regional Integration Budget Support programme : € 7m
EuropeAidEC Trade Facilitation – SADC
SADC Customs Modernisation Programme (€ 18m 9th EDF RIP)
To assist SADC Member States in the transformation and modernisation of their customs systems ( including improved transit flows) and to set the legal and institutional framework for the establishment of a SADC Customs Union by 2010.
Demand oriented assistance to SADC.
Results covering core area of cooperation for SADC CU to function effectively
EuropeAidEC Trade Facilitation – Central Africa
CEMAC Trade facilitation programme (FASTRAC) € 12.5 million designed to assist CEMAC Member States and Sao Tomé and Principe to improve transit flows in the region through proper application of the Transit legislation.
Upgrading of priority one stop border postsInter connexion of CEMAC customs administration (UNCTAD)Implementing a proper functioning transit systemHarmonisation and simplification of transport related
legislation
EuropeAidEC Trade Facilitation – West Africa
1. Regional integration programme with West Africa €105m includes support on trade facilitation to UEMOA and ECOWAS and national customs authorities.
Facilitation of Transport 9th EDF € 63.8m Project addresses main concerns identified in negotiations in field of trade facilitation
Activities include institutional support, facilitation actions in favour of road, air, rail & maritime transport, transit and trade facilitation, construction of joint border control posts
EuropeAidEC Trade Facilitation – East Africa
€ 33.5 M Regional integration support programme includes support to the establishment of a customs union
€ 78 M COMESA Regional Fund, a regionally owned financial compensation mechanism
COMESA ICT programme (including Asycuda) € 21MSupport to develop regional ICT policy
Provide high-speed Internet connectivity to key regional stakeholders
Upgrade to Asycuda++ at regional level and in selected countries
Establish regional information portals, design websites for RIO
Establishment of incubator ICT projects, transfer of skills to SMEs
Design of regional transport and communication strategy, priority
investment plan
EuropeAidEC Trade Facilitation – Caribbean
The 41.6 M € Caribbean Integration Support Programme supports the Caribbean Single Market and Economy together with activities to improve regional transport and Information and Communication Technology (ICT). Supports implementation of a Common External Tariff (CET) and a Common External Trade Policy
Specific customs related activities: enhancing institutional and management capabilities within customs administrations, improving operational effectiveness of procedures affecting business transactions, and increasing transparency of operations of customs services affecting cross- border transactions.
EuropeAidEC Trade Facilitation – Pacific
Included under the €11.2M PACREIP (Pacific Regional Economic Integration Programme). Includes:
Customs, standards and conformance: workshops/handbook
and manual on RoO for customs and trade officials, customs
automation using ASYCUDA software
Bio-security (SPS): drafting legislation on bio-security (pests and
diseases of plants and animals), harmonisation of legislation at
regional level, manual on bio-security administration and website on
regulatory information
Fiscal Reform: Work (studies) on fiscal reform, competition policy and regulatory reform, work on revision of customs and general tax legislation for selected PACPs is being undertaken
EuropeAidEC Trade Facilitation – Latin America
Key projects at regional level to support regional integration including establishment of common external tariff
Central America - Andean Union I & II €15m Harmonization of Customs Procedures and Common Terminology, Implementation plan for Custom Union, Training and establishment of Central American Customs School.
Andean Community €13m includes harmonization of Procedures, Common Terminology, Single Customs Document, Training, electronic data exchange system
Mercosur SPS & Customs Cooperation €12m includes
harmonization of Procedures, Common Terminology, Customs Single Document, Training.
TF projects portfolio: € 45 million (excludes Caribbean)
EuropeAidEC Trade Facilitation – ASIA
Included as an aspect within both bilateral and regional TRA programmes.
ASEAN - Customs capacity building provided through the ASEAN Programme for Regional Integration (APRIS) € 6.8m. Customs and Trade Facilitation is one of five components
Central Asia - Border Management in Central Asia (BOMCA) €25 million (2003-2009) (Kazakhstan, Kyrgystan, Tajikistan, Turkmenistan, Uzbekistan)
National support
TF project portfolio: € 95 m (excludes Afghanistan)
EuropeAidEC Trade Facilitation - Neighbourhood
EuropeSupport to Cross-border cooperation between EU and East
Europe / Central AsiaEU Border Assistance Mission to Ukraine and MoldovaSupport to Transport Corridor Europe-Caucasus-Asia Russia – support provided for customs improvement through the cross
border cooperation programme and support for approximation. Balkans
MediterraneanSupport Mediterranean Partners in preparation for a Euro-MED FTA,
a key objective of the Barcelona Process.
TF project portfolio: € 320m