Literature Review - Trade Facilitation as an Imperative for the Eac Customs Union
LITERATURE REVIEW: TRADE FACILITATION AS AN IMPERATIVE FOR THE EAC CUSTOMS UNION
Abstract
The global economy has made considerable progress in the last two decades in easing border restrictions on merchandise trade, by addressing trade-protective measures of non-tariff barriers and high tariffs, through the implementation of structural reform programmes as well as commitments undertaken under the multilateral framework of the GATT/WTO. With the passage of such ‘first generation’ trade policy reforms, attention has focused increasingly on other direct and indirect impacts of domestic regulatory regimes on international trade, the so-called ‘second generation’ trade issues concerned with behind-border measures that fall under the heading of trade facilitation. Broadly defined, these measures include anything from institutional and regulatory reform to customs and port efficiency and are inherently far more complex and costly to implement.
This paper makes an objective evaluation on the contribution of Customs to trade facilitation within the East African Community (EAC) by reviewing literature on the subject from various sources. The paper is developed against the background of trade facilitation as understood by the World Trade Organization (WTO). The paper therefore examines how and to what extent the trade facilitation-related aspects of the WTO are (or are not) reflected in the EAC customs law and administration. The World Customs Organization’s Trade facilitation instruments, particularly the Revised Kyoto Convention, are also considered. After examining the EAC customs law and administration, suggestions are made for better coordination, harmonisation and simplification of international trade/customs procedures within the East African Community.
Further examination of literature on the subject of the effects and impacts of trade facilitation on its current operative form and on reform provides scope for evaluation of the economic effects and
Abstract
The global economy has made considerable progress in the last two decades in easing border restrictions on merchandise trade, by addressing trade-protective measures of non-tariff barriers and high tariffs, through the implementation of structural reform programmes as well as commitments undertaken under the multilateral framework of the GATT/WTO. With the passage of such ‘first generation’ trade policy reforms, attention has focused increasingly on other direct and indirect impacts of domestic regulatory regimes on international trade, the so-called ‘second generation’ trade issues concerned with behind-border measures that fall under the heading of trade facilitation. Broadly defined, these measures include anything from institutional and regulatory reform to customs and port efficiency and are inherently far more complex and costly to implement.
This paper makes an objective evaluation on the contribution of Customs to trade facilitation within the East African Community (EAC) by reviewing literature on the subject from various sources. The paper is developed against the background of trade facilitation as understood by the World Trade Organization (WTO). The paper therefore examines how and to what extent the trade facilitation-related aspects of the WTO are (or are not) reflected in the EAC customs law and administration. The World Customs Organization’s Trade facilitation instruments, particularly the Revised Kyoto Convention, are also considered. After examining the EAC customs law and administration, suggestions are made for better coordination, harmonisation and simplification of international trade/customs procedures within the East African Community.
Further examination of literature on the subject of the effects and impacts of trade facilitation on its current operative form and on reform provides scope for evaluation of the economic effects and
References: Asian Development Bank (2009): Designing and Implementing Trade Facilitation in Asia and the Pacific B C. Ferreira, et al (2007 article): ‘Challenges of Combating Corruption in Customs Administration’, in J.E. Edgardo and S. Pradhan (eds) – The Many Faces of Corruption D D. Hummels (2007): – “Time as Trade Barrier” notes. Diodorus Buberwa Kamala (2006) – The Achievements and Challenges of the New East African Community Cooperation EAC Treaty, 1999 EAC Treaty, 2001 EAC Customs Management Act, 2004. Eduardo Bianchi (July 2004): Final Report for the International Working Group on the Doha Agenda II – Argentina’s National Experience with Trade Facilitation G General Annex to the Revised Kyoto Convention International Trade Centre/UNCTAD/WTO (2005 Technical Paper): – WTO Negotiations on Trade Facilitation Michael Lane’s (1998): Working Paper for Transparency International MJ Trebilcock and R Howse (1999): – The Regulation of International Trade, 3rd Edition OECD (2002): Business Benefits of Trade Facilitation OECD (2005 Policy Brief): – The Costs and Benefits of Trade Facilitation OECD (2009 Trade Policy Studies): – Overcoming Border Bottlenecks: The Costs and Benefits of Trade Facilitation, the Swedish Trade Procedures Council (SWEPRO), National Board of Trade (2002 publication): – Trade Facilitation Impact and Potential Gains, Transparency International Corruption Perception Index (2008) UNCTAD Trade Facilitation Handbook Part II: Technical Notes on Essential Trade Facilitation Measures published in 2008 The UN Economic and Social Commission for Asia and the Pacific (ESCAP): – Trade Facilitation Framework: a Guiding Tool World Bank (2008): – Doing Business Reports 2009 The World Trade Organization (2002): – Trade Facilitation – Overview of Trade Facilitation Work WTO Discussion Paper (July 2007): Updated International Chamber of Commerce Recommendations for an Agreement on Trade Facilitation.