Multi-year Expert Meeting on Transport, Trade Logistics and Trade Facilitation:

Transcription

1 Multi-yea Expet Meeting on Tanspot, Tade Logistics and Tade Facilitation: Second session: Tade facilitation ules as a tade enable: options and equiements Geneva, 1 3 July 2014 ENABLING TRADE THROUGH TRADE FACILITATION MEASURES Recent Wold Bank Reseach on Tade Facilitation & A New Initiative fo TFA Implementation Coodination by Ms. Chistina Busch The Wold Bank This expet pape is epoduced by the UNCTAD secetaiat in the fom and language in which it has been eceived. The views expessed ae those of the autho and do not necessaily eflect the view of the United Nations.

2 ENABLING TRADE THROUGH TRADE FACILITATION MEASURES Recent Wold Bank Reseach on Tade Facilitation & A New Initiative fo TFA Implementation Coodination Multi-Yea Expet Meeting on Tanspot, Tade Logistics & Tade Facilitation UNCTAD, Geneva Chistina Busch The Wold Bank July 2, 2014 Outline 1. Netwoks, Connectivity + Tade Costs & how they ae linked 2. Making the case fo Tade Facilitation (in 2 min) 3. Logistics Costs at Fim Level: It s all about eliability 4. Tade Facilitation in Action: Cambodia 5. TFACoodination.og New Website fo Annex D+ Patnes 1

3 1. Netwoks, Connectivity & Tade Costs and how they ae linked 3 What is connectivity? Why is it impotant to tade logistics? Tade logistics is suppoted by companies that opeate in netwoks Examples: Shipping, ai tanspot, oad, ail => All of them ae complex netwoks The connectivity of a county is defined as how cental this county is to those netwoks To boost tade, need to decease tade costs. 2

4 Tade logistics costs have 3 dimensions: 1. Feight costs 2. Administati ve costs 3. Induced costs: stoage, inventoy Diect costs, e.g. fees fo tanspot opeato Tansit oveheads, i.e. fixed costs pe shipment Delay and pedictability: Inventoy in motion & induced costs of nonsevice (e.g. expess sevices) C a i e F o w a d e S h i p p e Tade Costs and Connectivity Exchange Rate Cost of Stating Business Logistics Pefomance Ai Connectivity Shipping Connectivity Taiffs Same RTA Common Language Common Bode Distance Domestic Costs Bilateal Costs Geogaphy and (most of) shipping connectivity ae out of a county s contol, but policy decisions ae not Elasticity of tade costs How much ae tade costs affected by items on the vetical axis, e.g. exchange ate? Souce: Wold Bank, Tade Costs in the Developing Wold 2013 (RTA = Regional Tade Ageement) Besides distance, connectivity and logistics pefomance matte moe than othe tade baies in boosting tade. 3

5 2. Making the Case fo Tade Facilitation (in 2 min) 7 Intuitive Explanation fo Tade Facilitation Benefits At maco level, supply chain impovements influence welfae, tade and poduction stuctue: Shot un effect of cost eduction passed to consumes (welfae) Long un effect on poduction: Inceased pobability of poduction shifting to industies moe sensitive to logistics pefomance At fim level, the supply chain is affected by time, cost & eliability => All of them educed by tade facilitation measues => But eliability is the most impotant one of the 3 4

6 Tade Facilitation Benefits: A semi-quantitative view Result when a low income county eaches the LPI level of middle income aveage Indicato/policy aea Incease in tade (%) Logistics Pefomance Index 15.2 All tade baies educed to 10% 8.4 Doing Business, cost of tading 7.4 Taiffs educed to 5% 5.7 LPI = Wold Bank s Logistics Pefomance Index Taiffs = TTRI = Tade Restictiveness Index All baies = OTRI = Oveall Tade Restictiveness Index Logistics Costs at Fim Level: It s all about Reliability 10 5

7 Fim level: Logistics costs impact poductivity Fim-level logistics expenditues as % of sales in Gemany 5% 4% Fim-level logistics expenditues Bazil 7% 7% tanspotation othes Kazhakstan 7% 13% 0% 5% 10% 15% 20% 25% Reliability is moe impotant than feight costs. Logistics costs incease with deceasing logistics pefomance. Most of the cost incease comes fom lowe eliability and the need to incease inventoy ( othes ). (Lack of ) eliability is the most impotant cost souce in developing counties; patly due to lage vaiance of lead time in pot o coido supply chains. Souces: Avis et al., TU Belin, ILOS Results fom the 2014 Logistics Pefomance Index: Pesistent and lage diffeences in bode pocess efficiency Impot lead time in days (pot/aipot), by LPI quintile Impot Lead Time (Days) The impot lead time fo pot and aipot supply chains is moe than twice as long in low-pefoming counties as in high-pefoming ones. 1 0 Bottom quintile (lowest pefomance) Fouth quintile (low pefomance) Thid quintile (aveage pefomance) Second quintile (high pefomance) Top quintile (highest pefomance) 6

8 We need to look beyond aveages Distibution of Pot Dwell Time in Days, Jakata 2009 Again: Reliability is moe impotant than feight costs. Most of the cost incease comes fom lowe eliability and the need to incease inventoy. In this case: Aveage dwell time is only aound 7 days, but vaiance is high! Shippes need to be pepaed fo dwell times of > 15 days => Much highe inventoy cost. Tade Facilitation in Action: Cambodia 14 7

9 Impovements in Bode Management: The Case of Cambodia Cambodia impoved its Logistics Pefomance Index (LPI) anking fom 129 (2010) to 101 (2012) to 83 (2014) Souce: Significant pogess in modenizing impot, expot and tansit opeations, incl. isk management as well as steamlining and hamonization of customs pocedues in line with intenational standads Cleaance times dopped fom 6 days (2010) to 1.4 days (2014) due to automated customs pocedues and infastuctue upgading at Sihanoukville pot and in bode posts aound the county Tade facilitation measues left to be done: Pefomance impovement of Quality/Standads Inspections and Health/SPS agencies Reduction of NTMs (impot/expot pemits, licenses and appovals) Implementation of tade infomation website Implementation of National Single Window Wold Bank indicatos elated to tade costs Logistics Pefomance Index Benchmaking tade logistics pefomance Doing Business Repot Tading acoss Bodes Indicato, a ed tape metic, e.g. numbe of document vs. Supply Chain efficiency Bilateal Tade Costs Database Since 2013 with tade division of UNESCAP New coss-county indicatos: 1. Aggegated tade costs by counties 2. Ai Connectivity Index (with FAA and IATA) 8

10 TFACoodination.og: A new website fo Annex D+ patnes (and anyone inteested in the TFA) 17 TFACoodination.og A name easy to emembe TFACoodination.og is a new website to bing togethe Annex D+ patnes wok on tade facilitation. GFP Coe Patnes Meeting June 30,

11 TFACoodination.og A close look Geneal info on fist page. Link at bottom of page takes use to TFA Coodination goup on GFP website GFP = Global Facilitation Patneship fo Tanspotation and Tade (WB & UN) GFP Coe Patnes Meeting June 30, slide The goup site is stuctued like any othe GFP goup. - News - Events - Documents etc. Page is visible to all visitos, i.e. also non- GFP membes. To take pat in discussions: Request membeship, ed link on top left 20 10

12 Questions? Thank you! Chistina Busch The Wold Bank Economic Policy, Debt and Tade Depatment Intenational Tade Unit 11