United Nations Development Programme

Wider Europe:Aid for Trade in Central Asia, South Caucasus, and Western CIS

Border Management CoP19th July 2011

UNDP’s vision on trade

• Supporting the link between human development and trade

• UNDP’s focus:– To help developing countries build capacity to compete

internationally by overcoming supply side constraints;– To help developing countries build capacity to negotiate,

interpret and implement trade agreements (multilateral, regional and bilateral) in a manner that prioritizes poverty reduction and human development; and

– To help developing countries incorporate pro-poor, development-centered trade policies into national development strategies, including poverty reduction programmes.

Phase I: Implementation duration: 18 months (Aug 09’ - Jan 11’) Regional Scope: 11 countries Budget: € 1.6 million

Phase II Implementation duration: 3 years (Feb 11’ – Feb 14’) Regional Scope: 11 countries Budget: € 4.6 million

Target audience: private (SMEs, associations, agricultural sector) and public sector.

Fast Facts

Regional Coverage

Comp. I Comp. II Comp. III

Aid for Trade Needs Assessments under phase I

Development of Aid for Trade Needs Assessments in 11 countries in Central Asia, South Caucasus and Western CIS:

Objectives:

• Identification of capacity gaps (institutional, human, etc.) and technical assistance needs;

• Development of policy recommendations and action matrix for potential donor assistance;

• Development of concrete project proposals for AfT interventions.

The SPECA AfT Ministerial Meeting

• Border management can have a dramatic impact on trade;

• To have an impact, trade facilitation measures on one side of a border will have to be matched by corresponding measures on the other side – cooperation remains key;

• Despite large and long term projects creating trade corridors in Central Asia – the network is still hampered by slow processes at the borders;

Continued

• Although tariffs have become mostly insignificant as obstacles to trade between SPECA countries, several non-tariff barriers remain:

– Regulations of sanitary and phyto-sanitary measures;• Mutual recognition of inspection and testing results between countries in the region is poorly

developed/implemented.• Lack of coordination between inspection bodies;

– Technical barriers to trade;– Number of rules, procedures and documents needed for import and exports;– Variability and uncertainty in the implementation of the rules and regulations

(judgement calls);– Disproportionally high trade costs.

Some info from the CAREC institute

Source: CAREC CPMM 2009-2010

The harmonisation challenge

In order to facilitate cross-border trade :• Individuals need to be able to easily cross borders without having to

pay a bribe;• It is necessary to reduce trade costs through better and faster

procedures at the border for both customs and border agencies;• Private sector needs to be involved in the harmonisation and

improvement

Why is this important:• Cross border trade (including informal) is a vital part in Central

Asian economies and has a substantial impact on human development.

• Trade (not considering oil and gas) in Central Asia is below its potential > high trade costs discourage;

• Trade, especially if it benefits small producers, can have an important impact for human development.

The SPECA AfT Ministerial Declaration

On the basis of the Aid for Trade Needs Assessments undertaken in SPECA countries the following areas were considered as critical by member states and adopted as focus areas in the Ministerial Declaration:– Supply side/within-border measures; – Cross-border cooperation;– The multilateral trading system .

Cross- border cooperation:• Physical infrastructure;• Institutional trade infrastructure, with a focus on trade

facilitation;• Market access.

Focus of the Aid for Trade project

Trade CapacityBuilding

Access toinformation

Access to markets

Eco-Friendly Technologies

and Green commodity

To enhance private sector’s

trade-related capacity

More info …

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