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case studies on which this report is based provide some, albeit very partial, information on
the costs associated with trade facilitation programmes and efforts at the national level.
The numbers and cost estimates available from the individual studies are, at best, very
preliminary. However, they are generally relatively low, partly because some of the costs
of implementing TFMs are seen as coming from the regular (routine) budgets of Customs
and other relevant agencies - as well as from the continuation of technical assistance
projects by major donors or international organizations.
While regulatory and institutional costs are expected to be small because of the
rather extensive trade facilitation-related reforms that have been undertaken in most of the
countries, training costs may be significant as some countries lack the human resources
necessary to effectively implement some of the measures (e.g., risk management and
post-clearance audit). Interestingly, most studies point to the need to upgrade infrastructure
as part of implementing a meaningful trade facilitation programme. These costs are not
limited to computerization and information and communication technology (ICT) systems,
but include the costs of container scanners or of testing facilities/laboratories at selected
border crossings, for example. In terms of facilitating transit trade, the country studies
again suggest that transit trade may not be facilitated without significant investment in
various infrastructures, ranging from roads and port facilities to effective risk management
systems.
The international expert survey on the costs and benefits of selected TFMs undertaken
as part of the study showed that, while long-term savings were expected to exceed costs
for all measures, initial setup costs of some of the measures could be expected to be quite
high relative to others. The cost difference between measures was mainly explained by
the underlying political costs (i.e., extent to which measures will be resisted by staffs within
relevant institutions; or by policymakers because of fear of losing political support they
need) and infrastructure/equipment costs.
Selected implications for a WTO Agreement on Trade Facilitation
Since most of the TFMs on the negotiating table have been implemented or are
planned for implementation even in the least developed countries in the region, the list of
TFMs agreed upon will be less important than the accompanying terms and conditions for
implementation, e.g., schedule of implementation for developing countries and technical
assistance.
Negotiation of an agreement on trade facilitation provides an opportunity for pushing
potentially difficult regulatory reforms at home through binding commitments on small,
simple but highly meaningful administrative procedures, e.g., a 30-day standard time
period between publication and implementation of regulations, the establishment of formal
channels of communication with the private sector on trade facilitation issues (e.g.,
establishment of an inclusive national trade facilitation committee), the alignment of trade
documents to specific international standards, or even an agreement to reduce the number
of trade documents to a certain number (by a given date, as necessary).