AN EXPLORATION OF THE NEED FOR AND COST OF SELECTED TRADE FACILITATION MEASURES IN ASIA AND THE PACIFIC IN THE CONTEXT OF THE WTO NEGOTIATIONS

56 An exploration of the need for and cost of selected trade facilitation measures in Asia and the Pacific in the context of the WTO negotiations

infrastructure, deserve huge and urgent funding as significant expectations are placed on
India. This includes additional efforts required to support and strengthen communications
at border points. Most of the Land Customs Stations (LCSs) require better infrastructure.
Higher priority should be given to including various provisions of GATT Article V in the
bilateral trade and transit treaties for greater facilitation of transit trade, especially with
landlocked countries.

The study conducted a private sector survey to identify the key remaining problem
areas. The main areas identified are customs valuation (by 19 per cent of respondents),
tariff classification (16 per cent) and submission of documents for clearance (14 per cent).
Other problem areas also include, in order of importance, technical or sanitary requirements,
obtaining import licences (for certain chemicals), identification of origin of goods, and
payment of fees and penalties. This clearly demonstrates that the current scope of the
WTO trade facilitation negotiations may be insufficient to ensure faster movement of
goods. At the same time, the private sector may not be prepared to take maximum
advantage of automation and other programmes of customs and border agencies. This
may require some investments in extension services and capacity building.

These ground realities hold important implications for any undertaking by India at
the TF negotiations of the WTO. However, given considerable infrastructural gaps, the
Indian negotiating team should approach the new proposals and ideas with extreme caution
and pragmatism, at least for the measures that have already been implemented in India.
In light of considerable advancement at the domestic level, greater optimism and more
pro-active proposal formulation are expected.

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