Aligning trade facilitation with sustainable development goals: Good - PowerPoint PPT Presentation

Session 3: Aligning trade facilitation with sustainable development goals: Good practices in trade facilitation for agriculture, SMEs and women Mohit Sippy Senior Programme & Policy Manager Department for International Development

2030 Age genda a for r Sustai ainable le Develo velopment recogniz izes intern rnatio ional al tra rade as an engi gine for r inclu lusiv ive economic ic growth and pove vert rty y reductio ion, and an importan ant mean ans to achie ieve the Sustai ainable le Develo velopment Goal als (SDGs Gs)

Trad rade fac acili ilitatio ion in agric gricult lture and food products Globa obal Trade de in n Agricul ultur ure – Key y Featur ures ❑ Last 50 years - impressive growth in international trade; volume of global merchandise trade increased 17- fold, more than three times faster than the growth in world economic output. ❑ Agricultural trade growth at the rate of global economic output. ❑ Relatively slow growth in trade - failure to include agriculture fully in the multilateral trade negotiations under GATT that were so successful in reducing industrial tariffs - agricultural tariffs are as high now, on average, as industrial tariffs were in 1950. ❑ Effects of high border protection have been compounded by domestic support policies in many developed countries and in some developing countries by policies that promoted import substitution at the expense of international trade. ❑ Share of developing countries’ agricultural exports in their overall exports fell from nearly 50 percent at the beginning of the 1960s to barely more than 5 percent by 2000 ❑ Even for the group of the 49 LDCs, where agriculture is often the largest sector of the economy, the share of agricultural exports declined from more than 65 percent in the early 1960s to less than 15 percent by 2000

Tra rade fac acil ilit itatio ion in agri gricult lture and food products The cha hang nging ing lands ndscape pe of agric icult ultur ural l markets and nd trade de – Va Valu lue Cha hain in and nd Rela lated d Issues ❑ International agricultural and food markets come closer ❑ Rules-based trading environment - trade in agro-food products has grown stronger - , it’s becoming ‘global’ eg: food & clothing industry ❑ Increase in trade among emerging and developing countries ❑ Global agricultural production has also continued to increase, driven by rapid growth in a number of developing regions, in particular those of Asia and South America ❑ Increasing trade has also been accompanied by deeper integration of the world’s food system. A growing share of agro-food trade is taking place in global value chains (GVCs) – agricultural and food processing value chains that are spread over several countries – linking agro-food sectors and other sectors of the economy from across the world.

Tra rade facil ilit itatio ion in agr gric icult lture and food products Chal alle lenges: ❑ Standards ❑ Trade logistics ❑ Domestic infrastructure – cold storage and warehousing ❑ Trade Financing

Tra rade facil ilit itatio ion in agr gric icult lture and food products Way ay forw rwar ard : Framework for the long-term reform of agricultural trade and domestic policies, with the aim of leading to fairer competition and a less distorted sector: ❑ Market access ❑ Domestic support ❑ Export competition

SMEs par artic icip ipat atio ion in intern rnat atio ional al supply ly chain in ❑ Risin ing g glo lobal aliz izatio ion and economic ic integrat atio ion – enab able les SME MEs – gre great ater r part artic icip ipat atio ion in in GVCs ❑ Micro level vel – enhan ances technic ical al cap apac acit ity, gre reat ater r util iliz izatio ion of cap apac acit ity & enhan anced pro roductio ion capacit ity, buil ilds cre redit itabil ilit ity – easier ier to access fin inance, attract investors, sustai ainab able le way ay to intern rnat atio ional aliz ize ❑ Macro level vel – benefit its local al economy – brin ings job opport rtunit itie ies, incre reas ase export val alue and buil ilds foreig ign reserv rves, introduce new busin iness pra ractic ice and more advanced technolo logy gy

SMEs par artic icip ipat atio ion in intern rnat atio ional al supply ly chain in Barr rrie iers for r SME MEs in agri gricult ltural al trad ade • Costs of standards and certification • Implementation of required traceability systems • Compliance with regulatory and control requirements - SPS, quara rantin ine, fumig igat atio ion, import rt licenses, export rt licenses • Compliance to food safety and health concerns • Additional infrastructure requirements • Customs clearance procedures and logistics • Technical capacity

SMEs par artic icip ipat atio ion in intern rnat atio ional al supply ly chain in Way ay forw rwar ard: Role Ro le of go gover vernment: ✓ Pro rovi vide an enab abli ling envi vironment ✓ Improve ve access to fin inan ance ✓ Stre rengthen cooperat atio ion among g SME MEs ✓ Capac acit ity buil ildin ing (eg eg: knowled ledge about FTAs As)

Enab abli ling g envi vironment for r women in internatio ional al tra rade Key chal alle lenges: ❑ Cheap source of lab abor ❑ Access to fin inance ❑ Technolo logy gy tran ansfer/upgr grad ade ❑ Lack k ICT skill ills ❑ Limit ited access to inform rmatio ion and form rmal al network rks ❑ Limit ited abili ility to relo locat ate ❑ Domestic ic oblig ligatio ions

Enab abli ling g envi vironment for r women in internatio ional al tra rade Way ay forw rwar ard: ❑ Natio ional l leve vel l polic licy y chan anges – women inclu lusiv ive ❑ Main instream gender in the imple lementat atio ion of FTAs As – inclu lude trade & gender r chapters ❑ Access the potentia ial l gendere red impac act of trad rade re reform rms ❑ Capac acit ity y build ildin ing of women in fin inancia ial l lit iterac acy ❑ Shif ifts in socio io-cult ltural l attit itudes

Tha hank You ou!