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UNCTAD Multi-year Expert Meeting on TRADE, SERVICES AND DEVELOPMENT Water and Sanitation, Energy and Food-related Logistics Services Geneva, 7-8 May 2018 Trade in logistics services and food losses reduction Session 4 by Mr. John Drummond Head Trade in Services Division Trade and Agriculture Directorate Organization for Economic Cooperation and Development The views expressed are those of the author and do not necessarily refmect the views of UNCTAD.

SESSION 4: TRADE IN LOGISTICS SERVICES AND FOOD LOSSES REDUCTION UNCTAD Multi-Year Expert Meeting on Trade, Services and Development Geneva, 7-8 May John Drummond, Head of Division, Trade in Services OECD

Evolution of trade volume for merchandise trade and agricultural trade Merchandising Trade Agricultural Trade Index 2001 = 100 200 180 160 140 120 100 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: OECD-FAO Agricultural Outlook (2017)

Food loss along the value chain Source: OECD (2014)

Efficient logistics services deepen integration into global value chains Lower cost and Integrated enhanced point-to-point competitiveness supply for users of LS management services Efficient logistics services Just-in-time delivery

Integrated logistics services Cargo Storage and handling warehousing Freight Customs forwarding brokerage

OECD Services Trade Restrictiveness Index • Instrument to identify and catalogue regulatory barriers to services trade • Composite indices give a snapshot of the level of restrictiveness • Coverage: – 44 countries – 22 sectors – 4 years: 2014-2017

Common barriers to logistics services All Individual licenses required for different logistics services Operation of cargo- Service provision is reserved for statutory monopoly or granted… Cross-subsidisation is not prohibited (cargo handling at airports) handling Separation of accounts is not required (cargo handling at ports) Cross-subsidisation is not prohibited (cargo handling at ports) National, state or provincial government control at least one… Countries Service provision is reserved for statutory monopoly or granted… Operation of storage with and warehousing restrictive Prices or fees are regulated (customs warehouses) answer Limitations on working hours of operation for storage and… Licences are subject to quotas or economic needs test (customs… National, state or provincial government control at least one… Long duration for customs clearance (more than one day) Nationality or citizenship required for customs brokerage Customs The release of goods is not possible before determination and… Pre-arrival processing is not possible National, state or provincial government control at least one… 0 5 10 15 20 25 30 35 40 Source: OECD STRI (2017)

Mobility of transport crew is essential for timely delivery of goods • Visa regime for transport crew: – Visas on arrival or visa exemption are available for temporary entry/ transit of crew – Duration of visa for crew: number of months allowed by the visa – Multiple entry visas are allowed for crew Number of STRI countries: restrictions in special visa regimes, by transport mode Measure Air Maritim e Road Visas on arrival or visa exemption 8 10 29 Short duration 8 6 5 Restrictions on multiple entry visas 4 4 10

Services and shipping times 20 18 16 14 12 Days 10 High STRI Low STRI 8 6 4 2 0 Exports Imports Exports Imports Exports Imports Exports Imports Martime Logistics cargo handling Logistics storage Road 9

Trade barriers increase costs for logistics suppliers Average estimated tax-equivalent of services trade restrictions, by sector, 2014 % 90 80 70 60 50 40 30 20 10 0 Source: OECD (2017), Services Trade Policies and the Global Econom y , OECD Publishing, Paris,http:/ / dx.doi.org/ 10.1787/ 9789264275232-en

Efficiency at ports enable logistics services providers Cargo-handling STRI 0,5 Distance from best practice port infrastructure 0,45 60 CHN IDN 30 0,4 CRI 10 0,35 BRA IND ZAF ISL COL MEX TUR ISR NOR NZL 0,3 AUS BEL GRC SWE 0,25 USA CHL SVN JPN ITA EST CAN FIN IRL ESP 0,2 NLD FRA POL GBR KOR PRT LTU 0,15 DEU LVA 0,1 0,05 0,1 0,15 0,2 0,25 0,3 0,35 0,4 0,45 0,5 Storage and warehouse STRI

Tightening regulatory environment for most logistics and transport services Cumulative trade liberalisations (2016 to 2017) Cumulative trade restrictions (2016 to 2017) 0,3 0,25 0,2 0,15 0,1 0,05 0 -0,05 -0,1 -0,15 Sound recording Broadcasting Freight forwarding Storage and warehousing Cargo-handling Commercial banking Motion pictures Telecommunications Computer services Custom brokerage Rail freight transport Distribution services Road freight transport Air transport Maritime transport Courier services Accounting services Insurance Legal services Construction Engineering services Architecture services Digital network Transport and distribution supply chain Market bridging and Physical supporting services infrastructure services

More information about the OECD STRI Regulatory Compare Policy database countries simulator Mobile Country and Research application sector notes papers

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STRI Cargo-handling 2016 1 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 AUS AUT BEL BRA CAN CHE CHL CHN COL CRI CZE DEU DNK ESP EST FIN FRA GBR GRC HUN IDN IND IRL ISL ISR ITA JPN KOR LTU LUX LVA MEX NLD NOR NZL POL PRT RUS SVK SVN SWE TUR USA ZAF Restrictions on foreign entry Restrictions to the movement of people Other discriminatory measures Barriers to competition Regulatory transparency Average STRI 2014 OECD Trade and Agriculture Directorate 15

STRI Storage and warehousing 2016 1 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 AUS AUT BEL BRA CAN CHE CHL CHN COL CRI CZE DEU DNK ESP EST FIN FRA GBR GRC HUN IDN IND IRL ISL ISR ITA JPN KOR LTU LUX LVA MEX NLD NOR NZL POL PRT RUS SVK SVN SWE TUR USA ZAF Restrictions on foreign entry Restrictions to the movement of people Other discriminatory measures Barriers to competition Regulatory transparency Average STRI 2014 OECD Trade and Agriculture Directorate 16

STRI Freight forwarding 2016 1 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 AUS AUT BEL BRA CAN CHE CHL CHN COL CRI CZE DEU DNK ESP EST FIN FRA GBR GRC HUN IDN IND IRL ISL ISR ITA JPN KOR LTU LUX LVA MEX NLD NOR NZL POL PRT RUS SVK SVN SWE TUR USA ZAF Restrictions on foreign entry Restrictions to the movement of people Other discriminatory measures Barriers to competition Regulatory transparency Average STRI 2014 OECD Trade and Agriculture Directorate 17

STRI Customs brokerage 2016 1 0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0 AUS AUT BEL BRA CAN CHE CHL CHN COL CRI CZE DEU DNK ESP EST FIN FRA GBR GRC HUN IDN IND IRL ISL ISR ITA JPN KOR LTU LUX LVA MEX NLD NOR NZL POL PRT RUS SVK SVN SWE TUR USA ZAF Restrictions on foreign entry Restrictions to the movement of people Other discriminatory measures Barriers to competition Regulatory transparency Average STRI 2014 OECD Trade and Agriculture Directorate 18