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G. Trade94. The concept of a working group to address issues related to trade was first agreed to by the GMS countries at the Third Ministerial Meeting in 1994. Subsequent Ministerial Meetings in 1997 and 1998 further discussed the thrusts of trade cooperation, given that ASEAN was actively involved in the sector and that five of the GMS countries are already members of ASEAN. At the Eighth Ministerial Conference in October 1998, the GMS countries agreed that the focus of cooperation in trade would be on trade facilitation. The rationale for a focus on trade facilitation includes: (i) the need to establish quickly an attractive trade environment in the GMS, especially to address the challenges arising from the economic crisis; and (ii) the need to ensure that the investment in physical infrastructure has clear economic payoffs. 95. The GMS countries have taken important steps towards trade liberalization, both unilaterally and collectively in the context of their membership in ASEAN, APEC, or WTO. Significant progress has also been made in related reforms such as the removal of non-tariff barriers, privatization, deregulation, and elimination of international discretion in matters of international trade. Moreover, subregional trade has benefited from improvements in transportation and telecommunications infrastructure as well as recent agreements to facilitate the cross-border movement of goods and people along major transport routes. 96. To further accelerate trade in the subregion, and between the GMS and the international community, the Inception Meeting of the Trade Facilitation Working Group (TFWG) held in November 1999 identified nine priority projects but agreed to proceed with the immediate implementation of the first four. The first project on the Establishment of National Institutional Arrangements for Trade Facilitation involves the setting up of coordination mechanisms for trade facilitation at the national level. The mechanism to be established would serve as the focal point for coordination among various agencies involved in trade facilitation, interfacing with external trade facilitation institutions, and serving as a forum for dialogue between the private sector and the government agencies. The second project on National Studies and Seminars on Regulatory, Procedural, and Documentation Systems for International Trade envisions the conduct of seminars that will help promote a detailed understanding of the existing regulations, procedures, and documentation necessary for cross-border trade. The first and second projects are already receiving support from ESCAP. 97. The third project will involve the pilot testing of trade facilitation arrangements in the GMS economic corridors. The actual results from the pilot activity will be useful in determining possible wider application of trade facilitation measures in the GMS. The fourth project involves customs cooperation directed at simplifying customs procedures and controls that impinge on trade facilitation in the subregion. An ad hoc meeting of customs officials in the GMS held in January 2000 further identified the establishment of a single-window inspection among the GMS countries. Customs administrations would also seek agreement on: single-stop inspection; coordination of hours of operation for adjacent frontier crossings; and making available and accessible respective customs procedures and regulations. The customs administrations in the GMS would move toward an electronically based customs procedure system, and agree on exchanging information among customs authorities.
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