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Regions and Countries Regional Cooperation Greater Mekong Subregion Publications Proceedings of Ministerial, Forum, and Working Group Meetings Inception Meeting of the Trade Facilitation Working Group
Inception Meeting of the Trade Facilitation Working GroupIntroductionThe Inception Meeting of the Trade Facilitation Working Group (TFWG-1) was held in Bangkok, Thailand on 1-2 November 1999. The Meeting was hosted by the Royal Thai Government, with the assistance of the Asian Development Bank (the Bank). The GMS countries and the Bank expressed their appreciation to the Royal Thai Government for the hospitality, organization, and assistance provided to the Meeting. The Meeting was convened following the directive of the 8th Ministerial Conference held in October 1998 to convene the Trade Facilitation Working Group at an early date, and initiate trade facilitation activities in the GMS to help in the process of recovery from the effects of the economic crisis. The Inception Meeting finalized the report of the Trade Facilitation Working Group to the 9th Ministerial Conference to be held in December 1999 and identified and prioritized specific projects for the future work agenda of the TFWG. The Meeting agenda is attached as Appendix 1. The participants included delegations from Cambodia, the People's Republic of China, Lao People's Democratic Republic, Myanmar, Thailand and Viet Nam. Representatives from the UN Economic Commission for Asia and the Pacific (UN-ESCAP), and Bank staff and consultants also participated in the Meeting. Indonesia, Japan External Trade Organization (JETRO), Japan Overseas Development Corporation (JODC), and Spain were represented as observers. The list of participants and observers is attached as Appendix 2.
Opening SessionHis Excellency, Dr. Supachai Panitchpakdi, Deputy Prime Minister and Minister of Commerce inaugurated the Meeting and delivered the welcome and opening remarks. He stated that the six countries participating in the Program of Economic Cooperation in the Greater Mekong Subregion (the GMS Program) all share the common goal of promoting sustainable economic growth and improvements in the living standard of the people in the subregion. Although the economic crisis has affected the various countries in the subregion, it has not undermined the fundamental merits of regional cooperation. Trade facilitation in the GMS is an important means to promote economic growth and expand trade among the participating countries. The key issues related to trade facilitation should be focused on the reduction or elimination of non-tariff measures especially customs procedures, increased transparency, exchange of trade information, more participation by the private sector, and access to information by interested parties including government and the private sector. Within the context of globalization, cooperation in trade facilitation in the GMS will also provide a stepping stone that would contribute significantly to the multilateral process. In his opening statement, Mr. Filologo Pante, Jr., Programs Manager, Division 3, Programs Department (West), ADB mentioned that trade among the GMS countries has benefited from improvements in infrastructure which was the initial focus of the GMS Program. He emphasized however, that there are now compelling reasons for addressing trade facilitation measures more directly. First, there is a need to establish quickly, an attractive trade environment in the GMS as part of the efforts to recover from the effects of the economic crisis. Second, there is a need to ensure that investments in infrastructure have clearer economic pay-offs. Third, as the GMS countries become gradually integrated with the regional and global trading environment, there is a need to fast track improvements in trade facilitation measures. He reminded the GMS countries that in considering various activities for trade facilitation, it is important to build on national and regional initiatives, as well as the gains so far achieved under the GMS Program. Mr. Ravi Sawhney, Director, International Trade and Economic Cooperation Division, UN ESCAP cited two important dimensions of the work of the Trade Facilitation Working Group. Within the context of the GMS, it is important to develop the software that would maximize the investments in infrastructure. In the context of the international environment, trade facilitation is an important dimension of competitiveness since the manner in which trade is conducted will ultimately affect the price and quality of traded goods. He cited efforts of ESCAP to assist the GMS countries in preparing trade documentation systems that conform to international standards and incorporate best practices. He added that ESCAP is also promoting private sector participation in the GMS countries through the Private Sector Advisory Group under the Indochina Forum.
Briefing on the Work Program and Activities of the Subregional Transport ForumThe Meeting was briefed on the work program and activities of the Subregional Transport Forum since these are related to the work of the TFWG. The status of subregional transport projects was presented by Mr. Thomas F. Jones III, Officer in Charge, Transport and Communications Division (IWTC), Infrastructure, Energy, and Financial Sector Department (West), ADB, while the agreements on the cross-border movement of goods and people in the GMS were presented by Mr. Bruce Winston, Consultant, IWTC. The presentations highlighted the need for close coordination between and among the various ministries as the GMS Program moves from the "hardware" to the "software" aspects of cooperation.
Consideration and Finalization of the Draft Report and Future Work Program of the TFWGMr. Sudipto Mundle, Principal Country Officer and TFWG Coordinator, explained the process which was followed in preparing the Draft Report of the TFWG. The Bank essentially played a facilitating role in preparing the Draft Report, which was the result of extensive consultations with the GMS countries. These consultations were conducted in May and June 1999, following the preparatory workshop for the TFWG held in March 1999. The Draft Report was presented by Prof. Florian Alburo, TFWG Consultant, and Dr. George Abonyi, Senior Advisor, GMS Unit, for consideration by the Meeting. The GMS country delegations gave their comments on the report and suggestions for additional activities. These have been incorporated in the final Draft Report which is attached as Appendix 3. The Meeting adopted the Report and agreed on the following priority activities of the TFWG:
a) Establishment of National Institutional Arrangements for Trade Facilitation |
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