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International Transport and Trade Facilitation in North Africa

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International Transport and Trade Facilitation in North Africa International Transport and Trade Facilitation in North Africa International Transport and Trade Facilitation in North Africa To order copies of International Transport and Trade Facilitation in North Africa by the Economic Commission for Africa, please contact: Publications Economic Commission for Africa P.O. Box 3001 Addis Ababa, Ethiopia Tel: +251 11 544-9900 Fax: +251 11 551-4416 E-mail: [email protected] Web: www.uneca.org © 2016 Economic Commission for Africa Addis Ababa, Ethiopia All rights reserved First printing February 2016 ISBN: 978-99944-92-32-9 e-ISBN: 978-99944-92-52-7 Material in this publication may be freely quoted or reprinted. Acknowledgement is requested, together with a copy of the publica- tion. This publication has received, among others , conclusions and recommendations of the ad-hoc expert group meeting on « International Transport and Trade Facilitation inNorth Africa» organized by SRO-NA , in Rabat, Morocco , 25-26 September 2014. Under the direction of Karima Bounemra Ben Soltane , Director of the Subregional Office of the United Nations Economic Commission for Africa, this publication has been coordinated by Abdoul Kane , Economist, Chief of sub-regional initiatives in SRO-NA. This publica- tion has been prepared by Abdoul Kane and Aziz Jaid, Associate Economist, and has benefited from the contribution of Nabil Boubra- himi, Driss Slim and Khalid El Bernoussi, ECA Consultants. Note The designations used and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Economic Commission for Africa (ECA) concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Designed in Addis Ababa, Ethiopia by the ECA Printing and Publishing Unit. ISO 14001:2004 certified. Cover photo: © stockphoto mania, shutterstock.com Table of Contents Foreword ....................................................................................................................................................v Acronyms ...................................................................................................................................................vii General introduction ...................................................................................................................................ix I. Brief review of existing national regulatory frameworks and policies.........................................................1 1. Objectives and scope of national trade facilitation policies ..................................................................................................1 2. Regulatory frameworks governing trade, transportation and transit between North African countries ....................................................................................................................................7 II. Current situation and performance level of transport and trade-related infrastructure ........................................................................................................................11 1. Morocco: a satisfactory level of transport-related infrastructure and logistics ....................................................................11 2. Tunisia: Sustained efforts to improve transport and trade infrastructure ............................................................................12 3. Mauritania: an insufficient level of transport-related infrastructure and trade ....................................................................14 4. Algeria: Significant investments to develop infrastructure networks ...................................................................................15 5. Libya: low level of trade-related infrastructure ....................................................................................................................15 6. Typology of weaknesses affecting trade and transport infrastructure in North Africa .........................................................16 III. Border administrative formalities and services .......................................................................................19 1. Plethora of paperwork and complex procedures ................................................................................................................20 2. Quality of border services ......................................................................................................................................................26 3. Analysis of the indirect costs of an international commercial transaction .............................................................................................................................................................34 IV. International norms and standards in trade facilitation .........................................................................39 1. Best practices in transport and trade facilitation ...................................................................................................................39 2. Main international transport and trade facilitation instruments ..........................................................................................41 3. Efforts by North African countries to align with international reference bodies ....................................................................................................................................................45 V. Implications and stakes of the Bali agreement for north Africa .................................................................47 1. Summary of the Bali Agreement obligations and special and differential treatment for developing countries .........................................................................................................................48 2. Achievements and insufficiencies of North African countries in .........................................................................................56 light of the Bali Agreement VI. Outline of a regional plan of action to improve trade and transport .............................................................................................................................................67 1. Consolidating and optimizing logistics infrastructure related to trade and transit at border crossings .........................................................................................................................................69 2. Revamping the regulatory and institutional framework .....................................................................................................73 3. Strengthening national capacities of North African countries in the area of trade ....................................................................................................................................................................76 4. Ensuring the consolidation and sustainability of interstate cooperation through central government agencies and border services ......................................................................................................79 Conclusion ..................................................................................................................................................83 References ..................................................................................................................................................85 iii Foreword The theory of free trade areas and customs unions laid out in the early 1950s (Viner, J.) underscored the positive correlation between trade and growth. This finding was confirmed and supported by empiri- cal data, including the rise of East Asia and South-East Asia over the past thirty years, which was mainly driven by the liberalization of trade and the choice made to produce for the global market. Trade li- beralization and facilitation, whether they are the result of national reforms - under regional free trade agreements - or of multilateral negotiations (WTO), contribute to economic growth through various channels: expanded market size; increased returns of scale; more efficient allocation of resources; sha- ring of technological innovations among partners through FDI, or the need to upgrade services due to competition among the actors concerned. The increase noted in free trade agreements since the entry into force of the Final of the Uruguay Round1 (more than 200) confirmed the strategic role of an expanded market in growth dynamics in developing countries as well as among key global economic players. The dismantling or reduction of tariff and non-tariff trade barriers increases the volume of trade between partner countries, promotes access to FDI as well as cross-border investment, and enhances economic interdependence, which, in turn, facilitates political dialogue between states. As far as North African countries are concerned, the development of trade in general, and of intra-re- gional trade in particular, has invariably been one of the objectives of national development strategies. Since the beginning of the 1990s, these countries embarked on policies to expand and diversify their markets through the conclusion of various partnerships,
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