TRADE, SERVICES AND DEVELOPMENT Water and Sanitation, Energy and - - PowerPoint PPT Presentation

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

80 100 120 140 160 180 200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Index 2001 = 100

Merchandising Trade Agricultural Trade Source: OECD-FAO Agricultural Outlook (2017)

Food loss along the value chain

Source: OECD (2014)

Efficient logistics services deepen integration into global value chains

Integrated point-to-point supply management Just-in-time delivery Lower cost and enhanced competitiveness for users of LS services

Efficient logistics services

Cargo handling Storage and warehousing Freight forwarding Customs brokerage

Integrated logistics services

• 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

OECD Services Trade Restrictiveness Index

Common barriers to logistics services

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

Countries with restrictive answer

Source: OECD STRI (2017)

• 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

Mobility of transport crew is essential for timely delivery of goods

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 Number of STRI countries: restrictions in special visa regimes, by transport mode

Services and shipping times

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

Trade barriers increase costs for logistics suppliers

10 20 30 40 50 60 70 80 90 %

Average estimated tax-equivalent of services trade restrictions, by sector, 2014

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

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

Tightening regulatory environment for most logistics and transport services

• 0,15
• 0,1
• 0,05

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

Regulatory database Compare countries Policy simulator Country and sector notes Research papers

More information about the OECD STRI

Mobile application

Access all of the information from the Trade & Agriculture Directorate at: www.oecd.org/tad You can reach us via e-mail by sending your message to the following address: tad.contact@oecd.org We invite you to connect with us on Twitter by following: @OECDtrade

We look forward to hearing from you!

Contact us

STRI Cargo-handling 2016

OECD Trade and Agriculture Directorate 15

0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 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

STRI Storage and warehousing 2016

OECD Trade and Agriculture Directorate 16

0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 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

STRI Freight forwarding 2016

OECD Trade and Agriculture Directorate 17

0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 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

STRI Customs brokerage 2016

OECD Trade and Agriculture Directorate 18

0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 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