Trade in Transport Services in South Asia Prabir De RIS, New Delhi

Trade in Transport Services in
South Asia
Prabir De
RIS, New Delhi
18 April 2013
Outline
•
•
•
•
•
•
Importance of transport services
GATS and transport services
Transport services in South Asia
Major barriers to trade and transport servcies
Challenges
Recommendations
Why so important?
• Essential for the physical movement of goods and
services
– Produces tradable services
• Generates large scale employment (labour-intensive)
– Helps reduce poverty
• Transportation services is very unique in terms of
generation of capital as well as labour.
– In some transportation services sectors such as air
transportation, difficult to substitute capital for labour
Service links drive production network and
integration
Source: Kimura et al (2009)
Drivers of growth and rationale
• Trade in transportation services has grown rapidly, primarily
driven by its import.
• In a static sense, benefits coming out of transport services have
become negative or negligible for developing countries
– while import of transportation services has been helping
India’s trade to reach global market, surplus generated in
services trade sector is being wiped out by the rise in import
of transportation services.
• In a dynamic sense, benefits are large, having strong spill over
effects. The expansion of transportation services and the
emergence of new type of transportation services have been
driven by income-related demand shifts, technological
developments, falling costs of communications and the increased
presence of MNEs.
• Transportation services trade liberalization is a necessity for the
integration of the world economy.
Transport services in GATS
•
•
•
•
Air transport
Land transport
Maritime transport
Services auxiliary to all modes of transport —
Logistics services
Air transport services
• Air transport services are governed by a specific annex of the GATS.
• A first review took place in 2000-2003. The second review is on-going.
• In preparation for the second review, WTO developed the Quantitative
Air Services Agreements Review (QUASAR) database and methodology
to assess, on a universal scale, the degree of liberalization achieved by
the air transport sector.
• WTO also produced the Air Service Agreements Projector (ASAP), an
analytical tool that allows for the visualisation of elements of the
QUASAR database:
– information on an economy's network of bilateral Air Services Agreements
and correlated traffic flows.
• On 16 January 2013, the WTO released an update to its ASAP tool, based
on 2011 regulatory and traffic data.
Land transport
• Land transport sector covers a wide range of
activities which often have little in common.
• Some types of transport are highly capitalintensive (rail transport, pipelines), whereas
others require relatively little investment (taxis,
trucks, even coaches).
• Some types of transport employ large numbers of
people (rail transport, for example, taxis, HGVs),
whereas in other cases labour costs are of only
marginal importance (pipelines).
Maritime transport
• Maritime services have benefited in recent years by
considerable expansion fostered by globalization.
• Many restrictive maritime policies have disappeared or
ceased to be applied.
• Maritime services is an area where negotiations were
scheduled to improve on the commitments included in the
initial Uruguay Round schedules of commitments.
• Negotiations were originally due to end in June 1996 but
participants failed to agree on a package of commitments.
Talks resumed when the new services round of negotiations
started in 2000.
• Commitments already exist in some countries' schedules,
covering the three main areas in this sector: access to and
use of port facilities; auxiliary services; and ocean
transport.
Services auxiliary to all modes of
transport — Logistics services
• The sector includes cargo handling services,
storage and warehouse services, freight transport
agency services including other auxiliary
transport services, and other supporting and
auxiliary transport services (freight brokerage
services; bill auditing and freight rate information
services; transportation document preparation
services; packing and unpacking services; freight
inspection, weighing and sampling services; and
freight receiving and acceptance services).
Basic principles of GATS
• All services are covered by GATS
• MFN treatment applies to all services, except the oneoff temporary exemptions
• National treatment applies in the areas where
commitments are made
• Transparency in regulations, inquiry points
• Regulations have to be objective and reasonable
• International payments: normally unrestricted
• Individual countries’ commitments: negotiated and
bound
• Progressive liberalization: through further negotiations
GATS modes
• Services supplied from one country to another (e.g.
international air or ocean shipping), officially known as
“cross-border supply” (“mode 1”)
• Consumers or firms making use of a service in another
country (e.g. transport repair, fueling, etc.), officially
“consumption abroad” (“mode 2”)
• A foreign company setting up subsidiaries or branches to
provide services in another country (e.g. transport
company setting up operations in a country), officially
“commercial presence” (“mode 3”)
• Individuals travelling from their own country to supply
services in another (e.g. transport engineer or
consultants), officially “presence of natural persons”
(“mode 4”)
Transport services in South Asia
South Asia’s rising share in
world services trade
World
trade in
services
World trade
in transport
services
World
trade in
services
World
trade in
World
transport trade in
services services
World
trade in
transport
services
(%
1991
1991
2001
2001
2011
2011
Bangladesh
0.06
0.08
0.07
0.15
0.09
0.23
Bhutan
0.00
0.00
0.00
0.00
0.00
0.00
India
0.60
0.85
1.22
1.41
3.08
3.74
Maldives
0.01
0.01
0.02
0.01
0.03
0.01
Nepal
0.02
0.02
0.02
0.02
0.02
0.02
Pakistan
0.21
0.42
0.12
0.32
0.15
0.28
Sri Lanka
0.07
0.13
0.10
0.16
0.08
0.21
100.00
100.00
100.00
100.00
100.00
100.00
Source: BOPS, IMF
Transport services one of the major
contributors to services trade
1991
2001
2011
(%)
Bangladesh
37.26
48.56
Bhutan
India's Trade in Services in 2011
58.55
17.25
India
38.80
28.17
28.26
Maldives
19.44
15.62
9.27
Nepal
24.73
18.94
19.42
Pakistan
54.18
62.58
43.34
Sri Lanka
49.10
39.58
58.76
Source: BOPS, IMF
124.592, 48%
137.68, 52%
Export
India
South Asia having rising share in world
transport services, driven by India
% (share in world transport servcies
South Asia’s Share in
World Transport Services
5
5
4
4
3
3
2
2
1
1
0
Trade in Transport Services
1991
4.50
2001
2011
(US$ billion)
World
2.06
1.51
1991
Source: BOPS, IMF
2001
2011
497.30
749.80
1979.70
South Asia
7.50
15.44
89.02
India
4.22
10.55
74.12
India’s share in
South Asia (%)
56.25
68.30
83.26
Volume of transport services, 2011 –
South Asia
(US$ billion)
Export
Import
Total
Bangladesh
0.27
4.23
4.51
Bhutan
0.03
0.00
0.03
India
17.48
56.64
74.12
Maldives
0.06
0.17
0.23
Nepal
0.04
0.28
0.32
Pakistan
1.64
3.99
5.64
Sri Lanka
1.39
2.78
4.17
Source: BOPS, IMF
Trends in transport services
Export of Transport Services
Import of Transport Services
20.00
60.00
18.00
50.00
16.00
14.00
40.00
12.00
30.00
10.00
8.00
20.00
6.00
10.00
4.00
2.00
0.00
0.00
1991
1991
2001
2011
Bangladesh
Bhutan
India
Nepal
Pakistan
Sri Lanka
Source: BOPS, IMF
Maldives
2001
2011
Bangladesh
Bhutan
India
Nepal
Pakistan
Sri Lanka
Maldives
Trends in transport services, freight
Export
2005
2011
(US$ million)
Bangladesh
24.49
Bhutan
India
Maldives
32.11
Import
CAGR
(%)
4.62
2005
2011
(US$ million)
1304.92
0.07
3714.43
CAGR
(%)
19.05
0.11
4244.64
11453.22
17.99
14920.50
47321.00
21.21
5.00
15.29
20.49
68.38
125.02
10.58
78.03
152.49
11.81
Nepal
Pakistan
118.00
125.29
1.00
1837.00
2934.12
8.12
Sri Lanka
53.60
166.61
20.81
888.89
2048.71
14.93
Source: BOPS, IMF
Rising growth and increasing deficit in
transportation services
CAGR (%)
2001 - 1991 2011 - 2001
Bangladesh 10.16
15.10
Bhutan
India
9.60
21.53
Maldives
9.52
12.42
Nepal
1.27
10.39
Pakistan
1.30
9.05
Sri Lanka
6.69
12.99
Source: Calculated based on BOPS, IMF
Volume of Trade Deficit (US$ billion)
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
1991
-0.35
0.00
-2.27
-0.01
-0.06
-0.50
-0.24
2001
-0.96
0.00
-6.45
-0.03
-0.02
-0.74
-0.46
2011
-3.96
0.02
-39.16
-0.12
-0.24
-2.35
-1.39
Widening trade deficit
Passenger
2005
Freight
2011
(US$ million)
Bangladesh
-230.92
Bhutan
India
-452.15
2005
2011
(US$ million)
-1280.43
27.37
-3682.32
-0.04
-1923.96
-2501.00
-10675.86
-35867.78
Maldives
-24.31
-47.21
-63.38
-109.73
Nepal
-28.41
-68.16
-78.03
-152.49
Pakistan
173.00
37.48
-1719.00
-2808.83
Sri Lanka
62.31
166.53
-835.30
-1882.10
Source: BOPS, IMF
Three South Asian countries follow
world trend in services trade deficit
1991
Total
services
2001
Transport
services
Total
services
2011
Transport
services
Total
services
Transport
services
-2851.28
-3960.81
-35.03
24.64
(US$ billion)
Banglades
h
Bhutan
India
-264.23
-348.22
-5.10
-769.31
-960.02
-18.25
-1019.62
-2267.00
-2761.90
-6446.93
13086.00
-39163.90
Maldives
65.93
-9.44
244.24
-33.24
1440.96
-115.33
Nepal
55.91
-61.90
198.57
-24.35
81.32
-238.27
Pakistan
-783.28
-503.81
-871.00
-735.00
-2927.82
-2350.53
Sri Lanka
-215.89
-235.10
-394.02
-460.68
-928.04
-1385.24
-43500.00
-41300.00
-14100.00
World
Source: BOPS, IMF
-71400.00 201200.00 -231900.00
Major barriers and challenges to
services trade
Major barriers
• Large trade and investment barriers (visa
restrictions, domestic regulations, etc.)
• Inadequate infrastructure – national and
regional (inadequate & poor stock and missing
links in infrastructure)
• Absence of regional transit trade (no regional
transit)
• High trade costs (transport costs outweigh
tariffs)
• Others
Trade and connectivity flow – South Asia
with neighbouring regions – rising trade not
supported by adequate connectivity
East
Asia
Europe
Southwest
Asia
Central
Asia
South
Asia
Strong
Moderate
Middle east/
Gulf
Weak
Southeast
Asia
ANZ +
Pacific
Africa
Trade linkage (strong)
Source: De (2012)
Connectivity linkage (weak)
Logistics Performance Index
Country
India
Afghanistan
Bhutan
Nepal
Pakistan
2007
2012
2007
2012
2007
2012
2007
2012
2007
2012
LPI
3.07
3.12
1.21
2.24
2.16
2.38
2.14
2.20
2.62
2.53
Customs
2.69
2.70
1.30
2.22
1.95
2.14
1.83
2.07
2.41
2.05
2.90
2.91
1.10
1.87
1.95
1.83
1.77
1.80
2.37
2.08
International
shipments
3.08
3.13
1.22
2.24
2.06
2.44
2.09
2.21
2.72
2.91
Logistics
competence
3.27
3.16
1.25
2.09
2.18
2.24
2.08
2.07
2.71
2.28
Tracking &
tracing
3.03
3.14
1.00
2.37
2.27
2.54
2.33
2.26
2.57
2.64
Timeliness
3.47
3.61
1.38
2.61
2.57
2.99
2.75
2.74
2.93
3.08
Infrastructure
Source: World Bank
Trading across Border
Afghanistan
Bhutan
India
Nepal
Pakistan
2006
2013
2006
2013
2006
2013
2006
2013
2006
2013
Documents to
export (number)
10
10
9
9
9
9
11
11
8
8
Time to export
(days)
67
74
38
38
27
16
43
41
31
21
864
1,120
1,600
1,975
996
660
Cost to export
(US$ per
container)
2,180 3,545 1,150 2,230
Documents to
import
(number)
10
10
12
12
11
11
11
11
8
8
Time to import
(days)
80
77
38
38
41
20
35
38
39
18
1,324
1,200
1,725
2,095
317
705
Cost to import
(US$ per
container)
Source: World Bank
2,100 3,830 1,780 2,330
Some major challenges
•
•
Cumbersome procedures, archaic laws and nontransparency in domestic regulations
Poor logistics infrastructure and complex supply chain
–
•
•
•
•
•
High time and cost to export and import
Unfavourable payment system, mistrust and high bank &
insurance premium
Lack in simplification and harmonization of trade
procedures, more particularly at the border. Absence of
regional corridor and modern corridor management
techniques
No master plan for South Asia connectivity as yet
Lack of financing and no resource mobilisation plan for
implementing regional connectivity projects
No regional institution for trade facilitation including
services trade.
Regional corridors in neighbouring regions
Central Asia
CAREC
Economic
Corridors
South Asia
SRMTC?
Southeast Asia
GMS Economic
Corridors
IMT-GT
Economic
Corridors
BIMP-EAGA
Regional
Corridors
Trade and connectivity flow within South Asia
– lopsided flows, but having high subregional potential
Central
Asia
WSAS
ESAS
Nepal
AFG
Bhutan
Pakistan
India
Southwest
and
Gulf
Corridor
modes
Source: De (2012)
Bangladesh
38%
share in
regional
trade
(2011)
ILS
Air
Ocean
Land
MDS
29% share in
regional
trade (2011)
Sri Lanka
Strong
Moderate
Weak
Southeast
and
East Asia
Established railways, but gauge changes
lead to multiple handling
Source: taken from TAR, UNESCAP
Multiple handling in rail and road
• Trade
Procedures at
South Asia
border points
Source: Based on ADB
Supply Chain complexity
Need to facilitate express delivery chain in
South Asia
Pick-up
Source: Author
Local
station
Gateway
export
Hub
Gateway
import
Local
station
Delivery
A Thai Case BPA Example
Documents related to Exportation of Rice
(from purchase order until the cargo container leaving the sea port)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
36 Documents involving 15 parties, and more than 1,140 data elements to be filled in
Proforma Invoice (35)
21.
Purchase Order (39)
Buy/Pay
Docs
22.
Commercial Invoice (51)
23.
Application for Letter of Credit (24)
24.
Letter of Credit (32)
25.
Packing List (25)
Cargo Insurance Application Form (20)
Cover Note (23)
Transport Docs 26.
27.
Insurance Policy (24)
Booking Request Form – Border Crossing (25)
28.
Booking Confirmation – Border Crossing (30)
29.
Booking Request Form – Inland Transport (16)
Booking Confirmation – Inland Transport (18)
30.
Bill of Lading (42)
31.
Empty Container Movement Request (TKT 305)
32.
(20)
33.
Request for Port Entry (TKT 308.2) (27)
Equipment Interchange Report (EIR) (24)
34.
Master Sea Cargo Manifest(17)
House Sea Cargo Manifest (37)
Export Declaration (114)
Good Transition Control List (27)Regulatory Docs
Application for Permission to Export Rice (KP. 2)
(24)
Sales Report (KP 3) (21)
Application for the Collection of the Permit for the
Export of Rice (A. 3) (35)
Permit for the Export of Rice (A. 4) (35)
Application for Certificate of Standards of Product
(MS. 13/1) (44)
Certificate of Analysis (17)
Certificate of Product Standards (MS. 24/1) (45)
Certificate of Fumigation (21)
Application for Phytosanitary Certificate (PQ. 9)
(29)
Phytosanitary Certificate (33)
Application for Certificate of Origin (42)
Certificate of Origin (38)
Container Loading List (28)
35.
Container List Message (32)
36.
Outward Container List (34) * Number in parenthesis is the no. of data elements
A Business Process Analysis
- in Exporting Jasmine Rice from Thailand -
16 days
are required for these procedures
and documents transaction
Day
Time-Procedure Chart
20
4 days
16
15
3 days
10
2 days
5
2 days
2 days
0
2
3 days
4
6
1 day
8
7
9
10
1 day
11
1 day
13
14
12
5
3
1
1
2
3
4
5
6
1. Buy - Conclude sales contract and trade terms
2. Obtain export permit
3. Arrange transport
4. Arrange the inspection and fumigation
5. Obtain cargo insurance
6. Provide customs declaration
7. Collect empty container(s) from yard
7
8
9
10
11
12
13
14 Process
8. Stuff container(s)
9. Transfer to port of departure
10. Clear goods through customs
11. Handle container at terminal and stow on vessel
12. Prepare documents required by importer
13. Verify the accuracy/authenticity of exported cargo
14. Pay - Claim payment of goods
Export of carpet by Nepal through Port of Calcutta
Product: Carpet
Time procedure chart
Export and import time in transit corridor
Process Product
Exporter Importer
Export
Nepal
Carpet
Import CSO
Third
country
Nepal
Third
country
Procedure
Buys (pre-shipment procedure)
Export/Import procedures
Documents preparation
Inland transportation
Time at Customs
Time at border
Time at transit
Pay
Time
(Days)
5.00
8.00
2.00
2.00
2.00
9.00
1.00
Buys (pre-shipment procedure)
4.00
Export/Import procedures
Documents preparation
Time at transit
Time at Customs
Time at border
Inland transportation
10.00
11.00
1.00
1.00
1.00
Pays (post-shipment procedure)
1.00
Good progress, but manual handling of
documentation still in South Asia
Indian Export of Fabrics to Bangladesh, 2010
Sr. No.
Process
Submission of Documents
1
Buy
Electronic and manual
2
Obtain export permit
Electronic
3
Contract registration and inspection
Electronic and manual
4
Excise inspection
Manual
5
Obtain cargo insurance
Electronic
6
Arrange pre-shipment inspection
Manual
7
Obtain certificate of origin
Electronic and manual
8
Obtain SAFTA certificate
Electronic and manual
9
Submit customs declaration
Electronic
10
Arrange transport for loading
Manual
11
Transfer to LCS
Manual
12
Parking of goods
Manual
13
Customs clearance
Electronic and manual
14
Send the goods to importer’s warehouse
Manual
15
Pay
Electronic
Absence of international conventions
on trade & transport facilitation
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
Convention on
Road Traffic (1968)
No
Yes
No
Yes
No
No
Yes
Yes
Convention on Road Signs
and Signals (1968)
No
No
No
Yes
No
No
Yes
No
Customs Convention on
Temporary Importation of
Commercial Road Vehicles
(1956)
Yes
No
No
No
No
No
No
No
Customs Convention on
Containers (1972)
No
No
No
No
No
No
No
No
Convention on
International Transport of
Goods under Cover of TIR
Carnets (1975)
Yes
No
No
No
No
No
No
No
Convention on the
Contract for the
International Carriage of
Goods by Road (1956)
No
No
No
No
No
No
No
No
Convention on the
Harmonization of Frontier
Controls of Goods (1982)
No
No
No
No
No
No
No
No
Convention
Demonstration run of container train
between ECO and SAARC?
Source: Drawn based on information of ECO & UNESCAP
SAARC connectivity – mixed progress
•
•
•
Negotiation of Regional Transport and Transit Agreement, and a Regional Motor
Vehicle’s Agreement (ongoing).
SAARC Expert Group finalized the text of the Regional Agreement on Railways in August
2011.
Launch of feasibility studies of pilot projects:
–
–
–
–
–
–
–
–
–
•
On-going projects:
–
–
–
–
–
•
Birganj and Kathmandu (160 km) completed in October 2008 – negotiation ongoing
• Kathmandu-Birgunj-Kolkata/Haldia – rail corridor
Birgunj-Katihar-Singhabad-Rohanpur-Chittagong with links to Jogbani, Biratnagar and Agartala – rail
corridor
Agartala-Akhaura-Chittagong – rail corridor
• Construction between Agartala and Akhaura (14 km) is about to commence.
Phuntsholing and Hashimara – road corridor
Ferry link - between Colombo and Tuticorin (started already) and Colombo and Cochin
Karachi – Mumbai ferry link
Air link - Malé-New Delhi and Islamabad-New Delhi;
Establishment of modern border crossing facility at Phuntsholing.
Indian ocean cargo cooperation
Feasibility study for India - Bhutan rail link
Construction of railway line from Jiribam-Tupui (near to Imphal, India) has commenced
Construction of Kaladan Multimodal Transport project has started in December 2010
Railway infrastructure improvement projects in Sri Lanka
Intermodal connectivity – Air Services Agreement (single ticket to fly between South Asian nations)
Demonstration run of container train involving Bangladesh, India and Nepal is being
planned
Progress in modernizing and opening of
land customs stations
• India’s Integrated Check Post (ICPs) project – Attari
already started working since April 2012 [spread over
118 acres, a passenger terminal 9,600 s.m; cargo
terminal 4,700 s.m; separate import and export
warehouses, 10,000 s.m., parking space 50,000 s.m.,
etc.)
• Opening of Banglabandha – Fulbari land port for
trade
• Opening of border haat in Baliamari (Bangladesh) –
Kalaichar (India), and fFew more border haats (e.g.
between India and Bangladesh) coming up
Progress in Customs cooperation
• SAARC Agreement on Mutual Administrative Assistance in
Customs Matter, signed in 2005
• The Seventh Meeting of the Sub-Group on Customs Cooperation
(11-12 February 2010) made following recommendations with a
view to facilitating trade in goods in SAARC.
– Building infrastructure including roads and railways networks near the
LCSs.
– Customs clearance procedures at LCSs need to be smoothened;
– Customs Administrations may consider a system of customs facilitation in
which export documentation of one Member State could be considered by
the Customs Administration in the importing country for the purposes of
assessing and clearing the consignment.
– Need for developing an Electronic Data Exchange System within the
region, including at LCSs, with a view to ensure better facilitation of trade
in goods among the SAARC countries including improved compliance.
– SAARC Secretariat to develop a regional/sub-regional project to set up
automated customs clearing mechanism at the designated LCSs.
– Harmonisation of 8-digit tariff lines is needed, and in order to make this
task easier, all Member States would further provide upto only 100 8-digit
tariff lines with a trade potential of 75% (in value terms) in the region.
Recent development in Customs cooperation
• Declaration of the Fifteenth Meeting of the Committee on
Economic Cooperation - Maldives, 15-16 July 2012 (Source:
SAARC Secretariat Press Release July 24, 2012)
– The Meeting recognised delays in customs clearance
procedures and decided that henceforth electronic copies
of specimen signatures and seals of officials authorised to
sign SAFTA Certificates of Origin may also be accepted in
addition to sending the original copies of such documents
in order to save time and to ensure that the
consignments are not held up at the customs border
points.
• India – Pak customs cooperation agreement, mutual
recognition of standards and redressal of trade disputes
Encouraging progress in transit
• Common transit is must for a common market
• All SAARC countries have in-principally agreed to regional
transit.
• Motor Vehicle Agreement is being negotiated.
• SAARC Expert Group finalized the text of the Regional
Agreement on Railways in August 2011.
• Sub-regional transit has been agreed between India, Nepal,
Bhutan and Bangladesh.
– Bilateral document between India and Bangladesh signed
during the state visit of Indian PM to Bangladesh in
September 2011 to facilitate overland transit traffic between
Bangladesh and India
– Demonstration run of container train between Bangladesh,
India and Nepal is getting ready.
• Huge trade opportunities if Afghanistan – Pakistan Transit
Agreement covers Western South Asia and Central Asia
Subregional transit better option to open
regional transit
ESAS
AGH
NPL
BHU
BDG
PAK
IND
Proposed transit
WSAS
SOUTH ASIA
Source: Author
ESAS: Eastern South Asia Subregion
WSAS: Western South Asia Subregion
Linking South Asia with neighbours
• Uzbekistan – Afghanistan railway line (a section till
Mazar-i-Sharif already opened)
• Highway in Afghanistan, aided by India
• TAPI gas pipeline
• China – Nepal highway and railway
• India – Nepal railway project, India – Bhutan railway
project, etc.
• India – Myanmar – Thailand trilateral highway (a
section already in operation)
• India – ASEAN ocean shipping network
• India – ASEAN open sky
• Others
Three important developments on regional
connectivity (Strong Impact on South Asian
Trade Flow)
1. Transit for traffic between India, Bangladesh,
Nepal, and Bhutan.
2. Integrated check posts (ICP) in Attari in Punjab,
Moreh in Manipur, Petrapole in West Bengal,
and Raxul in Bihar.
3. Pakistan – ECO and India – ASEAN connectivity
projects, particularly Mekong – India Economic
Corridor (MIEC) and BIMSTEC Trilateral
Highway
Policy options
• Overland connectivity is not a distant dream, it would
increase transport services trade
– Strengthen Afghanistan - India – Pakistan road, rail and air
link
– South Asia Economic corridor!
• More direct links among ports. Few ports are directly
connected
– No direct call of container shipping
• Open sky???…. few airports are directly connected.
– New routes for cargo + passengers
– Complete ASA, & implement with all South Asian countries
Fostering South Asia transport services:
Enabling environment
1. Accession to the International Conventions
2. Multimodal Transport and Transit
3. Strengthening and Harmonizing Rules, Regulations,
and Standards
4. Demonstration Projects
5. Financing Cross-border Transport Projects
6. Strengthening Coordination among Countries and
Stakeholders
7. Closer Cooperation on Security
8. Strengthening Regional Cooperation
Policy recommendations
Simplification of domestic regulation
• Domestic regulations perform the role of tariffs in
regulating services.
• Domestic regulations need to be disciplined to help
the growth of the services sector and exports
– Also need to retain those essential domestic
regulations which support the growth of the
sector itself.
Liberalisation of transport services
• Liberalization of trade in transportation services is
must. Reforms should be undertaken to strengthen
domestic transport services.
• Liberalisation would encourage:
– FDI flows,
– integration national economies more effectively
– reduce income and other disparities within and among
countries.
Improvement in transport
infrastructure
• Countries are characterized by high restrictions in services
trade as well as dearth of infrastructure.
• Services trade facilitation indicators focus on both
infrastructural barriers and regulated market structure.
• Infrastructure development would facilitate trade and income
• Convert land-locked into land-linked country
• Regional infrastructure and transit more important for LLDCs.
• Regional infrastructure fund important to support the
development transport infrastructure
• Border infrastructure development
• More involvement of private sector and PPP initiative.
Some specific recommendations
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Strengthen cross-border infrastructure (move from road corridors to
economic corridors)
Accept subregional and subsequently regional transit
Fast track lane and priority of goods in transit to cross the border
Set-up SAARC Single Window (Customs) (pilot run of authorized economic
operator, AEO; and mutual recognition agreement)
Simplification and harmonization of trade procedures, more particularly at
border.
Introduce modern corridor management techniques in selected corridors
Promote multimodal transportation (with rail transit, regular container train
in the region)
Improve the efficiency of border corridors (both side of border improvement
in ICP project in parallel)
Liberalize visa regime
Open sky in South Asia
Effective project coordination among government stakeholders
Stronger institution (public-private interface) for trade facilitation is urgently
needed.
Regional study for SAARC Master Plan of Connectivity should be done.
Set-up SAARC connectivity coordination committee to coordinate the Master
Plan and its feasibility.
Thank you