Issues Regarding a Trade Policy
St t f Lib i
Strategy for Liberia
Ramesh Chaitoo
Team Leader
TradeCom WTO Accession Project Enabling Environments Ltd
Trade Policy Strategy
Trade Policy Strategy
1. Given Liberia’s small size, international trade , should be inherent part of overall economic
development strategy to increase growth & jobs.p gy g j 2. Trade policy ‐ consistent with Poverty Reduction
Strategy, Industrial Policy & Export Strategy . Strategy, Industrial Policy & Export Strategy . 3. Based on consultations with stakeholders –
ministries business civil society academia to get ministries, business, civil society, academia – to get legitimacy.
4 I iti l TPS d ft i M CI t l f 4. Initial TPS draft in MoCI – catalogue of
issues/problems but needs internal strategic
di i ith k d i i k t d l
discussion with key decision‐makers to develop overall vision & set priorities.
Distinct but Related Areas
Distinct but Related Areas
A. Trade Policy
B. Trade Negotiations B. Trade Negotiations C. Trade Administration D. Trade Facilitation
All areas need significant attention in Liberia
Policy & Negotiations
Policy & Negotiations
A. Trade Policy – provides overall vision and
framework for the regulation and promotion g p of trade between Liberia and other countries.
B. Trade Negotiations – deal with specific issues regarding the reduction of barriers in overseas markets for Liberian products and services,
markets for Liberian products and services,
and reducing the barriers in Liberia to imports of foreign products and services
of foreign products and services.
Administration & Facilitation
Administration & Facilitation
C. Trade Administration – deals with the day‐to‐
day nitty gritty administrative procedures and y y g y p requirements for imports and exports. These are now complicated & slow in Liberia
are now complicated & slow in Liberia.
D. Trade Facilitation – deals with improving the
ll l h l f
overall regulatory and physical infrastructure (customs, port, etc.) to make the process of importing and exporting efficient and hassle‐
free to promote business activity.
free to promote business activity.
Broad Vision for Trade Policy
Broad Vision for Trade Policy
1. Re‐integrate Liberia into the international
economy while sensitive to interests of local y producers.
2 Use trade as an engine of growth to reduce 2. Use trade as an engine of growth to reduce
poverty in Liberia
3. Modernize regulatory regime for trade
4 Change from nation of importers to nation of 4. Change from nation of importers to nation of
traders
Coherent Framework
Coherent Framework
• Trade policy must feed into overall development strategy: p gy
(i) Poverty Reduction Strategy;
(ii) I li
(ii) Investment policy (iii) Export strategy;
( ) p gy;
(iv) Industrial policies.
• What are the target sectors for development – how can trade and investment policies help stimulate economy activity in them?
Trade Policy Priorities
Trade Policy Priorities
Where should the emphasis be?p
¾Multilateral – WTO accession? – to adopt minimum global standards in trade rules &
minimum global standards in trade rules &
reduce tariffs & other barriers to rest of world
¾Regional – ECOWAS & deeper regional
integration, CET, movement of persons, etc.?g , , p ,
¾Bilateral – EPA? What benefits for Liberia in
h i t d t ith EU? Wh t
having a trade agreement with EU? What costs?
‐ How to take advantage of AGOA?
Elements of Trade Policy Strategy
Elements of Trade Policy Strategy
1 Objectives:
1. Objectives:
(i) Modernize regime for trade – import and export of
d d i
goods and services;
(ii) Meet international best practices;
(iii) Create predictability and transparency in trade procedures;
(iv) Insert Liberian economy in global value chains;
(v) Attract new investment to stimulate greater (v) Attract new investment to stimulate greater
production and exports; Use market access in EU, US to attract investment from 3rd countries
US to attract investment from 3 countries.
Elements of TPS (cont’d)
Elements of TPS (cont d)
2. Negotiating Arenas: Multilateral; Regional;
Bilateral
• What are offensive & defensive interests in different forums?
different forums?
• What protective measures are needed in domestic economy?
Elements of TPS (cont’d)
3. How can trade policy be used to promote economic diversification?
‐ Target the development of Services:Target the development of Services:
tourism, maritime services, trans‐shipment, ICT etc
ICT, etc.
4. Domestic commerce – improve technical standards and regulations; introduce
competition policy and law.
competition policy and law.
Trade Administration
• Modernize and bring to global standards the rules
Trade Administration
• Modernize and bring to global standards, the rules, regulations and administrative procedures governing import and export of Goods and Services and
import and export of Goods and Services, and investment in Liberia.
U d t i l i f i t d
• Update main laws governing foreign trade
• Improve protection of intellectual property
• Collect Trade & Investment statistics for better planning
Trade Facilitation
Trade Facilitation
Improve transparency & predictability of procedures and requirements for imports and exports
a)Registration requirements for business already greatly
i d
improved
b)Streamline & speed‐up customs procedures and processes c)Make transparent and predictable all duties, charges, levies or fees on imports
d)Ad t WTO C t l ti th d l i i i t th t d)Adopt WTO Customs valuation methodologies or insist that PSI agency does
e)Fully implement ASYCUDA e)Fully implement ASYCUDA
f)Improve transportation infrastructure – road network,
transport companies & logistics (public‐private collaboration) transport companies & logistics (public private collaboration)
FOCUS ON EXPORTS
1. Streamline & make efficient all requirements for engaging in exporting;
2. Remove tariffs on exports and any other barriers to exporting
d d i f Lib i
goods and services from Liberia 3. Review export bans or quotas
4 P id fi l d th i ti f t
4. Provide fiscal and other incentives for exports;
5. Explore facilities for export financing
6 Ad i li i
6. Adopt export promotion policies;
7. Remove duties on imports that are inputs to final goods and services that are exported (or duty drawback system)
services that are exported (or duty drawback system)
Rationale for WTO Accession
1. Increased & diversified export opportunities through
d bl k ll h b (
predictable market access in all other WTO members (MFN treatment)
2 G t tt ti t f i i t
2. Greater attractiveness to foreign investors
3. Role in multilateral trade negotiations & access to WTO dispute settlement mechanism
dispute settlement mechanism
4. Strengthened domestic legal framework for trade in goods, services Intellectual property etc
services, Intellectual property, etc.
5. Eligibility for WTO technical assistance, capacity building &
new Aid for Trade projectsp j
Challenges of Accession
Challenges of Accession
• Need to reform domestic legal framework for g trade & economic activity
• Pressure to accept WTO plus binding
• Pressure to accept WTO‐plus binding commitments
• Increased foreign competition
• Increased susceptibility to external shocksIncreased susceptibility to external shocks
