UNUnited Nations Economic Commission for Europe

Trade Development

Major achievements in 2005

The UNECE trade development activities pursued three main objectives:

• Supporting and developing the infrastructure for international trade;
• Reducing obstacles to greater regional trade; and
• Furthering the integration of countries with economies in transition into the global economy.

It has worked towards these objectives by maintaining, developing and promoting trade-related norms, standards and tools, by developing policy recommendations and by providing forums and publications for the exchange of best practice among policymakers and experts.

Many of these core activities acquired particular significance during 2005 because of the WTO negotiations on trade facilitation in the run-up to the Sixth Ministerial Conference in Hong Kong at the end of the year. UNECE contributed to the shaping of a consensus through several activities. For example, in April, within the context of the WTO Public Symposium, UNECE organized a workshop in Geneva on «Trade Facilitation: A Tool for Development» in collaboration with the Agency for International Trade Information and Cooperation (AITIC). The workshop was attended by high-level representatives from missions, capitals, international organizations and the private sector. It highlighted the role of trade facilitation in countries’ successful integration into international trade and investment networks and, thus, their development and growth.

The UNECE also published a report outlining how its work in trade and transport could assist WTO Members in addressing operational requirements under the trade facilitation related GATT articles (V, VIII and X) that are currently under negotiation. Further, it organized capacity-building events at the request of different regional groupings to offer trade facilitation negotiators further insight into the technical issues and the implications of the GATT articles. These events were held in Kuala Lumpur, for the Asia-Pacific Region, and in Geneva, at the WTO Headquarters, for the African Group within the WTO.

The United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) revised or added more than 4,000 entries to the UN Location Code (UN/LOCODE). This code is used by the world’s major postal, customs and shipping organizations. UN/EDIFACT, the international standard for electronic data interchange, was also updated and a message added for exchanging tracing and environmental information for agricultural products.

UN/CEFACT also made progress on several electronic business standards that support paperless trade, including: Extensible Mark-up Language (XML) Naming and Design Rules; a new version of the Uniform Modelling Language (UML); an updated Core Component Technical Specification (CCTS); and a number of Business Requirements Specifications (BRS) for the core component library.

This progress was mirrored by the 3rd International Forum on Trade Facilitation on “Paperless Trade in International Supply Chains: Enhancing Efficiency and Security” in June. More than 300 delegates discussed the benefits and challenges of paperless trade, especially for customs clearance, trade logistics, banking, port management and air transport. The Forum endorsed a roadmap for migration to paperless trade, which will provide a framework for national policymakers to move towards this goal. The Forum was a thematic event under the World Summit for the Information Society (WSIS) and was reported to the Global WSIS meeting in Tunis in November 2005.

The 7th UN/CEFACT Forum, which took place in Lyon, France, in September focused on the implementation and further development of UN/CEFACT Recommendation 33 on establishing a Single Window (Single Windows allow traders to submit all import and export formalities and payments at one location). It also focused on a revision of Recommendation 6 on the Aligned Invoice Layout Key for International Trade, as well as the development of standards for UN electronic Trade documents (UNeDocs). The Forum looked at how code lists such as the newly updated “Codes for Units of Measure used in International Trade” could be made easily available for use in e-business and it inaugurated two new working groups on electronic documents and agriculture.

In the area of regulatory cooperation and standardization policies, work on market surveillance gained momentum. National market surveillance agencies, in particular in transition economies, are finding it increasingly difficult to ensure that users and consumers are protected from dangerous and substandard goods, without having recourse to trade-restrictive practices. The Second International Forum on Market Surveillance and Consumer Protection, held in October 2005, presented different national approaches and shared practical solutions to common problems. The overall objective of the forum was to identify best practices.

Access to agricultural export markets depends increasingly on respecting international agricultural quality standards. As the leading world agency in the development of such standards, UNECE actively continues to develop new standards and update existing ones to meet new requirements from consumers and traders. In 2005, approximately 15 existing standards and recommendations were updated, and a proposal for a new UNECE Recommendation for “ceps” (a type of mushroom) was approved. This work was complemented by UNECE’s contributions to capacity-building seminars for implementing these standards, organized jointly with OECD, in Georgia and Slovakia.

Major challenges for 2006

These will include preparing follow-up to decisions on trade facilitation made at the WTO Sixth Ministerial Conference, as well as continuing to provide support to countries participating in the WTO trade facilitation negotiations.

Many Single Window operators have asked UN/CEFACT to develop common standards for the interoperability of Single Windows. To respond to this need, UN/CEFACT will hold a workshop on this topic in early 2006.

The UNECE will look at how it can help countries to advance in implementing the “Roadmap towards Paperless Trade” that was approved in 2005. In addition, advancing the programme of work on trade facilitation and electronic business standards at the UN/CEFACT Forum in Vancouver, Canada in March 2006 will be important.

In June 2006, UNECE will organize an international forum on regulatory cooperation to examine current developments in regulation and standardization in the UNECE region. The forum is expected: to identify the major problems and concerns in European and trans-Atlantic regulatory cooperation; to receive an update on regulatory cooperation tendencies in other regions and on good regulatory practices drawn up by Governments and international organizations; and to provide an overview and analysis of relevant UNECE activities in the context of UNECE member States’ requirements.

Further work will also be undertaken to promote the practical implementation of UNECE’s Recommendation “L” on Regulatory Harmonization, which is based on the use of international standards.

Work on agricultural quality standards will continue. UNECE member States would like to see greater coordination between UNECE, as creator of the standards, and OECD, as a promoter of the standards through its implementation guidelines. Both secretariats are committed to achieving this. In addition, Governments have expressed the wish to see greater promotion and implementation of the standards outside the region (i.e. by countries that export to UNECE countries) and this will be another challenge to meet given the existing resources for this work.