The objective of this meeting is 1.) To officially approve the list of designated provisions contained in WTO’s Trade Facilitation Agreement; 2.) To report on achievements, challenges and issues on implementation of Trade Facilitation Strategic and Action Plan of TFS members from 2013-2014 to present; 3.) To consult on aspects and issues regarding trade facilitation.
The meeting emphasizes the importance points of Lao PDR Trade Facilitation Strategic and Action Plan that has been implemented since 2011 under Trade Facilitation Strategy Plan in 2011-2015 which is a significant step for the international trade and costumes procedures towards concise, transparence, convenience and consistency, aiming to reduce trade cost, attracting more foreign investment and ability to manage import and export procedure effectively.
The progress result shown that TFS and relevant trade facilitation sectors have fulfilled 93% of the implementation on Trade Facilitation Strategic Plan for 2011-2015.The implementation progress for Trade Facilitation Strategy is assessed by comparing the implemented activities and 28 planned activities specified in six strategic measures; in which 26 activities have been implemented. There are four strategic measures that have been fully implemented. These include: (1) Strategic measure 1 ‘Mainstreaming trade facilitation across line ministries’; (2) Strategic measure 2 ‘Simplifying, harmonizing and modernizing trade and customs procedures’; (3) Strategic measure 4 ‘Developing private sector capacity to trade efficiently in compliance with rules and regulations’; and (4) Strategic measure 6 ‘Establishing a national trade facilitation body’. There are two strategic measures that have been partially implemented. These include: (1) Strategic measure 3 ‘Implementing WTO, ASEAN and GMS commitments’; and (2) Strategic measure 5 ‘Providing the right equipment and facilities to ensure the smooth and efficient administration of trade and customs procedures’.
The implementation of strategic measures contributed to four outcomes of trade facilitation in Lao PDR. These include: (1) regulatory reforms reflecting in the creations and amendments of 35 legal documents and the conclusion of needs assessment on trade facilitation in Lao PDR; (2) improvement of infrastructure for facilitating trade reflecting in the improvement of contents for Lao PDR Trade Portal (LTP) and the application of ASYCUDA system in international border check points; (3) Upgrading human resources related to trade facilitation reflecting in the delivery of training workshops to public and private sectors in the areas of using LTP, training for trainer program, impacts assessments of non-tariff measures, and using ASYCUDA system; and (4) problem solving for private sector.
The achievement of four outcomes has improved an enabling business environment in Lao PDR. According to World Bank’s ease of doing business index, Lao PDR was ranked 148 in 2015 down from 155 out of 189 countries in 2013. That said, the status of Lao PDR in terms of ease of doing business was improved by seven orders over the period 2013-2015. In addition, export cost per container reduced by 9% from US$2,140 in 2013 to US$1,950 in 2015, while import cost per container reduced by 10% from US$2,125 to US$1,910 over the same period.
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