The document discusses the need for trade facilitation measures like single windows in the Arab region to increase competitiveness and trade. It notes that intra-regional Arab trade is currently low at around 5% of global trade. Implementing national and regional single windows could help streamline processes, reduce trade costs by up to 30%, and increase exports, particularly for SMEs. While readiness varies across countries, single windows hold promise for enhancing integration in the region through more efficient clearance procedures and greater digitalization of border administration.

1. Single Windows and Arab Regional
Integration
Adel Alghaberi
Régional Intégration Section
Economic Development & Integration Division
UN ESCWA
SWC2016

2. The Arab region needs all kinds of at the
border and beyond the border trade
facilitation measures to increase its
competitiveness, boost regional trade and
increase its share of international trade.
Introduction

3. 5%
Global trade
Arab trade
Share of the Arab region in Global Trade 2015
UNCATD

4. Trade growth of the Arab region
• The change of oil prices is a major driver for change in the region.
• Major transformation strategies should be adopted to enhance non
oil exports.
• Trade development strategies including trade facilitation are needed
now more than ever.

5. Low Intra- Arab trade 2014
0
10
20
30
40
50
60
70
ASEAN EU MERCSOUR NAFTA ARAB COUNTRIES GCC AMU

6. Additionally:
• Manufacture exports are only half of their potential (WB).
• Regional exports face barriers equivalent to 29% customs duties for
industrial and 32% for Agriculture products.
• Trade costs are inappropriately high in the region.
• Concentration of exports and markets.

7. LPI Arab region with developing countries 2016
0
0,5
1
1,5
2
2,5
3
3,5
4
Customs Infrastructure Int'l Shipments Logistics quality Tracking & Tracing Timeliness Overall LPI
Arab Region
Developing countries
ASEAN

8. LPI score of the Arab region 2016
2,2
2,3
2,4
2,5
2,6
2,7
2,8
2,9
3
3,1
Customs Infrastructures International shipments Logistics competence Tracking & tracing Timeliness

9. Days to import & Export in the Arab region & OECD 2014
0
10
20
30
40
50
60
70
80
90
Algeria Bahrain Egypt Emirates Iraq Jordan Kuwait Lebanon Libya Morocco Oman Palestine Qatar Saudi
Arabia
Sudan Syria Tunisia Yemen
Import Export Arab World Import Arab World Export OECD Import OECD Export
Doing Business Report

10. Trucks spend around 47% of the trip time waiting at
the borders in the region compared to 17% ECO. (
IRU)

11. Intra- trade cost
•Shepherd (2011) finds that bilateral trade costs
between Arab countries are around twice as high as
bilateral trade costs between the EU and Arab
countries.
•Maghreb countries in particular have substantially
higher bilateral trade costs among themselves and
with the rest of the Arab region than with France,
Italy and Spain.

12. Need for trade reform
• ESCWA ( 2015b) estimates of the cost of non-tariff measures on goods
in ad-valorem terms range from 22 per cent in Egypt to 33 per cent in
Lebanon, 40 per cent in Morocco and 45 per cent in Tunisia.
• These non-tariff measures often take the form of excessively lengthy
clearance and inspection processes, high and variable number of
documentary requirements, and standards-related issues.

13. Benefits of trade facilitation for the region
• Studies by WB in 2010 estimated that improving the implementation of trade
facilitation in the Mashreq region could result in:
• Cost saving of around $600 million per year on trade transactions. This translates into
additional exports of about U$6 billion per year by 2020, equivalent to about 2%of
GDP .
 Increased intra-trade from 17% to 24 % with an increase of trade with Asia and
decreased trade with EU (thus more diversification of market and further regional
integration).
 non-oil exports of the Mashreq countries from its current average share of about 21%
of GDP to a level closer to 35% of GDP for countries with a comparable per capita
income.

14. Who is responsible for the delay?
• Research shows that Customs are responsible for only 30% of the
delay.
• OGAs, PIAs, transport operators, private sector, etc are responsible for
the rest.
• So to what extend single window can help?

15. To what extent Single Window can enhance
regional trade?
• Streamline of process will lead to reduction of trade cost leading to
more exports especially by SMEs.
• Increase bilateral trade of perishable goods.
• Enhance intra-trade, flourishing Regional Value Chains and GVCs thus
regional integration at large.

16. The measures that contribute the most to
lowering trade costs in the region ( OECD)
The measures that contribute the most to lowering trade
costs in the region are:
• Automation (with an estimated potential reduction of
2.6% in trade costs),
• involvement of the trade community (1.8% estimated
potential reduction)
• and streamlining of procedures (1.3% estimated
potential reduction).

17. Where are we?
ESCWA’s assessment of progress made in the Arab region toward single window was done in
2011
• Countries that made most progress toward SW are: UAE, KSA and Lebanon.
• Countries that made Some progress: Bahrain, Egypt, Jordan, Kuwait, Oman,
Qatar;
• Countries that made very little progress : Iraq, Palestine, the Sudan, Syrian Arab
Republic, Yemen.
• ESCWA is planning a new mapping of SW implementation next year.

18. .

19. Regional single window
• Regional singles windows have emerged in EU, ECOWAS and ASEAN,
among others.
• Sub regional single windows in the AMU, GCC and Agahdir can serve
multipurpose in the Arab region and lead to a regional single window.
• With the Arab Customs Union in mind, RSW can bring solutions to
various issues including the revenue collection and distribution, end
destination of goods, standards and other issues facing the union.

20. Readiness of the Arab region for single
window implementation
• Technological readiness.
• Human capital readiness.
• Legal framework.
• Coordination among concerned agencies.

21. Efficiency and Transparency of Border Administration Index
4,5
5,4
0
1
2
3
4
5
6
Algeria Bahrain Egypt Emirates Jordan Kuwait Lebanon Libya Morocco Oman Qatar Saudi Arabia Sudan Sudan Syria
Score 2010 Score 2014 Average Countries 2014 OECD 2014
Doing Business Report

22. Availability and use of ICT
4,2
5,5
0
1
2
3
4
5
6
7
Algeria Bahrain Egypt Emirates Jordan Kuwait Lebanon Libya Morocco Oman Qatar Saudi Arabia Syria Tunisia Yemen
Score 2010 Score 2014 Average Countries 2014 OECD 2014
Doing Business Report

23. Implementation of paperless trade in the
Arab region ( ESCWA)
0%
50%
100%
Electronic/automated Customs System
Internet connection available to Customs and other trade control
agencies at border-crossings
Electronic Single Window System
Electronic submission of Customs declarations
Electronic Application and Issuance of Trade LicensesElectronic Submission of Air Cargo Manifests
Electronic Application and Issuance of Preferential Certificate of
Origin
E-Payment of Customs Duties and Fees
Electronic Application for Customs Refunds
Regional Average

24. Implementation of paperless trade across borders (ESCWA)
0%
50%
100%
Laws and regulations for electronic transactions
Recognised certification authority
Engagement in trade-related cross-border electronic data exchange
Electronic exchange of Certificate of Origin
Electronic exchange of Sanitary & Phyto-Sanitary Certificate
Banks and insurers retrieving letters of credit electronically without
lodging paper-based documents
Regional Average

25. Conclusion
• Implementing SW at national levels is crucial for Arab countries to
enhance competitiveness and reduce trade cost.
• Sub-regional and regional level SW can bring tremendous benefits to
the region in terms of increased intra-trade, regional integration and
industrialization through RVCs.
• Some important investments needs to be made in technological and
institutional capabilities but return will be high.