Economic Cooperation Organization – UNDP

Project RAS/761/97

Removal of barriers to trade Development in the ECO Region

2002 Programme

Activities, Budget and Time Schedule

            The objective of the joint ECO-UNDP programme for 2002 is to focus on intra-regional trade development through deriving solutions for the removal of tariff and non-tariff barriers and contribution to the finalization of an ECO Trade Agreement document. This is the final phase of the joint programme, aiming to not only generate practical solutions for the alleviation of trade barriers, but also expected to indirectly strengthen the secretariat’s technical analysis capability in the area of trade and investment and to also provide the basis for further inter-country learning and regional cooperation.

Objective I 

Develop an ECO Trade Agreement (ECOTA) framework

The objective is to establish a regional agre4ement on trade between member states, incorporating optimal and harmonized tariff and transit fee systems and reduced non-tariff barriers.

Output 1          ECOTA framework document covering status of Non-tariff Barriers and Harmonization of Tariffs and transit fees in the ECO region

• Review trade policy of member states.
• Review the commitments of member states to the other regional groupings in which they belong with regard to trade and customs policy and procedures.
• Collect statements of member states regarding their demands from ECOTA.
• Identify all prevailing non-tariff barriers which are impeding trade in member states.
• Identify methods and procedures for the gradual standardization of trade in goods and products in the region through optimal and harmonized tariffs.
• Review the current system of transit fees and charges and provide solutions as to their reduction and harmonization.
• Provide operational recommendations on i) an appropriate ECOTA framework, ii) the reduction and elimination of various non-tariff barriers, iii) the optimization and harmonization of tariffs and iv) on reduction and harmonization of transit fees.
• Provide end of mission report and working document.

            2 person months            July-August 2002

Objective II 

Develop possibilities for increased intra-regional trade

The objective is to identify latent trade and investment potential in the region and to establish strategies and mechanisms for their development.

Output 2            Finalize the ongoing ITC activities

• Continue with ITC programme for organizing buyers and sellers meetings in high priority product sectors and the holding of a “business forum” to formulate a long-term trade development strategy for the ECO Secretariat.
• Provide end of mission report and working document.

            Ongoing throughout the period.

Output 3           Identification of direct investment potential of ECO member states

• Study direct investment possibilities between ECO member states.
• Provide recommendations for means to improve intra-regional investment activities
• Provide end of mission report and working document

            0.5 person month            October 2002

Output 4           Business plan for ECO “trade and development bank”

• Prepare a working framework for the establishment of an ECO “trade and development bank” (currently being ratified by the member states).
• Provide end of mission report and working document.

            1 person month            October 2002

Output 5           Business plan for ECO “reinsurance organization”

• Prepare a working framework for the establishment of an ECO “reinsurance system”
• Provide end of mission report and working document.

            1 person month            November 2002

Objective III 

Improvement of the transit goods within the ECO region

The objective is to identify means for facilitating the efficient transit of goods within the ECO region.

Output 6           Enhance implementation of the TTFA system

• Identify problems and constrains in the transit system and provide development solutions for TTFA implementation.
• Policy and operations recommendations.
• Provide end of mission report and working document.

            1 person month             July 2002

Output 7           Simplification of ECO customs organization and procedures

• Review and assess member states customs organizations and procedures (such as facilities, data and information systems, etc).
• Recommendations on improvements to ECO customs organization and possible and feasible development solutions to customs procedures.
• Provide end of mission report and working document.

            1 person month            October 2002

Output 8           Transport linkages development

• Develop programmes for improvement of rail and road links to increase operational efficiency (as a second stage of previous consultancy work).
• Policy recommendations for implementing such programmes.
• Provide end of mission report and working document.

            1 person month            November 2002

Output 9           Border points constraints identification

• Identify the existing problems and constraints of eight border points and provide solutions.
• Policy recommendations
• Provide end of mission report and working document.

            1 person month            September 2002

Output 10           Trade information system development

• Develop a trade information network for trade flows including transit routes.
• Recommendations on implementation.
• Provide end of mission report and working document.

            1 person month            November 2002

Activities, Budget and Time Schedule