Sub-Saharan Africa lagging behind in the implementation of trade facilitation measures

The United Nations Global Report for Digital and Sustainable Trade Facilitation makes an inventory of all measures globally available to facilitate trade, with their implementation rates in the different regions of the world. A total of 58 measures are identified, classified into four groups: 1) “General Trade Facilitation”, 2) ”Digital Trade Facilitation”, 3) “Sustainable Trade Facilitation” and 4) “Other Trade Facilitation”. Each measure is organised in a table that shows which ones of them is covered by a specific provision of the WTO Trade Facilitation Agreement (TFA).

The analysis made by the United Nations shows that despite Sub-Saharan Africa has registered a significant growth (6% increase) in the adoption of such measures from 2019 to 2021, especially with regard to those classified within the first two groups (“General Trade Facilitation” and ”Digital Trade Facilitation”), corresponding to a total of 31 measures, the region still lags behind in their implementation rate. In particular, advance rulings (on tariff classification and origin of goods) and independent appeal mechanisms against decisions of Customs are indicated as the two main areas where less progress has been made. Transparency of information is another area where trade facilitation measures are weak, compared to other regions (as shown in the figure below). The conclusion is that trade facilitation measures in Sub-Saharan Africa are still weak, being their implementation rate equal to 49.1%, very far from their rate of implementation in developed economies, which is 81.8%, and second only to the Pacific Islands (Fiji, Kiribati, Micronesia, Nauru, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu), that register the lowest implementation rate in the world (40.1%).

On the other hand, trade facilitation measures where Sub-Saharan Africa has made noticeable progress are those regarding 3 categories:

1) “Formalities”, for a total of 8 measures: adoption of risk management methods for selection of goods to be subjected to physical inspections; pre-arrival processing; post-clearance audits; separation of release from final determination of customs duties; taxes, fees and charges; establishment and publication of average release times; trade facilitation measures for authorised operators; expedited shipments; acceptance of copies of original supporting documents required for import; export or transit formalities;

2) “Institutional Arrangement and Cooperation” (5 measures): establishment of National Trade Facilitation Committees or similar bodies; national legislative framework and/or institutional arrangements for border agencies cooperation; government agencies delegating border controls to customs authorities; alignment of working days and hours with neighbouring countries at border crossings; alignment of formalities and procedures with neighbouring countries at border crossings;

3) “Paperless Trade” (10 measures): adoption of Automated Customs System; Internet connection available to Customs and other trade control agencies at border-crossings; electronic Single Window Systems; electronic submission of customs declarations; electronic application and issuance of import and export permits; electronic submission of sea cargo manifests; electronic submission of air cargo manifests; electronic application and issuance of preferential certificates of origin; electronic payment of customs duties and fees; electronic application for customs refunds.

Average implementation rates of trade facilitation measures around the world