Facilitation of trade, tourism and transport

Introduction

The IRU believes that increased competition due to liberalisation of trade in goods and services in a globalised economy requires ever-more efficient logistic systems.

Transport services are the life-line between economic and social players. Today, this is particularly true of road transport, since it carries the majority of traded goods moved on land routes (70% by volume, 90% by value). In addition, road transport by bus, coach and taxi is highly important in the passenger transport market.

All existing analyses demonstrate that any penalty on road transport merely results in an even greater penalty on the economy as a whole. Indeed, any obstacle to international road transport is an excellent indicator of the existence of trade barriers.
International trade procedures, particularly at borders, require special attention and targeted measures in order to maximise the use of the scarce political, financial and administrative resources available. Facilitation requires striking a proper balance between effective security and fraud prevention, on the one hand, and the streamlining of border crossing formalities imposed on shippers, logistic and transport operators, on the other.

The freedom of transit for goods is an obligation imposed on World Trade Organisation members through Article V of the GATT. However, this simple principle has so far not been properly or universally implemented with regard to the free movement of road vehicles transporting such goods. 

The present round of WTO negotiations (the "Doha round") focuses on:

• Modification of GATT Articles V (Freedom of transit), VIII (Fees and formalities connected with importation and exportation) and X (Publication and administration of trade regulations); 
• Accompanying technical assistance for emerging nations to help them absorb and implement trade facilitation measures.
  The IRU actively supports the Doha round's objectives.

Borders still constitute major barriers to trade, tourism and transport. Long waiting times at borders cause huge disruption to logistic activities and massively increase costs. Whilst transport operators' employees waste time at borders, it is shippers and, ultimately, consumers who pay the bill for these barriers which reduce the efficiency of the global economy and delay much-needed economic development in less-favoured regions of the world.

To solve this problem, the IRU recommends, first and foremost, tackling border procedures, through simplification and harmonisation. Authorities should anticipate future growth in trade flows by investing - in advance - in improved infrastructure, procedures and training, to prevent borders from remaining or becoming places where scarce resources are wasted. This principle applies equally to new external borders of the European Union, to other borders further to the East and South, as well as in Asia and on other Continents of the World.

The complexity of procedures for the issuance of visas to professional drivers of commercial vehicles in many countries constitutes a major obstacle to trade. The governments responsible have no valid excuse for their failure to resolve this longstanding issue.

For a variety of short-sighted domestic political reasons, many countries impose burdensome traffic restrictions and prohibitions on trucks and even coaches, which constitute significant obstacles to the development of international trade and tourism. Such restrictions and prohibitions must be harmonised, reduced and, wherever possible, eliminated.

Facilitation of trade, tourism and road transport is an area where it is vital for business and governments to work together in effective public-private partnership to reduce barriers to economic and social development.

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