The Beijing-Brussels Caravan Events

Monday, 26 September 2005 - 1st INTERACTIVE SESSION

The region suffered severely from the Asian financial crisis and the subsequent collapse of the IT boom, but the Asian countries mastered these challenges rather well. The major challenge today for the Asian economies is the high oil prices and many of the countries are very vulnerable in this respect.

All the WTO instruments aim at eliminating trade barriers and cutting red tape by simplifying procedures and requirements in order to create a more transparent and predictable trading environment. The existing rules require from governments to limit their fees and formalities that occur in the importation and exportation process.

GATT Art. V. requires from governments to grant free passage for goods and related means of transport crossing through their territories by routes most convenient for international transit and not to impose any unnecessary delays or restrictions, any customs duties or related fees and charges in respect of transit with the exception of charges commensurate with administrative expenses or the cost of services rendered, but even the latter ones having to be reasonable.

And finally, the article requires non-discrimination.

China-Canada Trade: Impact on Canadian Road Transport & Lessons learned from trading with the "Other" Giant

It is necessary for China to use the seaports of the Russian Federation, like Primorsk, for the transport of Chinese goods because this represents a more rational logistic variant. Russian-Chinese trade and tourism at the frontier is mainly carried by road transport means accross the frontier posts of the Russian-Chinese border.

The role of road transport in the economic life of the region is steadily increasing. It has even started to rival railway transport. Long-distance transport up to a maximum of 3,000 kilometres is becoming the norm. It has a positive impact on the development of the economy and the transport services market.

Monday, 26 September 2005 - 2nd INTERACTIVE SESSION

In 2004, China has taken the place of America to be the largest trade partner of Japan. There are nearly 4,300 Japanese companies in China in 2004, 16% more than last year. With the development of trade, the goods transport between China and Japan becomes more frequent. There are about 160 Japanese logistics companies now in China, and more than 60 of them are located in Shanghai.

Nippon Express, the biggest logistics company, and Mitsubishi Trading Firm, one of three largest trading firms in Japan, have reached an agreement to share the warehouses, terminals and cargo transport networks. With the expansion of the business, Nippon Express has set up a logistics network consisting of 107 terminals across 34 metropolises in China. Current railroad or shipping service are, to some extent, not good enough. So truck transport is of the best convenience.

The speed with which goods can be transported and the profitability of the business of international road transport operators are much dependent on border crossing efficiency.
Under discussion are between the RF and China: transport development issues, including road transport, reconstruction of bridges, the development of border crossing posts, specifications of vehicles for transporting over-dimensioned goods by road without special licences, and an agreement about opening a series of roads for the international transport of passengers and goods.

It would be profitable to create a land transport corridor connecting China and Europe, or in other words to organize a powerful overland container transport service through the territory of China, Kazakhstan and Russia.

Transport by road shortens the transit time to 2 weeks, which is 2-4 times shorter than sea transport, and it allows the delivery of goods from door-to-door while meeting the high safety and quality requirements.

But why do we care about transportation here, on the other side of the Globe? Trade between the Asia-Pacific region and Europe exceeds $300 billion per year. American companies invested over $4 billion in China in 2004 and this number grows every year.

Currently, trade between Asia and Europe primarily involves sea transport that takes approximately 3-4 weeks and involves expensive freight handling ports. Road transport could reduce transit time, cost less, and allow for door-to-door delivery.

Monday, 26 September 2005 - 3rd INTERACTIVE SESSION

Road transport accounts today for a major share of total inland transport. In addition, the road transport industry, together with the car manufacturing and related equipment industry, account for about 20 % of GDP and of employment in may countries.

However, road transport, including international road transport, faces difficult challenges. Roads are often insufficient and not coherent from one country to another. Transport regulations also vary from one country to another. Road traffic gives rise to road accidents and victims. Vehicles produce emissions that are harmful to human health and the environment. Border procedures and controls are often too long, which increases delays and costs of road transport. Finally, international road transport is an easy target for organized crime and terrorism, which poses threats to countries.

Because of its socio-economic role and because of the challenges it faces, facilitating road transport is a strategic responsibility of Governments. Therefore, facilitation of international road transport is a strategic responsibility of intergovernmental organizations like the UNECE. UNECE Conventions on transport facilitate international road transport while addressing those challenges. In our era of globalization of trade, all countries around the world would benefit from acceding to and implementing these Conventions

Promoting international Transport Conventions through sub-regional Agreements: UNESCAP Experience and current Initiatives in Asia

Customs have a heavy workload and limited resources. Our plan is to implement

• risk management,
• law enforcement management.

Facilitation and security should help those who abide by law. These operators will benefit from smooth and convenient customs clearance. A favourable context of private-public cooperation should be created. Electronic customs pre-declaration is coming next year. Companies should have high security standards and a mechanism to check if regulations are properly employed.

Regionally, sixteen per cent of the Asian highway network does not meet the minimum quality requirements. It is estimated by ADB that an amount of US$18 billion is needed to upgrade and improve these highways. Therefore, the co-operation among UNESCAP member countries and potential financial organizations and partners is a key factor to help countries identifying investment resources.

An upgrade of the Asian highway network paves the way to facilitating regional trade and tourism and opening up land-locked countries. However, in order to make effective use of that network for regional development, member countries need further co-operation by establishing either bilateral or multilateral instruments for the facilitation of international traffic, of which the GMS Agreement is one example.

I would like to emphasise that by the development of the EU road transport legislation, the establishment of the Trans-European Transport Network and other non-transport initiatives (first and foremost the suppression of internal borders between the member states of the EU and the creation of the single market), we have a situation where every EU Member State is "centrally located", the economy is strong and relations between peoples of different Member States are flourishing. The same kind of harmonised liberalisation would also boost Asian economies. My main message is that liberalisation of transport services is good for the economy, but that in the interest of safety, quality and fair competition it must go hand-in-hand with regulations on professional qualifications, working conditions, technical and environmental standards for vehicles and road safety.

As to the EU market arrangements for road transport being a model, I leave it to your judgment in the light of your national and continental context and your needs and aspirations. The European Commission is active in all areas of road transport in order to guarantee mobility, accessibility and sustainable transport for citizens and companies, for small and large Member States, wherever they are located, taking due consideration of the negative effects of transport and finding solutions to tackle them. On the basis of our experience, we are always open to work with our neighbours and partners on transport questions and offer advice or technical assistance, if requested.