USTDA Sector Brief - Trade Capacity Building

Trade capacity building (TCB) is an important part of the U.S. Trade and Development Agency’s (USTDA) global portfolio, and is an area where the agency has had significant success. During fiscal year 2007, TCB accounted for over 50 percent of the agency’s global investments. TCB activities are designed to enhance a country’s ability to efficiently participate in the modern international trade system. These activities can take a wide variety of forms to facilitate trade, including studies and technical assistance related to World Trade Organization (WTO) commitments, the negotiation of free trade agreements (FTAs), customs reform and modernization, the development of industry standards and regulations, intellectual property rights (IPR) enforcement, and infrastructure modernization.

The following is an illustrative list of USTDA-funded trade capacity building activities:

East Asia

APEC Regional eManifest Pilot Project – USTDA provided $601,893 to partially fund an APEC regional demonstration project, hosted by Vietnam Customs. Together with the National Center for APEC, with cost sharing from Unisys and FedEx in a public-private partnership, the project is helping implement to the World Customs Organization Framework to Secure and Facilitate Global Trade in the APEC region. The eManifest system project demonstrated advanced customs clearance transactions for airfreight carriers designed to improve security risk management, timeliness, completeness and accuracy. It was profiled during the APEC Leaders meeting in November 2006.

China Standards and Conformity Assessment Cooperation Program – A $500,000 USTDA grant has launched the U.S.-China Standards and Conformity Assessment Cooperation Program, an innovative public-private sector initiative that is expanding cooperative technical efforts in industrial and commercial standards and conformity assessment procedures. The program consists of a series of seminars, workshops and training modules in China that will enable U.S. industry and government representatives to engage their Chinese counterparts on specific industry sectors and trade-related standards of mutual interest. USTDA funding will be matched by industry contributions. The U.S. National Electrical Manufacturers Association (Arlington, VA) is coordinating the program and industry participation.

Europe and Eurasia

Moldova Customs Telecommunications – USTDA provided $189,000 for a study on the telecommunications system of the Moldovan Department of Customs (MDC) in preparation for a World Bank-funded project to modernize the MDC. The project has two developmental objectives: to reduce non-tariff costs to trade and transport and to prevent smuggling and corruption at border crossings. The USTDA grant was used, in part, to review the telecommunications capacity of the MDC and to recommend a future strategy, to design a local area network, and estimate costs of modernization. The project is being implemented and has already resulted in $2 million in U.S. exports.

Southeast Europe Regional Cross-Border Trade Facilitation – USTDA is providing $549,070 to the Macedonia Customs Administration to partially fund the Cross-Border Trade Facilitation Technical Assistance and Pilot Project. This technical assistance and pilot will facilitate trade by simplifying transit documentation requirements through a regional “single window” entry system for the Customs Administrations of Macedonia, Serbia and Bulgaria. ICL Logistics of St. Louis, Missouri, will perform the technical assistance and contribute resources toward its completion.

Latin America and the Caribbean

Colombia Cartagena Secure Port Initiative – A $399,962 technical assistance grant supported Sociedad Portuaria Regional de Cartagena S.A. in their efforts to improve maritime cargo security at the Port of Cartagena. The technical assistance promoted security enhancements at the Port, which ships over one-quarter of its total container volume to the United States. The U.S. Customs and Border Protection announced on September 13, 2007 that the Port had received Container Security Initiative status.

Guatemala Customs Transit Control System – A $387,500 grant will support Guatemala's Superintendent of Tax Administration (Superintendencia Administracion Tributaria, SAT) efforts to develop a more efficient and secure system that allows SAT to closely monitor customs warehouse transfers and cargo inspection activities, capture all commercial transactions, and reduce losses. The overall objective of the recommended TA is to support SAT in its desire to implement improved customs transit processes and the supporting ICT systems consistent with the core elements of the World Customs Organization (WCO) Framework of Standards.

Honduras Port of Cortés Dry Bulk Unloading Terminal – A $470,000 grant is funding a feasibility study for Empresa Nacional Portuaria on the development of a dry bulk unloading terminal, which will improve the overall infrastructure and efficiency of operations at the Port of Cortés.

Nicaragua National Ports Law – A $510,000 technical assistance grant will support the Nicaraguan National Port Authority (Empresa Portuaria Nacional, EPN) in the development of a framework for a National Ports Law (NPL). The NPL will establish an open, competitive and transparent framework for attracting private investments and operations into the port sector and help strengthen the overall competitiveness of the Nicaraguan economy.

Panama Port and Maritime Sector Monitoring and Control Center – A $331,341, feasibility study grant will support the Panama Maritime Authority (Autoridad Maritima de Panama, AMP) in the development of a Maritime Sector Monitoring and Control Center. The Center will help the AMP monitor and control Panama's maritime sector, including the administration of the Panamanian-registered fleet, and national and international fishing fleets, ports, safety, security and environmental management.

Peru National Telecommunications Strategic Plan – A $425,720 technical assistance grant will support the development of a national telecommunications strategic plan through 2009 for the Ministry of Transportation and Communications. The project will contribute to enhanced competition in the Peruvian telecom market and foster the adoption of new telecommunications technologies.

Middle East and North Africa

Morocco-U.S. Free Trade Agreement – USTDA sponsored an orientation visit to bring senior-level government officials from Morocco to the United States for three industry-specific seminars to present trade opportunities within the Moroccan business environment to U.S. industry representatives.

Egypt Cold Chain System – USTDA awarded a $390,000 grant to the Egyptian Ministry of Foreign Trade and Industry that will be used to design and evaluate the technical, economic and financial viability of a cold chain transport system and refrigerated facilities at Luxor Airport in Southern Egypt. The cold chain system will maintain the quality of high-value agricultural products with significant export potential to European and Middle Eastern markets.

Egypt Port Said Sugar Beet Refinery – USTDA is funding a $420,000 grant to the Port Said Company for Agro-Industry and Land Reclamation, a private Egyptian company, for a study on the establishment of a beet sugar refinery in Port Said, Egypt. If implemented, this project would promote employment growth and private sector involvement in Egypt’s agricultural sector.

South and Southeast Asia

Indonesia Seafarer’s Identification Document System – USTDA sponsored a $358,000 technical assistance activity to aid in the development and design of a system to produce rapid, accurate and verifiable identification documents and a database for Indonesian seafarers. This assistance, conducted by Decision/Analysis Partners, will help Indonesia to enhance its compliance with International Labor Organization and International Maritime Organization standards.

Vietnam Customs Cooperation and Trade Facilitation – A USTDA-sponsored orientation visit brought a senior customs, finance and provincial government delegation from the General Department of Vietnam Customs to the United States. The delegates met with U.S. businesses and government officials to acquaint themselves with international customs standards as practiced in the United States, and presented potential areas of cooperation with U.S. customs service providers and technology companies.

Sub-Saharan Africa

African Trade Lanes Partnership – USTDA launched a two-year, $4 million initiative in April 2008 to promote the development of sub-Saharan Africa’s trade lanes and transportation networks to facilitate local, regional and global trade. The initiative is designed to promote regional cooperation and connectivity in all modes of transportation, including aviation, maritime, land, and rail. As an initial activity under the initiative, USTDA awarded a $725,050 grant to the Zambian Ministry of Communications and Transport. The grant will fund the development of a master plan for Zambia’s four international airports, Lusaka, Livingstone, Ndola and Mfuwe.

Nigerian Stock Exchange and Ghana Stock Exchange Capital Markets Integration – A $191,980 grant is funding a study for the West African Monetary Institute on capital market integration and cross-border securities listing between the Nigerian Stock Exchange and the Ghana Stock Exchange. The study will analyze differences in the legal, regulatory, accounting and reporting policies, and IT systems of the two stock exchanges. It will also provide recommendations and an implementation plan for facilitating interconnectivity and the cross-listing of securities. Counsel Advisory Group, LLC was competitively selected to provide the assistance.

West African Economic and Monetary Union (UEMOA) Agency for Aviation Safety and Security – This $353,000 technical assistance grant is being used to analyze and make recommendations for the establishment of a regional aviation safety and security regulatory agency. The new agency is part of UEMOA's overall Cooperative Development of Operational Safety and Continuing Airworthiness Program, which involves numerous entities such as the International Civil Aviation Authority, the U.S. Federal Aviation Administration, and the World Bank. Robinson Aviation, Inc. has been selected to provide the technical assistance.

Namibia Technical Assistance for IPP and Power Market, Phase I – A $275,000 grant was awarded to assist the regulator, Electricity Control Board (ECB), in preparing Namibia for private sector investments in the power sector. The team developed various recommendations for policy and regulatory reform, as well as an action plan for enhancing private sector participation. CORE International, Inc. was selected to conduct the technical assistance. USTDA has approved a Phase II technical assistance to strengthen ECB’s ability to effectively review IPP license applications, enhance its decision making process for license approvals, and efficiently monitor IPP projects for regulatory compliance.