Trade Facilitation : A Catalyst
for Change
Mohammad Nahavandian, Ph.D.
International Forum on Trade Facilitation
UN/CEFACT
29-30 May 2002
Trade Facilitation: A Catalyst for Change
 Development Strategies and the Strategic View
on Trade Facilitation
 The Trade Facilitation Strategy in the e-Life Era:
A Framework for Structural Change
 The Experience of the Islamic Republic of Iran: A
Case Model for Trade Policy Reform
 Concerns and Challenges for Developing
Countries
 Lessons and Recommendations
I. Development Strategies and the Strategic
View on Trade Facilitation
•
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Development Theories and Strategies
Trade as the Engine of Growth Theory
Export-Led Growth
Microeconomic / Macroeconomic
Considerations
• Private Sector Participation / Public Sector
Governance
• Strategic Choice as in the Game Theory
• Competition in Productivity
II. The Trade Facilitation Strategy in the e-Life Era:
A Framework for Structural Change
• Industrial Organizational Paradigm:
Structure , Conduct, Performance
• Structural Change with a vision
II. The Trade Facilitation Strategy in the e-Life Era:
A Framework for Structural Change
• Building Blocks for Structural Change:
1. Education and Awareness:
1. Fostering the Competitive Culture
2. Legal Environment
1.Intellectual Property Rights
2.Electronic Business Legislation
3. Technical Infrastructure:
1.Telecommunication
2.Banking Services
II. The Trade Facilitation Strategy in the e-Life Era:
A Framework for Structural Change
4. Economic Policies:
1. Competition Policy vs. Rent
Generating Policy
2. Exchange Rate Policy
3. Trade Policies:
1.Tariffication
2.Regional Cooperation

III. The Experience of the Islamic Republic of
Iran: A Case Model for Trade Policy Reform
(1994-2002)
Vision, Research and Strategic Planning:
 Five year Plan for the Ministry of Commerce,
1994-99
 Trade Reform Policies in the national third five
year plan, 2000
 Provision of the government’s national eCommerce policy, 2001

III. The Experience of the Islamic Republic of
Iran: A Case Model for Trade Policy Reform
(1994-2002)
Trade Information Services:
 Agahgar Network, 1995
 Trade Point Network, 1997
 Chamber of Commerce Network, 2000
 Feasibility Study for the Comprehensive
National Trade Information Network, 19982000
 Design and Build up of the National Trade
Information Network, 2001-2002
III. The Experience of the Islamic Republic of
Iran: A Case Model for Trade Policy Reform
(1994-2002) cont.

Awareness and Education:
 International Edicom 1998
 Seminar on e-Banking and e-Commerce, 1999
 Seminar on smart cards and e-Commerce, 2000
 WIPO International seminar on Intellectual Property
and Electronic Commerce,2002


Translation of International Documents and Literature
General Education and Professional courses and
workshops
III. The Experience of the Islamic Republic of
Iran: A Case Model for Trade Policy Reform
(1994-2002) cont.
 Facilitating Services:
 Implementation of Barcode Technology in the
Supply Chain, 1997
 Introduction of UN/Edifact standards, 1997
 Establishment of the inter-organizational IranEdifact Committee and specialized working
groups, 1995
III. The Experience of the Islamic Republic of
Iran: A Case Model for Trade Policy Reform
(1994-2002) cont.

Legal Environment:
 Provision of the draft for “e-Commerce Law”,
2000, due for final approval in 2002
 Coordination with the Legislative Branch for
provision of specialized courts for eCommerce cases, and provision of training
workshops for judges
 Law Enforcement Agencies Workshop on eCrime
III. The Experience of the Islamic Republic of
Iran: A Case Model for Trade Policy Reform
(1994-2002) cont.
 Technical Infra-structure:
 PTT’s Data Network ( IranPAC), national
backbone
 Trans-Asia Europe Fiber Optics Cable Project
 Implementation of the SWIFT protocol in the
banking system
III. The Experience of the Islamic Republic of
Iran: A Case Model for Trade Policy Reform
(1994-2002) cont.
 Trade Policy and Procedures:
– Removal of non-tariff barriers by 2004, according
to the third five year plan, 1999
– Transformation of at least 50% of government
transaction to e-Business by 2004, according to
the third five year plan, 1999
III. The Experience of the Islamic Republic of
Iran: A Case Model for Trade Policy Reform
(1994-2002) cont.
– Removal of all export duties and licensing
procedures, 2001
– Implementation of ASYCUDA system in the
major customs, 2001
– Automation of the registration procedures for
imports, due by end of 2002
IV. Concerns and Challenges for
Developing Countries
 Political Economy of Trade Facilitation:
– Productivity Gain , win-win game
– Transparency and competition, loss of rent,
 Public Policy Concerns in the globalized market-place:
– Lack of Competition and anti-trust rules in the supranational markets
– Employment losses occur in domestic market, but new
employment opportunities fly abroad:
– The case for trade in services
IV. Concerns and Challenges for
Developing Countries
 Sustainable Development through
Responsible Participation of all
 Implementation of Trade Liberalization and
Facilitation for the LDCs’ Exports
V. Lessons and Recommendations
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Vision, Design, Implementation of a Master Plan
Inter-Ministerial Mandate, Coordinated Support
Private Sector Involvement
Benefit Sharing , Widening the spectrum of the
beneficiaries
 Expansion of ICT and E-business investments
and job opportunities
 Technical Assistance from International
Organizations and MNCs
Trade Facilitation
not only a Catalyst for Change
but also a Catalyst for Peace
Thank You