Trade facilitation is the process of simplifying and harmonizing a country’s international trade procedures, in line with current best practices and globally accepted standards, to reduce transaction costs. Traders want clear, transparent, and predictable controls by border agencies. Investors place heavy weight on such controls when selecting countries or regions where they invest. Therefore, adequate trade processes, particularly those of Customs, relate directly to the competitiveness of a country’s economy by increasing exports and attracting foreign direct investment (FDI). In Burundi, because of its post-conflict environment, FDI must now be a significant driver of economic expansion. Simplification, transparency, and predictability of the import/export process are required for the country to seize the opportunities offered by the global trading market and the economic benefits of full participation.
Unique problems confront improved trade facilitation efforts in post-conflict countries with an overwhelming number of initiatives required to achieve effective and efficient border management. If priorities are properly established, delays and costs can be significantly lowered in a short period of time. The approach must balance facilitation and control to ensure that unscrupulous parties do not benefit from streamlined procedures. Use of international trading practices usually reduces the instances of corrupt behavior by creating a transparent and predictable import/export process, resulting in increased collections. However, sustained high-level support for a more open and streamlined trade process is required for success.
The international trade community in Burundi is small with a limited number of importers and exporters. No more than 120 to 150 companies export, and few major companies import, although there are a fairly large number of small individuals and companies that go abroad to buy consumer goods for resale in the local markets. Improved trade facilitation is important to them and to attracting new business, both foreign and local, for economic growth.
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