As part of CIPE’s role in the Global Alliance for Trade Facilitation, we are implementing a project in Sri Lanka focusing on the development of the trade facilitation framework for a multi-country consolidation hub.
The Global Alliance for Trade Facilitation is undertaking an ambitious project to turn Sri Lanka into a world-class center for multi-country consolidation (MCC). Given its geographic position in the center of the Indian Ocean at the crossroads of international trade, Sri Lanka is ideally positioned to become a key regional logistics hub. Enhanced MCC activities and associated value added services will drive growth in Sri Lanka’s economy, increase its employment base and deepen its connections to global value chains. By lowering the costs and increasing the ease of shipping small quantities securely, small and medium-sized enterprises will have a new access to trading partners around the world.
The MCC hub will facilitate transit trade in line with the principle set out in Article 11 of the World Trade Organization’s Trade Facilitation Agreement (TFA) to extend freedom in transit. Under Article 11.5 of the TFA, WTO member countries are expected where practicable to provide physically separate infrastructure for traffic in transit. A MCC warehouse and associated infrastructure will significantly advance the implementation of Article 11.5. Any improvement in the existing in-transit bond/guarantee system for MCC cargo would also support the substantive implementation of Articles 11.11, 11.12 and 11.13 of the TFA.