Annex V to BS/WG/TED/R(2024)1
PLAN OF ACTION OF THE BSEC WORKING GROUP ON TRADE AND ECONOMIC DEVELOPMENT
01.07.2024-30.06.2026
Country-Coordinator: REPUBLIC OF TÜRKİYE
The Republic of Türkiye has been appointed as the Country-Coordinator of the BSEC Working Group on Trade and Economic Development (WGTED) for a two-year period as of 1 July 2024 by the Council of Ministers of Foreign Affairs of the BSEC Member States at its 48th Meeting on 28 June 2024.
Following this decision, the Republic of Türkiye prepared this Plan of Action of the BSEC WGTED, for the 1 July 2024 – 30 June 2026 period.
- GENERAL OBJECTIVES
This Plan of Action, while setting up the two-year work plan of the BSEC WGTED, also elaborates key areas of cooperation to be focused on for the development of trade and economic cooperation in the BSEC region in 2024-2026.
The activities of the BSEC WGTED shall be guided by the BSEC Charter, the Istanbul Summit Declaration on the BSEC signed on 25 July 1992; the principles and priorities consolidated in the İstanbul Summit Declaration on the Occasion of the 20th Anniversary of the BSEC (İstanbul, 26 June 2012), the Declaration of the 25th Anniversary Summit of the BSEC (İstanbul, 22 May 2017); the BSEC Economic Agenda: Towards a Sustainable Future of the Wider Black Sea Area (15 December 2023); Decisions of the Council of Ministers of Foreign Affairs (CMFA); and Declarations adopted by the Meetings of Ministers in charge of Economy on 17 May 2011 in Bucharest, on 23 May 2013 in Yalta, on 29 May 2015 in Chisinau and on 11 May 2017 in İstanbul.
- PRIORITIES OF THE BSEC WGTED IN 2024-2026
In 2024, geopolitical tensions and increased economic policy uncertainty continue to pose substantial downside challenges for both regionally and globally. Although the world economy is forecasted to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023, the forecast for global growth five years from now—at 3.1 percent—is at its lowest in decades.[1] On the other hand, while global goods trade is projected to increase by 2.7% in 2024, and the volume of world merchandise trade is likely to increase by 3.0% in 2025, this is still gradual recovery taking into account the -1.1% slump in 2023 driven by high inflation and rising interest rates.[2]
These developments, when combined with the risk factor that may stem from the rising geopolitical tensions and increased economic policy uncertainty, continue to pose substantial risks to impede our efforts for trade and economic recovery. In the context of the current challenges, supporting intra-regional trade and investment is essential for the development of the BSEC countries.
Thus, Türkiye has submitted the existing Plan of Action of the BSEC WGTED based on priorities to further regional cooperation through supporting trade facilitation, so that the BSEC countries could become more responsive and resilient against challenges in the BSEC Region. Turkish priorities are mainly built upon the previous Plans of Actions and the BSEC Economic Agenda adopted in December 2023.
- Experience Sharing in Relation to National Trade Facilitation Committees (NTFCs)
It would be recalled that in the last Ministerial Meeting held in Istanbul on 11 May 2017 Members have adopted the Joint Declaration on “Increasing intra-trade in the BSEC Region via trade facilitation” where the Ministers declared their endeavor to strengthen the efforts of the BSEC Member States on trade facilitation within appropriate multilateral and bilateral agreements.
Cumbersome procedures at customs would increase the cost of trade and pose challenges to regional economic development. Here, well-designed and functioning NTFCs to overview progress towards trade facilitation at national level can play a vital role in our common efforts to strengthen trade facilitation in the BSEC Region.
NTFCs, bringing together all relevant stakeholders both from public and private sector, played quite an important role during the Covid-19 pandemic in making national coordination for facilitating trade easier and less time consuming. Thus, the way countries design and coordinate NTFCs at home is critical in terms of simplification, harmonization and modernization of customs procedures.
Taking this into account, Türkiye considers experience sharing and collaboration between NTFCs highly relevant to learn from each other’s experiences, which in turn would increase awareness of BSEC Member States with regard to other Member States’ trade facilitation efforts and promote collaboration among relevant bodies. Such an effort will ultimately impact the overall trade facilitation indicators of the BSEC region.
This experience sharing, currently undergoing under the agenda of the BSEC WGTED would be complemented by a joint meeting of NTFCs of BSEC Member States, where all countries may find the opportunity to bring up the issues they confront in the region with regard to customs and transit procedures.
- Cooperation in the Sphere of E-Commerce
BSEC Economic Agenda adopted in December 2023 mentioned exploring ways to further enhance cooperation among the BSEC Member States in line with provisions of the “Framework for BSEC E-Commerce Cooperation”.
In 2023, global retail e-commerce sales reached an estimated 5.8 trillion U.S. dollars. Projections indicate a 39 percent growth in this figure over the coming years, with expectations to surpass eight trillion dollars by 2027.[3]
These indeed signal economy-wide benefits that e-commerce can offer countries, including those in the BSEC Region. Even the gains are likely to be concentrated in high–income economies in the short run, Türkiye believes that all countries will be having more to benefit from e-commerce, in the long run. On the grounds of the great potential that e-commerce has, Türkiye is of the view that, it is the right time for BSEC Countries to engage in constructive debate while drawing lessons from country-based experiences and identifying areas for cooperation.
In view of the foregoing, to start with, organizing a workshop for better understanding country experiences will be a stepping stone for BSEC countries to promote better transactions in the field of e-commerce.
- PLANNED MEETINGS IN 2024-2026
- Working Group on Trade and Economic Development, 4 December 2024
- Working Group on Trade and Economic Development, May 2025
- Working Group on Trade and Economic Development, December 2025
- Working Group on Trade and Economic Development, May 2026
- Joint Meetings with other BSEC Working Groups, TBD
- Workshop on shaping regional cooperation in e-commerce: Domestic Experiences of the BSEC Member States, TBD
- National Trade Facilitation Committees (NTFCs) Joint Meeting, TBD
[1] IMF World Economic Outlook, April 2024
[2] WTO Global Trade Outlook, October 2024
[3] eMarketer, June 1, 2023