Trade Logistics in Developing Countries: The Case of the Middle East and North AfricaAs the pace of global integration continues, developing countries will compete increasingly in terms of their ability to link with global and regional markets competitively and efficiently. An inefficient trade and transport facilitation system can create obstacles and incurs real costs in terms of the product value international agencies estimate that outdated trade administration procedures and the failure to adopt IT-supported trade facilitation account for seven per cent of the value of the goods traded.For countries in the Middle East and North Africa region, improving the efficiency of trade logistics is a critical priority. The region is losing global market share in key export sectors and non-oil exports are among the lowest in the developing world with less than one per cent of world market share in non-fuel exports relative to more than ten per cent in countries of the East Asia/Pacific region and more than four per cent in Latin America and the Caribbean. With respect to foreign direct investment, the regions performance also lags considerably behind other developing regions net FDI is less than one percent of GDP for the region as a whole, compared with 2.6 per cent for Latin America and the Caribbean and 1.8 per cent for Eastern Europe and Central Asia.Improve the efficiency of trade logistics in Middle East and North Africa: Critical Issues for PolicymakersThese case studies point to a number of difficulties for exporting firms in the Middle East and North Africa region including generally poor quality and costly transport services, long shipping times, obstructive bureaucracy, inadequate trade-related services such as insurance, finance and transport intermediaries and others. Among the more important areas of concern for policymakers include the following.1. A Fragmented Trucking IndustryThe trucking industry, a key conduit for goods in most Middle East and North Africa countries including the ones surveyed here, is in urgent need of reform due to the general prevalence of freight monopolies and partial rate control. In Yemen, for example, loads assigned on the basis of a queuing system are managed by cartels that operate on a regional basis (e.g., in Hodeidah, Aden, Mukalla, etc.). In addition, the trucking industry is not allowed to charge market rates for essential commodities that are regulated by the Ministry of Transport. Pricing practices are not economically efficient since the high rates levied on non-regulated commodities are used to offset the low rates received for essential commodities.In Egypt, the trucking industry has the freedom to set rates, but licensing, safety, vehicle weights and dimensions and other operating aspects of the industry are regulated by the Ministry of Transport and Communications. In Jordan, the Unified Company for Organizing Land Transport, a cartel established by government to organize private trucking, assigns loads (based on turns) for trucks operating in the Aqaba and Zarqa Free Zones with trucks getting a turn once every two weeks. While the cartels control the load assignments, ownership of the trucks is highly fragmented and in the hands of many small operators. Transport rates set by the ministry have been decreasing but have not yet reached a level that will allow Jordanian trucks to compete with neighboring countries.2. Limited Shipping ServicesGiven its small volume of export trade, the Middle East and North Africa region faces higher shipping costs and longer transit times for cargo than other developing countries. This penalizes exporters in an international marketplace where short order to delivery cycle time is required. In addition, it prevents economies of scale from being exploited. The Middle East container market consists of trade with Europe, Asia, North America and Africa, and the region in general is viewed as a transit point on the major shipping route rather than a final destination, between the two prominent container markets of Europe and Asia. Accordingly, most global shipping lines operate through feeder services which means that service level is affected by long and indirect sailing times. For example, a voyage from Jordan to New York requires 42 days while sailing times to Hamburg and Tokyo are 30 and 45 days respectively. 3. Problems with Customs Procedures, Duty-drawbacksMany exporters in the Middle East and North Africa region face significant difficulties in dealing with customs authorities and ill-functioning duty-drawback mechanisms. In Egypt, for example, clearing goods through customs requires 32 signatures for manual filing of documents and coordination with a large number of government agencies, namely the General Organization for Import and Export Control, Organization for Standardization, Food Control Department, and others. The process is intended as a one-stop inspection, but without