The NTMs included in the OTRI include measures such as licensing requirements, quotas and product standards. They are not comprehensive and do not include many of the regulatory and administrative measures that affect trade costs. Data on the performance of logistics services and on the internal costs associated with shipping goods from the factory gate to the port, and from ports to retail outlets have recently been compiled by the World Bank. The Logistics Performance Index (World Bank 2007) and the “trading across borders” indicators reported in the Doing Business database (World Bank, 2008) capture important dimensions of prevailing domestic regulatory regimes that affect trade. The _Doing Business_ “cost of trading” measures the fees associated with completing the procedures to export or import a 20-foot container, measured in U.S. dollars. These include costs for documents, administrative fees for customs clearance and technical control, terminal handling charges and inland transport.<sup>5</sup> The _Logistics Performance Index_ (LPI) is based on a worldwide survey of global freight forwarders and express carriers and measures the logistics friendliness countries. _Doing Business_ also collects data on documentary requirements and the time associated with trading across borders.

Both data sources suggest that traders confront significant hurdles in the region, with only the UAE being among the world’s better performers. The _Doing Business_ data indicate that substantial progress has recently been made by some of the countries in the region to reduce procedural hurdles affecting movement of goods across borders (Table 2). The LPI data reveal a great deal of variance in logistics performance, with only one country in the region – the UAE – in the top twenty globally (Table 3).

**Table 3: Logistics Performance Index, 2006**

|**Globa**<br>**l**<br>**Rank**|**Country**|**LPI**|**Custom**<br>**s**|**Infra**<br>**structure**|**Internation**<br>**al**<br>**shipments**|**Logistics**<br>**competenc**<br>**e**|**Trackin**<br>**g &**<br>**tracing**|**Domestic**<br>**logistics**<br>**costs**|**Timelines**<br>**s**|
|---|---|---|---|---|---|---|---|---|---|
|140|Algeria|2.06|1.60|1.83|2.00|1.92|2.27|3.17|2.82|
|36|Bahrain|3.15|3.40|3.40|3.33|2.75|3.00|2.25|3.00|
|97|Egypt, Arab<br>Rep.|2.37|2.08|2.00|2.33|2.38|2.62|2.83|2.85|
|52|Jordan|2.89|2.62|2.62|3.08|3.00|2.85|2.92|3.17|
|44|Kuwait|2.99|2.50|2.83|2.60|3.00|3.33|2.40|3.75|
|98|Lebanon|2.37|2.17|2.14|2.50|2.40|2.33|3.40|2.67|
|94|Morocco|2.38|2.20|2.33|2.75|2.13|2.00|2.38|2.86|
|48|Oman|2.92|2.71|2.86|2.57|2.67|2.80|3.25|4.00|
|46|Qatar|2.98|2.44|2.63|3.00|3.00|3.17|3.00|3.67|
|41|Saudi Arabia|3.02|2.72|2.95|2.93|2.88|3.02|2.76|3.65|
|135|Syrian Arab<br>Republic|2.09|2.17|1.91|2.00|1.80|2.00|2.89|2.67|
|60|Tunisia|2.76|2.83|2.83|2.86|2.43|2.83|3.20|2.80|
|20|United Arab<br>Emirates|3.73|3.52|3.80|3.68|3.67|3.61|2.80|4.12|
|112|Yemen, Rep.|2.29|2.18|2.08|2.20|2.22|2.30|2.67|2.78|

Source: Arvis and others (2007) _._

> 5 The cost measure does not include tariffs or trade taxes. Only official costs are recorded. Inland transport costs are based on distance to the shipping port. The methodology, surveys and data are available at <u>http:// www.doingbusiness.org.</u>

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