Because of its geographical position, Malta has a very significant role in combating illicit traffic in the Mediterranean, said Finance Minister Tonio Fenech.
Addressing a workshop of the Organisation for Security and Cooperation in Europe (OSCE) held at the Intercontinental Hotel in St Julian’s this week, Mr Fenech said Malta is considered to be the southern gateway to Europe, and attaches great importance to the implementation of an efficient supply chain control regime.
Lying as it does in the middle of the Mediterranean, Malta’s strategic position renders it a good candidate to serve as a point of transit for others, he said. Speaking about globalisation, the minister said every form of economic protective fence has been dismantled and national borders have been practically broken down.
The links in the supply chain have been broken down into small fragments and disseminated across the world.
The global division of labour and specialisation has reached new heights. It was the notion of “the less it costs, the better it is” that made everything seem possible, said Mr Fenech, adding that the economic architecture was seen to do away with long distances and the costs of overcoming them.
The decline in transport costs combined with the elimination of political barriers to trade made globalisation possible. National markets were opened to international competitors.
“However the worldwide plunge into recession has made us stop and think. Is globalisation losing its appeal? I would say no, particularly as supply chain and logistical network providers will react to smarter, even more efficient solutions with the aim of optimising transport routes and cargoes.”
Past terrorist attacks revealed the vulnerability of modern and elaborate supply chain systems to targeted terrorist actions. These had a permanent impact on logistics.
Mr Fenech said the 2008 risk report of the World Economic Forum treated the risk to the global supply chain disruption as one of the four emerging and focal issues alongside systematic financial risks, food and energy security.
Malta has always maintained, particularly in OSCE fora, the importance of the Mediterranean to security in Europe. This in a way is gaining more relevance, now that the European Union has introduced its ‘Security Amendment’ to the Customs Code (Council Regulation 648/20005).
In line with the World Customs Organisation’s SAFE Framework this establishes a system of better-targeted border controls on goods entering or leaving the Customs territory of the EU based on a system of pre-arrival and pre-departure declarations, as well as improved systems of data communication and information sharing between member states.
“Having said that,” said Mr Fenech, “we are fully aware that security agencies, in particular customs, cannot handle this alone.” Rapid and timely information that could lead to interdict any form of illicit trade is crucial to all security operations worldwide, he concluded.