Trade Facilitation Agreement Impact

Toll Manufacturing Agreement Traduzione
December 18, 2020
Trial Adoption Agreement
December 19, 2020

By ratifying the TFA, countries have embarked on a series of reforms aimed at reducing border bureaucracy, from unlocking and unlocking assets to enhanced cooperation between border authorities. It is estimated that the implementation of TFA reforms could reduce trade costs by an average of 14.5% and create about 20 million jobs – the vast majority in developing countries. What is unique is that the agreement gives the least developed countries the opportunity to set their own timetables for implementing their provisions based on their ability to do so. Category A commitments are defined by developing countries as direct priorities, with categories B and C due to follow in due course. The WTO, WTO members and other intergovernmental organizations, including the World Bank, the World Customs Organization and the United Nations Conference on Trade and Development (UNCTAD), provide technical assistance to trade facilitation. In July 2014, the WTO announced the creation of a trade facilitation mechanism that helps developing countries and LDCs implement the Trade Facilitation Agreement. The facility came into force on 27 November 2014 with the adoption of the Trade Facilitation Protocol. The second anniversary of the agreement is an excellent time to verify the level of ratification, notification of implementation and transparency of the AFA. In addition, both developing and least developed countries had to provide the WTO with information on contact points for the coordination of these TACBs (Article 22.3).

Since 22 February 2019, only five developing countries have met this commitment. This low compliance makes it difficult for development partners to coordinate aid and the willingness of these countries to carry out ambitious trade facilitation projects. Under the special and differentiated treatment provisions, the TFA provides developing countries and LDCs with additional time during which both groups of countries are exempt from the application of the dispute settlement agreement (Article 20). Given the stages of development, the Agreement provides for shorter periods for developing countries and longer periods of time and greater flexibility for least developed countries. Estimates show that full implementation of FTAs could reduce trade costs by an average of 14.3% and boost world trade by $1 trillion per year, with the largest profits in the poorest countries. For the first time in the history of the WTO, the implementation of the agreement is directly linked to the country`s ability to do so. A Trade Facilitation Mechanism (TFAF) has been set up to ensure that developing and least developed countries receive the assistance they need to take full advantage of the benefits of the TFA. The TFA aims to expedite trade procedures, including the transfer, release and release of goods. Its full implementation could boost global trade by $1 trillion per year and reduce trade costs by 14.3% for low-income countries and more than 13% for middle-income countries. Kick-off Your national trade facilitation committees by welcoming traders: public-private partnerships are the cornerstones for the implementation of the WTO TFA to succeed. Who knows better than traders the bottlenecks in business procedures? It is therefore important to invite them to participate in the commissions.

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