The FINANCIAL -- Peru and the Kingdom of Saudi Arabia have ratified the WTO’s Trade Facilitation Agreement (TFA). The submission of the instruments of acceptance means that more than 80 per cent of the ratifications needed to bring the TFA into force have now been received.
Concluded at the WTO’s 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area, according to WTO.
Peru’s WTO ambassador Luis Enrique Chávez Basagoitia presented his country’s instrument of acceptance to WTO Director-General Roberto Azevêdo on 27 July.
Saudi Arabia’s Deputy Minister for Foreign Trade, Ahmed Al-Hakbani, and the Kingdom’s WTO ambassador, Abdolazeez Al-Otaibi, presented their country’s TFA instrument of acceptance to DG Azevêdo on 28 July.
The TFA will enter into force once two-thirds of the WTO membership has formally accepted the Agreement. With the acceptance by Peru and Saudi Arabia, the number of TFA ratifications now stands at 89.
On 24 July 2014 Peru submitted its Category A notification to the WTO outlining which substantive provisions of the TFA it intends to implement upon entry into force of the Agreement. Saudi Arabia submitted its Category A notification on 16 July 2014 in which it said the Kingdom would implement all but two substantive provisions by the time the TFA enters into force.
In addition to Peru and Saudi Arabia, the following WTO members have also accepted the TFA: Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (on behalf of its 28 member states), the former Yugoslav Republic of Macedonia, Pakistan, Panama, Guyana, Côte d’Ivoire, Grenada, Saint Lucia, Kenya, Myanmar, Norway, Viet Nam, Brunei, Ukraine, Zambia, Lesotho, Georgia, Seychelles, Jamaica, Mali, Cambodia, Paraguay, Turkey, Brazil, Macao China, the United Arab Emirates, Samoa, India, the Russian Federation, Montenegro, Albania, Kazakhstan, Sri Lanka, St. Kitts and Nevis, Madagascar, the Republic of Moldova, El Salvador, Honduras and Mexico.
The TFA broke new ground for developing countries and LDCs in the way it will be implemented. For the first time in WTO history, the requirement to implement the Agreement was directly linked to the capacity of the country to do so. In addition, the Agreement states that assistance and support should be provided to help them achieve that capacity.
A Trade Facilitation Agreement Facility (TFAF) was also created at the request of developing and least-developed country members to help ensure that they receive the assistance needed to reap the full benefits of the TFA and to support the ultimate goal of full implementation of the new agreement by all members. Further information on TFAF is available at www.TFAFacility.org.
On 8 June the WTO hosted an experience-sharing event to help members identify best practices and the challenges faced by WTO members in establishing or maintaining national trade facilitation committees. It was the first such event to discuss how best to implement specific commitments under the TFA. Experts from more than 20 countries and five international organizations made presentations at the workshop
Implementation of the WTO Trade Facilitation Agreement (TFA) has the potential to increase global merchandise exports by up to $1 trillion per annum, according to the WTO’s flagship World Trade Report released on 26 October 2015. Significantly, the Report also found that developing countries will benefit significantly from the TFA, capturing more than half of the available gains.