Trade facilitation, i.e. simplification, modernization and harmonization of export and import procedures, has become an important issue for the global trading system.
WTO members concluded negotiations on the Trade Facilitation Agreement (TFA) in 2013, which entered into force on 22 February 2017.
What is the purpose of the AFC?
The AFC is looking for simplify trade by reducing costs and streamlining movement, the release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other competent authorities on matters relating to trade facilitation and compliance with customs procedures, and provides technical assistance and capacity-building support to least developed countries.
It also establishes measures for cooperation effective cooperation between customs and other competent authorities on issues relating to trade facilitation and compliance with customs procedures, and provides technical assistance and capacity building support in least developed countries
How is it structured?
The AFC is structured in three sections: the Section I regulates articles 1 to 12 and forty technical measures; Section II It covers Articles 13 to 22 and provides measures for developing countries and least developed countries; Section IIIArticles 23 and 24 contain the institutional and final provisions and address the issue of the National Committees on Trade Facilitation (NTTF), whose work is essential to advance the implementation of the Agreement.
What are the special provisions?
The agreement contemplates special provisions for developing or least developed countries whereby they have the possibility to self-determine when they will implement each measure of the agreement and which measures they will implement only after having received technical assistance.
To this end, Article 14 of the AFC establishes three different classifications of notification, from which these countries may choose, based on their own needs, identified as Categories A, B and C.
La Category A covers notifications of commitments with which a developing country is effectively complying at the time of entry into force of the Agreement (22/02/2017) or is in a position to implement. In the case of less developed countries, advanced This period is extended until one year after the entry into force of the AFC (22/02/2018).
Under Category B Developing or least developed members should notify commitments that require additional time for implementation, if this period falls after the one-year transition period following the entry into force of the TFA. However, there are members that have not yet notified the date.
Based on what is considered a new conception of special and differential treatment, each country has the possibility of determining - as a result of a national dialogue - that in order to comply with certain provisions of the Agreement, they require technical support and additional time to do so, if it is after the transition period following the entry into force of the Agreement.
This decision must be duly notified to the WTO, as established in Article 16 of the TFA, under the Category C.
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What is the status of implementation in Latin America?
In Latin America, 74.6% of the implementation commitments have been notified in Category A; 4.5% of which have been notified in Category B (with commitment to implementation between February 2019 and March 2026); and 7.4% within the Category C (with commitment to implementation between September 2018 and March 2027, subject to having received prior technical assistance).
Source: BID
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