On 26 November, members of the World Trade Organization (WTO) concluded their first review of the implementation of the important Trade Facilitation Agreement (TFA), which entered into force on 22 February 2017.
This review includes the progress made by WTO member countries in implementing the Agreement, as well as the implementation challenges encountered.
This was revealed by the Chairman of the Trade Facilitation Committee, Christopher O'Toole (Canada) who stated: “Members have worked intensively over the past six months to recall the important progress made over the past four years, while recognizing the implementation challenges faced by members, particularly least developed countries (LDCs).”. The diplomat also highlighted that “The Committee also looked to the future, identifying a number of means by which it can strengthen its work to support the full implementation of the TFA.”
Implementing measures to facilitate trade, such as simplifying documentation requirements, modernizing procedures and harmonizing customs requirements, can reduce costs and time necessary to export and import goods. For this reason, the TFA is a key issue. In addition, the instrument is innovative for developing countries and those less advanced by the way in which it will be applied. The WTO noted in this regard that “the TFA is the first agreement in which developing and least-developed countries can determine their own implementation timetables, and progress in implementation is explicitly linked to technical and financial capacity.” Meanwhile, developed members will apply all provisions of the TFA from its entry into force.
Current status of implementation of TFA commitments
The report indicates that the rate of implementation of commitments at the level of all WTO members is 70,5% and The Commission notes that the pandemic represented an unprecedented challenge to the customs procedures of all Member States, which had to be adjusted to ensure, in particular, a smooth flow of goods, which is essential to address the ongoing pandemic.
Status of implementation of measures
Regarding the analysis of the implementation commitments of WTO members, the report indicates the Five measures with the highest rate of implementation commitments listed below:
- pre-shipment inspection (Article 10.5);
- movement of goods (Article 9);
- detention (Article 5.2);
- the use of customs agents (Article 10.6);
- Temporary admission of goods (Article 10.9).
The document also details the Five measures with the lowest rate of implementation commitments:
- risk management (Article 7.4);
- cooperation of border agencies (Article 8);
- Testing procedures (Article 5.3);
- authorised operators (Article 7.7);
- the single window (article 10.4).
It should be noted that the technical support necessary for the implementation of trade facilitation differs according to the needs of each country. Based on this, the WTO report noted that 85 members have reported their need for technical assistance and capacity building, with the most frequently cited requests being for human resources and training; assistance in amending laws or implementing new regulations; and assistance in information and communications technology.
Finally, the Committee lists in the report its recommendations for future work, including fostering greater cooperation between donors and partners for technical assistance and capacity development, improving monitoring of implementation timelines, and producing best practice reports for countries. (WTO Press Release)
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