Trade Facilitation Agreement

IT-related Implementation

In this presentation:

A. Trade Facilitation Agreement – Benefits and Structure

B. What next?

C. Capacity Building

3

Estimated benefits

Cost reduction potential of almost 10% of trade cost. OECD Trade Policy Working Paper, No. 118, 2011

Reduction of total trade costs of 14.5% for low income, 15% for lower-middle income, and13.2% for upper-middle income countriesOECD Trade Policy Working Paper, No. 144, 2013

Up to two-thirds of the total gains to be obtained by developing countries.OECD TD/TC/WP(2003)31/FINAL

Section I The TFA contains 12 Articles with approximately 40 “technical measures”

Section II Special provisions for developing and least-developed country Members

Section III Final provisions and institutional arrangements

Structure of the TFA

Section I The trade facilitation Agreement contains 12 Articles with approximately 40 “technical measures”

Article 1Publication & Availability of Information

Article 2Comment and Consultations

Article 3Advance Rulings

Article 4Procedures for Appeal or Review

Article 5Measures to Enhance Impartiality, Non-Discrimination & Transparency

Article 6Disciplines on Fees and Charges

Article 7Release and Clearance of Goods

Article 8Border Agency Cooperation

Article 9Movement under Customs Control

Article 10Import, Export &Transit Formalities

Article 11Freedom of transit

Article 12Customs Cooperation

Section II Special provisions for developing and least-developed country Members

Category A

Developing: To be implemented at the time the TFA enters into force

LDCs: To be implemented within one year after the TFA enters into force

Category B

To be implemented after a transitional period following the entry into force of the TFA

Category C

To be implemented after a transitional period and requiring the acquisition of assistance and support for capacity building

7

Category A: Notifications received thus far…

8

Article 23

1.Committee on TF: It will oversee the implementation of the TFA

2.National Committee: Each Member shall establish (or maintain) a national committee

9

Section III Final provisions and institutional arrangements

What next?

• The TFAF (“The Facility”, more later…)

• Conclude “needs assessments”

• Receive Category A commitments

• Ratification

• Acceptance by 2/3s of Members

• Entering into Force of the Agreement

• Notification of categories of provisions

Capacity building in the WTO

1. Assist developing countries and LDCs participating more fully in the global trading system is one of the most important activities of the WTO.

2. WTO “technical assistance” focuses on increasing human capacity (i.e. helping officials to better understand the WTO rules), and not on improving infrastructure (dealt by other IOs).

3. Demand-drive; ITTC: several programs; biennial plan

The TFA acknowledges the importance of assistance and support for capacity building to implement the Agreement

Capacity building in the TFA

Article 13:2•Assistance and support for capacity building should be provided.

•The requirement to implement the Agreement is directly linked to the capacity of the country to do so.

Article 14:1(c): Self-designation of categories, including Category C.

Article 21: Provision of assistance and support for capacity building

1. Donor Members agree to facilitate TACB on mutually agreed terms

2. Focus is to implement TFA, Section I; sustainable capacity

3. Could be bilaterally or through appropriate international organizations

4. Provided in a way that does not compromise existing development priorities

5. Members shall endeavour to apply predefined principles (e.g. overall development framework, promote coordination, use of in-country structures, etc.)

Self-assessment in the TFA

The Facility

1. Launched by the WTO Director General on 22 July 2014.

2. Became operational on 27 November 2014 (i.e. together with the Protocol)

3. The Facility will complement existing efforts by regional and multilateral agencies, bilateral donors, and other stakeholders to provide Trade Facilitation-related technical assistance and capacity-building support.

The Facility: Main areas of work

Technical Assistance and Capacity Building (TACB)

Needs Assessments

Regional workshops for Parliamentarians

E-learning tools

Thematic workshops

Outreach

Dissemination of information

17

Implementation Assistance

• Assist in the match-making

• Information about the Donors

• Developing country contact information

• Database of TACB programs of donors, WCO other international and regional organizations

• Case studies

• Link to training materials18

Grants

19

Project preparation (max $30,000)

Project implementation (max $200,000)

After entry into force and receipt of Category C notification

If can’t find assistance needed, the Facility will try to find donor

20

Thank you!