The World Trade Organization’s pending Trade Facilitation Agreement, aimed at streamlining the movement of goods around the world, seems to be picking up steam in the ratification process.
Four more countries — China, Switzerland, Belize and Chinese Taipei — ratified the agreement this week, bringing the number of countries that have given their formal approval to 16. China became the latest on Friday when its ambassador, Jianhua Yu, submitted the country’s instrument of acceptance of the TFA to WTO director-general Roberto Azevêdo.
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 contains provisions for technical assistance and capacity building in this area.
Related Articles
The TFA will enter into force once two-thirds of the WTO membership has formally accepted the agreement. The WTO now has 161 members, with Kazakhstan’s ascension pending. That would mean about 92 more countries would need to ratify the agreement for it to come into effect.
You May Also Like
Countries that have already given their final approval include the U.S., Singapore, Malaysia, Japan, Australia and South Korea.
The TFA broke new ground for developing and least-developed countries 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, it states that assistance and support should be provided to help them achieve that capacity.
A Trade Facilitation Agreement Facility was also created 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.
The TFA is also seen as salvaging something out of the Doha Round meant to reduce or eliminate tariffs among WTO members. Critical issues including in textile and apparel were unable to be resolved as the talks broke down in 2008 and Doha has remained dormant ever since.