Trade Facilitation Agreement IT-related Implementation

In this presentation: Trade Facilitation Agreement – Benefits and Structure What next? Capacity Building

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, and 13.2% for upper-middle income countries OECD 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 3 3

Structure of the TFA 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

Section I The trade facilitation Agreement contains 12 Articles with approximately 40 “technical measures” Article 1 Publication & Availability of Information Article 5 Measures to Enhance Impartiality, Non-Discrimination & Transparency Article 9 Movement under Customs Control Article 2 Comment and Consultations Article 6 Disciplines on Fees and Charges Article 10 Import, Export &Transit Formalities Article 3 Advance Rulings Article 7 Release and Clearance of Goods Article 11 Freedom of transit Article 4 Procedures for Appeal or Review Article 8 Border Agency Cooperation Article 12 Customs 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

Category A: Notifications received thus far…

Committee on TF: It will oversee the implementation of the TFA Section III Final provisions and institutional arrangements Article 23 Committee on TF: It will oversee the implementation of the TFA National Committee: Each Member shall establish (or maintain) a national committee

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 Trade Facilitation Negotiations Capacity building in the WTO Assist developing countries and LDCs participating more fully in the global trading system is one of the most important activities of the WTO. 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). Demand-drive; ITTC: several programs; biennial plan Session 15, 27 Sept 07

Capacity building in the TFA Trade Facilitation Negotiations Capacity building in the TFA The TFA acknowledges the importance of assistance and support for capacity building to implement the Agreement 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. Session 15, 27 Sept 07

Article 21: Provision of assistance and support for capacity building Trade Facilitation Negotiations Article 21: Provision of assistance and support for capacity building Donor Members agree to facilitate TACB on mutually agreed terms Focus is to implement TFA, Section I; sustainable capacity Could be bilaterally or through appropriate international organizations Provided in a way that does not compromise existing development priorities Members shall endeavour to apply predefined principles (e.g. overall development framework, promote coordination, use of in-country structures, etc.) Session 15, 27 Sept 07

Self-assessment in the TFA Trade Facilitation Negotiations Self-assessment in the TFA Session 15, 27 Sept 07

Trade Facilitation Negotiations The Facility Launched by the WTO Director General on 22 July 2014. Became operational on 27 November 2014 (i.e. together with the Protocol) 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. Session 15, 27 Sept 07

The Facility: Main areas of work Trade Facilitation Negotiations Tech nical Assis tanc e and Capa city Build ing (TAC B) Implementation Assistance Grants Session 15, 27 Sept 07

Technical Assistance and Capacity Building (TACB) Needs Assessments Regional workshops for Parliamentarians E-learning tools Thematic workshops Outreach Dissemination of information

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 materials

Grants 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

Trade Facilitation Negotiations Thank you! Session 15, 27 Sept 07