The Trade Facilitation Agreement in a nutshell
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In December 2013, the members of the World Trade Organisation (WTO) adopted the so-called “Bali Package” during the Ninth WTO Ministerial Conference. A major component of the Package, the Trade Facilitation Agreement (TFA) has the potential to accelerate progress on many of these practical obstacles. The TFA is structured around thirteen issues:
- Publication and availability of information
- Opportunity to comment, information before entry into force and consultation
- Advance rulings
- Appeal or review procedures
- Other measures to enhance impartiality, non-discrimination and transparency
- Discipline on fees and charges imposed or on in connection with importation and exportation
- Release and clearance of goods
- Border agency cooperation
- Movements of goods under customs control intended for import
- Formalities connected with importation, exportation and transit
- Freedom of transit
- Customs cooperation
- Institutional arrangements
Further, the TFA contains provisions for special and differential treatment (SDT) for developing and least-developed countries. In accordance with these, countries can decide which provisions of the TFA to implement immediately after the agreement is in force, after a transitional period, or after capacity building support has been provided. To benefit from SDT, a member must categorize each provision of the Agreement, as follows:
- Category A commitments: provisions that the member will implement by the time the TFA enters into force (or in the case of a least-developed country member within one year after entry into force)
- Category B: provisions that the member will implement after a transitional period following the entry into force of the TFA
- Category C: provisions that the member will implement on a date after a transitional period following the entry into force of the TFA and requiring the acquisition of assistance and support for capacity building
- For provisions designated as categories B and C, the member must provide dates for implementation of the provisions
The Economy profiles at the end of the Report lists the notifications by category.
In November 2014, the final version text of the TFA was adopted and opened for ratification. Once the agreement is ratified by two thirds of all WTO members, it will enter into force, As of October 2016, 96 of the 164 members had ratified it, which means the TFA will enter into force once a further 15 members have ratified.1