Trade Facilitation Agreement Came Into Force
"But this is not the end of the road. The real work is just beginning. This is the largest global trade reform in a generation. It can make a big difference to growth and development around the world. Now, together, we have a responsibility to implement the agreement to make these benefits a reality. After this assessment of reality, developing and least developed countries wishing to take advantage of the benefits of the agreement could take full account of the following recommendations: in addition, developing and least developed countries were required to provide the WTO with information on contact points for the coordination of these TACBs (Article 22.3). Since 22 February 2019, only five developing countries have met this commitment. This low compliance makes it difficult for development partners to coordinate aid and the willingness of these countries to carry out ambitious trade facilitation projects. What is positive is that seven LDCs have already communicated their indicative deadlines, while the deadline expires in two years (February 22, 2021), sending a clear signal to donors about their commitment to implement the agreement. Full implementation of FTAs is estimated to reduce trade costs by an average of 14.3% and boost world trade by up to $1 trillion per year, with the highest growth in the poorest countries. For the first time in the history of the WTO, the implementation of the agreement is directly linked to the country`s ability to do so.
A Trade Facilitation Mechanism (TFAF) has been set up to ensure that developing and least developed countries receive the assistance they need to take full advantage of the benefits of the TFA. It is estimated that it is in developing and least developed countries, mainly African countries, that trade costs could be significantly reduced. Rwanda, Oman, Chad and Jordan presented their adoption instruments to WTO Director-General Roberto Azavédo, exceeding the required threshold of 110 ratifications. The entry into force of this agreement, which aims to accelerate cross-border trade, the release and release of goods, will launch a new phase of global trade facilitation reform and will significantly boost trade and the multilateral trading system as a whole. The WTO, WTO members and other intergovernmental organizations, including the World Bank, the World Customs Organization and the United Nations Conference on Trade and Development (UNCTAD), provide technical assistance to trade facilitation. In July 2014, the WTO announced the creation of a trade facilitation mechanism that helps developing countries and LDCs implement the Trade Facilitation Agreement.