Brussels, 30/06/2015 (Agence Europe) - On Monday 29 June, the European Commission hailed the initiative launched by the United Nations Conference on Trade and Development (UNCTAD) to accelerate the ratification and adoption of the WTO's trade facilitation agreement (TFA).
“UNCTAD's initiative (…) will play an important role in responding to domestic legal and capacity constraints signalled by developing countries. It should provide them with all the necessary guidance for the swift ratification of the agreement”, the Commission stated.
The EU will support the implementation of the developing country commitments with financial help of €400 million over five years - in other words, a third of these countries' needs.
Concluded at the ministerial conference in Bali in December 2013, the TFA contains a raft of binding rules to simplify and lighten customs procedures, and thus to facilitate trade flows. It also provides for efficient cooperation between customs offices, and for technical assistance and capacity strengthening arrangements.
The TFA will enter into force once two thirds of the WTO member countries have completed their domestic ratification process. The TFA has so far been ratified by Australia, Botswana, Hong Kong, Japan, Malaysia, Mauritius, Singapore and the US. The EU will ratify it “well before” the tenth ministerial conference of the WTO in Nairobi in December, the Commission states.
According to the OECD, implementation of the TFA would translate into a 12.5% to 17.5% fall in the cost of world trade. Developing countries would be the main beneficiaries of this. (Emmanuel Hagry)