The World Trade Organization`s (WTO) Agreement on Trade Facilitation is a landmark agreement that aims to simplify, clarify, and streamline customs procedures to promote increased trade and economic growth around the world.
What is the WTO Agreement on Trade Facilitation?
The WTO Agreement on Trade Facilitation was adopted in 2013 at the Bali Ministerial Conference and entered into force in 2017. It is a legally binding agreement that sets out a framework for simplifying and streamlining customs procedures, reducing trade barriers, and promoting transparency in international trade.
The agreement includes provisions for improving customs procedures, enhancing cooperation between customs administrations, and providing technical assistance and capacity building to developing countries to help them comply with the new requirements.
Why is the Agreement on Trade Facilitation important?
The WTO Agreement on Trade Facilitation is significant because it makes it easier for businesses to trade across borders. By simplifying customs procedures and reducing trade barriers, the agreement helps to lower the cost of doing business and promotes economic growth.
The agreement also promotes transparency in international trade by requiring countries to publish information about their customs procedures and fees. This information is accessible to businesses and helps them plan their cross-border trade activities more efficiently.
How does the Agreement on Trade Facilitation work?
The WTO Agreement on Trade Facilitation works by setting out a framework for simplifying and streamlining customs procedures. The agreement includes three main pillars:
1. Simplification: The agreement requires countries to simplify their customs procedures by reducing the number of documents and formalities required for imports and exports.
2. Transparency: The agreement requires countries to publish information about their customs procedures and fees so that businesses can plan their cross-border trade activities more efficiently.
3. Cooperation: The agreement promotes cooperation between customs administrations to improve the efficiency and effectiveness of customs procedures.
The agreement also includes provisions for technical assistance and capacity building to help developing countries comply with the new requirements.
What are the benefits of the Agreement on Trade Facilitation?
The WTO Agreement on Trade Facilitation has several benefits, including:
1. Lower costs: Simplified customs procedures and reduced trade barriers help to lower the cost of doing business and promote economic growth.
2. Increased trade: By making it easier to trade across borders, the agreement promotes increased trade and investment, which can lead to job creation and increased economic opportunities.
3. Improved transparency: The agreement promotes transparency in international trade by requiring countries to publish information about their customs procedures and fees, which helps businesses plan their cross-border trade activities more efficiently.
4. Enhanced cooperation: The agreement promotes cooperation between customs administrations to improve the efficiency and effectiveness of customs procedures.
Conclusion
The World Trade Organization`s (WTO) Agreement on Trade Facilitation is a landmark agreement that aims to simplify, clarify, and streamline customs procedures to promote increased trade and economic growth around the world. By reducing trade barriers and promoting transparency in international trade, the agreement makes it easier for businesses to trade across borders, lowering the cost of doing business and promoting economic growth. The agreement also promotes cooperation between customs administrations and includes provisions for technical assistance and capacity building to help developing countries comply with the new requirements.