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Trade Facilitation Agreement

Trade Facilitation Agreement. IT-related Implementation. In this presentation:. Trade Facilitation Agreement – Benefits and Structure What next? Capacity Building. Estimated benefits.

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Trade Facilitation Agreement

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  1. Trade Facilitation Agreement IT-related Implementation

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

  3. 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, and13.2% for upper-middle income countriesOECD 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

  4. 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

  5. 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 6 Disciplines on Fees and Charges Article 10 Import, Export &Transit Formalities Article 2 Comment and Consultations 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

  6. 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

  7. Category A: Notifications received thus far…

  8. 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

  9. 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

  10. 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

  11. 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.

  12. 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.)

  13. Self-assessment in the TFA

  14. 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.

  15. The Facility: Main areas of work

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

  17. 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 Implementation Assistance

  18. 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 Grants

  19. Thank you!

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