The first Trade Facilitation Agreement (TFA) was implemented this week when two-thirds of the World Trade Organization (WTO) member nations ratified the agreement. The agreement is expected to boost global trade by up to 1 trillion dollars each year, with the biggest gains being felt in least developed countries.
This agreement seeks to expedite the movement, release and clearance of goods across borders. The TFA is expected to reduce the time needed to import goods by over a day and a half and to export goods by almost two days, representing a reduction of 47 percent and 91 percent, respectively, over the current average.
The TFA’s provisions include improvements to the availability and publication of information about cross-border procedures and practices, improved appeal rights for traders, reduced fees and formalities connected with the import/export of goods, faster clearance procedures and enhanced conditions for freedom of transit for goods. The agreement also contains measures for effective cooperation between customs and other authorities on trade facilitation and customs compliance issues.
The Agreement is unique in that it allows developing and least-developed countries to set their own timetables for implementing the TFA depending on domestic capacities and systems and are priorities are designated by Category A, B, and C. A Trade Facilitation Agreement Facility (TFAF) was created at the request of developing and least-developed countries to help provide implementation assistance.