WTO Launches Trade Facilitation Support for Developing Countries, Implementation Deadlines Loom
The World Trade Organization (WTO) launched a Trade Facilitation Agreement (TFA) Facility initiative on July 22 in order to ensure least-developed and developing countries are provided the necessary support for implementation of the required reforms, the body said in an announcement. Some developed countries have already indicated their commitments to donate resources, while others will soon be able to follow suit, the statement added. The facility will act as the “focal point” of the implementation efforts and will begin to operate once the agreement is formally adopted by WTO members, said the WTO.
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WTO members are approaching a July 31 deadline for submission of certain documents fundamental to the agreement. The U.S. and other WTO members continue to worry that India is unwilling to forge ahead with its commitments (see 14071701). The agreement stipulates that all WTO countries must adopt and ratify the agreement in order to enter it into force.
The Office of the U.S. Trade Representative (USTR) declined to comment specifically on whether WTO members were able to strengthen Indian support for the TFA during the recent G20 summit in Australia. "India clearly and forcefully expressed its concern that work proceed on all fronts, including food stockpiling, and received assurances that all G20 members are committed to the full implementation of all Bali agreements on the agreed timetables," said USTR chief Michael Froman, in a statement relayed by a USTR spokesman. India has over recent weeks pushed WTO members to revisit Doha Round negotiations. The Wall Street Journal reported recently Indian officials will decide whether to ratify the TFA on July 23 (here).
The new facility will help developing countries evaluate their needs, provide technical assistance, coordinate development partners, ensure the free flow of information between donors and recipients, and provide grants for the preparation of TFA project proposals, said the WTO. The facility will also provide project implementation grants in situations where least-developed and developing countries are unable to secure donations, it added. “These grants will be limited to ‘soft infrastructure’ projects, such as modernization of customs laws through consulting services, in-country workshops, or training of officials,” the announcement said.
A number of international trade and development organizations, including the World Customs Organization, reiterated support for the TFA in a July 22 statement. "We commit to assisting developing, transition and least-developed countries, drawing on our respective strengths and areas of expertise," said the statement (here). "This will take the form of immediate assistance, for example in determining the categorization (A, B, or C) of measures under the TFA, establishing National Trade Facilitation Committees, creating faster and more efficient cross border and regulatory procedures through effective collaboration amongst all relevant stakeholders, including the private sector, as well as longer term implementation planning and support in implementing comprehensive reform programs built on the TFA measures." The agreement stipulates that least-developed and developing countries have to select an implementation category based on how much support they anticipate they will need.
The WTO is providing members the opportunity to comment on the facility initiative during the General Council meeting on July 24, said WTO Director-General Roberto Azevêdo in July 22 remarks on the facility. The facility is intended to operate in conjunction with the World Bank Trade Facilitation facility, Azevêdo added. “While I trust this facility will answer many of the concerns raised regarding TFA implementation, I know that there are others.” -- Brian Dabbs