Pakistan has ratified the WTO?s new Trade Facilitation Agreement (TFA), making it the 51st WTO member to do so. Ambassador Syed Tauqir Shah presented Pakistan?s instrument of acceptance to Director-General Roberto Azevêdo on October 27.
Concluded at the WTO?s 2013 Bali Ministerial Conference, TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.
TFA will enter into force once two-thirds of the WTO membership has formally accepted the Agreement. In addition to Pakistan, the following WTO members have also accepted the Agreement: Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (on behalf of its 28 member states) and the former Yugoslav Republic of Macedonia.
TFA broke new ground for developing and least-developed countries in the way it will be implemented.
For the first time in WTO history, the requirement to implement the Agreement was directly linked to the capacity of the country to do so. In addition, the Agreement states that assistance and support should be provided to help them achieve that capacity.
A Trade Facilitation Agreement Facility (TFAF) was
also created at the request of developing and least-developed country members to help ensure that they receive the assistance needed to reap the full benefits of the TFA and to support the ultimate goal of full implementation of the new agreement by all members.
Implementation of the WTO Trade Facilitation Agreement (TFA) has the potential to increase global merchandise exports by up to $1 trillion per annum, according to the WTO?s flagship World Trade Report released on October 26. Significantly, the report also found that developing countries will benefit significantly from TFA, capturing more than half of the available gains.