Trade Agreement Facility

While considerable effort is devoted to the physical movement of goods, it seems that there are similar problems in the movement of documents intended for trade after the closure of trade. A lot of time is wasted with the movement of documents from the exporter to the importer through their respective banks. In addition, there is always a risk of disagreement in submitted documents that require correction. It is estimated that about 60-75% of documents are rejected at the time of the first presentation. This prolongs the process of revenue realization for the exporter. On the eve of the Bali Ministerial Conference in December, the design process, with the direct assistance of the Director General, had resulted in an almost clean text. Until now, differences of opinion were limited to only a small number of members, which was resolved in a bilateral meeting that allowed them to return as members. The old parentheses of argument and discontent were now without pliers, like Z.B. S&D and customs cooperation. Although the Trade Facilitation Agreement had not yet been fully concluded by the Ministerial Conference, it was in good shape to be delivered and concluded. The Ministerial Conference gave rise to new rounds of negotiations and differences of opinion, but members eventually reached agreement on a text for the agreement. After a decade of negotiations, the WTO finally had its trade facilitation agreement at the end of 2013, which is being moved to 2014. [2] Indian banks and companies should take the lead in shortening the time required for the completion of trade documentation to enable India to further improve its export competitiveness.

It is estimated that full implementation of the TFA could reduce trade costs by an average of 14.3 percent and increase global trade by $1 trillion a year, with the biggest profits being recorded in the poorest countries. For the first time in the history of the WTO, the requirement to implement the agreement is directly linked to the country`s ability to do so. A Trade Facilitation Mechanism (TFAF) has been put in place to ensure that developing and least developed countries receive the necessary assistance to reap the full benefits of the TFA. Traders in developing and developed countries have long pointed to the enormous „bureaucracy“ that still weighs on cross-border trade and that weighs particularly heavily on small and medium-sized enterprises. The TFA contains provisions to expedite the transport, provision and registration of goods, including goods in transit. Measures to ensure effective cooperation between Customs and other competent authorities in trade facilitation and customs compliance are also defined. It also contains provisions on technical assistance and capacity-building in this area. The agreement will help improve transparency, increase opportunities for participation in global value chains and reduce room for corruption. Currently, the cost of international trade is about $2 trillion. [4] This is due to a large number of factors, including redundant customs procedures, marginal tariffs and unnecessary duplication. [4] The economic benefits of the Trade Facilitation Agreement are not yet fully perceptible and measured.

However, estimates of the economic benefits arising from the agreement are widespread. Estimates range from about $68 billion to nearly $1 trillion a year. According to the OECD, the trade facilitation agreement has the potential to reduce trade costs by 14.1% for low-income countries, 15.1% for middle-income countries and 12.9% for high-middle-income countries. This would indicate a series of earnings of about $9 to $133 per year per person on the planet.