Frequently Asked Questions (FAQs)

wtodep

1. What is Trade Facilitation in the WTO?
 

Trade facilitation—the simplification, modernization and harmonization of export and import processes—has therefore emerged as an important issue for the world trading system. WTO members concluded negotiations at the 2013 Bali Ministerial Conference on the landmark Trade Facilitation Agreement (TFA), which entered into force on 22 February 2017 following its ratification by two-thirds of the WTO membership. The 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.

2. What are the benefits of trade facilitation agreement?

Estimates show that the full implementation of the TFA could reduce trade costs by an average of 14.3% and boost global trade by up to $1 trillion per year, with the biggest gains in the poorest countries. A Trade Facilitation Agreement Facility (TFAF) has been created to help ensure developing and least-developed countries obtain the assistance needed to reap the full benefits of the TFA.
 

3. What are the rules/articles included in the Trade Facilitation Agreement?

The Trade Facilitation Agreement has three sections and included 24 articles. In section I, there are 1 to 12 articles which contain provisions for expediting the movement, release and clearance of goods, including goods in transit. In section II, there are 13 to 22 articles which contain special and differential treatment (SDT) provisions that allow developing and LDC Members to determine when they will implement individual provisions of the Agreement and to identify provisions that they will only be able to implement upon the receipt of technical assistance and support for capacity building. In section III, there are 23 to 24 articles which contain provisions that establish a permanent committee on trade facilitation at the WTO, and require members to have a national committee to facilitate domestic coordination and implementation of the provisions of the Agreement.

4. Who implements the Trade Facilitation Agreement?

WTO members concluded negotiations at the 2013 Bali Ministerial Conference on the Trade Facilitation Agreement (TFA), which entered into force on 22 February 2017 following its ratification by two-thirds of the WTO membership. The articles of the Trade Facilitation Agreement must be implemented by all member of the world trade organization.

5. Why is the Trade Facilitation Agreement good for businesses?

The TFA contains some 36 measures that governments must implement that will provide transparency of laws, rules and procedures; fairness in border agency decisions; streamlined clearance procedures; and help reduce administrative constraints on import, export and transit. They not only benefit trade through reduced administrative burdens, costs, and delays related to border procedures, but can also lead to more effective, efficient and modern government practices.

6. What are all the notification requirements under the Trade Facilitation Agreement?

According to Articles 1 and 2 of the Trade Facilitation Agreement, Members are obliged to notify the status of the measures taken. There are 3 types of notifications under the Trade Facilitation Agreement and they are;

  • Implementation Notification
  • Transparency Notification
  • TACB arrangement and progress Notification

7. How do you calculate the percentages of categories A, B and C notifications?

Members must calculate the percentage of notification categories A, B and C based on the 239 breakdown measures contained in Section I of the Agreement. The percentage for a specific region or grouping is calculated in relation to 239 breakdown measures that all these members undertake. The percentage for a specific measure is calculated on the total number of article items contained in that particular measure.

When submitting notifications, Members can break down the notified measure into all article items contained in the measure, allowing them to designate certain items as Cat A while others as Cat B or C. The entire Section I of the Agreement contains 239 notifiable items, within 36 measures and 12 Articles. The breakdown of the measures and article items and their definition can be found https://www.tfadatabase.org/en/agreement-structure .

8. Is there a special body to assist with the implementation of the TFA?

At the level of the World Trade Organization, there is a trade facilitation committee, and the chairman is Mr. Carlos GUEVARA (Ecuador) (2023-2024). The chairman of the committee is elected once a year. The Committee on Trade Facilitation (TF Committee) provides WTO members the opportunity to consult on any matters relating to the operation of the Trade Facilitation Agreement (TFA) or the furtherance of its objectives. Established under Article 23.1 of the TFA, the TF Committee reaches its decisions by consensus. It reports to the Council for Trade in Goods (CTG), and it provides records of its work in its annual reports to the CTG.

9. Where can I find information on technical assistance?

The WTO's Trade Facilitation Agreement Facility website contains information on donor Members, international and regional organizations that provide assistance and support for capacity building.

The Trade Facilitation Agreement Facility (TFAF or the Facility) was created at the request of developing and least-developed country (LDC) Members to help ensure that they receive the assistance they need to reap the full benefits of the Agreement and to support the ultimate goal of full implementation of the Agreement by all Members.

10. Do Members need to have a National Committee on Trade Facilitation?

Yes, as indicated in Article 23 of the TFA, each WTO Member is required to establish and/or maintain a National Committee on Trade Facilitation.

11. Has a national level committee been established in according to the Trade Facilitation Agreement?

As indicated in Article 23 of the TFA, each WTO Member is required to establish and/or maintain a National Committee on Trade Facilitation. In Myanmar, the National Committee on Trade Facilitation was established in 2016 in order to implement the measures of the Trade Facilitation Agreement. The committee has been formed with 19 members, 2 chairpersons and 2 secretaries, and 10 tasks, 4 work plans are being set. Committee meetings are being holding twice a year.