The Trade Facilitation Agreement (TFA) can formally be enforced once two-thirds of the WTO membership has endorsed it. So far, 108 of the 164 WTO members have validated the treaty, with India expected to do so soon.
It is expected that the TFA will reduce trade costs by up to 14.3 per cent, directly benefiting small and medium farmers and exporters, and increase global exports by up to $1 trillion.
The TFA sets out measures for effective co-operation between Customs and other appropriate authorities on trade facilitation and compliance issues.
The cost of clearing and moving goods among member countries of the World Trade Organisation could soon drop, following a report that only two more members need to ratify a key deal before it comes into force.
The Trade Facilitation Agreement (TFA) can formally be enforced once two-thirds of the WTO membership has endorsed it. So far, 108 of the 164 WTO members have validated the treaty, with India expected to do so soon.
“Rwanda, Jordan and Chad are in the process of ratifying the protocol,” said WTO spokesperson, Rockwell Keith.
Ratification means a country is legally bound by a treaty.
It is expected that the TFA will reduce trade costs by up to 14.3 per cent, directly benefiting small and medium farmers and exporters, and increase global exports by up to $1 trillion.
“The developing countries, particularly Africa and the least developed countries are expected to see the greatest reductions in costs as a result of the TFA,” said Mr Keith.
The TFA will also help to cut the time taken to import goods by over a day and a half, and exports by almost two days, representing a reduction of 47 per cent and 91 per cent respectively over the current average.
Imports, exports
In East Africa, only Kenya has ratified the TFA. Uganda, Tanzania and Rwanda have formally accepted the protocol but are yet to ratify it.
The other African countries that have ratified the deal are Nigeria, Botswana, Niger, Togo, Côte d’Ivoire, Madagascar, Seychelles, Mauritius, Zambia, Lesotho, Mali, Senegal, Swaziland, Gabon, Ghana and Mozambique.
The implementation of the trade deal will give the EAC partner states access to a bigger market.
“It will be an improvement on the existing international trade deals for duty-free access of goods from the EAC,” said the East African Community’s former director-general for customs and trade Peter Kiguta.
The TFA sets out measures for effective co-operation between Customs and other appropriate authorities on trade facilitation and compliance issues.
Provisions
The deal includes provisions aimed at making Customs and border procedures easier, thus speeding up the passage of goods between countries and lowering their costs.
These include commitments relating to publishing import, export and transit procedures and forms online; allowing opportunities for comments on new laws and regulations that may affect the movement and clearance of goods; disciplines on fees and charges for Customs processing; and pre-arrival processing of goods.
The TFA also seeks to further reduce farm subsidies and tariffs on industrial goods and barriers to international trade. It further contains provisions for technical assistance and capacity building. It was created at the request of developing and least developed countries and was concluded at the WTO’s 2013 Bali Ministerial Conference.
