The WTO
Trade Facilitation Agreement
WTO SPS COMMITTEE THEMATIC WORKSHOP ON CONTROL,
INSPECTION AND APPROVAL PROCEDURES (ANNEX C) - Geneva, 2018
Darlan F. MARTI
Trade Policy Specialist, Market Access Division, WTO
Objectives
1. Why a new Agreement?
2. How does the TF Agreement affect the operation of
customs, businesses and other agencies overseeing
import and export operations?
3. The substantive provisions of the Agreement
(sample related to the SPS Agreement, Annex C)
4. How will the Agreement be implemented?
WHY AN AGREEMENT ON TRADE FACILITATION?
BACKGROUND
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What is trade facilitation?
ROADMAP
Facilitate
Import /
Simplification Procedures international
Export
trade
Movement
Mainstreaming Documents Reduce delays
Release
Harmonization Agencies Reduce costs
Clearance
Reduction “Red tape” Improve compliance
Goods only
Inefficient and duplicative procedures
National capacity to connect to global value
chains and international markets
Trade Facilitation reforms
• Ease to import / export and distribute goods are the
backbone of international trade - http://lpi.worldbank.org/
• Trade facilitation reforms did not start with the WTO TFA
and can be broader than the Agreement only: continuous
improvements -
http://www2.compareyourcountry.org/trade-facilitation
• No “legal” definition
• Several international agencies have their own standards,
instruments and programmes
Average
reduction of
trade costs:
14.5%
WTO
World Trade
Report 2015
Benefits of TFA implementation
Reduction of trade
Greater benefits Export
costs higher for
for more ambitious diversification
developing
TF agenda (products)
countries
Export Enhanced Improved
diversification participation in environment for
(markets) GVCs SMEs
Greater customs Lower incidence of
More FDI
collection corruption
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Trade facilitation reforms: cut the
costs of trading and doing business
Potential reduction
of trade costs from
the implementation
of the TFA
(OECD 2015)
WHY AN AGREEMENT AT THE WTO?
BACKGROUND
10
TRADE FACILITATION ROADMAP
NATIONAL REGIONAL MULTILATERAL
COMPLEMENTARY
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TF in the WTO
Common rules
for all 164
Members
Build on existing
provisions (in
particular
Articles V, VIII,
and X) but also
SPS, TBT, ILP,
RoO, etc.
Enforcement:
Binding on all
Members +
dispute
settlement
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Large number of key stakeholders
National
Strategy
WHAT DOES THE TF AGREEMENT CONTAIN?
THE SUBSTANTIVE PROVISIONS (SPS Agreement, Annex C)
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Section I
12 Articles with approximately 40 “technical measures”
Article 1 Article 5 Article 9
Publication & Measures to Enhance Movement under
Availability Impartiality, Non- Customs Control
of Information Discrimination
& Transparency
Article 2 Article 6 Article 10
Comment Disciplines on Fees Import, Export
and Consultations and Charges &Transit
Formalities
Article 3 Article 7 Article 11
Advance Release and Freedom
Rulings Clearance of transit
of Goods
Article 4 Article 8 Article 12
Procedures for Border Agency Customs
Appeal or Review Cooperation Cooperation
TFA: several links with SPS
• Publication; information available through the
Art. 1
internet, enquiry points, notification
• Opportunity to comment, information before entry
Art 2:
into force and consultation
• Enhanced controls or inspections: risk, uniformity,
Art. 5:1
transparency
Art. 5:2 • Detention of goods (inspection)
Art. 5:3 • Test procedures (offer second test)
• Fees and charges in connection with imp. & exp. and
Art. 6
penalties
• Release and clearance of goods (incl. pre-arrival
Art. 7
processing, electronic payment, perishable goods)
TFA: several links with SPS
Art.8 • Border Agency cooperation
• Formalities, including acceptance of copies and single
Art. 10 window
Art. 10:5 • Pre-shipment inspection: no mandatory requirement,
Footnote 12 no new requirements
Art. 10:7(2) • Common border procedures
Art. 10:8 • Rejected goods
Art. 23:2 • National Committee on Trade Facilitation
Art. 24:6 • Final provisions (relationship with the SPS agreement)
SPS / TFA complementarity (ex.)
SPS only TFA only SPS + TFA
provisions provisions provisions
Advance
Equivalence Publication
Rulings
Level of Second Appeal and
protection Testing Review
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SPS / TFA OVERLAP
Example: Perishable goods (TFA Undermines the ability of
Art. 7.9): governments to conduct risk
assessment and enforce measures to
• Members must release protect human, animal, and plant
perishable goods within the health in accordance with the SPS
SHORTEST POSSIBLE TIME Agreement?
• “provided that all regulatory
requirements have been
met”
• “under normal
circumstances”
• Justify significant delays to
the extent practicable at the
request of importer
SPS / TFA complementarity
Art. 24.6 TFA: Notwithstanding the general
interpretative note to Annex 1A to the Marrakesh
Agreement Establishing the World Trade Organization,
nothing in this Agreement shall be construed as
diminishing the obligations of Members under the
GATT 1994. In addition, nothing in this Agreement
shall be construed as DIMINISHING THE RIGHTS AND
OBLIGATIONS of Members under the Agreement on
Technical Barriers to Trade and the Agreement on the
Application of Sanitary and Phytosanitary Measures.
Nature and scope of obligaions
in the TFA
Best
Binding Combination
endeavour
Art. 1.2 (Information
Art. I.3 (Enquiry
Art. 1.1 (Publication): through internet): “Each
Points): Members are
“Each Member shall Member shall make
encouraged not to
promptly publish …” available the
require…”
following…” “Members
are encouraged to make
available”
HOW WILL THE AGREEMENT BE IMPLEMENTED?
THE SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS
Flexible implementation according to an
INDIVIDUAL assessment of NATIONAL CAPACITY
(for Developing countries and LDCs)
CATEGORY A CATEGORY B CATEGORY C
• Implementation • Implementation • Implementation
upon Entry Into after a only after
Force of the transitional acquisition of
Agreement period from the capacities
• +1 year for LDCs entry into force through TA&CB
• Annex to TFA • Additional time • Need time +
needed support
Based on country’s own assessment!
Additional flexibilities
Early Warning Mechanism (Art. 5)
• Extend implementation period
• Notify new date and reason for delay
• Automatic extension for 1st request
• “Sympathetic consideration” for further requests
Expert Group(Art. 6)
• Assess country’s capacity to implement
• Third-party review
• Category C measures
• No extension granted
Category Shifting (Art. 7)
• Between B and C
• Provide info on TA and CB needed
DSU grace period (Art. 8)
• 2 years after entry into force for developing country Members – Category A
• 6 years after entry into force for LDC Members – Category A
• 8 years after implementation of Categories B and C measures by LDC
WHAT ARE THE LATEST DEVELOPMENTS?
STATE OF PLAY REGARDING RATIFICATION, NOTIFICATION AND
IMPLEMENTATION
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Ratifications (137)
2/3 of WTO Members ratified the TFA: 22 February 2017
http://www.tfafacility.org/
Implemenetation - overview
https://www.tfadatabase.org/
For more information about the TFA:
Darlan F. MARTI
Darlan.marti@wto.org
Trade Policy Specialist, Market Access Division - WTO
THANK YOU!
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