China Urges WTO Members not to Slap Trade
Restrictions on Account of Corona Virus
WTO members highlighted the need for continued transparency
in trade procedures at the 11 February meeting of the Committee on Trade
Facilitation. The prompt submission of notifications related to the
implementation of the Trade Facilitation Agreement (TFA) is vital for reaping
the benefits of the Agreement, several members said.
Members
considered 43 notifications received
since the last Committee meeting in October 2019. Canada, China, the
European Union, Japan, the Russian Federation and the United States took the
floor at the meeting to remind members to submit information to the WTO about
implementation timelines, trade procedures, contact points and other details
required under the Agreement. The US also drew attention to the upcoming
deadline of 22 February for least-developed countries (LDCs) to notify
definitive dates when they would implement certain TFA provisions for which
they required transition periods.
Under
the TFA, which seeks to expedite the movement, release and clearance of goods
across borders, developing countries and LDCs can self-designate which
provisions they will implement either immediately (Category A), after a
transition period (Category B), or upon receiving assistance and support for
capacity building (Category C). They are required to communicate these choices
within stipulated timeframes. Developed countries were required to implement
all provisions of the TFA from its entry into force on 22 February 2017.
Out
of 29 LDCs that are required to submit the Category B notification mentioned
above by 22 February, nine have been received so far according to the WTO
Secretariat report presented at the meeting. The deadline for developing
countries to make the same notification had been two years ago. The status of
other notifications and their deadlines is available here.
Full
implementation of the Agreement is forecast to slash members' trade costs by an
average of 14.3 per cent, with developing and least-developed countries having
the most to gain, according to a 2015 study carried out by WTO economists. The
TFA is also likely to reduce the time needed to import goods by over a day and
a half and to export goods by almost two days, representing a reduction of 47
per cent and 91 per cent respectively over the current average.
The
Secretariat also reported that 91 per cent of the membership, or 149 WTO members,
have ratified the TFA roughly three years since it entered into force on 22
February 2017 when the WTO crossed the required threshold of 110 member
ratifications. Guinea, Burundi and Cabo Verde were the latest to ratify the TFA
since the last Committee meeting.
As
of 11 February, the current rate of implemented commitments under the TFA stood
at 64.7 per cent. Broken down by level of development, this equates to a 100
per cent rate of implementation by developed members, 63.9 per cent among
developing members and 29.6 per cent among LDCs.
The
Committee also heard presentations from Chile, Ecuador, India, Morocco, Sri
Lanka, Ukraine and the United States about experiences in implementing TFA
provisions. The US introduced a suggestion, welcomed by many members, for the
Committee to explore next steps to capitalize on the experience sharing
particularly on the establishment of National Trade Facilitation Committees.
Representatives of the WTO TFA Facility, UN Conference on Trade and Development and the Global Alliance for Trade Facilitation updated
members on their respective projects in support of TFA implementation.
China
took the floor to call on WTO members to avoid imposing unnecessary trade
restrictions amid the ongoing coronavirus epidemic. China said that an
overreaction to the health issue would impact not only the Chinese economy but
the world economy as well. China also expressed appreciation for members'
support and hoped that all would work together to tackle this global challenge.
At
the same meeting, the Kyrgyz Republic raised questions about
Kazakhstan's customs inspections on goods in transit from the Kyrgyz Republic
through Kazakhstan. Kyrgyz Republic Deputy Minister of Economy Eldar Alisherov said that since
March 2019, inspections by Kazakh authorities have delayed the movement of
goods in transit from the Kyrgyz Republic. In response, Kazakhstan said its
measures are compliant with WTO rules and are necessary to ensure correct
customs declarations. Kazakhstan further noted that, as both countries are
members of the Eurasian Economic Union, they should use mechanisms there to
resolve the issue.