Trade Facilitation Key for Access to Goods
to Tackle COVID-19
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Members' presentations on pandemic-related actions
·
US, Brazil, Colombia and Japan call for expedited TFA
implementation
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Secretariat update on ratifications and implementation
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Dedicated session on assistance and capacity building
·
2021 committee meetings
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Background
The COVID-19 pandemic was a recurring theme at
the meeting of the WTO’s Committee on Trade Facilitation on 20-21 October. A
number of members highlighted how trade facilitation — and the WTO’s Trade
Facilitation Agreement (TFA) in particular — can be used to help authorities
ensure that essential goods related to COVID-19 treatments and equipment can
cross borders and reach their intended recipients quickly.
Several members made presentations during the committee meeting
regarding initiatives they have taken to facilitate trade during the COVID-19
pandemic. The United States, Brazil, Colombia and Japan issued a joint call for
accelerated implementation of the TFA, arguing that cross-border trade is a
critical channel for getting essential products to those who need them. The
committee also reviewed more than 70 notifications from members outlining steps
taken or planned to implement provisions of the TFA.
Sri Lanka said its customs authorities have launched initiatives
and implemented mechanisms to ensure the smooth flow of essential medical
supplies and other commodities during the pandemic. This included tailoring
cargo inspection to ensure the release of medium and low risk cargo with
minimum or no customs intervention, issuing regulatory approvals in electronic
format, and establishing priority clearance procedures for consignments of
relief goods.
The Dominican Republic noted that it had adopted temporary
measures to facilitate trade in response to the pandemic, including suspending
import and consumer taxes on hand sanitizer, personal protection equipment and
other goods as well as streamlining import and export procedures to clear
high-priority imports.
The European Union outlined how customs authorities have
facilitated compliance with rules of origin certification for the Pan-euro-Med
Area by issuing digitally signed confirmation letters and exchanging scanned
certificates electronically to overcome customs office lockdowns and other
restrictions during the pandemic.
Japan said its authorities have responded to the pandemic by
facilitating customs clearance procedures and simplifying import/export
declaration forms for relief supplies. They have also granted flexibilities in
timelines related to the submission of certificates of origin and the payment
of duties.
Canada, on behalf of the Ottawa Group (Australia, Brazil, Chile,
European Union, Japan, Kenya, Korea, Mexico, New Zealand, Norway, Singapore and
Switzerland), presented a compilation of
trade facilitation measures its members have implemented over the past
half-year in response to the COVID-19 outbreak. Canada said the group was
sharing these experiences to help identify ways to take full advantage of the
opportunities for trade facilitation in the TFA and to promote best practices
for the implementation of the Agreement.
In presenting a joint communication from the United States, Brazil, Colombia and (as a late
co-sponsor) Japan, US Ambassador to the WTO Dennis Shea
said the WTO "is not the forum for providing the health solutions to
COVID-19, but it is the forum for providing the roadmap for countries to access
and trade medical and health supplies and equipment across borders".
"Cross-border trade is a critical channel for getting
essential products to those who need them," Mr Shea said, and the TFA can play a critical role in keeping
those goods moving across borders. The four sponsors of the communication were
not asking WTO members to take on any new commitments but to accelerate
implementation of TFA commitments where possible.
"Now more than ever, it's time to work together, and keep our
feet on the gas," Mr Shea
declared.
The TFA entered into force on 22 February 2017. Developed members of the WTO committed to apply the
substantive portions of the TFA from the date it took effect. Developing countries and least developed
countries (LDCs) were given flexibility to indicate
which substantial provisions they intended to apply immediately and which
provisions would be implemented following a transition period they themselves
designate.
The four sponsors said ongoing TFA implementation is already
resulting in greater customs efficiency, more effective revenue collection, and
better access for small enterprises to new export opportunities. Measures
designed to improve transparency in customs practices, reduce documentary
requirements and allow for processing of documents before goods arrive have had
an immediate impact on traders, they added.
A dozen members took the floor to comment, with many expressing
their support for the initiative and the importance of trade facilitation in
ensuring essential goods can cross borders quickly. One member emphasized the
importance of donor support in assisting members with implementation, while
another said it believed members themselves were best placed
to determine when to implement their commitments.
The WTO Secretariat provided an update on members' ratifications
and implementation of the TFA. Since the last committee meeting, four new
ratifications have been received (Tanzania, Vanuatu, Tunisia and Colombia),
bringing the total number of ratifications to 153 members, or 93% of the
membership.
Overall, the rate of implementation of TFA commitments currently
stands at just over 66% for the entire WTO membership, the Secretariat said.
Fifteen developing country members have already achieved 100% implementation of
the TFA. Developed countries were required to ensure full implementation when
the TFA entered into force.
Regarding LDCs, 27 members, or 84% of LDCs that have notified
Category B designations, have also notified definitive dates for the
implementation of their Category B commitments, while 25 members, or 75% of
LDCs that have already notified Category C designations, have also notified the
definitive dates for the implementation of their Category C commitments.
Under the TFA, Category B covers TFA provisions that developing
countries and LDCs will implement over transition periods determined by them
and set out in notifications to the WTO. Category C covers TFA provisions that
developing countries and LDCs will implement over transition periods determined
by them and set out in notifications to the WTO, and which require capacity building support in order to help implement the
commitments.
Category A covers commitments that
members agreed to implement when the TFA entered into force.
Members met on 21 October to review progress in the provision of
support and assistance for capacity building to support implementation of the
TFA, exchange information on implementation problems, and share experiences on
ongoing assistance and support.
The committee will hold its 2021 meetings on 2-3 March, 27-28 July and 19-21 October.
Concluded at the WTO's 2013 Bali Ministerial Conference, 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. It further contains provisions for
technical assistance and capacity building in this area.
The TFA broke new ground for developing and least-developed
countries in the way it will be implemented. For the
first time in WTO history, the requirement to implement the Agreement was directly linked to the capacity of the country to do so.
In addition, the Agreement states that assistance and support should be provided to help them achieve that capacity.