The Trade Facilitation Agreement (TFA) was adopted by the World Trade Organization (WTO) in Bali, Indonesia, in December 2013. It aims to simplify and streamline international trade procedures, promote transparency, and reduce trade costs for businesses. The TFA is a legally binding agreement that outlines principles and practices to be followed by countries to improve trade facilitation.
The TFA includes provisions on the simplification, harmonization, and standardization of customs procedures, documentation and information technology, border agency cooperation, and capacity building for developing countries. The agreement provides a framework for the use of electronic commerce, which will enable the use of electronic signatures, electronic payment, and electronic authentication. This will reduce the need for physical documents, saving time and reducing costs.
Countries are required to establish a National Trade Facilitation Committee (NTFC) to coordinate the implementation of the TFA and monitor its progress. The NTFC should include representatives from government agencies, the private sector, and civil society. The committee will ensure that the TFA implementation is consistent with national laws and regulations.
The TFA`s protocol requires developed countries to provide technical assistance and capacity building to developing countries to implement the agreement. The assistance provided should be tailored to the specific needs of the developing country and should be consistent with their national priorities.
The TFA is expected to have a significant impact on global trade, leading to increased efficiency and reduced costs. According to the WTO, the TFA could generate up to $1 trillion in global trade and create 20 million jobs, mainly in developing countries.
In conclusion, the Trade Facilitation Agreement is an essential tool for promoting international trade and economic development. The TFA`s provisions on customs procedures, documentation and information technology, border agency cooperation, and capacity building will simplify trade procedures, promote transparency, and reduce trade costs. The implementation of the TFA will require the cooperation of government agencies, the private sector, and civil society, and developed countries should provide technical assistance and capacity building to developing countries.