UK stakes £500,000 on trade facilitation devt agenda
IN a bid to address barriers to trade
among developing and least developed
nations, the United Kingdom has staked
£500,000 on the WTO’s trade facilitation
agreement facility to implement the
facilitation agreement in such countries.
According to the WTO, the fund is part
of a broader £180 million commitment
the UK has made to support trade
facilitation in the countries, through
bilateral, regional and multilateral
programmes.
The Trade Facilitation Agreement (TFA),
which is expected to become operational
once two-thirds of WTO members have
completed their domestic ratification
process, is expected to reduce total trade
costs by more than 14 per cent for low-
income countries and more than 13 per
cent for upper middle income countries
by streamlining the flow of trade across
borders.
Under current border procedures, the
average transaction can involve
numerous steps that continue to affect
trade facilitation.
“Trade Facilitation Agreement (TFA) sets
forth a series of measures for
expeditiously moving goods across
borders inspired by the best practices
from around the world. The Agreement
is ground-breaking in that, for the first
time in WTO history, the commitments
of developing and least-developed
countries are linked to their capacity to
implement the TFA. In addition, the
Agreement states that assistance and
support should be provided to help
countries achieve that capacity”, the
WTO stated.
The facility is coming on the heels of
European Union’s plans (EU) to spend at
least €6.5 billion every five years
beginning; from 2015-2019 on the
Economic Partnership Agreement (EPA)
scheme, as well as during the transition
period of 20 years till 2035.
Indeed, the UK facility became
operational in November 2014 when the
General Council adopted the Trade
Facilitation Agreement Protocol,
inserting the new Agreement into the
WTO legal framework.
Till date, 51 WTO members, including
several developing and least-developed
countries, have ratified the TFA.
WTO Director-General Roberto Azevêdo
said: “I welcome the United Kingdom’s
generous donation.
WTO Director-General Roberto Azevêdo
PHOTO: www.talkvietnam.com
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