What Are Trade Facilitation Agreement

For a detailed overview of the OECD`s work on trade facilitation, you can use the OECD iLibrary to read our latest research on trade facilitation and the global economy. The TFA aims to expedite trade procedures, including the transfer, release and release of goods. Its full implementation could boost global trade by $1 trillion per year and reduce trade costs by 14.3% for low-income countries and more than 13% for middle-income countries. It is estimated that it is in developing and least developed countries, mainly African countries, that trade costs could be significantly reduced. To help governments improve their border procedures, reduce trade costs, stimulate trade flows and gain increasing benefits on international trade, we have developed a series of trade facilitation indicators that identify areas of action and assess the potential impact of reforms. OECD data cover all border procedures for more than 160 economies at different income levels, geographic regions and levels of development. Each TF indicator consists of several specific, specific and fact-based variables that relate to existing trade-related policies and regulations and their implementation in practice. The second anniversary of the agreement is an excellent time to verify the level of ratification, notification of implementation and transparency of the AFA. The WTO Trade Facilitation Agreement (TFA) came into force on 22 February 2017. This is the result of the Doha round of trade negotiations launched in 2001. The text of the TFA was adopted by WTO members at the 9th Ministerial Conference in Bali on 3 and 6 December 2013. The agreement entered into force in accordance with Article X:3 of the WTO agreement and members must individually accept the amendment to the WTO agreement by tabling an instrument for accepting the amendment protocol adopted on 27 November 2014.

An updated list of members who have adopted the minutes is available on the WTO website. With the Trade Facilitation Agreement, WTO members are targeting: All of our trade research and analysis can be read for free online on the OECD iLibrary You can learn more about trade facilitation in your country by comparing our country tool where you can also compare the performance of different countries or groups of countries and view progress around the world in certain areas of trade facilitation. With our Policy Simulator tool, you can identify key measures that control the performance of a selected country in a particular indicator and simulate the impact of potential policy reforms on overall performance. Currently, the cost of international trade is about $2 trillion. [4] This situation is due to a number of factors, including unnecessary customs procedures, marginal taxes and unnecessary duplication. [4] The economic benefits of the Trade Facilitation Agreement are not yet fully discernible and measured. However, estimates of the economic benefits resulting from the agreement are widespread. Estimates range from about $68 billion to nearly $1 trillion per year. According to the OECD, the Trade Facilitation Agreement has the capacity to reduce trade costs by 14.1% for low-income countries, 12.9% for middle-income countries and 12.9% for middle-income countries by 14.1%.

This would indicate a series of gains of about $9 to $133 per year per person on the planet. These large margins indicate that there are still some uncertainties related to the trade agreement. [5] Bureaucratic delays and „bureaucracy“ are a burden on traders for cross-border trade.