The Trade Facilitation Agreement

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] (c) ensure that measures in the process of private sector trade facilitation reform are taken into account in ancillary activities; In light of this real-world review, developing and least developed countries wishing to take advantage of the benefits of the agreement could carefully consider the following recommendations: Each member establishes a national trade facilitation committee and/or designates an existing mechanism to facilitate internal coordination and implementation of the provisions of this Agreement. 2.

Each member cooperates, where possible and where possible, under conditions agreed with other members with whom it has a common border, in order to coordinate procedures at border crossing points to facilitate cross-border exchanges. This cooperation and coordination may include that, to the extent that the Trade Facilitation Agreement has been promoted as a non-binding document, instead of following a number of incentives for industry and development-oriented countries, it has left many developing and least developed countries with doubt that the most prosperous countries are fulfilling their obligations. Many African nations are wondering how this agreement can benefit them not only for international trade, but also for interregional trade. [7] As a result, many developing countries are still unable to fully commit to ratifying this agreement. Developed countries have demonstrated their commitment to the agreement because they are able to meet their requirements. However, many nations such as India and China have committed only 70-75% of measures to facilitate trade. [7] 7.1 In accordance with paragraph 7.3, economic operators who meet certain criteria, known as licensed economic operators, adopt additional trade facilitation measures in relation to import, export or transit formalities and procedures. In addition, a member may propose such trade facilitation measures under customs regimes, which are generally available to all economic operators, and is not required to put in place a separate system.